People think that having more money will solve all their problems – this is not always the case.
There has been so many reports of people who were bestowed/endowed/won a large sum of money and proceeded to have their lives wrecked. Divorces, suicides, depression – many lives were wrecked due to having more money than they can handle.
With improper management, money WILL run out, so learning how to handle money wisely, and learning the skills to earn more, save more and invest for passive income is the best way forward to ensure that you will be able to live a Passive Income Lifestyle. And done right, your passive income streams should increase more and more over time.
People often make the mistake of looking at the outcome (richness) of rich people or those who are living the Passive Income Lifestyle, and say that “oh, it's their business” and “oh, they got lucky” – boy, one can only get luckier and luckier if one is consistent in applying Foundations Of Wealth.
Building and living the Passive Income Lifestyle, has 2 arms to it, like a yin-yang sort of approach. The more popular and sexy one is the top two pillars, which are the:
- Passive Income Internet Businesses (PIIB) and
- Passive Income Investing (PII)
and these two are strongly supported by the foundational pillars, the Foundations Of Wealth:
- Patterns Of Passive Income Lifestylers
- Psychology and Personal Power Of Passive Income Lifestylers
Without the foundational pillars of Foundations Of Wealth, no one can stay or build their Passive Income Lifestyle – it is THAT important. It's what that helps Passive Income Lifestylers build and grow their passive income portfolio.
Patterns Of Passive Income Lifestylers
Patterns of Passive Income Lifestylers (POPIL) are the money habits that guide all the Passive Income Lifestyler's money and financial decision making and activities that serves mainly to make them richer and richer.
- Assets pays for lifestyle and luxuries. Period. You do not see the rich paying for their lifestyle or luxury items with credit or from a job. Assets are businesses, stock, bonds, intellectual property that constantly put money into their pockets.
- That is why the #1 goal of the Passive Income Lifestylers are predominantly creating, buying and acquiring more and more assets to fund their lifestyle and luxuries.
- They aggressively and ruthlessly keep unnecessary expenses low – the keyword is “unnecessary expenses”, not all expenses. Do not demonize expenses. The rich have no qualms and are often guilt-free paying for their lifestyle and luxuries – which are all paid by their assets, of course.
- They protect their assets and money by hedging and insurance, to ensure that unplanned or unforeseen circumstances do not wipe out their hard-built assets and income.
- They work to learn, not solely for the size of their paychecks.
- They look and observe for opportunities to serve profitably, or to make profitable investments to fill in gaps in business and society
- They pay themselves first.
- They pay their brokers and professionals well.
Psychology and Personal Power Of Passive Income Lifestylers
The Psychology and Personal Power Of Passive Income Lifestylers (3P) shows the characteristics and leadership decision that they often exude and take.
- They have more compelling reasons and future that is greater than their reality.
- They do daily what leads them to their compelling reason and future.
- They are more honest about their feelings and thoughts about money.
- They can delay gratification and make objective financial decisions.
- They can withstand being different, or being rejected or ostracized. They don’t see the need to “fit in”, they don’t see the need to be popular, especially to be accepted or popular at the expense of spending unnecessarily. Yes, they socialize too, but Passive Income Lifestylers choose who they hang out with very selectively.
- They asks better questions…and get better answers.
- They work very hard to overcome their fears (overcoming fears of losing money, overcoming cynicism, overcoming laziness, overcoming bad habits and overcoming fear of becoming arrogant)
- They are able to focus on mastering a single technique or formula, at a time.
- They have heroes they look up to.
- They give back to society and to the world
- They love to teach and empower others