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WHEN YOU WILL HAVE FINANCIAL SECURITY ?

 

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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SOLUTIONS OF FINANCIAL MISTAKES

SOLUTIONS OF FINANCIAL MISTAKES
THE EARLY YOU START YOUR FINANCIAL PLANNING, THE BETTER IT IS.
FINANCIAL PLANNING IS NOT STANDARDS. IT’S PERSONAL!

BUYING LIABILITIES
ASSET IS SOMETHING THAT PUTS MONEY IN YOUR POCKET.
FOR EXAMPLE INVESTMENT, REAL ESTATES, A BUSINESS, PRODUCTS LIKE BOOKS OR ART, OR THE DIVIDENDS FROM STOCK AND BOND INVESTMENT.

POORLY USING CREDIT CARDS
CREDIT CARD CAN BE SMARTLY USED.
YOU CAN USE IT GET UPTO 50 DAYS INTEREST FREE LOAN.
CREDIT CARD CAN BE USED IN EMERGENCY SITUATIONS.
IT CAN BE USED TO IMPROVE CREDIT SCORE.

BUYING TOO MUCH GOLD
ROBERT KIYOSAKI PROMOTES BUYING GOLD, BUT WARREN BUFFET ADVISES AGAINST IT.
SO, BUYING GOLD OR NOT AND IF YES, HOW MUCH DEPENDS ON YOUR FUTURE GOALS AND RISK TAKING ABILITY.

MONEY LYING IDLE IN BANKS
MOST OF US ARE YOUNG. IN THIS AGE, WE CAN AFFORD TO TAKE SOME EXTRA RISK.
WE SHOULD INVEST IN STOCKS, MUTUAL FUNDS(FROM INDEX FUNDS TO LIQUID FUNDS), ETF’s DEPENDING ON PERSONAL GOALS AND REQUIREMENT RATHER THAN PLAYING SAFE.

PUTTING ALL EGGS IN ONE BASKET
LOOK OR EVERY INVESTMENT OPPORTUNITY POSSIBLE. INVEST IN WHAT SUITS YOU BEST. NEVER PUT ALL EGGS IN ONE BASKET.
YOU CAN DIVIDE MONEY FOR EMERGENCY FUND, FD, CASH IN SAVINGS ACCOUNT, INVESTMENT IN STOCKS, MUTUAL FUNDS, BONDS, REAL ESTATE ETC.

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THE LEVELS OF FINANCIAL FREEDOM

THE LEVELS OF FINANCIAL FREEDOM

 LEVEL 6 : ABUNDANCE

(INVESTMENT CASH FLOW >> ANYTHING YOU WANT)

LEVEL 5 : INDEPENDENCE
(INVESTMENT CASH FLOW = LIVING COST)

LEVEL 4 : SECURITY
(INVESTMENT CASH FLOW = SURVIVAL EXPENSES)

LEVEL 3: DEBT FREEDOM
(FREE OF DEBT & START INVESTING)

LEVEL 2 : STABILITY
(LIVING EXPENSES = INCOME) + EMERGENCY FUND

LEVEL 1 : SOLVENCY
(DEBT/LIVING EXPENSES = INCOME)

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4 BIGGEST FINANCIAL MISTAKES AND HOW TO AVOID THEM

4 BIGGEST FINANCIAL MISTAKES
YOU SHOULD AVOID MAKING THESE
 

AGE 20: NOT INVESTING EARLIER

 AGE 30: NOT BUILDING OTHER INCOME STREAMS
 AGE 40: NOT PAYING OFF DEBT EARLIER
 AGE 50: NOT SAVING ENOUGH FOR RETIREMENT

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