The Four Levels of Wealth

The Four Levels of Wealth

There are basically four levels of wealth you must aim to attain.

Level 1 : Financial Stability

The first level of wealth is known as Financial Stability. This is the most basic level of wealth that you must first attain.

You have achieved Financial Stability when :

1. ) You have accumulated enough liquid assets to cover your current expenses for a minimum of six months.

2. ) In addition, you have life and hospitalization insurance to protect you and/or your family's lifestyle should you be permanently disabled, unable to work or if you pass away suddenly.

When you have attained this first level, you will have the peace of mind that should any unexpected challenges befall you ( like retrenchment, business failure, pay cut, death or disability ), you and your family's lifestyle will not be compromised. Or worse, you or your family will not slide into debt.

Once you have achieved this, you must then aim to achieve ...

Level 2 : Financial Security

You have achieved Financial Security when you have through the investment of time, money and ideas, accumulated a critical amount of Positive Cash Flow Assets that generate enough passive income to cover your MOST BASIC expenses.

In other words, when you reach this level, you can stop working and maintain a very basic lifestyle. It also means that if you continue working, all your active income can be channeled towards your investments and this will further compound your assets and increase your income streams.

Of course, we shouldn't be satisfied at being at this level. Once accomplished, you must then aim to go for ...

Level 3 : Financial Freedom

Many of us have heard of the dream of achieving Financial Freedom but what does it really mean ?

Well, Financial Freedom is when you have through the investment of time, money and ideas, accumulated a critical amount of Positive Cash Flow Assets that generate enough passive income to sustain your CURRENT LIFESTYLE.

When you reach this level of Financial Freedom, you can choose to stop working and still maintain your current standard of living ... indefinitely !

In reality, most people who achieve Financial Freedom love their work so much that they continue working not because they have to, but because they choose to. That is a great feeling to have ... being free of financial pressure & worries and working purely out of passion !

Obviously, the more expenses you have now, the more luxurious and indulgent your standard of living, the longer it will take for you to achieve Financial Freedom.

So besides increasing your passive income, reducing your unnecessary/frivolous expenses will accelerate your way towards this fourth level. Finally, you must aim to achieve ...

Level 4 : Financial Abundance

So what is the ultimate level of wealth you can achieve ? Financial Abundance is when you have through the investment of time, money and ideas, accumulated a critical amount of Positive Cash Flow Assets that generate enough passive income to sustain your DESIRED LIFESTYLE.

Your desired lifestyle is the amount of monthly expenses it will take for you to live the life of your dreams. This is totally subjective depending on the lifestyle that you desire.

If your desired lifestyle is to live in a 20,000 square-feet bungalow with a swimming pool, send your kids to the best schools and drive a Mercedes Benz S-Class, then you could be looking at a monthly lifestyle that'll cost a cool $50,000.

Of course the more luxurious your desired lifestyle, the longer it will take for you to achieve financial abundance.

The moment you reach the level of Financial Abundance, you will be able to choose to stop working and live your dream lifestyle indefinitely.

Again, most people who do reach this level usually love what they do so much that they keep on working for fun, channeling 100% of their active income towards charitable causes and further compounding their wealth.

With the right strategies and plans in place, you too will be able to achieve this ultimate level of wealth.

Thanks for reading ! If you know someone who could benefit from this, feel free to forward it to them !

Best Regards !

Wingcent Ning
wingcent@singnet.com.sg
WingcentDotDreams.com
Singapore

P.S. : Discover The Exact Methods You Need To Create Financial Success ... Without Having To Turn Your Life Upside Down To Get It ! Get The Millionaire-Book here ...

The Greatest Money Making Asset That Will Make You A Fortune

The Greatest Money Making Asset That Will Make You A Fortune

So what is this one asset that all of us already have at our disposal ?

No, it's not your double degree, MBA or PhD. from the best universities. And no, it's not the inheritance the 'lucky' get from rich dad, rich uncle or rich grandma to kick-start their business.

No, this asset is so powerful that it will not just give you a 4%return like the bank or even a 20% return which you would expect from the stock market. This asset has the potential to give you infinite returns. In fact, it can, if passionately developed, give you a 1000% return on your time investment.

