Yesterday, we talked about the first step of Abundance.
Today, we talk about the second step, which I believe will determine how well your financial journey will be. And it depends on one CRITICAL skill we all must learn to posses - DISCIPLINE.
The second rule is this: 20% of your income goes to INVESTMENT.
You might say, “but, I am in a mountain of debt”. I was too.
So should we invest when we are in debt? It depends on you. It depends on the THREAT your debt is doing to you.
When I was buried in debt and I wanted to invest as soon as possible (and when I first discovered this formula), I decided that 20% of my income goes directly to PAYING DEBTS.
Isn’t that contradicting to the second rule?
Like I said, it depends on you. For me, my debt was an OBSTACLE that I needed to clear so I can commit to investing full-time. For me, Settling my debts was part of my INVESTING PLAN. So in my perspective, I was still investing - by first removing the threat to my investments.
Then when I was able to clear that up, I tweaked this investment a bit. I was already investing in the stock market, but I also wanted to start a small business that I will manage hands-on. I tweaked the formula like this:
10% goes to PASSIVE INCOME.
10% goes to ACTIVE INCOME.
Overall, 20% still is dedicated to investing and producing more assets.
Having said that, you can also settle your debts WHILE investing:
10% goes to investments
10% goes to settling debts
Feel free to tweak your formula, its YOUR abundance formula.
What’s really important here is that you have a plan, and the DISCIPLINE to follow through. Without the Discipline, (bad) debt will creep back again to destroy what we have already built, as with all the bad things in life.
#philippines 🇵🇭 #manila
#raievangelista - 4 minutes ago