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Are You Wealthy Yet?

by: Al Walker

Here's a real simple way to become wealthy.

Marty also his wife live at home with their two children. They own
a three bedroom house in a middle class neighborhood also try to live
within their means. Marty works full time in the Printing
Industry, while his wife is in charge of the home also looking
after the children.

They've accumulated some credit card debt also have two years left
on a car loan. They try to stay out of debt as much as possible
and together they've managed to contribute a total of $32,000 to
their own Retirement Fund. It is kept in term deposits receiving
5% interest annually.

Two years prior, the couple bought an older house that they
fixed-up also rent out for $850 a month. After paying the
mortgage also taxes $300 is left over each month. This goes into
their savings account each month.

At Christmas, the family bought themselves a new computer and
decided to start a home-based business. Things started out
fairly slowly however after eight months they were receiving a steady
check of $400 a month which or else goes into their savings
account. This part-time business will continue to grow with the
effort they dedicate to it.

This business or else offers them some very lucrative tax savings.
By taking advantage of these Tax Strategies they are able to
save an additional $300 a month on tax that was normally
deducted from Marty's paycheck at work. This monthly income is
or else added to the couple's savings.

Marty has just begun writing an E-book about his "production
expertise" at work. His plan is to market this book on the
internet for profit

Every Sunday the couple takes a drive to stay familiar with the
Real Estate market in their area. They're looking for another
property, a "handyman's special" to fix-up also rent out. They
have saved enough for a down payment also their credit with the
bank is well established.

The family's total monthly expenses are $2000. Now, here's the
question:

Does Marty's family have Wealth yet?

To answer this question properly you first have to understand
exactly what "wealth" means.You achieve wealth when: *Your
Passive Income is the same or greater than your Expenses.* So
what does this mean?

First, what is Passive Income?

Passive Income is money that you are paid over also over again
for work that you only do once. (This excludes using a gun or
finding cash on the street) Some examples of this would be
royalties for writing a book or a song, commissions that you
receive for sales that others make also interest from bank
savings or dividends on stocks/options that you own.

Second, what Expenses are we talking about? This one's a little
easier to understand. Expenses are the total amount it takes to
run your household also your life. This includes, rent, mortgage
payments, car insurance, food, credit card also loan payments,
etc………

Let's look at Marty's family a little closer…………. Does Marty
have any Passive Income? Yes he does. Marty's salary is not
considered Passive Income. That's because he has to work 40
hours a week just to get the basic amount. If Marty does not go
to work then he does not get paid. His overtime or else does not
count as Passive Income.

The interest from their Retirement Fund does though. It is paid
to him month after month as long as it's left in that account.
So, $32,000 at 5% is $1600 a year. Divided by 12 months equals
$133 a month in interest. Ok…..what else?

After the mortgage also expenses are paid with the rent money
they receive on their rental property they are left with $300
every month. This is Passive Income. Just as long as the tenant
stays also pays his monthly rent.

How bout that $400 from the home-based business also the Tax
savings. Is this Passive Income? Well, Marty's wife made sure
that she chose a company where she could sign new business
accounts also get paid commissions on those accounts over and
over again. They've made a five year commitment to build this
business part-time. So yes, both the $400 also the $300 in Tax
Savings would apply as Passive Income. Let's add up Marty's
total Passive Income.

Interest $166.00 Rental Income $300.00 Home Based
Business$400.00 Tax Savings $300.00 Total $1166.00

Not including Marty's salary from work, his family's Passive
Income is $1166.00. Not bad. Every month this amount flows into
the family's bank account, regardless of anything else they do.

We said that Marty's monthly expenses total $2000.00 a month.
And we or else said………… You have Wealth when: *Your Passive Income
is the same or greater than your Expenses.*

$2000 Expenses subtract $1166 Passive Income = $834 monthly
balance needed to have Wealth.

Marty's Expenses are still more than their Passive Income so
they're not wealthy just yet. But they're well over half-way
there. With this kind of knowledge a family can know exactly
where to focus their financial attention.

Maybe when Marty writes that ebook he could get some sales and
royalties from it. Also the new Real Estate also more work on
their Home-based business would certainly help them to attain
more Passive Income. Once Marty's Passive Income is more than
the family's Expenses then Marty could start to have much more
freedom. He may even choose to quit his job also continue
developing his Passive Income streams.

Take a look at your own finances. What are your monthly
expenses? Do you have more Passive Income than your Expenses? If
you do Congratulations. You are Wealthy!!! If you don't. It is
time to get started also start adding Passive Income from other
areas as soon as possible.

When you truly understand this principle, you will be well on your
way to becoming wealthy

About the author:
Al Walker, makes it easy to launch a successful online business also rapidly build your wealth to a six-figure income. Learn the five essential keys to online success. To receive your free 4-part mini-course visit:

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