Saturday, August 3, 2019

How to Have Alternative Incomes

If you want to be wealthy, you can’t just depend on your job. You primary job only give a fixed income every month for the hours you put into. Sometimes your primary job income barely covers your living cost, which result you not to have spare cash to be saved or invested. This becomes a problem if you want to achieve financial freedom and early retirement. You can live frugally, however it’s still going to be difficult to get out of the rat race if you only rely on your job since it is the only source of your income. Moreover, if you get unlucky and get fired by your boss, you will not get any more income. This then can be a problem for you. You will not be able to pay for your living expenses such as your bills, taxes, or even the debt you inquire. You might have to downgrade your living life style by selling things or property you own such as car, house, or things that may have some resale value. Many of you and I don’t want to be in that situation. It’s terrifying and horrific when you have to end up in that situation. Since we do not want to be in that situation, I did many researches in order for me to have alternative incomes coming in. I have learned that wealthy people don’t rely on just one income; they have multiple source of income. Having multiple sources of income enable you to have different sources of income filling your pocket. Alternative income can come in a form of rental money from properties, interest and dividends, part-time job, side hustles and businesses. To have alternative income enable you to pay your living expenses or extra money to invest. As part of my journey to early retirement and financial freedom, I learned that I can’t just depend on my main job. I worked for my dad who owns a manufacturing company; however I have been getting the same monthly income since I started working for him in the year of 2013. In addition, the salary I received is in Rupiah (Indonesian Currency) and it is considered low compare to people who work in America. Even by having me to live a frugal life is not enough if I want to retire early and live comfortably. Furthermore, I won’t have income coming in if I decided to quit the main job. This is the reason why having alternative income streams is crucial in order for me to have early retirement and financial freedom. With alternative income coming in my pocket, I would be able to pay my bills, to be reinvested again and again until I have enough assets that can sustain my living life style. So what are ways for us to have multiple streams of incomes?

Friday, July 12, 2019

Why Most Lottery Winners Go Broke

Have you ever wish you can win millions of dollars from a lottery purchase. The chances of winning the lottery is so slim that it’s more likely you get strike by the lighting compared to winning lottery jackpot. It’s a no brainer that winning the Lottery is everyone’s’ dream. I myself wish I can win millions of dollars from purchasing a lottery ticket. Winning the mega million dollar lottery can be most ecstatic moment for anyone who chose the right numbers. Winners that have won millions of dollars have so much money that they don’t ever have to work in their life ever again. However if you actually study most lottery winners who had won the jackpot actually went broke in the end. There are studies that lottery winners are more likely to declare bankruptcy within three to five years compared to the average American. An estimate of one third of lottery winners later had to go through bankruptcy. In addition, studies also found that instead of getting people out of financial trouble, winning the lottery instead got them into more trouble. How could it be possible if they have won so much money? In this article, I’ll explain why most lottery winners go broke in the end.

Wednesday, July 10, 2019

How Warren Buffett Become Wealthy and Successful

Many value investors out there probably know who Warren E. Buffett is. If you don’t know him yet, let me give a short summary about him. Warren Buffett is an American successful investor, business man as well as a benevolent philanthropist. He was born in August 30, 1930, and apparently he is still alive as this article is written in the year of 2019. He is considered as one of the most successful investor in the world that inspired many people. Many value investors try to understand how he invests and replicate his strategy. I as a dividend growth and value investor am inspired by his success and teachings. Even though I had never met him in real life; however I became really inspired by him for his investment ideology and respect him for his benevolent philanthropist act to the society. As this article written today (June 30, 2019), Warren E. Buffett has an estimated net worth of $87.5 billion USD making him the third richest person right before Bill Gates and Jeff Bezos. Having him to be one of the richest people in the world is not the reason why I idolized him so much. Warren Buffett is not the typical rich person that spent his money on materialistic things such as fancy cars, huge mansion, or lavish yachts. He lives just like the typical average American who purchases his breakfast at McDonald every day before going to work. In addition, he still lives at the same modest home he purchased back in 1958 for $31,500 or about $250,000 if adjusted with inflation. Like I said, he is not the typical rich people who want to have lavish things and life style but he is just a humble person that loves to build his business empire that will eventually go back to society. He pledged more than 99% of his wealth will go to philanthropy during his life or at death and he couldn’t be happier with that decision. I’m so amazed of his generosity since he has dedicated his life building his wealth without much inheritance from his parents. He didn’t come from a wealthy family but an average middle class family and through hard work and dedication; he has built the fortune he has today. I love building wealth and doing business just like Warren Buffett and believe that wealthy people who is in the 1% wealth list should donate at least 50% of their wealth before or after their death. My dad similar to Warren Buffet who started from nothing, and he is considered to be wealthy today; however I don’t see his wealth as my success. I believe in building my own score card and fortune just like my dad and Mr. Buffett; and I would not be upset if my parents decide to give away their wealth to charity later on. I mean after all I believe that their wealth is theirs and I don’t want them to feel obligated. However, if my dad let my brother and me to inherit his business legacy, I would still continue to expand his wealth. It would be better for me and my brother to grow the wealth since my dad has already built the tree for us which gives tremendous head start. However, towards the future if I become really wealthy, I might pledge to give away up to 50% of my wealth to charity after my death. Anyways let’s not get distracted about me being philanthropy; I’m still far from being in the 1% list!  Let’s go back to topic of Warren Buffett. After understanding his stories of his success and the amount of wealth he accumulated, you readers might wonder how on earth he does it. I myself was curious on how Warren Buffett did it. After doing many bibliography studies and research about him, I learned how Warren Buffett became successful and wealthy therefore I’m here to share his stories with you guys.

