12 Sep Demystifying the purpose of Salaries using PILE MODEL
Demystifying the purpose of Salaries using PILE MODEL
In this present economy you won’t earn your way to financial freedom, no matter how much your single income line is; you MUST learn how to diversify what you earn per time to create multiply income channels.
Which you can only achieve using the concept of PILE Model.
That is, your Passive Income must be greater than your living expenses.
As an income earn, one of your goals should be to cross that point where you stop trading your most valuable asset-time for money. Which is what most salary earns and well-structured entrepreneurs do and that is not wrong on itself, but instead of slaving to earn more in other to match to your growing living expenses, consistently divert apart of what you earn into creating passive income channels, that is trading money for more money, and allow the power of compound interest to work on your behalf.
Creating genuine passive income is the holy grail of personal finance. Not all passive income is created equal mind you. Some streams take much more initial effort to start, such as saving enough to buy your first rental property.
But once you start it’s very difficult not to gain momentum. There is so much you can do once you generate enough passive income to pay for all your living expenses. I highly encourage everyone to at least try.
But the most confusing questions are;
Where can I invest this money?
What percentage of monthly income should I save?
Where should I save this money?
How long should I glow this invest?
Remember, spending what you trade your time to earn can never guarantee your financial freedom