7 Simples Steps To Financial Freedom And Wealth Building – Step
2

Copyright 2005 William Tan
Simple Steps to Financial Freedom and Wealth Building
STEP 2: Achieve Financial Freedom – Choosing Your Escape Vehicle
Do you want to achieve financial freedom? For most people, this
is constantly on their mind If you are reading CashFlow
Avenue’s 7 Simple Steps to Financial Freedom and Wealth
Building, chances you are looking for ways to get out of the rat
race and to achieve financial freedom Unfortunately, it isn’t
always as easy as it sounds
With your Financial Goals firmly defined in Step 1, you would
now have to choose your “escape” investment vehicle There are
plenty of investment vehicles in the world Let’s name a few
most common form of investment – fixed deposits, gold, bonds,
real estate, stocks, stock options, mutual funds, starting a
business on your own, etc
>From experience, you might probably be able to tell that every
one of the above contains risk, except for fixed
deposits Profit, simply defined, is your reward for placing
taking risk on your assets
On surface, fixed deposits, look the safest form of investment
but are probably the most risky because inflation rates are
consistently higher that what the bank would pay you – slowly
eating away your purchasing power in years to come So, in
truth, while your bank account is growing in numbers, you are
actually becoming poorer If there is no inflation (which will
never happen in the long run), fixed deposits are still not the
best escape vehicle because it takes just too long to
appreciate Who would want to wait 30 years before they can be
rich?
Without getting involved into too much detail, let’s jump
straight into action When choosing an escape vehicle, you
probably would want to set a few criterions to screen out what
will and will not work for you The ideal escape vehicle or
business should provide:
Liquidity – allows you to cash out within a few days
Leverage on Your Capital – using only your capital can be slow
Select a vehicle that provides leverage that magnifies only
returns but not losses
Fast Results – should see return on investment within the 1 st
month
Easy to Set Up – should take no longer than 1 month to start
Predictable Monthly Return on Investment (ROI) – be able to
forecast accurately your monthly
Low Risk – consistent and provides a high percentage for success
Profit with Time – with each tick of the clock, you should be
making money
Utilizes The Power of Compound Interest – snowball your returns
to accelerate your wealth building process
After running these criterions over the choices of investment
available, most vehicles don’t make the cut Of all, only 2
investment vehicles would make the cut 
Stay tuned for Step 3 for the Best Escape Vehicle

Tags | assets, bonds, criterions, deposits, financial, goals, inflation, investment, leverage, liquidity, purchasing, vehicle, vehicles, wealth