Saturday, July 6, 2019

5 Reasons to Become a Dividend Growth Investor

The America stock market has been one of the greatest long-term wealth generators in history. It has a record of compound annual growth rate of 9% since the late 1990s. Even after Great Depression of 1929 and other stock recessions and stock collapses, the U.S. stock market has always performed well for investor in the long run. Many people have different strategies towards their investment. Some like to speculate stock in short term period such as day trading, some prefer to let the experts do their job such as fund managers to manage their money in a form of mutual fund. However, an average person can learn how to invest safely. Dividend growth investing is a good strategy if you want invests on your own. Here are five reasons why you should become a Dividend Growth Investor.

5 Methods to Market Your Rental Property

Being a Real Estate Investor is similar to being a Dividend Growth Investor, but instead of investing in stocks for dividend, a real estate investor hopes to gain rental income (which can be considered as dividend) and also capital appreciation to the property. I know this blog focus in Dividend Stock, however since real estate is related to having asset that produce passive income which has a similarity to dividend stock, so I decide to write an article about this topic. Besides this blog focuses on anything that has wealth management and finance content related. So anyways, let me talk about being a Real Estate Investor. Being a real estate investor can be quite similar as well as different to dividend stock investor. Unlike dividend investor, a real estate investor has tougher time to liquidate his property during the economic downturn. It is tougher when your property is vacant, for there is no more income coming in. It can be a burden to upkeep expenses such as tax, property insurance and maintenance fee without the rental revenue coming in. But that doesn’t mean being a real estate investor is unacceptable. My dad is considered a real estate investor since he invests in lands and properties. He is skeptical with stock investing however the technique he uses to invest in properties is similar to a stock value investor which is acquiring properties that are undervalued. He has done really well when he invested and managed to acquire a portfolio of properties. Just like my dad, my brother is also a property investor. He has a few real estates that he rents out for passive income just like how I receive dividend from my dividend growth stock portfolio. However, being a real estate investor requires some techniques to have the properties always rented out. I learn a few techniques he uses to market his rental properties, and I’m here to share the methods to market your rental property.

Sunday, June 23, 2019

9 Ways to Get Out of Debt Faster

Debt is an amount of money borrowed by an individual from another party. Many people use debt as a method of making large purchases that they could not afford by paying interest on them. Many get into huge debts and getting out of it can be frustrating and confusing experience if you don’t have the right plan. Some people simply try to avoid these issues and ignore the problems they are already in. However, if these debt issues are not dealt with, it will only escalate the problem much further. This can lead destroying your financial dream. With debt, it will be impossible for you to be financially ahead to achieve early retirement. Before you want to build wealth through your investment, you’ll need to tackle those debts you acquire. So what are ways to get out debt faster?

Difference Between Investment and Speculation

There are many people who purchase stocks thinking they are making an investment and not knowing they are actually speculating. They buy certain stocks with just certain assumption that the stock will go up in price without doing a thorough analysis. And yes, some people actually do make capital gain from speculating and sometimes they made a lot of money. That is what we call speculating. The person who made tons of money from speculating on certain securities might just be lucky. However people need to know the difference because Investing and Speculating. Those two are totally different terms. Benjamin Graham who is Warren Buffett’s mentor believed in separating investing from speculation. I strongly agree with that ideology because not knowing the difference can cost you dearly. In this article, I want to talk about the difference between Investing and Speculating, and why I personally dislike speculating and prefer Investing instead.

Thursday, June 20, 2019

How to Make Money Using Dividend Growth Investing Strategy

Before I start explaining about “Dividend Growth Investing”, we need to understand the basic of dividends. A dividend is a distribution of income from a portion of company’s earning (net profit) and it’s paid to its shareholders. Dividends are decided and managed by the company’s board of directors, and they must be approved by the shareholders by voting rights. Dividend Growth Investing is a simple strategy of purchasing stocks that are paying dividends and have been growing their dividends from the past year. A Dividend Growth Investor also can benefit from the capital appreciation from the dividend paying stock. The goal is to look for dividend paying companies that have strong track record of paying dividends. In addition, the companies need to have strong financial fundamental as well as the quality of the company. The strategy to Dividend Growth Investing is to seek for companies that increase their dividend payment overtime. So how do you make money using dividend growth investing strategy?

Sunday, December 23, 2018

How Inflation Affect On Consumers and How Can You Protect Your Money Now

Plenty of us have our older generation telling us that how things used to be cheaper back in their days, and how thing are more expensive now. For example in 1908, a Hershey’s chocolate bar cost only 2 cents, while the same chocolate bar cost $1.34 at your local store. Inflation is the increase in price of goods and services over a period of time. Inflation impacts all of us as consumer, what inflation does is, it devalue our currencies. So over a long term period of time, if you are not managing your wealth properly, inflation can eventually eat up the value of your money. So how inflation affect us as consumer and how to protect our money now?

How Your New Car is Making You Poor

Since the booming Automotive Industry in early the 1950s, cars have become an integral part of our society. Buying a brand new car could usually symbolize success or achievement in life. Car companies spend billions of dollars on car advertising each year to attract new consumers, and that number is rising every year. Most new car purchasers believe that buying a new car could give them the reliability and the luxury. It feels good when others such as friends and families know that you bought a brand new car, and of course it feels better to actually drive a brand new car. I’m not against people buying new car. I myself prefer brand new cars over used one, however, if you are not financially stable, your brand new car can actually cost your future financial freedom and security. Let’s what your brand new car is really costing you.