Earning income from financial products is a core goal of investing and a path to building wealth. It generally falls into two main categories: Capital Growth (earning by selling an asset for more than you paid) and Cash Flow (earning regular payments while you own the asset).
Posts tagged as “active income”
I am always thinking about the best way to deploy our family capital to earn passive income for my family. But, it is not that easy!
In this article, I am trying to explain when is living on passive income possible as my family was transitioning from one lifestyle to another.
Early retirement will be possible for me and my wife in a few years in our early 40s with appropriate Cash Flows from our investments.
I have been managing our family finance a private wealth manager for over a decade. Here is a brief summary of our family finance.
This article is about my investment principles which are fairly simple. It is all about making safe investments for my money and stable growth.
I have finally managed to simplify and visualize The Wealth Building Machine boiling down the whole process of growing Net Worth to just one page.
I am building the money-making machine – growing the snowball by accumulating new cash and old cash from active income and passive income.
My family has a family budget just about the same as businesses have corporate budgets. I use final accounts in a very similar same way to business finance.
In addition to Active Income, we invest all our savings into four money-generating asset classes to earn Passive Income.
As personal managers of our own life and business managers of our companies, each and every one of us should plan future finances to some degree – do budgeting.
Budgeting is important for having clear financial situation. Create a simple budget and system to follow it, if you do not have one already.
At this stage of my life, me and my wife are focused on ‘systematic and continuous wealth building’.