MY WEEKEND INSIGHT
FED UP OF FINANCIAL FREEDOM PEP TALK?. 25/09/2021

Time and time again, youu have and will continue to cross paths with literature about financial freedom but where exactly does the rubber meet the road? The point of realizing passive Income.

So what’s Passive Income?

Income you get with little or no participation at all, that money you receive whether you are working or not.

To be financially free, you need to have in mind a certain amount of money you need let’s say on a daily, monthly or annual basis. The next task would be working against whatever odds to earn that money and even more. This may not necessarily mean that you stop working when you achieve the target, it means you are free to work and take some business risks after all you are assured of that money. Examples of passive income include rental income, royalties, dividend stocks, etc

We’re challenged to intentionally grow our passive income through investing in for example rental properties, government securities and bonds, Saccos, investment clubs, mutual funds, the list goes on and on..

If you have a business, you must make sure the business gives you an investment and an investment should be able to give you more investments, that’s the normal chain of business growth.

_”But wait, so what’s the difference between a business and an investment?”_ you ask!

A business requires your day-to-day involvement while an investment most times calls for passive involvement.

We have previously shared that idle assets are not good for your financial growth, an asset should be able to reproduce more assets; If you have rental property, it’s income should enable you get more rental assets in the next developing town. What this does is; It presents to you the confidence to borrow from a financial institution (your investment club, SACCO or bank at a competitive rate) to acquire more assets since you are assured of cash flow to clear the loan. Having looked at this from this perspective, it’s therefore prudent to admittedly realize that some of the housing facilities in the village which you visit once a year (at best twice) could be idle or dead assets, that cool house in Kampala where you only sleep in is an idle asset. There are people who think of it as weird, un heard of for their family house in Kampala to be mortgaged! They even like to add “That’s too risky”!

When you read between the lines, do you think these people could be making what they have achieved become their master? I promised my self and i try to practice not allowing money or property be my master. I can easily morgage or sell off our residential house provided i have good financial plans and investment to back the decision.

Beginning to eat bones?
Let’s discuss this further through my website sabiitiherbert.com or on sabiiti10@gmail.com, twitter, Facebook etc.

Shalom!