The Golden Eye Concept 2
This post is a continuation of The Golden Eye Concept.
So , the next question is , how do you measure the success of The Golden Eye Concept ?
Very simple .
Some of you already figured out …
Black Birds are Passive Incomes
Golden Eye , active income .
Passive income – the income that you receive with little effort required to maintain it.
Active income – the income that you actively work for .
Expenses – Your monthly expenditure ..
Try this , quickly record down your monthly expenses..Debts , interest rate , long term investment COUNTS in my book .
For Example :
Study loan – RM150
Food – RM800
Petrol , Toll and Parking – RM400
Car – RM900
Rent – RM1200
Entertainment – RM800
Insurance – RM250
Total : RM4500
THE GOAL
The moment your passive income , EXCEEDS your monthly expenditure , and you are having 2-3 active incomes a month . You know , The Golden Eye concept is WORKING for you
Or
The moment your active income doubles (or more) your monthly expenditure . You know you “got it” .
Yeah , so it kinda have to look like this .
Passive Income
- Expenses
_________________
+ surplus
+ More active income
_________________
= Your sassy wealth ( you don’t need to worry if you spent everything ) .
—————
.
Next Example ,
A business , Company X’s monthly expenses .
Expenses :
Rent – RM3000
Electricity , Water , Phone and Internet – RM1000
Salary – RM5000
Maintainence – RM500
Accounting – RM300
Mics – RM200
Total : RM10,000
This Company needs RM10,000 passive income with 2-3 active income deals . Or , a minimum of RM20,000 active income per month .
So , always look at your current situation , and think how can you improve it . A few things to consider
No or too little active income ?
Too little passive income ?
Too high expenses ?
Work from there ..If you can’t change your income , try to decrease the effort so that you have more time . i.e use money to generate more money .
Yeap , thats about it . Hope this concept works for you.
February 22nd, 2010 at 2:53 am
that is like saying , if you earn RM2000 you can only spent RM1000.tiu damn hard lei
February 22nd, 2010 at 10:57 am
erm kevin, i think this concept is to tell u if u know u must spend 2000 every month, then u need to find a way to earn more than that or double up ur current income, and that s when and how the concept starts to apply to help u earn more
February 22nd, 2010 at 12:10 pm
this concept means if you dont want to be broke, heres a way to estimate your spending and save accordinglylah….
and if you cannot save at all, your expenses too high d, either cut the expenses, or figure out a way to get more money(legally).
or just be happy with what u gotlah.=D
February 22nd, 2010 at 8:15 pm
Hey Robert Kiyosaki pny idea ke? ha ha
February 22nd, 2010 at 10:22 pm
@Kevin . Yeah , rockalt is right . Read his comment …
@rockalt . spot on .
@Joshua . You’re doing very well these days huh? 2010 , new year , new life , more money right ?
@ariffdude . Well , partly influenced i guess . But hey , i have never read Rich Dad Poor Dad in my entire life..I just hang out with people who read them , and they keep repeating his concepts..
February 23rd, 2010 at 8:32 am
i can see the future of music master becoming a business consulting firm
good stuff tho
February 23rd, 2010 at 12:44 pm
rich gap poor gap haha…
February 24th, 2010 at 10:59 am
ini Getting Out of the Rat Race punya konsep nie…
February 24th, 2010 at 1:51 pm
rat race. got play cashflow ah. hahah
February 24th, 2010 at 5:41 pm
gapnap: not really more money, just learning how to manage it better.
enter: rich gap poor nap.
February 26th, 2010 at 12:46 am
can i add a bit? i know a bit.
some stuff that i have been working for, same as above. mine are a bit straight forward.
i called it in pursuit of my passion income.
my passion, is, heh, the obvious. playing guitar. and i would like to, one day, play guitar as a full time job (either well payed or so-so, doesn’t matter it is my passion).
in order to achieve my dream, i need something, to finance both, my passion and life. a passive income.
so i start with something as small as, forex trading. a day trader. then slowly, i bought a house and i rent it out, which is now, giving me profit. (not much, but enough for now)
i am still working though, but in a few years time, if every thing is going according to plan, i would be able to play guitar for a living (passion income) and have a steady 2 channels of income stream (my forex trading and rental = passive income) to finance my needs and necessities(should my passion income is not that profitable).
okay ka?
February 26th, 2010 at 2:19 pm
yo worm..that sounds like a fantastic plan..
also remember to plan for the worse , especially the unforeseeable things such as what happens if you get a shitty owe money rent tenant , or maybe a flood that will destroy your property etc..
can you still handle your commitments , if it fails ..yeah.
