This is one of my longer articles and below you can get a quick overview of the article’s main points
- The idea is to differentiate between the three different ways to make money
- The faster you can transform the income of salary to the capital, the richer you will become over time
- Your money is better at making money than you and I will ever be
- To resolve this issue, “pay the Bills at the end of the month” for the long term rather than short-sighted by a job
- The basic principle is: make money → save money → invest money → get rich and consume for the return of your money does for you.
- Much of what you hear out there does not work in practice, I know I have (unfortunately) tested the most
Making artworks are not my strong suit, but below is an attempt at how such a system might look like in general terms:
In the first stage, the aim is to organize their lives and their personal finances wisely. I think that some of the money that you earn will go to yourself – that is, the actual saving of money. First and foremost to a buffer and in the next step to your Fund Portfolio. In the Fund portfolio do you invest the money and gets them to work for you thanks to the interest-on-interest rate policy.
In parallel is my proposal to use some of your time, energy and talent do you use to begin building a system or a water pipe that can make money for you when you’re sleeping, it called for a passive income. The passive income reinvest you also in your portfolio – and vice versa, if necessary. When you have gotten this to work in a few years, then you can use some of the proceeds to consume beyond what you need to get your life to go around, then we finance it through our payroll.
Let the system work a number of years (10-20 years) and you can most likely to retire (even if you choose to keep working and just is 40-50 years old). Then the arrow in the Middle so that you can safely ignore the arrows from yourself to the portfolio, or system. The tree has been so strong and big that you no longer need. It’s simple, but it is not easy. But I claim that the trip is definitely worth it.