Passive vs Active Income: The Power of Delayed Gratification
The basics of personal finance can be summed up in less than 10 words: Spend less than you earn and invest the difference.
“Spend less” and “earn more” are two sides of the same coin. Two different approaches to creating a surplus.
When it comes to spending less, “big wins” involve getting your three main expenses of housing, transportation, and food under control.
So what are the big wins when it comes to earning more?
You might think that it involves crossing some arbitrary income milestone, but you’d be wrong.
The biggest win in income generation is divorcing how you spend your time from how you make your money.
Ultimately time, not money, is your most valuable asset. When you’re young you freely trade time for money. This makes sense because you have a lots of time and no money. Eventually, the tables turn. You start to use money to buy back your time. The biggest example of this is retirement.
At the end of your life, you’ll wish you had more time, not more money.
But of course, to live in society, you need money. This post exists to help you untangle a tricky conundrum. You want more money. You want more time. How do you pursue both at the same time?
