Someone shared this concept with me back in 2015 and I thought it was simply nonsense.
As seen by the definition below, shopping and annuity simply don’t mix; the former is an expense while the latter is an income. Furthermore, shopping expense is varied while annuity income is fixed, how do you convert spending into earning?
Annuity – a fixed sum of money paid to someone (hopefully to yourself) each year, typically for the rest of their life.
Shopping – a variable sum of money paid to someone else (other than yourself), typically for the rest of their life.
After spending over a decade in the financial services industry, I thought I have seen it all; creating an Annuity via Shopping is simply bullocks! Boy, was I wrong…
3 years later, today, the same individual who shared this with me is showing off his monthly cheques of S$9,375 every four weeks. This got me thinking; if this traditional business owner who makes 7-digit deals on a daily basis makes time to create what he calls a Shopping Annuity just by changing his shopping habits, it is worth a REVISIT.
So, here is what I NOW UNDERSTAND: This is NOT an insurance policy even though it “insures” your future income, because you DO NOT fund it via regular premiums; you simply change the way you EXPENSE and that fund your Shopping Annuity, period.
Sounds too good to be true? Yes, and it took me three years trying to prove it wrong and I still couldn’t. 😅Tell me more!