Earn More to Spend More
If you want to earn more than you have to spend more. This is very simple logic. Now, I know that most of the finance gurus will tell you that, you should live well below your means, you should only buy the things that you really need and not you want and many other things.
Now, these are the absolutely right things. But the thing here is that, What if you want to afford a private Jet? Or let me tell you in other words that, How those Ultra-Rich people can afford the private jets?
You will say that, well it is quiet understandable. They can afford private jets because they earn more. Well, Here is a secret of how they can afford a private jet? You just see the above diagram. The above line diagram is of Financial statement.
Now What most of the people focus is on the Income column. Means they work hard to grow their Income to such a level that from that level, they can afford luxurious things. Now, the problem with this kind of mindset is that, It is the Active Income. So you have to work hard and keep working every month if you want that income and if you stop working, that income will be entirely lost.
On the other hand, Rich Focus on growing their Asset Column. They focus either on adding more assets into their asset columns or growing the existing assets. An Asset can be anything which puts money into your pocket. It can be your Business, Stocks, Bonds, Rental Properties, Gold (Capital Gains), Intellectual properties, Web properties (Blogs, Forums & Websites) or anything else.
Over the time, their Asset Column grows sufficiently that it starts throwing income into the income column. And this is known as Passive Income. Because Rich has to work hard only at once to develop that Income stream. Even if he stops working one day, the Income from the Assets Column will be still continue.
This is how Rich can afford a private jet also. This is because they don’t have to work hard every month to wait for that paycheck. Their Asset Column throws money for them evern month even while they sleep.
So Moral of this Article is that, If you want to afford luxurious items in your life than it’s perfectly fine. I am not saying that you compromise with your wishes and desires. I am not saying you that, you punish yourself psychologically. I am just saying that focus on growing the Asset column of your Financial Statement. First of all grow your Asset Column sufficiently like rich that it can cover all of your possible expenses even without you work.
Once you have a strong Asset Column, you can afford all the luxuries of your life. But affording luxuries on the Active Income is a Fool’s Plan…!!!
If you want to earn more than you have to spend more. This is very simple logic. Now, I know that most of the finance gurus will tell you that, you should live well below your means, you should only buy the things that you really need and not you want and many other things.
Now, these are the absolutely right things. But the thing here is that, What if you want to afford a private Jet? Or let me tell you in other words that, How those Ultra-Rich people can afford the private jets?
You will say that, well it is quiet understandable. They can afford private jets because they earn more. Well, Here is a secret of how they can afford a private jet? You just see the above diagram. The above line diagram is of Financial statement.
Now What most of the people focus is on the Income column. Means they work hard to grow their Income to such a level that from that level, they can afford luxurious things. Now, the problem with this kind of mindset is that, It is the Active Income. So you have to work hard and keep working every month if you want that income and if you stop working, that income will be entirely lost.
On the other hand, Rich Focus on growing their Asset Column. They focus either on adding more assets into their asset columns or growing the existing assets. An Asset can be anything which puts money into your pocket. It can be your Business, Stocks, Bonds, Rental Properties, Gold (Capital Gains), Intellectual properties, Web properties (Blogs, Forums & Websites) or anything else.
Over the time, their Asset Column grows sufficiently that it starts throwing income into the income column. And this is known as Passive Income. Because Rich has to work hard only at once to develop that Income stream. Even if he stops working one day, the Income from the Assets Column will be still continue.
This is how Rich can afford a private jet also. This is because they don’t have to work hard every month to wait for that paycheck. Their Asset Column throws money for them evern month even while they sleep.
So Moral of this Article is that, If you want to afford luxurious items in your life than it’s perfectly fine. I am not saying that you compromise with your wishes and desires. I am not saying you that, you punish yourself psychologically. I am just saying that focus on growing the Asset column of your Financial Statement. First of all grow your Asset Column sufficiently like rich that it can cover all of your possible expenses even without you work.
Once you have a strong Asset Column, you can afford all the luxuries of your life. But affording luxuries on the Active Income is a Fool’s Plan…!!!
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