Stop Counting Your Salary; Passive Cashflow Is The Only Money That Truly Counts
A salary can’t produce financial freedom
If you go up to someone on the street and ask them how much they earn, they’ll likely tell you they earn five or six figures.
And those five or six figures come from one primary source: Wages.
Most people earning income do so from their salary.
NOT passive income.
I used to focus only on increasing my salary until I realized this was the wrong move.
The right move you can make for your present and future financial situation is to increase your passive cash flow.
The more passive cash flow you consistently have, the less dependence you’ll have on traditional wages.
What’s So Great About Passive Cashflow
After the initial time, effort, and energy investment, you don’t have to do anything (if you do, it’s minimal) to maintain that passive income.
A salary is something you have to invest time and effort to continue bringing in income consistently.
The Error With Counting Your Salary
Here’s the thing about a salary….it requires you to work.
You have to invest time and effort to get that paycheck — unless you have a job that requires little effort.
For your average person, your job requires a time investment of 6–10 hours, five or more days a week.
What does your average person do when it comes to money?
They don’t invest in their financial education to effectively use their salary.
They work for others their entire lives.
They live above their means.
They don’t invest in assets.
They invest in liabilities.
What are liabilities?
Liabilities are expenses that take money out of your pockets and bank accounts.
If you’re not careful, you’ll become overly reliant on your salary to pay for liabilities that suck money out of you.
Do you want to have to work for an employer to fund your life for the rest of your life?
Government handouts are disappearing as time passes.
If you’re not saving and investing or hoping for a government handout, think again.
There is no guarantee you will get any help from the government (ever), even when you pay hefty taxes for it.
You’re the only person in control of your financial outcomes.
Relying on your employer to take care of you, as many hope for a pension, is a dangerous game.
There is only one outcome: A loss.
The Only Time A Salary Is Helpful
A salary is a tool, and that is all.
If you leverage your salary correctly, you will create more opportunities for financial independence.
What does proper handling of your salary look like?
It means you invest your income into cash-flow-producing assets.
The more cash flow-producing assets you have, the more financial freedom you create for yourself as long as your expenses don’t exceed your passive cash flow.
Questions Of The Day
How much of your income is passive cash flow?
How much of your income comes from a salary?
Prioritize increasing your passive cash flow.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.
I've been trying and reaching out to friends about how to create a passive income.