Shift your focus on acquiring assets. If you want to live free and not paycheck to paycheck you have to shift your focus on acquiring assets. Open your mind for new concepts.
Convert your monthly salary into passive income. You work so hard for your salary and your salary is taxed at the highest level as an employee. Passive income is taxed at the lowest rate.
Shift your focus on acquiring assets
When you have passive income from your business and/or an investment your money is working for you. You will also keep more of your money as your money is taxed at the lower rate. Big businesses and investors have tax advantages.
The key to financial freedom is to focus on acquiring assets. When you work and receive monthly salary you are focusing on income. If you keep putting your focus and attention on your income, then you will keep working hard for your income for the rest of your life. Change your focus from acquiring income to focus on acquiring assets.
This means love your job and focus on ways to acquiring assets. Acquire assets that give you passive income. Put your time, energy and focus on acquiring assets. When using your money ask yourself the following question: “if I buy this am I putting money into my pocket?”
Tips to acquire assets
If you have a financial buffer acquire the knowledge of an asset category that you want to invest in and take action to acquire assets. If you do not have a financial buffer yet set up a savings account and form the habit to save a fixed amount every month to start acquiring assets.
When you invest in an asset the money will never leave the asset column if you sell the asset and buy another asset. Choose wisely what you do with your money. Keep asking the question: “If I buy this does it put money into my pocket?”
An asset puts money in your pocket whether you work or not. Assets are businesses, intellectual properties, a real estate that you rent and every month you receive passive income from the real estate.
If you pursue your financial goals, be aware of your buying decisions and analyze if the money is flowing into your pocket. Something you buy that takes money out of your pocket is a liability. For instance your car is a liability.
Every month it takes money out of your pocket as gasoline, repairs and insurance. A car that you rent is passive income if the rent covers all the costs in a particular month.
Your mortgage is a liability. If you rent your home and receive monthly rent that covers the mortgage and other costs, then your home is an asset. Know the difference between an asset and a liability. Do not make the mistakes of thinking that liabilities are assets.
Action exercise:
-Make a list of your assets and your liabilities.
-What actions are you going to take to acquire assets? Make a list with your ideas to acquire the knowledge and skills you need and take actions to acquire the assets.
For your financial success!
