Monday, April 21, 2014

Being rich the easier way

Many of us like things to be easy. How about being rich the easy way? Can it be easy? Your parents most probably told you that there's a price to pay to be rich. You need to work hard, sacrifice and have lots of stress to earn a lot of money. That's a lot of hard work. If you want to climb up the corporate ladder, most likely your workload will increase as your pay increases. The amount of responsibility and stress increases as well. But do you know there is a hard way of being rich and there is also an easy way to being rich? Here i'm talking about being rich and not getting rich. You can be rich but not have time or you can be rich but have all the time in the world. The easier way is of course the latter.

The harder way of being rich

In my company, the senior management is always busy. They have meetings scheduled back to back, phone calls to answer consistently, emails to reply even at midnight and a lot to answer for if things doesn't work out well. Sometimes me and my colleagues wondered if its worth it to work so hard just to earn that amount of money? They have the money but do not seem to have the time to enjoy it. This is the hard way of being rich.

The easier way of being rich

What if I tell you there's an easy way to become rich? Now, before i go on further, I have to say I'm in no way implying that getting rich is easy. However, we can make the process get easier and easier towards the end. The key is in making your money work for you. Once money is successfully working for you, your life gets easier and you do not even have to worry about getting retrenched or about not having enough money.

Work for money or money work for you?

Here's the difference between someone working for money and another person letting money to work for him:

A person who works for money can only work to a certain age. The older he gets, the higher chance he would get retrenched. If this person gets retrenched, he has no income and may find it hard to find another job. At retirement age, his income goes to zero and he will have to rely on his savings to survive.

A person who lets money work for him does not worry about losing his job. When he reaches retirement age, he still has income even though he's not working and does not even need to use his savings to survive. This person can retire as long as he wants. On the other hand, the person who works for money can only retire up to the day his savings is depleted. Once that happens, he may have to go out to work again.

This does not mean that we do not have to work for money at all. Yes, in our younger days, we'll have to work for money. But, learn to use the money you work for and slowly let it work for you. Passive income is the money generated when money works for you.

4 ways how money can work for you

By now, you should be wondering how money can work for you. How do you create passive income? Imagine money still coming in when you're travelling overseas or even when you're sleeping? This may be a bit exaggerated but that is the gist of what passive income is all about: Money working for you.

Here are 4 simple ways how money can work for you:

1) Invest in properties
The easiest to understand way to generate passive income is by buying a property and renting it out. The rent you collect every month ensures a constant flow of income for you. The tough part is saving up your money for the first property. It does require a substantial amount of capital.

2) Invest in Stocks
By far this the most common way anyone can generate passive income for themselves. Passive income comes in the form of dividends from stocks. You can start with little money but to build up a strong portfolio, you still need a strategy plus more capital. This investment may seem easy at first but it actually requires knowledge and experience to do well in it. Lifelong learning and patience is the key.

3) Start an Online website or business
The internet is the new age of technology for at least the past 10 years. Many people have created websites which generates income in thousands of dollars monthly. Income can be generated through affiliates program, pay per click advertisement, direct advertisers etc. If you're able to attract traffic to your site, money will surely flow in and advertisers will look you up.

4) Using your talents to create your own intellectual properties
If you have the talent and passion for music, you can consider producing your own music albums. I had a friend who did just that. Or if you have a passion for writing, you can consider writing and publishing a book. I've seen many other bloggers who published their own book. I think its quite an achievement to write a book numbering 200 plus pages. I heard it takes years just to write a good book so its not easy at all but it'll be well worth it once its completed.

There you go. 4 simple ways on how you can create passive income. Well, it doesn't look that simple now but if you work at this direction, then you'll surely be able to generate that passive income which you desire. Most people choose to strive and work hard in their careers but don't know that earned income may be a risk in itself. You may lose your career in just a matter of days especially in our challenging and competitive world now. Don't get me wrong. You still need your career now and yes, do work hard at it. But along the way, learn to use the money you earn and save, to let it work for you. The knowledge of generating passive income will stay with you for the rest of your life. The passive income, generated successfully after years of hard work, will pay off eventually.

