There are four ways to become rich:
1. Born Rich
2. Marry Rich
3. Win the Lottery
4. Self-Made Rich
However, it’s not that simple. You see, not everyone is born rich. Not everyone marries a rich person either, and winning the lottery is a game of chance and probability. If you are currently in any one of these rich-man situations, then good for you! If you aren’t, then it isn’t too late.
Being born rich, marrying the rich or winning the lottery mostly result from good fortune and luck. If you aren’t one of the above, your only chance of becoming rich is to be one of the self-made rich. An average Malaysian can become self-made rich with proper knowledge and a good financial blueprint.
Understanding the Different Forms of Income
There are two forms of income:
1. Active Income – Man at work
2. Passive Income – Money at work
Stage 1 (Active): We work in order to earn money to cover our daily and leisure expenses. We are therefore working for money.
Stage 2 (Active + Passive): As we reach career stability, we eventually start finding vehicles to make money work for us. In doing so, money works for us at the same time we are working for money.
Stage 3 (Passive): There will come a point in time when we want to be financially free! Free to pursue our dreams and goals without financial worries. As we reach this stage, we no longer work to earn a living. In this stage, we solely depend on our passive income (money working for us) to sustain our daily expenses.
Reality Check
Sadly, most Malaysians get stuck at Stage 1. A lot of Malaysians want to retire but cannot afford to stop working. With a family oriented culture, they might even have relatives living with them too because none of them can support themselves financially.
Most Malaysians encounter financial problems because we were never taught how to handle money properly. As students, we studied Math, Science, English and Malay, but we didn’t have a “Financial Literacy” subject. In this light, we graduated and worked hard, without really knowing how to manage our finances well. But it isn’t too late to start our way to financial freedom.
Becoming Self-Made Rich is possible for everyone regardless of income
Did you know that awareness, a proper financial blueprint and a good financial plan can help an average Malaysian to become self-made rich? Regardless of your current income, everyone can reach their financial goals if they start budgeting well. RM10 or RM100 can go a long way if you now what to do with it.
The Secret to Building and Growing Wealth
1. Time – Start as early as you can
2. Money – Save as much as you can
3. Interest – Find better than inflation rates
Becoming financially free does not require a big initial investment. Setting aside 10% of your monthly salary can go a long way. Every RM10 or RM100 can grow into a fund that can aid you with your future needs. All it takes is proper awareness, a good financial blueprint and the willingness to start budgeting your expenses. Remember to start early, because time delayed is wasted time for your money to grow.
Source: moneymonkeys.net
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