This asset is your mind, also known as your intellectual asset !

When you invest time and money to expand your knowledge and skills, especially your financial education, it will return you millions of dollars in income streams for the rest of your life !

In the past, the majority of a company's assets were made up of physical stuff like machinery, plant, equipment and land. You would value a company by adding up the book value of all its fixed assets. Today, over 90% of a company's value is in its intellectual assets !

Look at Google, Microsoft, Nike, Berkshire Hathaway or Ebay. They are worth billions of dollars and generate hundreds of millions of dollars a year and yet they hardly own much physical assets.

If you were to add up the total value of their factories, bank account, inventories and office equipment, it would make upless than 5% of what the company is worth. In fact, Nike doesn't even own many factories. The wealth of these companies lie in the ideas of the people working there.

The same thing goes for you ! Over 90% of your wealth is not what you have in your wallet or in the bank, it is the ideas that you have in your head !

In the information age of today, one great idea can be worth a billion dollars. That was how a kid in blue jeans with no money, working out of his adopted parent's garage could become a multi-millionaire at age 25 ( Steve Jobs, CEO of Apple Computers ).

So, whatever your passion and purpose, start activating your greatest asset and learn precisely how to create, control, multiply and manage your wealth.

Thanks for reading ! If you know someone who could benefit from this, feel free to forward it to them !

Best Regards !

Wingcent Ning
wingcent@singnet.com.sg
WingcentDotDreams.com
Singapore

P.S. : To find out more the Secrets Of Self-Made Millionaires and how you can build a million-dollar net worth starting from scratch, simply visit this website.

Welcome To The World Of Investing !

Welcome To The World Of Investing !

Do you wonder how you can ever make your first million without quitting your fixed salaried job ?

Have saved up a tidy sum of money with no idea how to make it grow ? Are you looking for ways to build an additional source of income from home ?

If your answer is yes to any of the above questions, you will be amazed at what the world of investing can do for you !

Short-term investment strategies can provide you a way of generating an additional source of monthly income to eventually even replace the income you earn from your full time job.

The great thing about investing is that you could also potentially build a million-dollar net-worth while earning an average income from a fixed salaried job.

And if you are already making a high income as a high-flying senior executive or as a business owner, investing can help you multiply your wealth even faster.

I believe the ability to invest is one of the most powerful skills you can ever learn in your life ! Unless you learn how to consistently save and let your money work hard for you, you will never be able to build the wealth to provide the security and freedom that your family deserves.

This is why so many intelligent and highly educated people end up broke and frustrated after years of hard work, even in high paying jobs.

Just relying on that paycheck every month may not be able to build the financial dreams that you desire. Start to focus on other ways in which you can multiply your income passively and you will no doubt be on your way to achieving your financial goals much faster !

Thanks for reading ! If you know someone who could benefit from this, feel free to forward it to them !

Best Regards !

Wingcent Ning
wingcent@singnet.com.sg
WingcentDotDreams.com
Singapore

P.S. : To find out more the Secrets Of Millionaire Investors and how you can build a million-dollar net worth by investing in the stock markets, simply visit here ...

The Way Millionaires Really Live

The Way Millionaires Really Live

Many people have the wrong idea about what being a millionaire is all about. Many also equate instant gratification with happiness.

They believe that millionaires live lavish lifestyles and all that self-indulgence brings lasting happiness.

Well, from my research and my own observations of the many self-made multi-millionaires, i find that most self-made, sustainable millionaires DO NOT live this way.

What does sustainable mean ? It means a person whose millions of dollars will last a lifetime and not just a couple of years.

Officially, Bill Gates is ranked as the richest man in the world with a net worth of $46 billion. Unofficially, figures put IKEA founder Ingvar Kamprad as the world's richest with a net worth of $53 billion.

One of the reasons he managed to accumulate so much money is because of his frugal nature. Up to today, it is said that Kamprad flies economy, drives an old Volvo and even waits until the afternoon to buy his fruits and vegetables, when the prices drop significantly.

