The question from last week, was “what do we do to ensure that money lasts forever?”. I will state that, money runs out or remains abundant, simply as a result of the way it is being produced. If the way you produce money requires that you must be present physically, or expend your time, then when your presence is no more available, the money stops flowing’. But on the other hand, if your income is produced without your presence or activity, it means no matter how much you spend, money will be in constant supply and it will keep being in supply whether you are physically there or not.
I regularly teach in my training, that the true language of wealth is not how much you have in the bank, but how much you can earn when you are not working physically.
There are two keys factors here:
· Money (income) that requires your presence and activity – ACTIVE INCOME
· Money (income) that doesn’t require your activity – PASSIVE INCOME
The reality is that most of what our regular school system teaches us, prepares us to generate active income only – this is suicidal in my opinion. Do yourself a favour, ask your older brothers and sisters, or your parents this question “are you generating only active income by working all your life? Wouldn’t you rather generate passive income to retire to?”.
My friends, for money to last through generations, you must ensure that its source is from somewhere outside of you. If your income totally depends you, that’s a recipe for disaster; true financial freedom occurs when your passive income exceeds your living expenses. What are the sources of passive income today? Please think really hard. The person, who lists the most, wins a book “Financial Intelligence for kids”. Thank you
