Perhaps you’ve heard in times past the expression “receipts upon slumber”.
After repose, one’s receivables need not cease. Does this not sound pleasing?
Nay. Initially, when uttered by Mr. Buffett, this notion sounded not at all agreeable, rather worrisome:
“If one finds not a means to profit whilst at repose, one shall toil until demise.”
How then to appease such disquiet?
Pray listen once more to Mr. Li Ka-shing’s sage counsel:
“Ere a man reaches his third decade, he ought rely on brawn and wits for remuneration. Once past it, he should rely on funds to yield funds.”
There exists no “receipts upon slumber”; when effort ends, so too earnings.
Yet with “receipts upon slumber”, though one cease to labor, money can money make.
You declared that men in middle age scarce tolerate a mishap. Change careers they must not in recent seasons past, nor undertake commerce on a whim. “Receipts upon slumber” I possess, thus worry I need not.
You expressed that “the crisis of five and thirty” brings much unease. Whilst bearing family and mortgage, be eliminated one shall by failure to persist. “Receipts upon slumber” I possess, thus anxious am I not.
No matter environmental changes or future uncertainties, so long as “receipts upon slumber” be mine, risks I can withstand, freely live, and with less concern.
How delightful. Once past thirty-five, thyself “receipts upon slumber” earn.
But how, pray tell, “receipts upon slumber” can one gain? Those who truly earn them must possess capital first, ere money money makes. A simple man am I, still a chance have I?
Indeed, a chance you have. To earn “receipts upon slumber”, at minimum, three cards you can play:
Financial assets, goodwill assets, intellectual assets.
What mean you? Expand, I pray.
So let me begin from the card none can refuse, though play it many cannot.
Card 1: Financial Assets
To earn “receipts upon slumber”, one card avoids you not: financial assets.
Yet this indispensable card proves no easy play. Many prone to err fall into dead ends even.
Let us speak first of “receipts upon slumber”.
What means “receipts upon slumber”?
In economics, “receipts upon slumber” has an alias known as “passive income.”
It refers to incomes gained automatically with little time or effort on one’s part.
For example, the interest from deposits, yields from financial investment, and rent from leased real estate.
After all, the so-called “before bed” and “after waking” differ but in “labor” and “its lack.”
“Receipts upon slumber” denote non-wage earnings.
If not from labor, what else can income rely on?
Classical economics’ theory of growth once said production relies on three factors: labor, capital and land.
But land individuals own not. What beside labor can bring you income is capital.
Thus the so-called non-wage earnings rely in truth on asset yields.
To earn “receipts upon slumber”, you’ve but to let assets your income make.
For instance, deposits, equities, and real estate – all constitute your financial assets. You can yield interest from deposits, investment returns from principal, and rent from property.
So you say “let assets your income make” means in fact “let money money make”.
Nay. “Assets” and “money” differ in kind. Many fail to earn “receipts upon slumber” through lack of this difference’s understanding.
Let me give an example.
What would come to pass should you think of “letting money money make” when striving for “receipts upon slumber”?
Once, smiling, a manager dined with us, recalling his years of first employment.
In that time, he said, unwilling was he to preserve but that meager wage.
What then to do? He wished to invest, and for “money money to make.”
But only recently had he begun work. How without a penny could he “let money money make”?
Thus to gain his first capital, resolve he made to educate himself in two matters:
Thrift’s ways, and money’s management.
Yet how much could he then save?
His wage five thousand yuan each moon, less rent and bills, e’en with rice alone, scarce three thousand might he store.
Three thousand to the saving of a down payment he set. Three thousand to earning interest he put. Daily that three thousand’s financial management did he study.
A full year thus labored, yet in calculation was he stunned.
By such saving methods, scarce the down payment in a decade could he reserve. With management thus, a whole year’s income but hundreds amounted to.
How inefficient! This calculation complete, stay did he resolve no more to try.
Far better to advancement through diligent labor hasten than with this energy and time, for yields so paltry.
You see, from this did many to “receipts upon slumber” lose all interest.
Too little possessed they at the first, why for paltry yields money should they use?
Most folks by earnest “before sleep” labor and larger wage, not money’s toying, best profits obtain.
Yet with the “financial assets” card, need it end indeed so fruitlessly?
Surely for common men of capital now lacking, earning “receipts upon slumber” possible is?
Indeed, possible it is. For “receipts upon slumber,” on “assets” not money alone depends the game. Now let me explain the difference twixt assets and money.
Is cash itself an asset?
Nay, place ye but a hundred yuan by your bed and wake to find it unchanged.
Yet not so if in a bank as deposit that cash you place, and interest it yields you. This deposit constitutes your asset.
Or equities purchase with that cash. These holdings too prove assets.
By “assets” I speak not of “money” alone, but of “things which help money make.”
This “thing” may a financial asset be, specifically “money which helps more money make.”
Yet not sole to “money” do assets pertain. All “things” able perpetual cash flows without labor to generate, qualify as assets.
Once grasped the contrast clear, earning “receipts upon slumber” starts ye’ll find, not ends.
Perhaps financial assets as yet ye lack. But two remain cards yet in hand to play.
Two cards more: goodwill assets, intellectual assets
Without assets financial, what other assets “receipts upon slumber” may bring?
Goodwill assets remain, of which examples follow.
Example one, business private.
Pray tell, if air conditions today ye sell, assets be the buyers?
Though consumption contribute, steadfast choose and yield cash flows perpetual they guarantee not.
Take Xiao Ming, erewhile user of brand A. Later marry would he, and outfit a nuptial apartment.
Shopping took wife and he. Stop and wander along aisles did they, till to area A they came.
Well, A performs well, A aforetime I used chose, choose A again this day?
The mall’s agent this said:
A well performs, but B this day annivesary holds, a twenty discount grant we, glance at it would you?
Good, let me view it.
An hour passed, from mall drove Ming and wife with B’s bill in hand.
Thus A lost Ming as client. Clients count not assets truly unless choose and perpetual yields bring ye steadily.
How ensure they choose evermore and yields bear? Reach clients free and accurately ye must, each time at least, aye?
Can agents in others’ malls ye bypass? Can intermediaries ubiquitous, and clients each time and news of wares and offers and innovations deliver? Can clients but you think of buying air conditioners?
Once reachable clients thus and fund-conserving, transaction expense mountains ye’ll save, whether customer acquisition outlay or agency commission – true cost reducing of exchange is your pursuit, and this why private domains burgeon today, by clients and saving transaction expenses binding.
Example two, brand.
Imagine toothpaste selling now and word-of-mouth, an whitening earned reputation.
So good fortune finds you thus:
From peers much fund ye spare. Wherefore?
Whitening toothpaste want when search they in apps this trait, and actively thee look for.
Research or recommendations matter not, homepage rank or product page, thee directly locate they shall.
Why direct seek they thee?
Trust in thee they place.
Power this of brand. Power wealth-making: transaction expense anew descends.
In truth, by goodwill assets brewing, expenses ye curtail, and exchange empower.