The Wise Investor
1.2 Achieving financial independence
As John began speaking, his initial hesitation dissolved
and his confidence grew. Unsure where to begin at first, the
picture became clearer and clearer to him the more he
"Your wealth, Kate, is your store of assets. These may
be properties, shares in companies and cash deposits. Your
assets give you security and freedom. If you are ever sick or
injured, or unable to work for any reason, you will not suffer
from lack of money. When you have a reserve of quality
assets, Kate, you will not be vulnerable in the way that you
are now. You will have more choices in your life, and you
need not fear the future as you do now. This security and
peace of mind is invaluable Kate. Even if nothing ever goes
wrong, the worries and fears that you feel at the moment
reduce the quality of your life. This places a strain onto
every day of your life. If you like, I will talk for a while
about increasing your wealth, and building a secure financial
Kate was listening intently.
"Money comes to us from three sources Kate. First, we
may be given it. This includes inheritances, government
benefits and lottery wins.
These items are usually beyond our control, although you
must make the most of the money that you receive. We will
look at this a little later.
The second source of money is our job. I will suggest
various ways to improve the income from your job, however
the real area to work on is the third source of income.
This income comes from your assets. Investment is the
use of your money to make more money. If you invest your
money in assets that produce an income, such as properties
and bank deposits, then you will receive an income from
these investments. At present, this is probably insignificant in
comparison to the money that you earn from work.