Wealth creation is often associated with retirement planning. One of the biggest problems with this strategy is that it takes to long.
Retirement planning often requires that you work for up to 40 years, follow a nine to five work routine and make regular contributions to a pension fund. At the end of the day you get to live off an income stream called a living annuity, which in most cases is unable to support your desired standard of living.
Traditional wealth creation approaches promote a ‘workstyle’, not a lifestyle.
Life does not have to be hard. You can achieve a great living without:
- Waiting 40 years
- Bouncing from one job to another
- Taking risks
- Investing in the stock market
- Having rich parents
- Top academic qualifications
- Or subjecting yourself to corporate slavery
The key rests with building a business, but not just any business. Financial freedom is about having the income and time to support your desired lifestyle, which is why you need to build a business that maximizes passive income and reduces effort on your part.
The big question: How do you build a business that supports a lifestyle and not a ‘work style’?
There are six essential rules:
Rule1: Do not focus on becoming a millionaire. You’ll end up working like a slave. You must focus on increasing your income by working less. You cannot sacrifice the one for the other.
Rule 2: Think mobility. Build a business that enables you to run it from anywhere in the world. The reality is a job or boss restricts your freedom to a single area, and if they move you’ll probably have to move, or find another job.
Rule 3: Automate your income. Use technology and leverage (other people’s time and money) to maximise output and minimise your … Read the rest