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 personal working hours. This will free up a lot of time for you to concentrate on activities that you enjoy most.
Rule 4: Payday must come everyday. Do not rely on a plan that only bears bruit ten, twenty or thirty years from today. Retirement plans are guilty of this big time.
Rule 5: Be the owner, not the manager. Employees get paid for working long hours. Owners get paid for employing managers and assets to work long hours.
Rule 6: Freedom comes from doing what you love. The goal is to experience life! There is no better way than finding your passion and pursuing your dreams.
These simple rules make all the difference. In actual fact, it’s what separates true happiness from corporate slavery.
There is also no need to build a business strategy or model from scratch. When it comes to passive income, the strategies, tools and systems are already in place for you to exploit.