Your family finances are the aggregate finances contributed by who ever have the capacity to contribute; usually by some of those working family members.
The aggregate incomes from these contributions are supposed to provide the following;
1 dream home
2 quality lifestyle
3 education
4 dream cars
5 travel
6 saving for retirement
Therefore the aggregate income must match the above provisions, generally there four scenarios to these effects;
1 Negatives balance; usually take care by credit card and credit given by your
sundry shop provisions.
2 Just balance; enough to cover all the basic provisions without saving.
3 Managed to cover all basic provisions with a little bit of saving.
4 Excessively cover all basic provision with some degree of comfort and
luxury plus a lot of saving.
So which position is your family finance?
Sad to say 95% of us are in the 1st to 3rd category, and only 5% are in the 4th category. Why?
Because 95% of us have followed the 95% failure paradigm when we started our life after whatever education we have completed.
This is the paradigm we followed;
Age 1 to 18, this time is under our parent’s control so we can’t do much except to grow and acquire knowledge by attending school.
After age 18, those who are not so lucky in life will then force to come into the reality of the world as an adult to live, and to live we need money to survive, so first thing that come to our mind is to get a job by selling our time.
Here there 2 categories of people, one who aggressive will work for a couple of years where they pay attention to what their bosses is doing and learn as much as they can, save as much as they can during the same period where they a learning their bosses skill in running the business, then they’ll come out to do the same business and become their boss competitors.
The second group who are not aggressive or their preference is to work (selling their time) will continue to work and climbed the corporate ladder, trying their very best to get as high as they can because of the salary and perks given by the company. The smart one will try to improve their skill and knowledge for higher promotion and pay.
Both these categories of people will given themselves until the retirement age, which’s now at age 58; to get rich and wealthy. Why, because they wants to have a monthly income without working to continue taking care of their monthly lifestyle monetary expenses which they builded over the last 40 years of their life. In other word, they need a passive income for their retirement.
The reality is 95% failed in this life process as shown by the statistic, only 5% manage to make it. What’s this process? The process they use is wealth accumulation as follows;
1st to earn
2nd to save
3rd to invest for leveraging to grow
And finally expose them to the market risk during the 40 years period of wealth accumulation and hopefully become rich and wealthy. There is no certainty that is why the statistic has shown us 95% don’t make it, only 5% make it.
So my friends are you using the above process or paradigm? If yes then it’s high time for you to look for an alternative.
The alternative that has eluded me 25 years ago have finally come back to me again. The second paradigm which is 100% successful is as follows;
Likewise, age 1 to 18, this time is under our parent’s control so we can’t do much except to grow and acquire knowledge by attending school.
After age 18, those who are not so lucky in life will then force to come into the reality of the world as an adult to live, and to live we need money to survive, so first and only thing we should do to get an income is to sell products and not our time, because selling products have no limitation as compare to selling time which limited to 24 hours only for everybody.
Selling products is doing business. Products can be tangible and intangible. We just don’t do any business but a business that can give us a passive income every month, an income we can build base on what everybody can do it if they want to and not restricted to any conditions.
Currently there are 2 types of business structure in the market. The first one is the survival structure which we see around us all the time such as the production channel like the factories producing goods for sale, and the distribution channel like the sole agent, the regional agency, the wholesaler, the retailers, the hypermarkets, the small and medium industry and enterprises, the multinational companies listed in the stock exchange and etc… these business structure don’t like competition so everybody involved here are not willing to teach their trade secrets.
As for the other business structure, can only survive if they educate and develop people to be a prosumers first then an entrepreneur if the person wants to be developed; otherwise they can always remains as prosumers. Prosumers are people who spend and earn at the same time from their spending.
The structure of the business is base on a partnership between a producer of a product and a distributor of the said product. The producer only concentrates in production and leave the distribution to the distributor who have the exclusive right. A marketing plan is put in place to compensate the distributors proportionate to the effort they put into developing their market shares. The market strategy they use is network marketing which use multi level marketing system. They sell products by words of mouth or referrals marketing which one of the most powerful marketing tools available. Under this system anybody can join in to purchase the product for their own consumption or to sell the said product if they want to. Usually the products that are sold through network marketing are consumable products or necessity products. They are also given the opportunity to recruit their friends to buy and sell the said products.
The success in this business model is base on its duplication of its business model and its strategy in consumption volume creation. In any business, volume is the game plan, so we have to develop a market share of consumable and a large number of independent business owners. Because this is a necessity product the prosumers will not stop using the products if they get value for their money, thus, every month you’ll be assure of a sale from your satisfied prosumers. As your prosumer grow, your monthly sale volume will grow and your income will also grow. As long as the satisfied prosumer consumed you are paid a bonus from their consumption which is calculated every month and hence this is where your monthly passive income is formed.
The question in this business model is how to find a good partners with high integrity, proven records and keeps to their word.
