As I was browsing some sites on personal financials, investment, etc, I came across an article about financial independence and since I know my beloved friends are like the White Rabbit , I summarized it for you with the hope that you take some time off to read it and share its wisdom with others:
8 Secrets To Achieving Financial Independence
1.Income Is Not Wealth
Wealth is the part of your net worth (asset minus liabilities) that generates capital gains, income and dividend without your labour.
2. You Must Have Surplus Funds To Invest
The only way to have more money left over at the end of the month is to either increase revenue or decrease costs.
3. Taxes Matter - A Lot
The basic premise is that those with little or no wealth generates a lot of taxable income, while those who end up financially independent generate large unrealized gains in the form of real estate appreciation, unrealized capital gains and profits made through tax-advantaged accounts.
4. True Wealth Is Control Over Your Time
You are truly wealthy when you have complete control over how you spend your day, i.e. by doing what you love. As the blog suggests, you should feel like you are unwrapping a Christmas gift when you turn the key into your office every morning. (AB: I know HL, I know,...This was what you have been nag, I mean telling me...)
5. Grades Have No Correlation With Wealth And Financial Independence
Creative intelligence can push you further in life rather than relying solely on artificial intelligence. According to a study, the grades earned in school have no correlation with economic wealth and success other than in the medical & legal profession. (AB: A penny for your thoughts, legal eagles?)
6. Financial Intelligence Takes A Complimentary Spouse
No matter how successful you are, unless your spouse is equally disciplined, frugal and investment-oriented, your efforts towards a better, financially independent life are going to be like struggling in quicksand. (AB: Bart, looks like we have to put the 24-70mm f2.8 and the 70-200mm f4 L lens on hold, dear.. hehehe)
7. Niche Markets Aren't Glamorous - But They Are Lucrative
Did you know that most of the big money is in industries such as waste management, pizza, clothing stores and candles?! Highly paid professionals tend to be pressured to buy status symbols to convince people that they are successful. As a result, the will put less money into their retirement account. (AB: Makes a lot of sense.)
8. Support Your Productive children, Not The Losers
Parents who want their children to be financially independent should give more to their children who successfully invested and grew their wealth. "You are a damn fool if you give more to the unsuccessful ones because you have successfully managed to effectively turn them into a financial and credit junkie. It is unlikely they will get over their addiction. You become, in effect, a crack dealer providing one more hit". (AB: Ouch. Not that I have any kids yet, but I think this will put more stress on a luckless, underachieving kid.)
The article can be found here in detail.
I'm gonna whip up my calculator and buku 555 now...
2 comments:
Interesting read.....hmmm....shopping malls...here i cum!
Err, A, not "goodbye"? ... hehehe
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