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Subject of Wealth Building

By madhu on November 11, 2016
I am a firm believer in Financial freedom and to achieve that you need to create wealth from the day you start earning 1. Your Retirement Goals Are a Mistake. The biggest mistake retirees make is giving up their active income. By active income, I mean money you make through your labour or through a […]

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I am a firm believer in Financial freedom and to achieve that you need to create wealth from the day you start earning

1. Your Retirement Goals Are a Mistake.

The biggest mistake retirees make is giving up their active income. By active income, I mean money you make through your labour or through a business you own. Passive income, on the other hand, is what you get from Social Security, a pension, or a retirement account. #retirement

Don’t give up on the idea of retirement just think of retirement differently, think of the 80:20 Principle. Instead of spending 80% of your time working for money and 20% having fun, you can spend 20% of your time working (why not make it a new venture you've been daydreaming of or a second career?) and 80% having fun—and be free from financial worries.

2. If You Chase Yield, You'll Lose

The most important factor in wealth building is not the return on your investment...but the accumulation of net investable wealth (NIW). NIW is the amount of money you're able to devote to investing after you've paid for all your regular expenses—your car, home, debts, and loans.#investment

This is why the intelligent wealth builder devotes the lion's share of his savings to increasing his income and having realistic goals - market averages plus or minus 10%. Invest more and have lesser idle savings.

3. Pinching Pennies Won't Make You Richer or HappierSpending money prudently is an economic virtue, but being stingy—i.e., paying less than market value for goods or services simply because you can—is a flaw. The rich man who under-tips, does so because he is simply a cheapskate and not because he has learned the value of money. It's as simple as that.

I tell you this to emphasize a key part of the simple money-management system I've used to generate millions in wealth...

I don't believe in scrimping severely to optimize savings. I believe you can live a rich life while you grow rich, so long as you are willing to work hard and you are smart about your spending.

Contact me today at loans@financeandmortgage.com.au to get wealthy.

 

Article written by madhu

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