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Living Above Our Means To Build Wealth

Living Above Our Means To Build Wealth

Increase our Passive Income

Master Investor
April 08, 2024

Summary:

Living above our means is the best path for financial freedom and true wealth
We must increase our financial education to increase our passive income
Investing in our networks, mentors, systems, and resources is one key of wealth

Here is why living below our means has nothing to do with financial security and well-being.

Increasing our resources is the key to a good life.

If we believe in the law of attraction, we know that thoughts become reality — our mind is a powerful tool! If we think positively, we will attract more positive energy into our life. And if our thoughts become negative, we will attract that type of energy.

For example, if we assume we have restrictions in life, we will eventually believe them and be held back. Similarly, if an external influence, such as a so-called expert, sows a bad seed in our mind, we will think it to be true.

We can see this happen all the time because we are constantly given lies via the news, social media, friends, neighbors, coworkers, and even Uber drivers. After hearing these negative (and frequently erroneous) messages repeatedly, it's tempting to believe they're true. Unfortunately, some of these myths can prevent us from improving our life, trusting our instincts, or even obtaining financial freedom.

The dangers of living above our means

One of the finest examples of this is when friends, parents, or financial "experts" tell us to "live below our means." Consider this rationally: it presupposes that the remedy to any financial issues is to reduce one’s expenses. That belief is not only limited; it is also entirely false. It's an opinion vs a fact, and a misinformed one at that. That is the poor mindset with the wrong context.

Some people loses control of their cash flow and they just lack excess of cash flow to maintain the lifestyle they desire or currently have. If a person always spent more than he or she made.

Instead, expand our means

So, if "live below our means" implies that the solution is to reduce our costs, and "live above our means" implies that the money is just around the corner, what is the answer? The remedy is straightforward: raise money and increase our passive income.

Anyone can reduce expenses. Anyone can hope and pray that money will come in. However, it requires ingenuity, financial education, expertise, and courage to increase our income—to expand our means through financial intelligence.

I have been living this way for decades. When we want something in life, we don't remark, "We can't afford that." We do not say, "Let's just get it." "The money will arrive."

We ask, "How can we afford that?" It's a unique and crucial perspective. This approach has assisted us in accumulating money by purchasing assets that increase our means while also allowing us to enjoy the finer things in life.

A true leader, wealthy entrepreneur and inside investor focus on the building the asset the column with sound assets that our companies control.

Many different ways a person can build passive income.

It is about how we live.

When we invest of passive income, and we master the ability to raise capital with systems by selling with smart marketing. Then it will put us on the fast track of life because as many people will work for money, instead our business, its’ systems and money are all working for us to make us passive income (positive cash-flow).

The distinction between our trip and our others' travel is that businesses paid us to go anywhere, whilst majority paid for their own travel. We have a nice lifestyle despite our expenses. Everything we do was intentional.

The money we could have spent on a lavish house and beautiful cars was instead used to acquire our assets. Initially, we shall invest in businesses, rental real estate, crypto, paper assets, and commodities.

Reliance on others is detrimental

Are we relying on anyone or the government for financial support? You are not alone. Throughout history, some people have been trained to be financially dependent on others. But times have changed. In today's modern culture, that is a highly perilous situation to be in.

As it turns out, women are much more likely to rely on Social Security since they have less other sources of income. However, according to SSA.gov, women earned much smaller benefits in 2019 because to their lower incomes.

Unfortunately, people who resist taking responsibility and rely on others for their financial well-being are sometimes caught off guard when something happens – it is only then that they realize they have no idea what is going on with their money or how to avoid financial catastrophe.

Unexpected events can occur at any time.

Despite our best efforts, being reliant on others is especially harmful because we cannot plan for all of the inconceivable circumstances that can occur at any time to anyone. For example:

Divorce

We have heard it before. The husband flees with another lady, ending a 20-year marriage and leaving a bewildered wife with no idea what to do because she has never worked and has no retirement savings.

Fired from a job

Job cutbacks are impacting both men and women's positions in America. Many mothers are no longer full-time housewives, but instead work arduous jobs to support their families.

What happens if the man is the family's lone "breadwinner" and suddenly loses his job? Who pays the bills? This might be a big wake-up call for the whole family.

Take control.

If we choose to take control of our life and achieve financial independence, we are prioritizing long-term freedom over immediate comfort.

Yes, we are taking the more difficult route from the start. However, in exchange for our disciplined, efforts, education, work, we will enjoy a more satisfying existence in the future full of unlimited options.

We have no doubt that any person who sincerely commits to taking charge of their own financial future will succeed; we see others do it every day around the world.

On the other hand, many remain in unhappy marriages due to financial constraints. People with young children, in particular, may struggle to support themselves and their children if they choose to divorce. Furthermore, their ex partner may be unwilling or unable to provide the financial support that they are used to. It is a risk they are unwilling to take.

It must be bad marrying someone we don't genuinely want to be married to. But we all know people who struggle with their marriages on a daily basis.

Choose freedom.

Money may enslave people or set them free – and we want all of us to be free. In my opinion, being financially dependent on someone else is not a positive thing for anyone’s self-esteem.

Start looking at our finances now if we don't want to be surprised. Do we know where we stand financially today? If not, browse through our bank accounts and financial statement to determine our assets and liabilities.

Once we have completed that, it's time to begin extending our resources.

But how?

How to Expand Our Means

As we previously stated, we do not believe in "living below our means." Many people, including those giving the advice, have a persistently negative outlook. But, more than the poor thinking, this advice destroys the spirit. It shrinks us and makes us smaller. It reduces, rather than enhances, a person's identity. It sentenced a person to a life of mediocrity.

Stop thinking that we have to live below our means for the rest of our life.

It's time to grow, learn more financial knowledge, and increase not only our means but also ourselves as an individual.

If we are not sure if real estate investing is for us, don't worry; we still have options. Remember how we said earlier that increasing our income requires creativity, expertise, and daring? Consider adopting a side venture to increase our income. Another alternative is to weigh the benefits and drawbacks of investing in stocks to determine whether it is the right path for us.

Have we ever considered turning one of our passions into a business? In our eBooks "How to build cash flow with the internet?” we go into detailed how to do it successfully.

There are numerous methods to increase our ability to live the life we desire—and where there's a will, there's a way.

If we need a jumpstart into success today, explore these eBooks below to figure out how to be financially free - and see how altering our mentality will improve our life.