Passive Income Myth

I’m sure many of us have bought into the idea of passive income. After all, who wants to exchange their limited time for money? I’d rather travel the world, see places, relax with lemon tea by the beach than answer phones calls or bang away at the laptop.

Granted that there are a small minority that managed to do that after building up a lump of assets and then hiring someone to managed the money conservatively. Many are dot comers who worked their tails off, took significant financial risk, hit the market right and then sold off their companies for a ton of money. If you are this type of personality, you probably won’t be satisfied just sitting around. With money in the bank, quite a few now want to make the world a better place. Kudos to you. That too, you still need to over see that person. For the rest of us trying to build up passive income, is the destination just a myth?

I know of someone who bought a fair bit of assets and also teaches about personal finance & financial freedom etc. Lately due to changes beyond his control, he decided to liquidate. Although he will end up ahead compared to when he started, he said and I quote “even with passive income, you’ll need to monitor changes that happen in the marketplace”. Yep, the market does not remain stagnant. I sure as a property investor, you’ll need to be on top of the market, new property coming into market, movement of renters, changes in interest rate etc. All this reading and keeping tabs with the market don’t sound all that passive to me. Granted it is leveraged effort.

Let’s take a look at creating online passive income. In the online world, changes happen even faster. There are quite a few ways to get online income. Very few, if any are as passive as you would like it to be. If you are selling stuff online, you have to have customer service. If you go the affiliate or advertisement supported way, changes to affiliate program or ad rates will effect your income. You will need people to manage and maintain your sites although this can be outsourced, this means hiring and managing people to a certain extent. Again is leveraged but hardly passive.

Franchise? Which ever end of the franchise whether you are a franchisor or franchisee, you’ll need to be rather active I think. While the passive income idea is a great, the idea that most people are sold, that they never need to lift a finger ever again, is a fallacy. It is great to have people work for you, if they produce more than the headache they bring. Finding, training and retaining such employees or outsourced staff is work too. The work is just different.

Have you been bitten by the passive income bug too? What did you realize when you woke up? Share your story here.

How to Grow Your Money

How many of you wanted to achieve financial freedom? Do you know that about 70% of Malaysian has financial difficulty after their retirement? There are actually a lot of ways to grow your money and to achieve financial freedom. But what are the secrets? Today, I shall share with you a few tips that I have found and practice on my search to grow my money. Most of these tips may look simple but are what I believe the top millionaires have used.

If you want to grow your money, start to grow it now. Not next month, not tomorrow but start today and use time to your advantage for the compounded growth. The longer the time horizon, the better for you and it actually lowers your risk too. Some people have no qualms about spending a little here and a little there but fail to realize that these small amounts can be huge amount in the long run. Each ringgit you save now is like laying a brick for your financial fortress. Therefore, the more you save, the faster you grow your money. A lot of people have the belief that they need to have a large sum of money to begin growing it. That’s nonsense. Many wealthy people are what they are today by starting small. Do not underestimate the power of starting small amounts saved and invested over long term. A few ringgit saved daily can means a lot. You must also cultivate the habit of saving and investing regularly. Do not save or invest once or twice a year. Do your best to save and invest monthly and practice good money management.

You can also attend courses, read books, magazines, even websites or go for seminars to effectively increase your knowledge on how to grow your money. The more you know about money, how it works and how to handle it, the easier for you to manage it. So do not stop learning.

Study loans, credit cards, personal loans, mortgages, overdrafts, you name it and they are all debt. To be financially free, get rid of your debt, no matter how small, always has interest working against you. Unless you can get significantly higher returns on your money, in other words, it can help you generate passive or residual income, if not, it is better to clear off your debt first. Imagine yourself without owing anyone any money, like your house, your car etc.

This is one of the best pieces of advice I heard. If shopping is what you like to do and you want to grow money, stop what you are doing. Instead of buying products, buy the company i.e. buy their stock. A study has shown that majority of wealthy people save and invest at least 25% of their earned income. It is not because they are rich; this is the REASON why they are rich. Remember “buy stocks not products”.

Do you often read about rich and successful people and hope that you will be like them one day? Take it a step further. Study them and find out how they grow and manage their money. Model after them. Unless Your parents Are Wealthy, Don’t Follow What They Did, chances are you will not be wealthy as well if you followed what they do with money or money advices they gave you. If you want to be financially independent, break out from the practices and money management habits of your parents.

A country need to have proper financial management to determine the in/out flow of money to ensure better economy. A company needs to have proper financial management to ensure business sustainability. Finally, individuals need to apply personal finance to prevent money problems from happening to you. The no.1 stress is money; do you want to be stress free? If you would say “YES”. Start now. While I cannot guarantee that you will be wealthy if you follow these tips but I am confident that your will be richer person than what you are now.

Hints And Tips For Saving Money With Loan Calculators

When most people think of simple loan calculators, what comes to mind is usually basic information that is not particularly interesting or beneficial. But there is a lot more to simple loan calculators than just the basics.

There are a number of other calculators available as far as loan calculators go. It all comes down to the specific organization. A mortgage loan calculator is an automated tool used to calculate the implications of a mortgage loan given the amount of loan, the interest rate and tenure of the loan. Initially borrowers were required to use the compound interest table to know the figures of a mortgage arrangement. The free facility of online loan calculator provided by various websites can help you get an estimate of your monthly payments. The online technique of applying for low interest debt consolidation loan is simple, quick and puts an end to enormous paper work.

Loan calculators are relevant to unsecured loans and can be used to determine if the loan is compatible with a low cost budget. Loan calculator will help you to calculate your mortgage. The tool can be used free of charge and provides almost instant results. Loan calculator lists the APR being offered by a multitude of lenders. This can be used to learn about the interest rate that homeowners get personal loans on.

If you base what you do on inaccurate information about simple loan calculators, you might be unpleasantly surprised by the consequences. Make sure you get the whole loan calculator story from informed sources.

Loan calculators can also help you compute the tax benefits that you can derive when you take a home or student loan. There are different loan calculators available for different types of loans like student loans, home loans, mortgage loans, personal, etc.

A loan calculator is available for free on many loan websites. They contain a few fields like the loan amount, interest rate, payback time etc. Do yourself a favour and learn how to use a home improvement loan calculator. This can give you a good head start on getting a great home improvement loan.

Now that was not hard at all, was it? And you've earned a wealth of knowledge, just from taking some time to study an expert's word on simple loan calculators.