Many people talk about wealth and managing wealth. So, what does wealth means to you?

Wealth is defined as

  1. Your Monthly Expenese
  2. Your Liquid Assets
  3. Your Passive Income

The ability to manage this three aspect of wealth will eventually determine a person’s wealth level. Most people Earn, Spend then Save. Thus, most of them are unable to built on their wealth. It either remain the same or worst decreases overtime. To really maintian and increase one’s wealth one must Earn, Save & Invest, Spend. This way, you are sure that there is a positive income every month. Eventually, you will be able to spend comfortably on the luxuries life that is intended.

The defination of having a comfortable positive income is further defined as

  1. Financially Stable (Save enough for 6 mth basic needs and insurances covered)
  2. Financially Secured (Able to cover monthly basic needs)
  3. Financially Freedoom (Able to stop working and sustain the current standard of living indefinitely)
  4. Financially Abundance (Able to live your desired lifestyle and sustaining it)

Information are extracted from the book “Secrets of Self-Made Millionaires” by Adam Khoo