The Seven Principles of Passive Wealth



|The Seven Principles of Passive Wealth | |

| |[pic] |

|The author name is Tom Wood. The person who discovered the seven principles of passive wealth. |The Freedom... |

| | |

|You've heard the saying, "money isn't everything". I think it's right, you need time and freedom, too! What good is a | |

|huge income if you have no time? And what good is time if you have no income? I've been both places, so I know. Neither one|[pic] |

|is good without the other. |The Adventure... |

| | |

|I've always been a hard worker. I took my first job as a "barker" at a carnival at age 13. I was the little kid with a big| |

|voice, "step right up and win a prize..." I made $1.75/hour. I thought I was rich, but it still took me all summer to save |[pic] |

|up for a skateboard. I think it was that year that I decided I wanted to be a millionaire. And I knew that if I was going |The World is Yours! |

|to do that, I couldn't be a "barker" all my life. | |

| | |

|I decided I had to get better jobs if I was ever going to live like a millionaire. So the next year I moved up to cotton | |

|candy and then to french fries. I kept working hard and moving up. I became a bartender, valet, factory worker, customer | |

|service rep, technical analyst, business analyst, international management consultant, and a business owner. You think I | |

|would have made it by then... nope. | |

| | |

|I had experienced a six-figure income with absolutely no time of my own (management consultant and business owner), and no | |

|income with all the time in the world (most of us have been there at least once in our lives). I hated both, but I didn't | |

|know another way. I thought that was just the way it was. | |

| | |

|It was so unbelievably frustrating to live in Boston and take a trip down to Fort Lauderdale, FL in February and see all | |

|the mansions and boats. "What do all these people do?" I would say to myself. "How come they are sailing everyday and I'm | |

|struggling to make ends meet?" | |

That was until I learned the principles I'm about to share with you. These seven principles took me to a totally new level of wealth, freedom and consciousness that I wish everyone could enjoy. In fact, every one could enjoy them if they only 1) knew what to do and 2) had the emotional fortitude to see it through.

Passive wealth does not trade time for money. It does not require you to punch a time clock. It doesn't care where you are. It doesn't judge you on how you look. It's residual. It comes whether you want it or not. It's powerful. It's freedom. It's time for you to master the seven principles.

So here are the principles behind EVERY system of passive wealth.

Principle 1 -- Duplication

The hardest lesson to learn for some people is the importance of duplication when developing passive wealth. I named this the duplicator, because it is probably the most important factor you can master in your quest for freedom. Duplication simply means the ability to copy, or duplicate, the system or strategies that are making you money.

So if you are a top doctor or plumber lawyer or accountant, that's great, but it's not duplicatable. A great surgeon doesn't have freedom, because they can't duplicate themselves. Surgeons have money, indeed. But if they stop operating, they stop earning. Period. Being a great "anything" other than a great duplicator is not the way to massive passive wealth. Become a great duplicator; someone who duplicates systems and strategies. Some of the greatest duplicators have built empires of freedom. They include business people in music, movies, software, network marketing, finance, and more. They can take a month long vacation. They can sit back and relax. They can go to the spa every day. They can all retire tomorrow. (They usually don't because most are doing something they absolutely love). And they all have duplication in their business.

Here's the rule to make sure your business is duplicating: Will this eventually pay you money if you don't work? If not, you don't have a duplicatable system. If yes, you have the potential for a fortune of freedom. But duplication is just the start.

Principle 2 -- Systemization

There is no passive income without a system. It just can't happen. You don't have to invent the system, you just have to utilize one. A musician may write a song once and can duplicate it as many times as he wants, but if there wasn't the system of music distribution, he wouldn't have that passive income.

Owning a stock is a duplicatable system. You can duplicate the stock purchase. The company you invest in is the system. The better the system, the more passive income you receive.

Network marketing is a system, too. Both the company owners and the independent representatives can participate in passive wealth building in what is known as a multi-level sales structure. The sales are duplicatable. The tools they use to make sales are the system.

A McDonald's franchise is a system. They have a well laid-out set of rules that are proven to make money. Their system is so duplicatable they have thousands and thousands of stores making them billions of dollars.

