PASSIVE INCOME ... the secret of financial independence

Economics is about how you realise your dreams and achieve financial freedom. Can you get up in the morning, decide not to go for work and yet generate income? One of my friends in his thirties has already retired from active employment. He travels around Canada, educates teenagers on how to live life, enjoys his time on the beaches and leads a rich life-style. You can do so too, if you can generate what economists call “passive income”. What is it?

Passive income is income generated without you sweating for it! If you invest wisely in stocks or mutual funds, you can expect to generate income periodically. Income from Internet-related businesses is passive. Writing books and receiving royalty is another example of such income.

Why should you generate passive income? If you want to improve your life-style, you need to generate more income. This would mean asking your boss for a raise, which you are unlikely to get.

The alternative is to look for other ways of generating income. With a full-time job, you will have to generate such income without spending much time on it. Setting up streams of passive income is the most effective way to improve life-style.

Robert Kiyosaki, author of the best-selling book Rich Dad Poor Dad advocates buying assets ( assets are things which get money into ur pockets ) like house properties , business and generating positive cash flows. That is, the rent that you earn from the property should be more than the mortgage and other expenses that incur on the property every year.

You should have three-four different streams of income other than your salary. That way, you can achieve your financial freedom faster — just as my friend did at a young age of 35.

This is a way of achieving what u call financial independence. In his book the "cashflow quadrant " he has explained in depth about the various quadrants in which a man works. It shows wht is the major difference between a bussiness man , a ceo , and a doctor.It also highlights the importance of financial intelligence in life , we all get educated at schools & university ,, but very few people are able to get the financial knowledge .. if u think its boring ! have a second look . the robert explains it in his book ,im sure u will change ur mind once u have read it ! go ahead take the plunge .. i am sure u will come out smiling .

so decide ur quadrants . think about it .. and look out for assets . grab them and u can be one of the "rich dad".

THE LAW OF ABUNDANCE >>>BY UNCLE SCROOGE

The Law of Abundance- there is ample money for everyone who knows how to acquire it and keep it. We live in an abundant universe in which there is sufficient money for all who really want it and are willing obey the laws governing its acquisition.

You Can Have All You Want

There is plenty of money available to you. There is no real shortage. You can have virtually all you really want and need. We live in a generous universe and we are surrounded on all sides by blessings and opportunities to acquire all we truly desire. Your attitude, of either abundance or scarcity toward money, will have a major impact on whether you become rich or not.

Make a Decision

The first corollary of the Law of Abundance says that, "People become wealthy because they decide to become wealthy."

They become wealthy because they believe they have the ability to become wealthy. Because they believe this completely, they act accordingly. They consistently take the necessary actions that turn their beliefs into realities. And you can always tell what your beliefs really are by looking at your actions. There is no other way.

The second corollary of this law says: "People are poor because they have not yet decided to become rich."

Examine Your Own Thinking

In the book, The Instant Millionaire, by Mark Fisher, the old millionaire asks the boy who has sought his advice about becoming a millionaire, "Why aren't you rich already?"

This is an important question to ask yourself. However you answer this question will reveal a lot about yourself. Your answers will expose your self-limiting beliefs, your doubts, your fears, your excuses, your rationalizations and your justifications.

Review Your Reasons

Why aren't you rich already? Write down all the reasons you can think of. Go over your answers one by one with someone who knows you well and ask them for their opinion. You may be surprised to find that your reasons are mostly excuses that you have fallen in love with.

Whatever your reasons or excuses, you can now get rid of them. The world is full of hundreds and thousands of people who have had far more difficulties to overcome than you could ever imagine, and they've gone on to be successful anyway. So can you.

Action Exercises

Here are two things you can do to apply this law immediately:

First, imagine that every experience you have ever had with money contained a special lesson that was designed just for you to help you to ultimately become financially independent. What are the most important lessons you have learned so far?

Second, analyze yourself honestly and determine your biggest block, your major self-limiting belief that holds you back from becoming more successful financially. Resolve to act from now on as if this block no longer exists.