What does becoming rich mean to you? Is it early retirement? Perhaps it is the big house and the fancy car. Do you want the personal freedom that comes with being wealthy? Knowing you could go anywhere in the world you wish at anytime. Imagine knowing that your children and even your grandchildren will be taken care of financially after you are gone. Becoming rich is not a birthright or a random act of chance, it is a choice. So the question is, do you choose to be rich?
What is the definition of wealthy? It is not someone who makes a lot of money. A doctor with a six figure salary could still be considered poor if he/she spends every cent they make. The true definition of wealth is someone who makes enough money to live without having to work. That is, their monthly passive income is greater then their monthly expenses.
So what is passive income? Passive income is essentially money you earn that did not require your constant presence to do so. If you stopped showing up to your job you would no longer earn a paycheque. A passive income opportunity may take time initially to set up. However, if done right you will be earning passive income even as you sleep. This is also known as residual income, or leveraged income. A good example is a home that you rent out to a tenant. Once you have bought the property and set up the systems of management there is very little for you to do except collect the money from your bank account. Another example would be financial instuments that pay you a monthly yeild, such as a bond, a dividend or a distrubution. These are but just a few examples. The wonderful thing about passive income is you no longer have to trade your time for money. If you choose to be rich then passive income will be your investment of choice.
Try this exercise to calculate your personal wealth ratio. Add up all passive income you have earned over the past month. For this exercise do not include paper assets such as stocks and bonds. Divide your monthly passive income by your monthly expenses to get your wealth ratio. If that number is one or higher, you can consider yourself wealthy. For example:
$200 (passive income) / $2000 (monthly expenses) = 0.1 (wealth ratio)par This individual has enough passive income to cover 10% of their monthly expenses. Those that choose to be rich make it their goal to achieve a high wealth ratio.
We're just a couple guys you want to educate people, like we've been educated, to help them become financially free. Learn more about us at http://www.choose-to-be-rich.com
![]() |
|
![]() |
|
![]() |
|
![]() |
Have you ever had that feeling where you could not... Read More
Are you setting the right money goals?Most people believe having... Read More
Compounding: The Ninth Wonder of the WorldBy Nicola Cairncross Compounding... Read More
Top Investment PerformanceThroughout history, many coin collections have produced substantial... Read More
When Ben Franklin said "a penny saved is a penny... Read More
Financial independence is having the freedom to support yourself through... Read More
Is it hard to get rich? If you're young, not... Read More
"My people are destroyed for lack of knowledge." Hosea 4:6... Read More
This 4,000 acre sale (now a marina and resort town... Read More
While you need to have a lot of positive-thought and... Read More
SCENE 1: Pharaoh has just woken up from a very... Read More
Okay. So money doesn't really grow on trees. Unless you... Read More
There are many wealth creation strategies and investment techniques available... Read More
You have probably heard other people say that "Money isn't... Read More
There are few things in life that are more stressful... Read More
I recently came across startling figures about the average American's... Read More
Early in my legal career I represented two young women... Read More
Bottom line. No exaggeration. No hype. If you want to... Read More
This retirement account is so new and unique that you... Read More
Before I had a lot of money, I was really... Read More
Hello,If you dont understand this yet, or have not heard... Read More
The business of banking has changed dramatically over the last... Read More
An ellipsis to your success is hidden in the word... Read More
The vast majority of working people are in debt. The... Read More
Vacation season is upon us and it can be tempting... Read More
Have you any idea how many people search Google every... Read More
Have you ever asked yourself what your highest income producing... Read More
For most of us, the idea of retiring simply on... Read More
Perhaps the primary message of Rich Dad, Poor Dad is... Read More
There is perhaps no more important decision than to take... Read More
As someone who loves to shop, enjoys holidays and owns... Read More
As you know, we're now well and truly in theInformation... Read More
"It's the business of your life?and you're the CEO!" Gala... Read More
Are you setting the right money goals?Most people believe having... Read More
Why is it that the older and richer people become,... Read More
Hello,If you dont understand this yet, or have not heard... Read More
You have probably heard other people say that "Money isn't... Read More
I have a good friend who works in an area... Read More
Time and time again entrepreneurs are losing out on getting... Read More
This new way is catching on around the world. People... Read More
"Ooooooh," you may say, "I could NEVER be good at... Read More
As you know, we're now well and truly in theInformation... Read More
Anyone knows that material wealth is measured in goods: apples,... Read More
So you want to become wealthy? While there is no... Read More
Six out of six people who were asked to list... Read More
We talked recently about the wealth formula:Spend less than you... Read More
It's no secret that the market goes UP...the market, goes... Read More
At any time in history, no matter what the current... Read More
Whenever we read about building wealth or even attend a... Read More
The four main steps in building a wealth cycle foundation... Read More
I counsel a LOT of people about money. I see... Read More
Most people know it's important to keep and organize all... Read More
In my last article on Creating Residual Income I mentioned... Read More
Part of learning to become financially free is to begin... Read More
Do you like so many others feel, that even if... Read More
Loose change that is, if you want a easy way... Read More
Is it hard to get rich? If you're young, not... Read More
For most of us, the idea of retiring simply on... Read More
"Any fool can rich, the wise get wealthy." Chris WidenerGetting... Read More
OK, this article will start with the cheapest piece of... Read More
The idle are a peculiar kind of dead that cannot... Read More
Recently, one late winter night, my four-year old son and... Read More
Have you any idea how many people search Google every... Read More
"It's the business of your life?and you're the CEO!" Gala... Read More
Ever think about how eating all those fast food meals... Read More
Top Investment PerformanceThroughout history, many coin collections have produced substantial... Read More
Wealth Building |