Here's what's not a duplicable system: trying every opportunity that comes across your desk, or investing in stock and then guessing that it's time to sell, or joining a network marketing company and trying to do it all yourself. That's called a waste of time and energy. Passive Wealth is unattainable without a system.

Principle 3 – Leverage

Has it ever bothered you that you work so hard and you look around and see that others, who don't seem to work nearly as hard, make more money.

Here's why:

They have either their money, their reputation or other people working for them. That's called leverage -- working to get others to work for you. When a movie star gets famous, their reputation will earn them more money for the same amount of work. That's called leveraging your reputation. Put leverage to a system and things get even better.

For example, if you have a lot of money, you can leverage it by investing in systems that will make your money grow. Let the system work for you! It's easy once you know how. It's the reason the rich get richer.

But what if you don't have money or if you are not famous? Then you MUST have other people working for you. You must leverage your time, or every business you start will be like having another job. And I know you don't want another job. You've already got one and you wouldn't be reading this if you wanted another one.

You don't have to hire people. Don't think like that, that's old school thinking. The author has hundreds of people selling his book for him, but he doesn't hire them. The network marketer may have people in his organization, but they are independent contractors. If you do hire people, you'll have a job of making sure people go to their job. Bummer.

So you see, if you have other people working with duplicatable systems, you are on your way to earning passive income... But there is still more you must know.

Principle 4 -- Discipline

If you want to drive from, say, New York to Los Angeles, you have to set a course. What happens if you don't stick to the course? You'll probably never get there. There are lots of distractions like Florida, Las Vegas, New Orleans... etc. The same goes for Passive Wealth. It doesn't come instantaneously. The "trip" you take to get to passive wealth, requires discipline. Too many times, people will get so close to true passive wealth, but get distracted by another opportunity and have to start all over again.

If you are investing for passive wealth, you can't touch your principle. If you are building a network marketing organization, you can't do two programs, or keep switching. If you are writing a book, you have to finish it. You must stay the course. You must commit to the long haul. This, alone, is the reason most people fail. They find a duplicatable system that leverages their time, but they don't stick it out long enough. Or the company/system they chose is not solid enough to survive long-term.

The next principle explains why it's so important to stick it out.

Principle 5 -- Exponential Growth

Here's a very powerful chart that explains the relationship between time, income and effort when building a passive income.

In the beginning of any passive income effort, you are expending time and not receiving much income. But as time goes by, you begin to receive more income without spending much effort at all.

For example, you may be saving and investing $500/month. You may have spent hours to earn that $500, but all it pays you in dividends is less than 1% the following month. Your hard earned $500, just earned you four bucks! Big whoopee! But keep earning and investing over 20 years and you'll see that income grow exponentially. You may be retired in those later years, but that money is working for you now.

This principle is also obvious in network marketing but growth is usually more rapid. Those who have worked with one company, even part-time, for more than 5 years usually have a very sizable passive income, but it's nothing to get excited about after the first year. I know people who have lost money their first two years in network marketing, only to make six figures per year every year after their third year. That's passive six-figures!

Have you ever heard of the rock group or actor that everyone cheers as an overnight success? They'll tell you that it took years of waiting tables and living with nothing before they made it. The same is true with Passive Wealth. It's not get rich quick. But it is get rich!

Principle 6 -- Leadership

To have passive wealth and gain the freedom to live your dreams, you have to take risks, make quick decisions, and inspire people. In short, you must become a leader. This doesn't mean you have to be a politician or a military general. You don't have to go to war. You don't have to make a speech. But you do have to build your character.

A very wise philosopher once said, "before you make a million dollars, you must first become a millionaire". What he meant was that you have to develop the mind of a leader. You must develop the habits of a millionaire to earn a million dollars. Here's a great test. Ask yourself, "would a millionaire want to do business with me?" If the answer is "no", then perhaps you need to stop the Wednesday night bowling league, buy a new suit and get serious about business. Remember, the effort will pay off, but you must pay the price that every leader pays.

