So this is my current read and I highly recommend it to all the women out there. I am not done reading it yet but with the few chapters that I read, I learnt a lot. I rarely read the same book twice but this is one of those books that one should re-read over and over again.
Am not going to write all the lessons I got in here, but there is one lesson that captured my mind and I think it's worth sharing.
I am going to share a part of one of the chapters I read, read word by word and take action.
Broke people and rich people approach the same amount of money differently and here's why: broke people think it is about how much you earn but rich people know it's about how much of your income you are able to keep and convert into assets that can provide you with an income in the future.
The fundamental difference is that wealthy people understand the relationship between how we earn and how we spend and they know where the balance is.
Active income is the income you get from services rendered, it is usually your income from your job or business. For example, if you work at a bank and you make three hundred thousand a month as your salary, that's your active income. Or, if you run a catering business and you make three hundred thousand in profits every month that's your active income.
Passive income in simple terms is money that you make while you are sleeping. It is the income you get regularly from investments you've already made. Good examples are dividends from a stock portfolio, or rental income from a property you own.
What Is Financial Freedom?
When passive income exceeds your expenses.
Ideally, the goal is to get to a point where the assets you've accumulated can pay you enough of an income to pay for your lifestyle. For example, rental income from a property you own can buy you a car or a holiday to the South of France. Or, the dividend cheques from your stock portfolio can buy you a Chanel bag.
0 Comments