X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Make Money While You Sleep - Outside View by Anisa Virji
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Make Money While You Sleep
Jan 25, 2017

Anisa Virji

What is your primary source of wealth?

If you are like most people, your answer will be your job. Or profession. Or career. Call it what you will.

It's what you do more-or-less all day, every day, and at the end of each week or month or year you have a certain amount of money to show for it.

Then here's what you do with that income: You put bits and pieces of it in different places. You've got your living expenses, your occasional splurges, your vacations or other travels, your hobbies...and so on.

Another bit goes to your savings, where you make sure you have a full pot of wealth stored away for emergencies.

Finally, whatever is left, you invest, most likely in stocks. What you invest gets bigger, little by little, and that becomes your ONLY wealth-building activity.

Am I right?

And then, if you are anything like a person from my office (who shall remain unnamed), you wait for your father-in-law to die and leave you and your wife the small business he has built up so you can sell it and finally get some real financial independence.

Now, even though that last part is a joke, there is a real problem with the 'wealth-building' technique I outlined above...

The problem: You cannot get wealthy this way.

Investing your savings in the stock market - even if you are intelligent about it - is not going to make you wealthy.

The markets will make you money - but not build you wealth. Because to build wealth, you have to either invest a lot of money to begin with...or wait a very long time.

And honestly, how long can you wait before your life starts closing down? What is the point of having money after the shop is closed?

So, if you're not willing to wait a lifetime, you must start putting more money into your investment bucket.

This means you must grow your net investible income - the portion of your income that goes directly into investments.

But how can you grow your net investible income?

I am a doctor, you say. (Or lawyer. Sales head. IT professional. Banker. __________ Insert your profession here)

And I make what I make. I work hard, earn good bonuses, get promotions every few years. Increments every year if I'm lucky. But that only increases my income by so much.

This is what I do. What else can I do?

I'm always surprised at this question.

Because you can do so much.

Being a doctor (or whatever) is your career.

But your career is not the ONLY way you should be making money.

To build wealth, you should be making more money outside your career than inside it.

While you are at work, or asleep, or at a conference...you should have extra streams of income that keep making you money.

That, ladies and gentlemen, is the real secret to building wealth. Make money while you sleep.

I met someone like you at the Equitymaster Conference last week. At least, I thought he was like you.

He was a professional, Mr L. He introduced himself and asked me about the Wealth Builders Club.

I launched into my little lecture about how you should build extra streams of income that are making you money even when you are not working. How you should start or invest in a business because owning your own business, or a part of a business, is the best way to build wealth. How your job alone cannot make you wealthy...blah blah.

No, no, he said. I do my job because I love it. And I invest in stocks to grow my money.

But most of my wealth comes from elsewhere.

I have a small business I run in my hometown. I have some parcels of land. I have a partnership in some restaurants in USA.
(His list went on...)

I am very interested in trying to do something with email marketing, writing and photography - that is my passion. Can I do something with it that will also add to my wealth?

I looked at him. I was terribly impressed. He actually did look like a calm, happy, worry-free person.

He sounded exactly like a member of the Wealth Builders Club.

A Serious Conversation About Wealth: Anisa with a Wealth Builders Club member at the Equitymaster Conference 2017


A sharp-eyed hunter of opportunities. Brave investor in those opportunities. Using his knowledge, passion, and interest to build wealth. And giving up financial worries forever.

Yes! You absolutely can, Mr L, I said. And we can show you exactly how.

And thus began a fruitful relationship between Mr L and me.

Now, if he can do it, and so many other members of the Club are doing it, why can't you?

And please don't tell me you can't, because, I know, and you should know, that you can.

But if you tell me you don't know how, that's okay. It's a much easier question, because it has an easier answer.

Here's the answer: a journey the Wealth Builders Club will take you on. The only investment that has no risk. The only one you will ever need to build real wealth...and live liberated from your career.

And with that, I wish you this: May all your extra streams of income turn into rivers and seas and oceans....and bring you an abundance of riches.

Anisa Virji is the Managing Editor for Common Sense Living, and the Wealth Builders Club India, a Club where you will find all you need to generate a fortune outside of the traditional financial markets.

Disclaimer:

The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Equitymaster requests your view! Post a comment on "Make Money While You Sleep". Click here!

4 Responses to "Make Money While You Sleep"

ARUN KAMAT

Jan 30, 2017

I want to do online trading and learn about how to make money from it. Please guide.

Like 

Srinivasan V

Jan 28, 2017

I am truly amazed at the article on wealth building. In fact I practice it truly - I used to work for an MNC as CFO =, now I quit that and running a consulting organisation called CFO Bridge - I also run a small e-commerce portal for CA students, I am on the boards of few companies, I also lend my money to needy, I have rental properties and finally I also invest regularly - I made several attempts in equity investing and FAILED in the past - ONLY equitymaster has made me gain the courage and conviction ( and some profits) of equity investing.

You are a bunch of impressive intellectuals - I am proud of your company.

Thanks

Like (1)

Goverdhan Kothari

Jan 28, 2017

Madam, I have so many idea to make money, but need guide and extra time(How to say time?).

Like (1)

M V Narayan

Jan 27, 2017

I would like to know more about your Wealth Builders Club.

Regards

Like (1)
  
Equitymaster requests your view! Post a comment on "Make Money While You Sleep". Click here!

More Views on News

Tata Consultancy Services (TCS): A Decent Start to FY17 (Quarterly Results Update - Detailed)

Jul 14, 2016

Tata Consultancy Services (TCS) has declared results for the quarter ended June 2016. The company has reported a 3% QoQ increase in consolidated sales while the consolidated net profit was up 0.3% QoQ.

Tata Motors: A Profitable Fourth Quarter (Quarterly Results Update - Detailed)

Jul 8, 2016

Tata Motors Ltd has reported a 19% YoY and 202% YoY growth in sales and net profits for the quarter ended March 2016.

Idea Cellular: Interest Costs Hurt Profits (Quarterly Results Update - Detailed)

Jul 4, 2016

Idea Cellular has reported a 12.4% YoY growth in the topline and a decrease of 0.4% YoY in the bottomline for the quarter ended March 2016.

Not a Good Place for a Heart Attack (Vivek Kaul's Diary)

May 24, 2017

Have you ever wondered what you would do if you had a health emergency in a remote location?

The Singular Quality That Helps Super Investors Beat Markets Black and Blue (The 5 Minute Wrapup)

May 24, 2017

The singular trait that that has helped all superinvestors earn returns that are elusive to the rest of the investors.

More Views on News

Most Popular

New IIP Shows Demonetisation Slowed Down Indian Manufacturing Growth Big Time(Vivek Kaul's Diary)

May 16, 2017

The manufacturing growth between December 2016 and March 2017 fell to 1.6 per cent as against 6.9 per cent between April and October 2016.

How to Generate a 17.28% Profit in Days(Daily Profit Hunter)

May 12, 2017

Apurva shows how a simple but effective pattern has helped him generate returns like 9.09%, 11.41%, and 17.89%.

Read This Before Throwing Out the 'Bad' IT Stocks(The 5 Minute Wrapup)

May 12, 2017

A template that will help you identify the 'emphatic sells'.

Just Like Before, the Market is about to Crash(Outside View)

May 17, 2017

Markets are at record highs. Fear is at record lows. How does this end? When does this end?

5 Ways A Good Robo-adviser Can Help You In Financial Planning...(Outside View)

May 11, 2017

PersonalFN explains how a good robo-adviser can offer you a world of convenience.

More

S&P BSE SENSEX


May 24, 2017 (Close)

MARKET STATS