Why do the majority of the population struggle with money? Why do they get stuck in credit card debt or lose their life savings in a bad investment?
Because they don’t understand the difference between emotionally connected and disconnected money.
If you know how to be aggressive with your emotionally disconnected money and stay conservative with your emotionally connected money, you will be financially prosperous and avoid losing what you worked hard for.
In this video, filmed at the Platinum Mastermind in Fiji, Nik Halik explains how to do this.
THE INCOME MYTH
Your income has very little to do with your financial destiny. Nik Halik knows individuals who make $100,000 a year, and their credit cards are maxed out at $80,000. He also knows individuals who make $30,000 or $40,000 a year and they’re millionaires.
Income alone will not make you a millionaire. It’s about finding gainful employment for your income, by investing it into passive income streams.
Do this with a set percentage of your primary income stream. Decide that you’re going to put 30% of your primary income towards passive investments. If you don’t do this, you’re only working towards other people’s goals and not your own.
EMOTIONALLY CONNECTED AND DISCONNECTED MONEY
What most people don’t understand is that there are two kinds of money: emotionally connected money and emotionally disconnected money.
Your primary income stream is emotionally connected money. It’s your hard earned dollars. When you put a percentage of it towards passive investments, choose the passive investments that are conservative.
The income you earn from those conservative passive investments is emotionally disconnected money. You didn’t need to invest much time and energy to earn it. For this reason, it’s OK to take a gamble with this income and invest it in more aggressive, higher yield and higher risk investments.
WHERE MOST PEOPLE GET IT WRONG
The majority of the population gets this wrong, and that’s why they always fail with money.
A lot of people skip the conservative investments. They’ll invest their hard earned primary income into the riskiest of investments, and chase 100% returns overnight.
The only money you should put towards risky investments is emotionally disconnected money that you earned from a passive investment. Never risk your hard earned primary income.
The other mistake people make is skipping investments altogether. They put their hard earned primary income towards a lavish lifestyle. They’ll go into credit card debt to buy an expensive new car that depreciates as soon as they drive it out of the car yard.
Never do this. Always put your primary income towards conservative investments, and the income from the conservative investments towards aggressive investments. Then, only use the returns from your more aggressive investments to fund a luxury lifestyle.