Tuesday, July 20, 2010

Enough Money

There are two ways to make enough money to do the things that you want to do:
  • Make more money
  • Spend less money

    A lot of people choose to make more money, which is fine if you plan on achieving it by increasing your Passive Income. The problem is, that people choose to make more money by trying to increasing their Active Income. This is a vicious circle.

    Active Income requires a linear investment of time. If you want to make more money, you need to spend more time, and when you stop spending time towards making money, well, you don't make any. The more time you put in, the more stressed you get. The more stressed you get, the more money you need to spend to deal with it and maintain your new lifestyle, which in turn leaves you with not enough money. Sound familiar?

    The approach of spending less money is chosen by very few people and is an option that almost no one thinks about. It forces you to really think about what you want to do with your life and choose a lifestyle that will allow you to accomplish that.

    3 comments:

    Sebastiaan Deckers said...

    Have you been reading Rich Dad Poor Dad or something? ;)

    Sandeep Shetty said...

    Lol! Nope. I bought the book a long time ago but never got around to reading it :)

    Just thinking through some of this stuff.

    Rakesh Pai said...

    Just came back here to say that you've got me thinking.