I love the simple definition by Robert Kiyosaki.

Assets are things that put money in your pocket and Liabilities are the ones that take money of it.

A few examples:

My HP Canada computer provides me the ability and help with my business, so it’s an asset because it puts money in my pocket.

Every time I need my car it,] uses need gas, requires repairs, new tires, insurance, etc. Even if I try hard by using my car I don’t receive money, it takes money of my pocket.

If I have a computer and I don’t use it to generate money and only to chat or web browse, my computer is a liability because it’s using electricity, so it takes money of my pocket.

If I have a delivery business and I use my car for my job, then my car will be helping me to put money in my pocket, so my car will be an asset.

As you see, even the same thing could be an asset or a liability all depends on if it helps you to put money in your pocket or take out money of your pocket.

Focus on:

• generating a positive cash flow in every paycheck  (Robert Kiyosaki said: Is not what we make is what we keep)
• focus on acquiring assets no liabilities
• and generating passive income so we can be financially independent

 Some ideas to create a flow of passive income are this:

Investments or also known as Portfolio Income

Interests

Dividends

Capital Gains

Royalties

• Write a Book
• Invention
• Develop a Trademark
• Create a Franchise

Became an investor advisor and help people with their investments and you will receive a TRAILING FEE meanwhile your client has the investment with the investment dealer. This trailing fee grows as you have more clients or your clients invest more money.

If you are good with Facebook, Twitter, has a lot of friends or not. You can create a Blog/Website about something you feel passionate about it, generate traffic and use ads

 1.- Make a Diagnose

Write all your skills, experience, passion, hobbies, Consider writing in a paper your life plan, if you want more information about it click in this link What is a Life Plan

2.- Research ideas for Passive Income that match with you

Talk with people you know they are doing what you are looking to do.

For more ideas you can click here Ideas for Passive Income

Passive income is important because it make you financially free. When your passive income is bigger than your current expenses or liabilities that mean that you don need to work just to pay your bills, your passive income pay the bills for you.

Passive income is an income received on a regular basis, with some effort required to maintain it.

If you want to drink lemonade you will need lemons. You can buy lemons or you can harvest them. Passive income is having the lemon tree that in a regular basis will be giving you lemons.

Click in this link if you want to know Why Passive income is important

The American Internal Revenue Service categorizes income into three broad types, active (earned) income, passive income, and portfolio income.

• Earnings from a business that does not require direct involvement from the owner or merchant;
• Rent from property;
• Royalties from publishing a book or from licensing a patent or other form of intellectual property, such as computer software product;
• Earnings from internet advertisements on websites;
• Dividend and interest income from owning securities, such as stocks and bonds, is usually referred to as portfolio income, which may or may not be considered a form of passive income. In theUnited States, portfolio income is considered a different type of income than passive income;
• Pensions.

Talking about Retirement!

Financial Plan Step 1 – How much money should I need

Thinking on my retirement: 10, 20 or 30 years from now.

Considering that the most probable thing is that your mortgage, car loan and probably your kids education is completly paid.

This money you will be needing is only for your personal expenses: groceries, gas, hydro, etc. Most canadians families choose around 2,000 CAD

Once you have chosen your monthly budget, you will need to calculate for how long you will be needing it. And is important to consider the inflation rates, because inflation decrease your buying power in the future. You can see it on the groceries or the gas how before was notably cheap and now is more costly. For that I create a spreedsheet that will help you calculate this in an easy way. You can Download it Here!

Financial Plan Step 2 – Compounding Interest

Read more here!

Learn why the idea of creating wealth by building assets (by having a home, car, clothes and jewelry) is a myth and how one simple shift in your thinking can change your financial life.  Learn the secrets of cash flow and how to never worry about money again.  Learn how to achieve your dreams, how to stop the financial “bleeding”, how to become financially secure, and how to get out of the rat race forever.  

This board game will transform the “money mind-set” of anyone who plays, whether they are new to financial information, or seasoned investors.

Play the Game ONLINE!Robert Kiyosaki’s Juego popular CASHFLOW 101!

Aprende porque la idea de crear riqueza creando activos (como casas, carros, ropa de marca y joyeria) es un mito y como un simple cambio en tu manera de pensar puede cambiar tu vida financiera. 

Aprende los secretos Learn the secrets of cash flow and how to never worry about money again.  Learn how to achieve your dreams, how to stop the financial “bleeding”, how to become financially secure, and how to get out of the rat race forever.  

This board game will transform the “money mind-set” of anyone who plays, whether they are new to financial information, or seasoned investors.

Play the Game ONLINE!

FINANCIAL PLANNING

Toronto / GTA / Ottawa / Vancouver

Would you like to know:

• When will be your debt freedom day?
• How much money you will need for your retirement?
• What would happen if the household income is affected?
• Can I give my kids the gift of no student loan debt?
• How I can pay faster my mortgage and credit cards?
• Can I afford these vacations without comprising my financial future?

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