Great that you are reading this. Starting from this Part 1, I will share in a very practical way how you can GENERATE PASSIVE INCOME and be financially free.
I was training about 120 airforce personnels this afternoon and when I shared that I could stop work any time and still get paid, most of them stared blankly into space and one of them ask me “How is that possible?”.
Ask yourself these 2 questions – “Do you know what is the inflation rate in Singapore or in your own country?”, “What did you do with your savings after you get your pay-cheque?” & “What is your annual increment in your pay?”, “How much your money working for you in your bank?”
Got your answers? If not, let me share with you some of the data that I have obtained:
1. Singapore’s inflation rose unexpectedly to 5.4% y-o-y in July (vs. 5.2% in June) driven by costlier housing, transport and food.
2. For an average Singaporean, average annual increment is 3%
3. Bank generate annual interests of less than 1% Eg. Fixed Deposits.
Based on the above points, are you making enough money to pay for inflation? NO. If not, what happens to you and your money? The answers are brutal: 1) You become poorer each day because whatever you make or save is insufficient to cover the rose of goods, 2) Your money depreciates across time which means a dollar today will worth less a few years down the road.
Next question – “What are you going to do about it?” & if you are seriously about becoming FINANCIALLY FREE, “How?”
But wait …….. who the HECK IS CAYDEN and why should I be taking his ideas? Read about me:
2) I am the Founder of Value Investing Academy, the 1ST Value Investing Academy in Singapore with a 1ST Value Investing Programme that is Recommended by Mary Buffett, Internationally Acclaimed Author & Speaker of International Best Sellers such as “Buffettology”, “New Buffettology”, “Tao of Warren Buffett”, “Management Secrets of Warren Buffett”, etc.
3) I AM FINANCIALLY FREE!!!
CONVINCED? Are you READY? Across a few Blogs, I am going to share with you HOW YOU CAN DO IT TOO!
I am going to share with you all my personal experiences and how you can apply in your real life and these are the SECRETS
SECRET #1 – Poor People Buy Liabilities, Rich People Buy Assets
Look at your what is left of your pay cheque every month. Do you noticed that most have been spent on things like car, mortgages, transport, food, clothing, education, family ….. and the list goes on. So what are things such as Cars, House, Boats, Planes, etc.? These are called LIABILITIES. What are liabilities? Liabilities are things that TAKE MONEY AWAY from your pocket. So is your house a Liability? Ask this question – Is the house paying you or are you paying for the house? You are paying for the house, it’s a Liability. So what makes a person poorer? Every time they get a pay cheque, they buy Liabilities. They more they buy Liabilities, the more the expenses that you have to pay and the poorer they get.
So what do the Rich do? They buy ASSETS. So what are assets. In simple terms, assets are things that PUT MONEY INTO your pocket. So what are examples of assets? I have listed some here:
1) Properties – if they give you some form of rental income
2) Business – Eg. Insurance, Real Estate, Direct Selling (provided you are at the upline), franchises, etc.
3) Books – royalties
4) Education – put to use what you have learnt
5) Stocks/Shares – Capital appreciation & dividends
… and so on.
There is no ‘which one is better?’. It all depends on what is your interest/passion and you are willing to learn that set of skills.
If you constantly and consistently purchase assets, you will have more and more CASH coming in and when these CASH or PASSIVE INCOME EXCEEDS your TOTAL EXPENSES, you are FINANCIALLY FREE or FINANCIALLY INDEPENDENT!
So how do you get started to generate your FIRST SOURCE OF PASSIVE INCOME?
I am going to share more SECRETS in PART 2 of my BLOG. A SNEAK PREVIEW is available at www.facebook.com/valueinvestingacademy. “Like” us and get 2 Investment EBooks and Our Exclusive Interview with Mary Buffett.
Do come and join us for our free workshop show you how turn this time into the chance of a life time to be wealthy and financially free!
Founder & Director, Mind Kinesis Management International
Lifelong Learner Award 2008 Honouree
Co-author, “Do You Have What It Takes To Be BOSS?”
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