Principle 7 -- Maintenance

Ok, let's say you've made it. You built yourself a passive income. You get a check in the mail every month, whether you work or not. Well, the truth is we live in a world of change and even passive income requires some effort to maintain. If you built a true passive income based on a solid, duplicatable system, there won't be much maintenance, but you'll still need to keep your eye on things.

Most investors have diversified their funds and make minor adjustments each quarter to stay on top of things. Those with large holdings of one stock may participate in shareholder meetings to help steer the company and keep the management accountable (leadership).

Distributors with large network marketing organizations still go to quarterly meetings and still recruit. Just not like they did their first year. Franchise owners with multiple stores still check the books and take their management team on leadership retreats. Web entrepreneurs with multiple e-commerce sites still need to inspire their executive team and keep them incented to grow the business. Passive income does not give you freedom from all responsibility. In fact, it sometimes gives you more responsibility. But with passive income, you become a leader. Someone who is in charge of their life. Someone whose time is flexible. Someone who others look up to.

| |Your Right to Be Rich |

| | |

| |You have a right to be rich. |

| | |

|How rich should you get? |Becoming rich allows you to express yourself more fully in mind, body and spirit. You can give more to yourself, so you |

| |will grow and have more to give others. |

|As rich as you can. | |

| |There is no spiritual advantage in poverty. God loves the poor. True. But he also loves those who feed the poor: the |

|Read why... |rich. The richer you are, the more you can give. You can give your wealth and your time. Poor people can't give their |

| |wealth. They can't feed and shelter people. Only rich people can do that. Rich people can give more to their family; |

| |they can give more to their community; they can give more to the world. You deserve to be the giver, not the taker. You |

| |deserve to be rich. |

| | |

| |When you are rich, you have resources to improve yourself. You can take any course or seminar you want. You can buy |

| |books and tapes. You can make mistakes. You have the time to write things down, and think about how you can become |

| |better at what you do. When you're rich, you have the resources to become a better parent, a better friend, a better |

| |lover, a better coach, a better leader. A better you, means the world is one person closer to becoming a better world. |

| |Being rich gives you freedom to become better. |

| | |

| |Becoming rich allows you to become healthier. Poor people will eat anything. Some rich people will, too. But the rich |

| |people have a choice of what they eat. Rich people also have the choice to exersize every day. They can get a personal |

| |trainer. They can get a massage after every work-out session. They can hire a gourmet vegan chef. They can afford to eat |

| |organic food. They have time to make their body strong and healthy. They respect it like a temple. Poor people eat at |

| |McDonalds because they don't have the time or the money for a good meal. Become rich so you can be stronger in body. |

| | |

| |Becoming rich allows you to become smarter. Rich people get richer because they keep learning. Their kids are rich |

| |because they get the education they need to become rich. Good education takes time and money. Poor people watch |

| |television at night. Rich people read books. Rich people travel. Rich people can nourish their mind with an environment|

| |that will also satisfy their soul. The nourishment of the mind, body and soul requires time and resources. Get rich for |

| |you first. Let the world get richer because you are richer. |

| | |

| |Being rich allows you to develop a stronger family. Rich people have time and resources to give to their family. They |

| |can give their kids a better education. They can teach them about art in Paris. They can teach them Spanish in |

| |Barcelona. They can teach them about marine biology by taking them swimming with dolphins. They can teach them about |

| |teamwork by coaching their soccer teams. They can take family vacations. They can give their kids experiences that will |

| |change their lives forever. |

| | |

| |Being rich allows you to have more impact on the world. Mother Teresa was not poor. Her "company" had 2 private jets |

| |and took in more than $500 million. She didn't personaly take any of the money, but she used that awesome wealth to have |

| |a greater impact on the world. And she did have an impact. Bill Gates has given more to charity than you have. He's set up|

| |his own educational foundation. He's rich. You can be rich, too. You have a responsibility to be rich. |

| | |

| |How rich should you become? As rich as you can. A tree doesn't ask how tall it should grow. It grows as tall as it can. |

| | |

| |Be rich so you have no limits. |

-----------------------

[pic]

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download