You Need Two Jobs

Working to get income means working for our company. Working to pay tax means working for the Government. Working to pay our liabilities means working for the bank. We should work for ourselves!

In 1974 Ray Kroc, the founder of McDonald’s stunned the world when he said, "My business is actually real estate and not hamburgers!” Today many people know that McDonald's make more money in real estate than selling burgers. That is their actual business.

Now, in order to be rich we need to look for another job for our money to work, while doing our daily work. That should be our actual business, not our day job.

Money working at the bank's time deposit account will get only a very low pay of only 3% a year with no other benefits.

Money working at properties may get paid about 10% a year in rental plus high bonuses in terms of appreciation.

Money working at the stock market may get dividends, bonuses in the form of capital appreciation and other benefits such are rights and bonus issues.

Money working at a business as capital will get paid in profits.

Find a job for your money today. That's how the rich do it.

Get a good job for your money today.

The Only Way to Retire

Asset means residual income.

Yes, for those of you who are still not sure exactly what assets are all about; assets put money into your pocket. That is what residual income does!

Residual income simply means that you are getting paid many times for doing work once.

Elvis Presley went into the recording studio once and gets paid each time his album is bought. And that means millions of times.

Walt Disney makes Pirates of the Caribbean once and each time it is screened anywhere on the planet they get paid.

You buy a piece of property once and you get rental each month for a very long time.

Warren Buffett studied hard to find a good company's shares to buy at a cheap price and he is rewarded with high dividends and capital gains year after year.

Bill Gates licensed his software to IBM and many other organizations and individuals including you and me. He also gets paid millions of times.

JK Rowling writes a book on Harry Potter and gets paid millions of times.

Internet marketing gurus sell products and services over the internet and get income over and over again.

Network marketers can have hundreds or thousands of down line associates working for them while they sleep and generate millions in residual income.

Businessmen and industrialists generate profits by having money as well as people working for them.

Assets generate residual income.

Breaking the Three Generations Curse

You may not have heard of it but the "three generations curse" is a proverb in Asian countries, particularly among the Chinese. The first generation earns it, the second accumulates it and the third spends it. It is no less true in the west although we may not have a fancy name for it.

Some are lucky to be born on the right side of the coin but they never figured out the way to get there.

They soon find themselves back on the wrong side of the coin. And because they have not figured it out they plunged back into the rat race reserved for the poor and middle class.

The way to break free of the three generations curse is just to accumulate assets! With assets you gain back your financial freedom. And thereby regain your time freedom.

You can break the "three generations curse" by acquiring and accumulating assets.

Eighth Wonder of the World

Albert Einstein once said that the eighth wonder of the world is compound interest. He also says that it is the greatest mathematical discovery of all time!

The simplest way to riches is to save and invest. Save. Invest. Save. Invest. It might be boring but I'm sure you have heard of some old, uneducated ladies who have gotten rich just doing this. They beat some college professors with their sophisticated methods. Einstein was right.

$10 a day can grow into a million...

in 74 years with a time deposit rate of only 3%.
in 34 years with a good property investment rate of 10%.
in 20 years with a good stock market dividend and capital gains rate of 20%.

Our parents were right when they said, "Live on less than you earn. Invest the surplus. Avoid debt. Build long-term security." It is not the exciting get-rich-quick rabbit but the tortoise laughs slowly all the way to the bank. Einstein foresaw it.

The eighth wonder of the world is compound interest.

Red Line

The maximum speed your car can go is up to the red line on your speedometer. If you go faster than that your engine may blow up.

Many people, including the rich, operate their finances constantly at the red line. They spend money as fast as it comes in.

Earn $800, take a bus
Earn $1,000, get a small car
Earn $1,500, get a medium-sized car
Earn $2,000, buy a condominium
Earn $2,500, change into a bigger car
Earn $3,000, get married
Earn $3,500, have kids
Earn $4,000, change the house
Earn $4,500, spend more credit card
Earn $5,000, time to change car again
Earn $5,500, buy a more decent house
Earn $6,000, buy a golf membership

Not enough money? Do overtime, get a second job, do network marketing.

When they reach retirement age they still don't have any assets.

Doctors say the problem today is stress caused by working too hard and not having enough money. One doctor says that the biggest cause of health disorders is "cancer of the wallet". When people feel financial anxiety what do they do? They hurry off to work and work hard. Or, they shop for house or car to buy or go play golf.

More money will not solve the problem, if cashflow management is the problem.

You will have no money left to buy assets if you live constantly on the red line.

The Difference

Do you know the difference between the poor and the middle class?

The poor have expenses only. He does not qualify for any liabilities like housing loan, car loan or credit card. Whatever the poor earns as income is fully used to pay his bills and expenses. The poor live in fear of losing money, try to be cheap and live frugally.

The middle class have liabilities besides expenses. The middle class guy even thinks that some of his liabilities are assets, that is, his house and his car.

If we have more money but increase our expenses and liabilities, we won’t be rich. The rich, poor and middle class go broke because they lose control of their expenses.

The following is a survey done by the US Dept of Health, Education and Welfare. By the age of 65, for every 100 people...

36 are dead
54 are living on government or family support
5 are still forced to work
4 are well off
1 is wealthy

The middle class have liabilities besides expenses.

Secret of the Rich

The rich have assets.

What exactly is an asset? An asset is something that puts money in your pocket. Examples of assets are real estate or property, stocks and shares, mutual funds or unit trusts, time deposits or fixed deposits, bonds and business.

The rich have real estate that give them rental income.
The rich have stocks that give them dividends.
The rich have mutual funds that also give them dividends.
The rich have time deposits and bonds that give them interest.
The rich have business that generates profits.

The rich became rich because they build up their assets.
The rich stay that way because they keep accumulating assets.

Your house is not an asset because it does not generate income or put money into your pocket. Even paying it up fully does not make it an asset.

The rich have assets.