Smart ways to invest and attain early financial freedom

Jun

29

2012

A recent research on how the top 400 rich people in US made their money makes interesting reading. The data spanning a period of 1992-2007 showed that the richest 400 in the US made their money though: Wages and salaries: 8.6% Interest: 6.6% Dividends: 13%

Jan

13

2012

Passive income as a concept is easy to understand – “it means getting a cash inflow every month without working for it” - passive income unlike active income does not depend on your effort –we all work for 8 hours or more a day - for 25 days a month and then we get a salary cheque – passive income comes every month without your working for it - a good example is rental income  - the rental cheque comes every month whether you are going to office or not.Now imagine if your monthly living expense is Rs 50,000 and your monthly passive income is also Rs 50,000. Wouldn’t that be an ideal situation? I am sure you’ll agree that this is a good situation to have.
Not always. There are factors beyond just financial literacy. Let me explain.There was a recent report of a study done at University of Pennsylvania that shows that there is a big downside in getting financially intelligent – as per this study, “financial intelligence increases the confidence levels of the investor and it leads to him making worse investing decisions.” In a 2005 survey, 65% Americans believed they were 'very' or 'highly' knowledgeable about personal finance, although they performed abysmally on objective questions about the subject.
The content given here was was part of the last class that we had – where in I shared my views that Wealth is not really something physical – it is a way of life - a way of thinking – if you can understand this and then work towards thinking and operating the way the wealthy operate – in time, you will also become wealthy - as wealth will come to you.People who have wealth use their time to create three things – 1.       A