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The summary of many financial books: Work towards financial independence

The summary of many financial books: Work towards financial independence

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.

Read the article:
Get Rich Slowly! – [foldedspace.org]

Related Books:
The Richest Man In Babylon For Today : New Secrets For Building Wealth in The 21st Century
Creating Wealth
Your Money or Your Life
Rich Dad, Poor Dad

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Leon Ho

Founder of Lifehack

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Last Updated on March 29, 2021

Life Insurance: A Secure Way To Protect Your Future.

Life Insurance: A Secure Way To Protect Your Future.

Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

Importance of getting a life insurance

No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

Choosing the right insurance plan

If you’re about to select an insurance plan, you should consider some important factors:

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  • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
  • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
  • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

Differences between life insurance plans

Here’s a short brief of some plan categories you can choose according to your needs:

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  • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
  • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
  • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
  • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
  • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

So what are you waiting for? Plan for your future and live a happier and carefree life today.

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Featured photo credit: aryehsampson.com via aryehsampson.com

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