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Getting Aggressively Passive: Creating A Passive Income That Sets You Free

Last time, we offered some tips for networking your way through your upcoming holiday parties. Today, we want to talk about one of the most important gifts you can give yourself – a passive income.

Not along ago, we asked you to visualize your dream life – a life where time and money were not an issue. You may think that’s just for fun. It’s not! We’re serious. You can spend your time the way you want. You can be free!

You’re free when your passive income equals the costs of your desired lifestyle.

For the sake of clarity, we define passive income as your money making you money. If you have enough passive income, you can spend your time however you want. You don’t have to work at all, if you don’t want. Or, you can work on your passion.

So, let’s look at the four steps you can take to get aggressively passive and create a passive income that sets you free. The key is to constantly keep your goals in mind so you make the best choices each and every day. For example, if you want to be free sooner, rather than later, you may choose to spend your money differently. Now you have a reason to do so – that dream life you visualize.

Step 1: Purchase with purpose
What if buying that awesome plasma television that you just saw advertised on sale in today’s paper means you have to postpone your new life by a year? That status car may not mean as much as getting to spend your time how you want.

Step 2: Look at the cumulative effect of your decisions
Review your daily routine. $5 here, $5 there soon adds up to a lot of money. Do you eat out every day? Buy a cup of coffee? In his excellent book The Automatic Millionaire, David Bach calls this your “Latte Factor”.  Find one thing that you’re willing to give up now to get to the future you want sooner.

 Step 3: Pay off debt
The reason for the first two steps is to get the money to pay off your debt. Pick one account – ideally it’s your debt on which you’re paying the highest interest rate. Take the money you’re no longer spending from Steps 1 and 2 and use it to pay off your debt.

Don’t stop now … take the money you were using to pay off your first debt, plus the extra money you have from Steps 1 and 2, and use it to pay off your next debt. Repeat until all your debt is paid off.

Step 4: Jump start your passive income
Historically, the two best ways to do this are through owning your own business and investing in income-producing real estate. We’ll look at each of this, respectively, in our next two blogs.

Our quote today is by Groucho Marx.

“It frees you from doing things you dislike.
Since I dislike doing nearly everything, money is handy.”

Next time, we’ll look at how to build a passive income through your own business. Until then, here’s to your bigg success!

Putting The Giving In Thanksgiving

In our last blog, we discussed the benefits of being thankful. Today we want to look at the second half of Thanksgiving – the giving.

There’s a lot of research that shows giving has benefits to the giver, as much as to the receiver. Allan Luks, the Executive Director of the New York chapter of Big Brothers, Big Sisters, coined the phase “helper’s high” in his book:
The Healing Power of Doing Good.

“Helper’s high”
When you give, you get an endorphin rush similar to when you work out. This is the “helper’s high. Interestingly enough, when you recall the giving experience, you also get an endorphin rush, though not as much as when you actually performed the service.

Show co-host, Mary-Lynn Foster, discussed volunteering for the American Diabetes Association. Her mom passed away due to complications of diabetes. She feels like she’s doing something for her mom by giving to the ADA. She says that she feels that “helper’s high” as she relates her volunteer experiences.

2 things to give
What are our two big external constraints?  Time and money. Guess what? Those are the two things we can give. Giving is a verb. It requires action.

Is your budget tight? You can still give – how about that old coat? Can you donate some canned goods?

Show co-host, George Krueger, related a story told at his mom’s funeral. Last year was her last Thanksgiving. At her funeral, a young woman explained that she had developed an allergy to flour. So she couldn’t eat bread. After some time, she was craving a slice of bread. She just couldn’t stand it. Just then, there was a knock on the door. It was his mom, with a loaf of flourless bread.

Pay attention
This story illustrates that you may make the most impact by meeting the needs of those close to you. So pay attention. Focus on giving and the getting will take care of itself.

Our quote today is by the writer, G. Donald Gale.  

“A pessimist, they say, sees a glass of water as being half empty;
an optimist see the same glass as half full.
But a giving person sees a glass of water and
starts looking for someone who might be thirsty. “

Quench someone’s need today. Next time, we’ll practice not being perfect. Until then, here’s to your bigg success!

Putting The Thanks In Thanksgiving

In our last blog, we talked about ‘taters and asked the question: “What kind of ‘tater are you?”

Today we’ll put the “thanks” in Thanksgiving. 

Be thankful for the benefits
Robert Emmons, a Psychology professor at the University of California Davis, did a study to determine if there are benefits in being grateful.

He divided the study’s participants into three groups:

  • Group 1 recorded that day’s most significant events
  • Group 2 recorded minor complaints and hassles of the day
  • Group 3 recorded things they were thankful for that day.

After ten weeks, Emmons found that Group 3 had more energy, viewed life more positively, and had fewer physical ailments when compared to the other two groups.

Sounds like we should all be thankful for this study, doesn’t it? Emmons didn’t stop there. He wanted to know if there were any long-term differences.  Here’s what he found:

Group 3 members were more likely to achieve their goals.

So if you’re grateful, you’ll be healthier and you’ll reach more of your goals!

Make giving thanks a habit
We all remember the old saying “Practice makes perfect.” So, if we practice complaining, we’ll get pretty good at it. So how do you stop complaining?

Be grateful for what you have; quit complaining about what you don’t. It’s really a matter of attention. We tend to give attention to bad things. Many people shine stadium lights on their problems, and flashlights on their blessings.

You should do the opposite – be thankful everyday for all that happens to you. We recently wrote an article about John Bramblitt. Here is a young man that lost his sight, but didn’t let it conquer him. He became a painter. In his adversity, he found his gift.

The most precious thing in the world
Just like John Bramblitt, your life is a gift. You and only you are the single most unique thing in the world. There is only one of you. Your genes and all of your experiences have come together to make you who you are.

Don’t you have a lot for which to be thankful? Being thankful on Thanksgiving is great. We challenge you to make it a part of your life everyday. It pays big dividends!

Our quote today is from over 2000 years ago. It’s by Cicero, the great philosopher.

“Gratitude is not only the greatest of virtues, but the parent of all others.”

Greatness begins with gratefulness. Make giving thanks a daily habit. We promise that you’ll thank yourself for it. 

Until next time, here’s to your bigg success!

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