Table Of Contents
Passive income is an enabler
Sorting out your money and investments from an early age is one of the most powerful “power moves” that you can ever do for yourself and your loved ones.
It can enable you to
- retire early,
- be more selective of your jobs and colleagues,
- gives you a whole lot of options in life be it
- more travel
- buy stuff you like or
- even be more generous to people you care for such as spouse, parents, family and friends
It can mean living behind a good portfolio for your kiddos/next generation. Or live very comfortably in a country of your choice. Or afford necessary but expensive medical bills.
I cant stress it enough, and I dont get bored of saying this again and again.
4 Steps + Persistence.
It’s not complex like rocket science.
It has 4 main components:
- Calculate how much you spend per year. If you’re like me, not detailed, then you can go rough estimate based on food, mortgage/rent, utilities, transport costs etc.
- Take this yearly expense and multiply it by 30 to be more conservative (a min of X15 is usually “good enough” but for myself, I recommend a higher multiple).
- Save as much as you can, optimizing your expenses and whittling out expenses you can do without and invest into investments that you understand (very important) and returns at least 10% to you.
- Keep going until you hit X15 of your annual spending, and keep going. You should enjoy some of the dividend/investment returns, but reinvest as much as possible.
That’s…it. Nothing fancy shmancy. The hardest is probably #3 because it’s boring and takes time as well as persistence over a period of time.
Is it hard? Heck yeah.
Is it important? HELL YEAH!
Some things you can do to accelerate this:
- earn more, be it by starting a side hustle to invest more
- increase your savings rate by cutting out stuff you dont care about. Put in your bonuses as well
I’m the founder and writer here at NigelChua.com; as well as serial entrepreneur, therapy business entrepreneur, digital entrepreneur, investor and also happy husband, father and Christian.
Started and sold off a business for 7-figures; built another 7-figure one and growing it further, plus building/investing into other businesses and investments as well as advisory works.
Nowadays I share and teach entrepreneurship, financial independence, retiring early as well as building and living a life you love.
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