Can I be rich investing for income?

Reader says...

I realised that I don't have enough capital based on dividends to ever FIRE...

It seems like one can get more capital through

1) inheritance
2) work through your way to the top
3) property
4) capital gains when you find a multi bagger.





Seeing that 1 is out since I don't have the privilege of being a white horse or marrying one, 

2 is out since I am a family lady with young kids I am trying to nurture and not leave them to be the spoilt kids of the next generation 

3) is out since I did make a lousy property investment and I know that it isn't going to be a multi bagger (will be happy if it isn't a liability), 

I think my best bet is 4...

AK says...

How much passive income we need to be financially free is not the same for everybody.

For sure, my circumstances are different from yours but you need to set for yourself a realistic goal and work towards it.





Investing for income is about improving our cash flow and overall financial health.

That should be the primary objective.

If we do it well enough, coupled with a relatively simple lifestyle, we could achieve financial freedom within a reasonable amount of time.






Related post:
Make $1m investing for income.

Growing up to be truly rich!

Although we can say genetics make us what we are, our environment plays a part in making who we are.

If we are not careful, certain things we picked up in our younger days could set us back for life.

"Daddy, my classmate's family just moved into their new condominium. Has swimming pool and tennis court. So nice."

If a child said that to his father, I hope the father didn't say:

"His parents must be rich!"

Then, the child would grow up to think that anyone who buys expensive things must be rich.






"Wow, my colleague just bought a Ferrari. Must be rich!"

or

"Wahhhh. My supervisor just bought a Richard Mille watch. So rich. So good."

Yikes!

It is true that some rich people splurge on luxuries but it is not true that people who splurge on luxuries must be rich!







The truly rich are those who can afford to buy all the stuff they need and want

1. Even if they do not have any earned income

and

2. Without ever going into debt.

I believe that this is something that we should teach our children as soon as possible.






We will be improving their chances of growing up to be truly rich.

Related posts:
1. From rich to broke.
2. If we are not rich, don't act rich.