If he were alive today, Sam Walton ( 1918-1992 ), founder of Wal-Mart would be the richest man in the world with an estimated net worth of $90 billion.

If you take a look at Forbes list of the ten richest people in the world, five of them are the Waltons who inherited their money from Sam. How did this once poor farm boy accumulate so much wealth ?

Again, he was well known for sharing rooms during business trips to save money, flying only economy and wearing clothes from his own discount store.

Another fascinating example is Warren Buffett, officially ranked the second richest man in the world today with a net worth of $42 billion. Even with all this money, it's said that Warren will not buy a brand new car as he thinks it's just not worth the money.

Back in the '60s, Warren remarked that if he spent $20,000 on a new car, it would be worth little or nothing in ten years, He also knew that he could achieve a 25% annual compounded return on his $20,000 if he were to invest it.

Going by this return, investing $20,000 would bring him $158,518 in ten years, $1.26 million in twenty years and $9.96 million in thirty years ... he figured that $9.96 million was just too much to waste on a car !

When many people learn of this frugal trait of millionaires they often think to themselves, 'Why make all this money if you cannot enjoy it ?'

Well, here's the answer, most millionaires get their joy and fun not from spending money but from doing what they love to do ! To them, money is just a means of measuring their success.

This is why, even with all the money in the world, they still work hard to build their businesses and empire. This is because they are driven by passion for what they do and a sense of mission.

If spending money brings you enjoyment, you will never be rich. However if making money brings you enjoyment, then your wealth is guaranteed.

Thanks for reading ! If you know someone who could benefit from this, feel free to forward it to them !

Best Regards !

Wingcent Ning
wingcent@singnet.com.sg
WingcentDotDreams.com
Singapore

P.S. : Discover The Exact Methods You Need To Create Financial Success ... Without Having To Turn Your Life Upside Down To Get It ! Get The Millionaire-Book here ...

The True Definition of Wealth

The True Definition of Wealth

Before you can be truly wealthy, you must first know what wealth really means. Again, many people think that a person's wealth is defined by how much he earns, by the clothes he wears, by the house he lives in and by the way he lives. We now know that this is not at all true.

A person's wealth is actually defined by how long a period of time he/she can sustain their lifestyle if they stop working. The longer you can go on living your life without working another day, the richer you actually are.

Your wealth is therefore defined by three things :
1. ) your monthly expenses
2. ) your liquid assets
3. ) your passive income

Your liquid assets refer to how much cash or cash equivalents ( like stocks, bonds & fixed deposits ) you have to pay for your monthly expenses.

Your passive income refers to income that you will continue to receive even after you stop working. This could include interest, dividends, royalties and profits from a business.

Let's look at an example. Steve is a director in a multi-national company and earns a $20,000 monthly salary. He lives a lavish lifestyle that results in personal and household expenses a month of $18,000.

He hasn't really saved much over the years as he has spent any surplus upgrading his house and car. His liquid assets are just under $18,000. Besides his full time job, he has no other sources of income.

What is Steve's level of wealth ? Well, if he stops working today, his $18,000 will last him for just a month. So his wealth is one month's salary. As you can see, wealth is defined not by the absolute amount of dollars, but by time.

On the other hand, Susan, a marketing manager in a retail store earns a monthly salary of $5,000 a month but she is much wealthier than Steve. How is this so ?

Well, over the last 20 years, Susan has diligently saved 20% of her income and invested it in the right stocks and mutual funds that have given her returns of 15% per year.

Over the years, Susan's liquid assets have grown to $1.32 million ( you can verify this with a financial calculator ). In addition, she has spent her free time building up a home based business that sells unique collectibles over the Internet.

Her small business earns her an additional income of $1300 a month. She may not drive a fancy car or wear a Cartier watch, but let's see what her wealth is.

If Susan were to stop working today, she would still retain the$1,300 monthly passive income that her home based business earns her. Since her monthly expenses total $4,000 a month ( 80% of her income ), she would have a net outflow of $3,700 a month.

With her $1.32 million in accumulated savings, she would be able to survive for 30 years ! ( This is assuming that she does not invest the $1.32 million she has prudently saved up !).

