“The plans of the diligent lead surely to plenty, but those of everyone who is hasty, surely to poverty.” ~ Proverbs
Now we have a vision of achieving financial success, I am going to suggest these following milestones as a checklist to work towards achieving financial success and becoming good stewards.
Step 1: Accumulate Liquid assets worth 6 month of monthly expenses for security and purchase insurance to cover accidents and hospital bills. – The first step requires you to be able to survive crisis. I got this from a few reference and one of them is the financial pyramid where the bottom is Financial Protection. To achieve this, you got to first find out how much you need on a monthly basis!
Step 2: Create Passive Income worth 10% of current expenses
Step 3: Passive Income 50% of current expenses
Step 4: Passive Income 80% of current expenses
Step 5: Passive Income 100% of current expenses
Step 6: Passive Income 100% of dream expenses
This is one way to tracking yourself and celebrating at each level. The journey of a thousand miles begin with a single step. If you are already beyond step 1, congratulations. If you are not started yet, congrats for getting started. For me to complete step 1 (accumulate 6 months of liquid assets, took me almost 2 years, and to reach step 3 took me another 2 years. But subsequently things begin to move much faster to due to compounding effects.
I will share more in the next post on practical steps to take to achieve each level! You should also join us at our workshop to learn how we create passive income and accumulate wealth in the time tested way – Value Investing!
To your dreams,
Mind Kinesis Research Team