February 2nd, 2010 
Vikash
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.
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