The Morning Eclipse

Thursday, April 16, 2009

There's an easy way to retire!

This article is heavily inspired by Robert Kiosaki's books of Rich Dad Poor Dad and Cashflow 101. Thanks to his enlighteningly simple idea, the future is now brighter, simpler and within grasp.

To retire is divine! But to retire, you must have cash to enjoy it or at least possess the same amount of disposable income as you have now.

The secret is this: You must have a parallel source of income equal to your day job's income. This way, even if you resign from work, your backup income will still support your standard of living.

Sounds easy and yet something's missing... Here's the key. The backup income is called Passive Income. It is passive because it is money that is earned but is not primarily relied upon.

The best way to increase passive income is to make money work for you. Let money make more money! :D The most common way is rental income, stock market or (though I frown upon it) network marketing.

These three don't require your own hand's to earn money.

Rental Income. So simple. Buy a property and rent it out. Your capital earns for you but the downside is the return is small.

Stock Market. The epitome of the capitalist economy! Here your money can magically mulitply by a thousand in a matter of seconds. Again the downside is it's too quick to go south also. Courtesty plug: Read up on jonatsgonats' ( stock analyses to help you choose the correct stocks.

Network Marketing. This requires initial hardwork as you build up your network. Once you have enough hardworking people under your network, you can stop recruiting and just wait for the bucks to come in. Sadly, the rules are sometimes complex and there are hundreds of fraudulent companies claiming to be legitimate ones. Because of this, I'd rather not encourage you to go further less you fall to pyramiding schemes.

Now, doing the three maybe simple but you may complain that the return is not worth your time.

Second factor to retiring is CASHFLOW. Increase your passive income from zero to something. Each Peso helps. No matter how small the passive income is, it is a start and don't forget, money is a magnet for more money. That's the law! It is true and you'll realize it.

Now that you've seen the light. Time to take action and incrase that passive income!

Success is 1% inspiration and 99% perspiration. Never tire.