November 7, 2006
I shall now continue from where I left off from the previous post. Many may not realize, but money is one of the most important subjects to study in your entire life. Some of life’s greatest enjoyments and most of life’s greatest disappointments stem from the decisions you make about money. Whether you experience great peace of mind or constant anxiety is dependent on the extent you get your finances under control. Similarly, your relationships can be affected by money decisions too. So many divorces have happened because of disagreements over money.
Hence, understanding how the game of money is played can be crucial to maintaining your success, relationships and happiness. Do not underestimate this skill, as it’s one thing which is severely lacking in most people today. They do not invest their money wisely and rely on only one stream of income.
As I mentioned in the previous post, it’s dangerous to do so. As much as people are skeptical about owning a business, there’s one thing that almost all of the wealthiest men in the world have in common. No, they do not work ten times harder. But simply ,they own a business. And most of them have multiple streams of income.
So the next question is, how do you go about building multiple streams of income? Firstly, you must differentiate between active and passive forms of income.
Active income is what most people are earning, whereby it requires you to actively work for it. If you were to stop working one day, you do not earn any income.
Passive income refers to income you will continue to receive even after you stop working. This could include interest, dividends, royalties and profits from a business. Hence, it is certainly the more lucrative form of income, and we should all focus on building passive form of income streams.
After reading Adam Khoo’s Secrets of Self-Made Millionaires, I discovered a relatively easy way of building a passive income stream in terms of setting an online business. Similarly, Robert Allen “Multiple Streams of Income” also list it as one of its “money mountains”.
One thing I found out after reading these two books was that many people have been quietly earning money from the comfort of their own homes. Determined to find out the truth, I spent 3 months and thousand over dollars researching on the various methods one can create income online.
Hence, I hope to share the various techniques one can employ to build for themselves multiple streams of online income. Be sure to stay tuned for more internet marketing tips!
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WealthPopularity: 9% [?]
November 5, 2006
If you have not read the book “Multiple Streams of Income” by Robert Allen, I suggest you go read it. It’s really a good book about the concept of wealth. Let me share with you something which is thought provoking and mentioned in the introduction of his book.
You see, most people will earn at least $25,000 a year. If you were to do the math, more than $1 million will flow through your fingers. Hence, the good news is, we’re all already on track to becoming a millionaires. But the question is, ‘why do so few people ever become a millionaire?’ Simply because most people end up spending almost that they’ve earned. And hence, most retire with little savings.
The reason can be attributed to the fact that nobody teaches us about money. In school, we’re forced to take several compulsory subjects. No doubt it helps in providing a more wholesome education. But we receive no formal education in the most critical of all life skills: how to become financially successful!
You see, it’s not about how much money you earn, but how well you’re able to manage your money that will determine your wealth. Yet, we weren’t taught how to manage money in school.
Chances are, we picked up these skills from our parents and people around us. Most people will teach you to study hard and get a good job. They will say things like investing is risky and running a business is risky. Don’t you think this greatly stifles the creativity and entrepreneurial spirit in people? As such, even when we’ve profitable ideas in our head, we are often deterred by these thoughts that keep ringing in our heads.
Here’s a shocking fact: Today, managers over the age of 45 are fast getting retrenched and many have failed to find employment thereafter. How would you feel if you were to place your wealth and future in others’ hands only to be informed that you just got retrenched. What are your loved ones and children going to do? Can’t possibly let them starve right? If you happen to have some savings, then you might still survive for a few months.
But the shocking thing is, most ppl do not even have savings to cover their expenses for three months. Not to mention if they have other streams of income.
On the other hand, how would you feel if you’ve built for yourself multiple streams of income. If one stream were to stop, you do not have to worry as you have other streams to depend on. Your spouse does not have to bear the extra burden and your children do not have to suffer.
Hence, this all points to the importance of building multiple streams of income for ourselves. If you do not think of yourself, at least think of your loved ones.
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Tag:
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WealthPopularity: 9% [?]
