5 Passive Wealth-Building Strategies You Should Employ To Get More Time
Working hard is quite different from working smart. The fact that you spend every available hour of the day working doesn’t guarantee that you will become successful. Becoming smart in your work by following these passive wealth-building strategies can.
All the wealthy people, not comfortable people, understand the concept of time and its importance. They are more about quality time than quantity time.
Related: Wealth creation strategies for financial success in Nigeria
Quality time brings results while quantity time drains you of energy without necessarily achieving much. You have to understand the difference.
In this particular edition, we will be doing a synthesis of the book written by Nik Halik. He called it the 5 Day Weekend. We will be taking certain excerpts from the book and we will blow your mind on the things you can do with your time.
You should know that Nik Halik is a multimillionaire entrepreneur, angel investor and one of the members of The Oracles.
According to Nik, “With the right money-building strategies, you can buy back your economic freedom and free up the hours necessary to manifest your highest goals.” And you need this freedom to become a better person.
Related: 7 Principles for strategic wealth creation in Nigeria
These passive wealth building strategies will enlighten you on the concept of investment, savings and shrewd expenditure.
Here are the ways you can save up time for yourself while also becoming the successful person or financially free person you probably aim to become.
5 Passive Wealth-Building Strategies You Should Employ
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Reclaim your cash
The first of the passive wealth-building strategies is finding to check your excesses. There are certain places that your money goes to that should not be the case. More importantly, find a shrewd way of saving on some of your daily legit expenditure. You will be amazed at what you will achieve.
According to Nik, “The foundational step is putting your house in order and stopping the leaks in your financial bucket, more than 10 percent of people’s income is lost to Uncle Sam, big banks, and Wall Street. Get immediate cash flow by reclaiming income drained from these sources.”
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Pay yourself first
As an entrepreneur, you might want to make everybody working for you happy before looking at yourself. That is noble. However, one of the passive wealth-building strategies involves paying yourself first.
Nik Halik believes it is very crucial to surviving and getting more time for you. To portray this point, he sends himself a monthly invoice.
You are also to prioritize saving part of what you get. You are expected to save at least 15 percent. He maintains that that can be used as seed money to fund future opportunities.
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Create your own bank with ‘The Rockefeller Formula’
There is a formula known as the Rockefeller Formula. It is an alternative way of borrowing money and it is one of the passive wealth-building strategies. It requires that you set up a life insurance policy or contract that builds cash value and then borrowing against the accumulated funds.
He explains this strategy by saying that “Once your policy has built enough cash value, you can take out a loan against your policy at any time and for any amount up to 90-plus percent of the cash value,”
This strategy is popular among billionaires such as Walt Disney, J. C. Penney, the Rothschild family, JFK, Roosevelt and even John McCain who have used it to a great success.
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Build seed capital with a side hustle
You will need a side hustle to get to that level of financial freedom that you are dreaming of. It is more like having an alternative income source. Halik points out that “It’s not about working more hours, it’s about creating another income stream that’s entrepreneurial,”
To this effect, you will need to find a meeting point for your passion, skills and customers’ needs. Halik thinks that “The key is simply to start somewhere. But ideally, your side hustle should be scalable.”
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Invest in passive income streams
This is the bomb. It is the grand jewel of the passive wealth-building strategies. A time will come when you have increased your cash flow with multiple income streams. At this stage, we will want to welcome you to passive income.
You may not need money to make money but you will definitely need money to invest. Passive income is all about investing in the right businesses that you won’t be running. You can start by running low-risk, conservative investments. When the money from there starts coming good, you can move to high-yield, high-risk investments.
You can get “5 Day Weekend” here.
