Tuesday, March 18, 2008

Financial Abundance

I have always thought that financial freedom is the highest level of financial status, however there seems to be even a higher level.

In one of his best-selling books, “Secrets of Self-Made Millionaires”, author Adam Khoo, a multi-millionaire himself shared with readers what he defined as the 4 levels of wealth:

a) Financial Stability

i) when you have accumulated enough liquid assets to cover your current expenses for a minimum of 6 months.
ii) you have life and hospitalization insurance to protect you and/or family’s lifestyle should you be permanently disabled, unable to work or pass away suddenly.

b) Financial Security

Through investment of time, money and ideas, you accumulate a critical amount of positive cash flow assets that generate enough passive income to COVER YOUR BASIC EXPENSES.

c) Financial Freedom

Through investment of time, money and ideas, you accumulate a critical amount of positive cash flow assets that generate enough passive income to SUSTAIN YOUR CURRENT LIFESTYLE.

d) Financial Abundance

Through investment of time, money and ideas, you accumulate a critical amount of positive cash flow assets that generate enough passive income to sUSTAIN YOUR DESIRED LIFESTYLE.

As our society evolves, ‘newly invented’ terms always enter into the lexicon of businesses, finances and other arenas.

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