To me a lot of people didn’t understand the meaning of True Freedom in Life… So what is True Freedom? True Freedom is having Passive Income or also known as Residual income. Yes some gurus puts a difference into both – but for simplicity sake, we just assumed its the same for now.
Explanation of Passive Income > Expenses
Well for me the game changer is when I truly understand what one of my Mentor Robert Kiyosaki’s definition of True Freedom – Your Passive Income is more than your Expenses as shows in the picture below.
Why is that so? Because Passive Income frees your Time up from exchanging your time for Money. So What is Passive Income? This type of income comes in whether you work or doesn’t. And how do you generate Income that is Passive? According to Robert Kiyosaki, World #1 Personal Finance Best Selling Author of Rich Dad Poor Dad, by being on Right Side of the Chart below, you will generate Passive Income. You can also read my previous article about types of passive income vehicle here.
Business Owner (also known as B) generates passive income by creating a system that runs on its own whether the owner is there or not. Investor (also known as I) by converting earned income to investments that generates passive income. So which is better than which? Is B better than I or I better than B? Contrary to popular belief, both are equally good and both are equally important to anyone who wants to achieve true financial freedom. Why? For B to generates time and money through the system, most important ingredient is effort. For I to generate time and money through the investments, most important 2 ingredients are time (to understand the investments) and money. Both quadrants feed into each other, creating like what Robert Kiyosaki meant by Money Velocity.
So my question to you is, currently, which quadrant are you generating your income from? If you don’t know, or think you know but unsure, this is why the blog is set up to help all of us using my own experience, my own journey of going through 4 quadrants to share with you what works and what doesn’t and in my humble opinion why it work or why it doesn’t work to generate passive income in primarily Singapore & Malaysia. Not saying I am the best person but just to share another perspective to things and hope that you would learn something here to make an impact in your life.