February 26th, 2010 at 7:34 pm
yeap. plan for the worse. not much though apart from savings at the bank. got to work it out. thanks for the advise.
i try to keep my commitments as low as possible. avoiding loans, buying in cash only if i can afford it. yeah, can be painful at times, but i try to satisfy myself with what i have now
got to keep focus in achieving my dreams 
i practice this. informed decision(s) and calculated risk(s)
March 2nd, 2010 at 10:12 am
great concept worm.., and great post Gapnap – i read it from the 1st part..
it dawns to me.. that without we knowing it.. we are actually living the golden eye concept., but after knowing it – we can fine-tune it better.. so we have more passive and active income.. to support our lifestyle.
I’m a musicians too – that’s been my passion. But to support my passion, i have to work too – & i work as an IT consultant – that’s my passive income?
To top it up so I can spend some money on music gadget and other stuffs – i add few active income – by actively trading in stock and other part time job (more like a hobby income – by consulting IT after hour)
but most of my spending on music are borne by income from part-time job.. not from passive income.
well.. good luck to you.. in achieving the golden eye concept! share more.. and more we learn!
March 2nd, 2010 at 11:37 am
@worm. wow , buying in cash ? like house and car ? mann….that is massive !! respect bro respect …i’ve got a question , just say you’re saving up to buy a house in CASH . What investment would you recommend to go for during the process ? Just say your house is 500k , and you’re at the 200k mark ..can’t go for something too risky right ?
@Neo. Hey man , i got a question for you , is your IT consulting job your own business or like a day job ? does it pay by commission ?
Actually , i got a similar question from my close friend after he read my post , what is his day job ? Active or passive ? Hmmm , i think a day job is an Active income , and a part time job is a passive and Grey man .
This concept can’t be applied right away to our life . The concept is an ideal GOAL that we wanna work towards it ..something like ..
Black Bird – Rental collected every month from investment
Grey Man – Part time Consulting
Golden Eye – Buying and Selling properties , Shares
I am not there yet , but i would love to have this kinda lifestyle someday
See the difference ? I think the Active Income cannot be a day job . What we want is Money + TIME . If the active income is our day job , we do not have time to spent our money .
March 2nd, 2010 at 6:24 pm
@gapnap: my consulting job is my day job & No it does not pay by commission. So this is active income eh?
all other income that comes under the radar – would be considered as passive eh?
So what’s my Goal?
Black Bird – money comes from money working for me – in unit trust, equity, forex (if I can understand this)
Grey Man – trading my music – writing / composing few hit song a year?
Golden Eye – ?? blur blur still
March 3rd, 2010 at 10:46 am
haha. silap already. the big stuff i.e. house, can’t avoid, have to purchase with the aid of a loan
saya tak terrer lagi.
avoiding loans as in, personal loans, a new car loan, buying stuffs on installments basis. that is what i try to avoid
that is the word my man, “I am not there yet , but i would love to have this kinda lifestyle someday”
Godspeed!
@neo hope this will help
active income – if you do/work it, you’ll get it – if you don’t do/work it, nada. like your job. you don’t work (without legitimate reasons la kan like no mc, no el leave) they don’t pay you. so it is active. no action or effort, no income
passive income – this, you do or you don’t do anything, you’ll get income out of it. like royalty (gapnap, correct me if i’m wrong). once you earned it, every sales, either you do it, or someone else is doing it for you, in some other part of the world, you’ll get your share. remember it is just a one time thing, like writing a book. for each book that is sold, you’ll get your share (royalty). one time effort, staying idle, but still, getting paid
passion income – my fav. something that you do out of passion, regardless if it is generating profit or not. as long as you are happy
sorry if this is not easy to understand. gapnap puts it better and i just woke from sleep. am having fever
March 4th, 2010 at 1:45 pm
@Neo …yeah , worm is right..
Basically , your Golden eye can be ANYTHING , properties , forex(if you have the capital) , your day job , composing your music ..
Your Golden eye have to be that ONE thing that brings the MOST money ..What you want is to focus on your golden eye ..and convert the rest to PASSIVE income .
@worm .Bro , you did a great job in explaining everything
royalty , such as Music , books or movies are the most owning incomes!! All you need to spent is the COST of production , a little bit of advertising . And you can earn money everytime anybody gets a sale for the next 50 years ! (provided your music sells for the next 50 years lah) ..
Actually , i am not sure if i got that figure right , 50 years , or 50 years after the author’s death..your copyright will sort of “expire” after 50 years, then anybody can use it to make money ..That is why you see many 40s 50s Jazz standard are covered by jazz artistes and they are not getting sue for copying and reselling . Same goes for orchestra and classical music .