It's really easy to get side-tracked, and to be distracted by shiny objects or “potential” stuff.
This usually happens because we humans tend to see the celebrations, the smiles, the triumphant moments that are usually captured and perhaps immortalized in albums, TV, internet, newspaper, magazines, blogs etc.
But as you're my reader, I expect and know that you're much smarter than that.
NigelChua.com writes a lot about passive income via 2 avenues, which is to build valuable and profitable online businesses, or to invest in dividend stocks.
I decided to write more about building online business because it's something I want to master and excel in, and what I decided to be more important – not everyone can set aside more money to invest in dividend stocks.
So, the focus naturally falls into making more money online, because not only it's much cheaper to start an online business, but it's something that one can do on the side, ON TOP of a primary job.
But the more I think about it, the more I need to remind myself and you that building an online business is but part of the entire framework of building and living a passive income lifestyle, which is what NigelChua.com is about.
It's so easy to get distracted by all the passive income reports that happens pretty much ongoing.
It's a highly simplified framework of how I manage my funds and investments, where all earned or active income generated, be it by means of employment, online or offline business and monetary gifts, are all parked under an investment account, which sole purpose is to invest every single cent into safe dividend stocks that pay out dividends regularly.
In turn, I either
And I repeat this process of injecting all/as much of my active income into dividend stocks until my dividends are sizable enough to replace my income and hence I will be financially free (but not wealthy yet – different).
That's the simplified model for lazy people like me, who like big picture approaches.
One way to accelerate it is to:
Which as the name implies, are unnecessary costs that are just whims and desires.
Yes, I am not against luxuries, but if your active income is blown out by these, then you will never become financially free.
Assets pay for luxuries. Managed well, I would expect you to be able to decrease your expenses by at least 15-20%, and up to 60%. For some people, this may mean an additional $100 per month freed up.
For others, it may be $5000.
Don't buy unnecessary shit, and schedule such that your investments pay for your luxuries, be it branded goods, holidays, etc.
Take this additional money and invest them into safe dividend stocks.
The benefit of this exercise not only frees up more money for you to invest for passive income but because your expenditure drops, you will decrease the threshold/amount you need to reach financial freedom (ie it's easier to achieve financial freedom if your monthly costs is $1000 versus $12000).
Which is at least 10%. And depending on your salary bracket, you can save up to 90% (a person earning $2000 won't be able to save as much as someone earning $20000 a month, assuming both are savers).
That can be $200 a month, or $18000, or more or less.
Whatever it is, do it consistently.
Set aside this amount and invest them into safe dividend stocks.
Another benefit of this financial exercise, other than the obvious benefit of receiving dividends from your passive income dividend stock investing, is that you realize you DON'T need to spend all your money, and that you can live on 90%, 80%, 70%….to 10% of your earned income.
I've found once that we live on essentials (high quality), we don't have much need expenses or desire to spend money on the next latest thing (although we can without sweating) – the focus is 80%+ on quality essentialism.
Once you reach this stage, even if you're just beginning, you will feel such a lightness in your heart and freeness in your mind and spirit, that you can have some solid sense of self respect in your life.
It is very liberating, and next level is to find fun in growing this nest egg and streams of dividends to your income periodically, like clockwork.
Often times we do active employment as a means to survive and pay the bills, and for some of us, it becomes habitual and normal. But I fall into the category that we all have a song, a music, a book etc in us, and that's where I'm coming from.
And that's where Wealthy Affiliate comes in, where you learn how to communicate this message in you into a website, where visitors read, interact, share and even purchase/support you and your message.
But if you're blowing all your monies every single month for expenses that are unnecessary, or worse, go into credit card debt or loans to get through, you need to aggressively cut all the unnecessary expenses and set 10-30% of your money every month into dividend stocks to really progress in life.
If not, you'd be just as stuck as you are in 1, 5 or 10 years time.
Do this now, and tell me once you've got this going.
PS: one danger you will encounter once you start having a bit more money in your life, is that you either come across more “investment opportunities” or people will come to you to ask you to invest (these can be family, friends or outsiders).
Please remember the 2 golden rules:
Then, rinse and repeat, following the Phases 1 to Phase 3, until you've built a passive income system that provides you the amount of passive income you desire.
And then some.
Let me know your progress.
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Take action TODAY: One year from today, you'll be one year older. What would you have done by then?