Building a Six Figure Income Money Machine
The good thing about having a set goal is that you know the direction where you are going. If it’s for your retirement fund, you have to know the amount that you want to receive monthly as your target. You will then set how long you will have to build the capital that will allow you to receive that monthly income from your retirement fund.
For example, you decided to have an income from your investments an amount of P100K monthly during your retirement, assuming that you will get a 10% annual returns, your capital should be P12M. That’s P12M x 10% divide by 12 months.
This P12M capital is your money machine that you will build to allow you to live with financial freedom, a passive six figure income that will take care of you month after month during your retirement years until heaven will call you.
With that P12M, you will then calculate how much you are going to invest on a monthly basis until you reach the capital you need. From the calculator on my website https://junpasion.com/
The assumption is that you will invest monthly (Cost Averaging Method) an amount of P30K and 10% growth returns, 15 years of accumulation, you will arrive at your desired capital of P12M.
If you will achieve your goal, that’s the time that you can say that you have the financial freedom. You don’t have to worry about money even you don’t have to work; it will be your money to work for you. That means you can have the freedom to good things without being bothered on what you will eat, what you will drink and what you will wear. You made your money your slave, not your master.
But before you start investing to build that capital, you must check your financial foundation if it is solid enough. Here are the things that you need to consider for a solid financial foundation:
– Basic knowledge
– Earning capacity
– Health Care and Insurance for protection
– Debts and Liabilities should be minimal or zero
– Emergency Fund (at least 6 months of income for me)
Once these things are taken cared of, you can then start investing your money in stocks through Mutual Funds and Unit Investment Trust Funds.
Good luck in building your six figure income money machine!
If you are planning your retirement fund this big, I invite you to join me. I need to associate with people who have audacious dream like me. We learn together as we move forward to our dreams and desire to build our money machine. Join my FB group Pinoy Millionaire Mastermind.