Today's Talk 6:Snowball Effect

P/s: Hehe~before proceed to read this post ,please spend your personal time to do revision on type of cash flow system and my current financial report (develop by Robert Kiyosaki)
Chinese version post(For readers that knows chinese language):

Chapter 3:我的财务状况（必看！） Click Here
Chapter 3:财务报告的词汇 Click Here

Chapter 2: 给你们~~薪水族的忠告 （2）！Click here
Chapter 2: 给你们~~薪水族的忠告 （1）！Click here

Chapter 2: 被动收入(Passive Income)的种类 Click here
Chapter 2 :什么叫财务自由？被动收入？主动收入？Hmm~ Click here

In Snowball effect,your saving will became a part of capital for investment purpose.After several months,your obtain your profit(which is passive income that generate from asset based investment) or earning and at the same time it getting more due to more of capital(derive from earning) are use to invest on asset based investment,just like a small snowball that became bigger in the end when it rolling down from top of hill.Well~ Here are some details for above figure THAT showing on how to improve my financial background in advance.

• Saving:Should be 50 % of your annual salary.
• For example:1month:RM2000,12 months(per year):RM24000,50% of annual salary:RM12k=which is your saving target.
• Keep in mind that for another 50% of annual salary:Use as daily expenses(your life must go on ma~) or just keep some of it as backups.

Definition of Freedom in term of finance :

• Ratio of capital/profit:expenses+ liabilities = 50:1 for several generation.For example :

1. Your amount of spending in a month=(A)RM3000(expenses+liabilities+debt without inflation),(B)RM 5000( expenses+liabilities+debt with estimated inflation rate of 3% per years) .So,12 months=RM36k,RM60k.If you live until 70 years old,your current age is 24 ,than your total of life expenses after 46 years of living,(A)=RM1,656,000.≈RM1.7 million(B)=RM2,760,000≈RM 2.8 million P/s:(A) and (B) spending doesn't included income tax (1),donation and other fees that not cover within liabilities,debts and expenses)
   
2. To make sure that you are financially freedom,retire early,always in traveling mode for the whole year,more time to be spend with your family,comfort to pay income tax and do some donation for charity.All i need to do is follow my steps that shown above (A)=RM85,000,000 (B)=RM138,000,000
3. Even your will say that:This price is too much!But trust me,after 46 years of living,your will say thanks to me because your financial report is free from inflation effect (inflation rate can be achieved at a maximum of 10% per year),happy to pay more income tax (2) as you like and you can any amount of money for donation without thinking twice anytime!
   

• 1 debt(A Good Debt) are 100% supported by 1 type of investment products(Best choice:Properties) for several years.It mean that your are buying car or home for free!Just remember that your are no working to pay expenses ,liabilities and debts alone.
• You also can payoff your current debt all once because you constantly obtain some huge profit from investment field (Forex for sure) in a short time.