There is a article surfaced from the Internet recently named “Get Rich Slowly!”. “Slowly?” you may ask. You may want to get rich quickly, but in reality usually get rich quickly falls into two category – Extremely high risk, or hrm, a scam.
The author J.D. summarize many financial planning books into four steps. And I want to summarize his summary to produce a juicy life tips:
- Step One: Prepare the Foundation. This is the step for eliminating debt, reducing spending, and finally increasing earnings.
- Step Two: Build the Framework. This is the step for establishing an emergency fund, maximizing your retirement investments and acquiring income-producing assets.
- Step Three: Finish Construction. To finish construction, you must patiance to acquire more incoming producing assets and wait for the results.
- Step Four: Move Into the “House”. This is the step of completion, the step of enjoyment.
The most important steps are step one and step two. You really have to be discipline on completing step one. For step two, after I have read couple of financial planning books, I agree on most of their theories on acquiring income-producing assets must be a passive income – An income that you don’t have to “work” with your hours to get it. That’s mean investment like stock, bonds or investing into properties. As you grow your asset portfolio and still have your own job, it would be really hard if it requires too much time to maintain it.