Have You Found Your Golden Eggs?

Once, there was a poor farmer who had a goose. The goose laid one golden egg a day, the farmer will sell the egg at market and obtain a decent sum of money everyday!

One day, the farmer became greedy and wanted to have all the eggs inside the goose so that he could sell more eggs and get more money instead of waiting for the goose to lay one egg everyday.

He took a knife and "killed" the goose and only found out that there was only one egg inside it. The greedy farmer lost the goose that lay egg and became poor again in the end.

In this story, you can view the goose as an ASSET and the eggs produced as the CASHFLOW generated from the ASSET.

Five Key Lessons:

1) Not to simply kill the goose for short term gain in the beginning. Hence, try not to simply sell your asset for short term gain unless it is a viable move.

2) Focus on how to grow your asset so that it could generate more passive income to you. You can focus on how to grow your "goose" so that it could lay more eggs to support you and strengthen your financial position.

3) It takes time for a goose to lay egg. Similarly, it takes time for your asset to generate cashflow to you. Some REITs or companies have half yearly or quarterly distribution or dividend payout, thus we will need to wait patiently for the REITs or companies to generate its profits and pay some of its profits to you so that you could enjoy the passive income. As the saying goes, don't rush, anything that is worth having is worth waiting for. 

4) So take your time and grow your "goose" patiently.  

5) When you earn more dividends from the companies or REITs, you could reinvest the dividends to buy more shares of the companies or REITs so that you stand a better chance to earn even more dividends from the same asset. This is the power of REINVESTMENT.

In the end, there are various equity investment strategies out there such as technical analysis, trading, buy and hold and many more. We just need to find out which strategy works well for us, then stick to it and hopefully, the strategy will eventually bear fruits and improve our cashflow and networth position!