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  1. 5th way: get a sugar mommy! haha just joking

    1. Hi aceirus,

      That's if we can find one. Haha :p

  2. Hi SGYI

    The effort worthwhile a few years down the road. Many does not see it now but it is very hard to replicate once that magic moments come.

    1. Hi B,

      I like your description that its a magic moment. I believe if we can see it and visualise it, we'll reach there one day.

  3. 5th way - work hard and save. (Actually this 5th way required to do the 1 and 2 above)

    1. Hi,

      Agreed. We need to work hard and save money to be able to have money to work for us. Our savings is like the seeds which we can grow into trees that bare fruits for us to enjoy in retirement.

  4. Hi SGYI,

    Hmm, I don't actually see it as easier. To me, it seems like spending time to earn money first, then letting money earn more money is just one way, albeit different stages of the same path. You can let money earn money without earning that first tranche of money by spending time ya? haha

    The easiest way to become rich is to lead a simpler life and make do with what you have. To strive for something is never easy, but haha, so is being at peace with your financial status. SO what am I saying, really?

    Try to be as successful as you can be. If you reached it, it's good. If you can't, it's also good. Try again if you want to, but give up if you want to. Either way, just be at peace with it and be happy and grateful that you have whatever you have. Being happy is the end point, being rich isn't :)

  5. We cannot choose our parents but we can choose our partner.
    Marry rich will be the best effortless road to being rich in Singapore!

    SG Wealth Builder

    1. Hi Gerald,

      For girls maybe. For guys I think will invite gossips. Haha. Head cannot held up for the rest of your life. Lol

  6. Hi LP,

    A simpler life will be happier life. I've experienced it myself before and have blog it before also. It is always wanting more that makes people unhappy. I always believe we should be grateful with what we have now but at the same time strive to be better. In the midst of striving to be better, it is important to do what you love.

    Being rich may not make us happy and being poor may not make us happy also. Its in finding a balance between the both where we find happiness in life.

    Sometimes we need to work in something which we don't like just to put food on the table. Many people are doing that which is just wasting time away. We need to find ways to supplement the income so that we can do what we love and not worry about putting food on the table.

  7. Hi SGYI,

    Yes, I agree that we should take on some other sideline jobs. However, if talking about online website, I always feel that it is really hard to earn from there? Have you any experience on making money from such websites?

    Wen Ge

    1. Hi Wen Ge,

      My blog is an example. It does generate some kind of revenue although not much. I enjoy writing and at the same time it provides some kopi money. Good to start with something you enjoy writing on.

  8. J M Barrie:

    "You can have anything in life if you will sacrifice everything else for it."

    Can you imagine what you want is worth to sacrifice everything else for it?
    Maybe your life for the life of your soul mate?
    What else?

    1. Hi temperament,

      It'll be better if we can find a balance in life. Too much of something is not good while too little of another is not good either.

  9. Agree!
    Errr.....(touch wood) sometimes a situation warrants it regarding your soulmate's life. We have no choice then.
    And also the world progresses only most of the times because of someone mad enough to insist the world is round. We do need people like that or very close to that.
    Sorry, i think i am thinking of the extremity (madness) now. But "don't forget to remember" (BEE GEES) Mr. Market also thinks and acts in this way from time to time.
    And may you prosper at these best and worst of times of the Market.
    That is, if we can still remain sober at these North & South extremities of MR. Market. imho.

  10. Hi temperament,

    If married then I can imagine it'll be more difficult to come to the same conclusion. Both man and woman are different in their thinking aren't they?

    People go to extremities very often. When prices are high, they buy like crazy and when prices are going down, they fear and sell like crazy. It's the calm man in the midst of these craziness who emerge out successful. That's the balance I'm looking for. Haha