Time Freedom, Geographical Freedom and Financial Freedom

If you don’t know how to LEVERAGE, you may be working your way too hard…..

Before we go further into The Rich’s Playground, I would like to share some important words with you.

The keywords are: Active Income, Passive Income, Income Streams, Golden Goose, Cash Cow, Assets & Liabilities, Cashflow, ROI (Return on Investment), Leverage.

Active Income: Money that comes in when you personally involve in the activities or works that generate the money.

Passive Income: Money that comes in with your minimal effort in maintaining the income, though it may require a lot more hard work at the begining stage for this type of income.

Income Streams: If your only source of income is your job, it is time to look for additional income streams. YES, stream”s”, plural.

Preferably, MULTIPLE PASSIVE income streams through The Rich’s Playground.

The Parable of The Pipeline will provide you some brief idea of why income streams are important.

If you do not want to work hard all your life for earned income,start asking yourself how you can learn to work for passive and portfolio income.

Golden Goose: Most of us heard of “The Story of The Golden Goose” when we are very young (during childhood, most likely). If you own businesses/properties/assets that pays you annual ROI that is more than the inflation rate, you can consider that as a good golden goose.

Cash Cow: Imagine you own the toll operating company that owns the rights to collect toll fees 24/7 for you. I think this would be the best illustration for the term “Cash Cow”.

The other keywords (Assets & Liabilities, Cashflow, ROI (Return on Investment), Leverage) will be discussed in next article.

This entry was posted on Wednesday, February 4th, 2009 at 12:28 am and is filed under Freedom. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.