I know for most people, salary is the only source of income. And I know most of these people regretted it when they reached an old age.
Salary is what we call a linear or active income, meaning once you stop working, you stop getting any money too.
I happened to have a few dinner appointments over the last week and there was a particular conversation that remained in my mind. It was about an employee, in a pretty high management post, pretty old and probably have another 10 years before retirement. One who had served the company for many many years. I happened to know this employee too and thought this person should be quite well to do, considering that the company had been paying good money and bonuses over the many years. And that this employee had made a couple of real estate investments too.
So I was surprised to learn that this employee was afraid of losing the job and therefore had to wrestle with the daily demands and stress of the job. I think this is a sucky feeling to have. It means to me that this person having worked for so many years had not made proper plans for retirement. In the past, where the concept of financial freedom is not so common, this is what we see is happening today. Especially the older generation, caught by surprise with rising inflation prices, found themselves caught in between.
Are you in a similar situation?
And think if this is something you want. If not, what can you do?
