DO YOU KNOW ?
WHEN YOU WILL HAVE FINANCIAL SECURITY?
FIRST YOU HAVE TO UNDERSTAND THERE ARE TWO TYPES OF INCOME
1 ACTIVE INCOME
2 PASSIVE INCOME
ACTIVE INCOME
THE INCOME YOU RECEIVE AFTER PERFORMING A SERVICE FOR OTHER
HERE YOUR INCOMING MONEY DEPENDS ON NUMBER OF HOURS YOU WORK.
PASSIVE INCOME
THE INCOME YOU RECEIVE FROM YOUR INVESTMENTS.
HERE YOUR INCOMING MONEY DEPENDS ON YOUR INVESTMENTS LIKE STOCKS, BONDS, RENTAL PROPERTY, BUSINESS ETC.
WHAT IS FINANCIAL SECURITY?
THE STAGE WHEN YOU ARE NOT DEPENDENT ON YOUR ACTIVE INCOME.
WHEN YOU ARE INDEPENDENT OF YOUR ACTIVE INCOME?
WHEN YOUR PASSIVE INCOME STARTS FILLING YOUR MONTHLY EXPANSES.
WHAT THIS MEAN?
THE RETURNS YOU EARNED FROM INVESTMENTS LIKE STOCKS, REAL ESTATES, GOLD ETC. ARE GREATER THEN YOUR MONTHLY EXPENSES.
EXAMPLE:
MONTHLY EXPENSES: RS 25,000
YEARLY EXPENSES: RS 3 LAKHS
YOUR INVESTMENT PORTFOLIO: RS 50 LAKHS
AVERAGE RETURN PER YEAR: 10%
INCOME FROM INVESTMENTS PER YEAR: RS 5 LAKHS
5 LAKHS > 3 LAKHS
IN SUCH CONDITION YOU HAVE FINANCIAL SECURITY.
THE MORE YOU INVEST TODAY WITH PROPER KNOWLEDGE, THE MORE YOU WILL BE FREE TOMORROW.
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