If Susan were to put her $1.32 million into a risk-free fixed deposit account earning interest of 4%, it would bring her an additional interest of $52,800 per annum.

This means another source of passive income that rakes in $4,400 a month. So you can see how Susan can very comfortably go on forever without working another day in her life !

Can you now see that your wealth ( i.e net worth) is not determined by how much you earn, rather, it is determined by how much you save and wisely invest.

Even with just a middle class income, you could become a millionaire if you have enough financial intelligence, discipline and patience.

Thanks for reading ! If you know someone who could benefit from this, feel free to forward it to them !

Best Regards !

Wingcent Ning
wingcent@singnet.com.sg
WingcentDotDreams.com
Singapore

P.S. : Discover The Exact Methods You Need To Create Financial Success ... Without Having To Turn Your Life Upside Down To Get It ! Get The Millionaire-Book here ...

The Biggest Lie Ever Told About Wealth !

The Biggest Lie Ever Told About Wealth !

Why is it that 90% of the population find it so difficult to become rich ? It is because all of us have been told the greatest lie of all, the lie that has been keeping us from becoming rich.

Before you can ever become wealthy, you must first discover the truth about wealth and remove the wool that has been pulled over your eyes for way too long.

Let me start off by asking you to do a simple exercise. I would like you to close your eyes and picture a millionaire in your mind.

Picture the clothes the person is wearing, the car he drives, how he spends his money, how he spends his day and how he dines. Go ahead and do this NOW before you go onto the next paragraph.

Well, what picture came into your mind ?

If you are like most people, you would have pictured a millionaire as someone who wears the latest, branded clothes, who drives the newest luxury car model, who spends lavishly, who dines in fine restaurants and spends on the priciest, choicest dishes and most superb wines.

You may have imagined someone who is relaxing in a cushy leather upholstered armchair in his mansion or yacht, puffing on his Havana cigar. Why is this so ?

It's because of the way we have been brain-washed by television and movies to think this is the way millionaires live and spend their money. It is precisely these beliefs and habits that actually keep us from becoming wealthy !

The truth is that very few self-made millionaires live this way. Infact, the only ones who do live this indolent, self-indulgent lifestyle are the minority of millionaires who either inherited all their wealth or who made their money through sports or entertainment. And all of them usually have one thing in common.

They inevitably end up losing everything within ten years. Their wealth is only temporary. Look at Mike Tyson, Michael Jackson, Bobby Brown and a whole list of other celebrities who made hundreds of millions within their careers. They are either all broke or heavily in debt today.

In the New York Times Best-Selling book 'The Millionaire Next Door', Thomas J. Stanley interviewed 300 self-made American millionaires to find out how they think, how they earn their money and how they spend their wealth. What he discovered was a shocking revelation that made his book an instant best-seller.

It was discovered that many people who had high paying jobs, drove the latest luxury cars and wore the latest designer clothes and who appeared to be have millions to spend, were usually broke with a low personal net worth.

Most of these professionals and senior executives of multi-national companies were what he termed 'Under Accumulators of Wealth ( UAW )'.

In contrast, those who were actual millionaires ( that is those with a net worth of over US$1 million ) lived very frugally and well below their means. Eighty-percent of them were born poor or from middle class families. They wore inexpensive suits and never bought a watch that cost more than S$500.

Most of them drove second hand cars, never bought the latest models of vehicles and they usually invested a minimum of 20% of their income in the stock market or private businesses. He termed these people 'Prodigious Accumulators of Wealth ( PAW )'.

So if creating a million dollar fortune is what you're aiming for, do what the actual millionaires do and you will accumulate wealth faster than the big spenders ever do.

You may download your 7 Steps To Financial Freedom CD over here.

Thanks for reading ! If you know someone who could benefit from this, feel free to forward it to them !

Best Regards !

Wingcent Ning
wingcent@singnet.com.sg
WingcentDotDreams.com
Singapore

P.S. : Discover The Exact Methods You Need To Create Financial Success ... Without Having To Turn Your Life Upside Down To Get It ! Check out The Millionaire-Book here ...