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Are You Wealthy Yet?

by: Al Walker

Here'sreal simple way to become wealthy.

Marty and his wife live at home with their two children. They own
a three bedroom house inmiddle class neighborhood and try to live
within their means. Marty works full time inPrinting
Industry, while his wife is in charge ofhome and looking
afterchildren.

They've accumulated some credit card debt and have two years left
oncar loan. They try to stay out of debt as much as possible
and together they've managed to contributetotal of $threetwo,zerozerozero to
their own Retirement Fund. It is kept in term deposits receiving
five% interest annually.

Two years prior,couple boughtolder house that they
fixed-up and rent out for $eightfivezeromonth. After paying the
mortgage and taxes $threezerozero is left over each month. This goes into
their savings account each month.

At Christmas,family bought themselvesnew computer and
decided to starthome-based business. Things started out
fairly slowly but after eight months they were receivingsteady
check of $fourzerozeromonth which also goes into their savings
account. This part-time business will continue to grow with the
effort they dedicate to it.

This business also offers them some very lucrative tax savings.
By taking advantage of these Tax Strategies they are able to
saveadditional $threezerozeromonth on tax that was normally
deducted from Marty's paycheck at work. This monthly income is
also added tocouple's savings.

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

Every Sundaycouple takesdrive to stay familiar with the
Real Estate market in their area. They're looking for another
property,"handyman's special" to fix-up and rent out. They
have saved enough fordown payment and their credit with the
bank is well established.

The family's total monthly expenses are $twozerozerozero. 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 issame or greater than your Expenses.* So
what does this mean?

First, what is Passive Income?

Passive Income is money that you are paid over and over again
for work that you only do once. (This excludes usinggun or
finding cash onstreet) Some examples of this would be
royalties for writingbook orsong, commissions that you
receive for sales that others make and interest from bank
savings or dividends on stocks/options that you own.

Second, what Expenses are we talking about? This one'slittle
easier to understand. Expenses aretotal amount it takes to
run your household and your life. This includes, rent, mortgage
payments, car insurance, food, credit card and loan payments,
etc………

Let's look at Marty's familylittle 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 fourzero
hoursweek just to getbasic amount. If Marty doesn't go
to work then he doesn't get paid. His overtime also doesn't
count as Passive Income.

The interest from their Retirement Fund does though. It's paid
to him month after month as long as it's left in that account.
So, $threetwo,zerozerozero at five% is $onesixzerozeroyear. Divided by onetwo months equals
$onethreethreemonth in interest. Ok…..what else?

Aftermortgage and expenses are paid withrent money
they receive on their rental property they are left with $threezerozero
every month. This is Passive Income. Just as long astenant
stays and pays his monthly rent.

How bout that $fourzerozero fromhome-based business andTax
savings. Is this Passive Income? Well, Marty's wife made sure
that she chosecompany where she could sign new business
accounts and get paid commissions on those accounts over and
over again. They've madefive year commitment to build this
business part-time. So yes, both$fourzerozero and$threezerozero in Tax
Savings would apply as Passive Income. Let's add up Marty's
total Passive Income.

Interest $onesixsix.zerozero Rental Income $threezerozero.zerozero Home Based
Business$fourzerozero.zerozero Tax Savings $threezerozero.zerozero Total $oneonesixsix.zerozero

Not including Marty's salary from work, his family's Passive
Income is $oneonesixsix.zerozero. 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 $twozerozerozero.zerozeromonth.
And we also said………… You have Wealth when: *Your Passive Income
issame or greater than your Expenses.*

$twozerozerozero Expenses subtract $oneonesixsix Passive Income = $eightthreefour 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 knowledgefamily can know exactly
where to focus their financial attention.

Maybe when Marty writes that ebook he could get some sales and
royalties from it. Alsonew Real Estate and 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 and continue
developing his Passive Income streams.

Takelook 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 do not. It's
time to get started and start adding Passive Income from other
areas as soon as possible.

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

Aboutauthor:
Al Walker, makes it easy to launchsuccessful online business and rapidly build your wealth tosix-figure income. Learnfive essential keys to online success. To receive your free four-part mini-course visit:

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