If you look at international magazines like The Economist... They are all writing about the end of retirement.
Retirees are going back to work as they are uncertain if they have enough money to survive till they die. At the same time there is hardly any job security anymore.
There has to be a better way of achieving Financial Freedom (FF). According to Robert Kiyosaki, author of Rich Dad, Poor Dad. We should invest in the four different assets class, Paper Asset (PA), Business (Biz), Real Estate (RE) and Commodities to create multiple streams of passive income.
If you study the teachings of the various millionaires, their formula to riches and success is moderately straight forward and systemized.
The problem lies in the fact that 90% of the people are looking for Get-Rich-Quick investments. The sad truth is that majority of these are usually scams.
Robert Kiyosaki says achieving financial freedom is a journey of learning, discovering yourself and increasing your financial intelligence.
At Cashflow Warrior Academy we have systemised the teachings of our world mentors into a workable plan for you to achieve your financial freedom in 5-10years. We follow the following definition of Financial Freedom
As you can see from the equation the key to your FF is simply to create enough passive income so that it is more than your expenses.
Hence it is simply identifying exactly what are your expenses. Based on your current or desired lifestyle, you will now know what amount you need to achieve.
Identifying your expenses is your first step and can be very emotional to some, especially if you have a lot of debt. I know this because I have been in the same situation before. When you know that your debt is very high, you have a natural tendency to avoid it. Have no worries as it is our basic instinct to go with what is comfortable and avoid uncomfortable things.
But this big step is about knowing where you are now and facing the Truth about yourself and your financial situation. Hence only by taking this step can you set your realistic plan to financial freedom. This will help you create a starting point and work towards your objective of financial freedom.
The next step ia creating a plan based on your current financial situation and your passion. The order in which you create your plan is very important.
We analogise the order of creating a plan similar to building a house. The first step is creating your blueprint. The next step is building your foundation which is your risk management plan. We follow the principle that you should only insure enough based on your essential needs, and insurance should not be used for investment. The cost savings should be invested properly to generate higher returns and used to achieve your financial freedom faster.
"Our Financial Advisory Specialist has saved S$3.5m in premiums in the last year"
Once you have established a strong and stable foundation, the next step is to build your house. This is where the implementation of your growth plan which includes investment in paper assets, businesses, real estate and commodities.
Because we live in Singapore, Real Estate and Commodities requires high capital to enter, typically for real estate that is around 200k. Hence our focus will be mostly on Paper Assets and Business, with Real Estate and Commodities as bonus income.
For paper assets (PA), we categorise them into two different areas, DIY (Do-it-yourself) and Managed. It simply requires identifying whether you have the time to do trading with a proven methodology or leaving it to a team of specialists who manage the funds for you. There is a bit more to managed funds than meets the eye.
Our specialist earnings should be pegged to performance gain rather than commission of sales (which most banks out there do). The problem with the latter is that the banker or sales person have the tendency to adopt a "hit-and-run" method. After all they only care about how much they sell as their commission is generally based on that. And the worst part is that there are no recommendations to change funds if the market conditions changes.
Thankfully we have a team of specialist who helped me managed my funds and I have made a 31% gain since Nov 08. I consider this very good as I don't even look at it.
So my question to you is:
The next area is Business. In the area of business we categorise them into 3 areas. Traditional Business, Personal Franchise and Internet Business.
Creating A Business Has The Highest Return On Investment (ROI)
Depending on your passion, typically in this time of era, majority of people end up with Personal Franchise and Internet Business due to the extremely low start-up cost and investment.
For the Personal Franchise we follow a system which we call it "Anyway Money". The rationale behind it is that since we are already spending a certain amount of money on a daily/monthly basis anyway, we might as well create a passive income out of it.
For the Internet Business, it is about utilising the Internet to drive traffic to your business model. The key is to create a passive income business model, where the website is literally your 24hr sales person who is constantly creating new leads for your business even while you are sleeping. By setting up the system, you are able to replicate it to other areas, hence this model helps free up your time to build multiple streams of online business to achieve your financial freedom faster.
If you look at the creation of business and investment of paper assets, this allows you to create the cashflow and capital to achieve the amount that you calculated in the 1st step of your money blueprint.
The final step of building your house is your roof. Our analogy for the roof is what we call the generation plan (This is to help your future generation). Whether it is a trust or a system to help managed the growth of your passive income beyond your life span, it is an essential step in thinking far ahead.
We envisioned that once you have achieved this state, you would have achieved a great deal of financial intelligence and business skills. You would also have stability in your financials and a life full of meaning and joy.
We are not saying it is going to be easy. The question you want to ask yourself is it worth it?
I hope you have had a brief overview of what CashFlow Warrior Academy does and we hope that you will think about how we can help you achieve your financial freedom as soon as possible.
Register for our FREE Cashflow Game to learn more about how you are able to achieve your financial freedom with good system and plan.