My passive income from 2015 all gone!

I always say that we have to be careful to avoid activities which lead to wealth destruction, especially if we want to achieve financial freedom at a faster clip. 

Even though I have never specifically said what I consider to be wealth destructive, I suspect that, intuitively, all of us know what they are or am I too optimistic?

I guess in today's world, many things can be wealth destructive and it would be quite difficult to list down every single wealth destructive activity. So, how do we know if something is wealth destructive? 





I might be putting my neck on the chopping block here but, in a nutshell:

As long as something does not create wealth directly or indirectly but consumes wealth to keep it going is wealth destructive.

If we want more of something, we don't want to do anything that will destroy it. So, if we want to be wealthier, we don't want to do anything that will destroy wealth. 

Simple logic, right? 

Simple logic this might be but it is not easy for many to adhere to.

Believe me, however, when I say that it might be difficult at first but, after a while, we will get used to the virtuous cycle of wealth creation. 

It will become easier. 

It will become a habit.

Remember that as we grow older, we become creatures of habit and it could be harder for us to change. Know some older folks with bad habits that they cannot kick? 

So, we should try to acquire good habits as soon as possible. The best time to start is always now.

In recent months, however, I wondered if a good habit could eventually become a bad one?

Everyone knows that AK is pretty frugal and is very careful with spending money but, actually, AK is quite happy to spend money on his family and is quite generous even with friends. It helps that that AK's family is small and friends few, maybe. 

However, AK was not as ready to spend money on himself.

Was?

AK has been learning to treat himself better. He bought new clothes, basically renewing his whole wardrobe. Well, he didn't have much of a choice, having lost quite a bit of weight. He also has healthier (and costlier) eating habits now.

AK sold his car and was without a car for 2 months but now has a new car, a car that costs almost as much as his passive income for the whole of last year!

Pause.

Pause.

Pause.

OMG! 2015's passive income gone, all gone!

What happened?





AK has some friends and readers to thank for this transformation. Without their suggestions, nagging and, sometimes, scolding, AK would not have transformed. 

Why use the word "transformation" and not "improvement"? 

Well, is it an improvement?

I used to think that friends who keep encouraging us to spend money are 损友 which means "bad friends". I remember a Chinese movie in the 80s with this title too.

Could friends who keep encouraging us to spend money actually be good for us?

I am so confused now. 

How? 

I blur.

Related posts:
1. A car loan is different...
2. My food bill grew... 
3.. Get a Mercedes Benz...

AK's letter of encouragement to his readers.

I wrote a reply to an email from a reader but I think it could well be a letter of encouragement to all readers of ASSI.

So, with a few changes, here it is:

"Dear readers,

"Knowledge is power and self knowledge is the most under rated. If you understand this and if you have greater self knowledge, you will become stronger. We are all different and have different circumstances.

"Sometimes, people are encouraged and, sometimes, people are discouraged by AK's achievements.

"Those who are discouraged might wonder how did AK amass his wealth and whether they would be able to do it too?

"There is a blog post (or a few) in ASSI on this. I shared quite openly. I think some will remember.

"I am sure everyone who invests in sound income producing assets will do better over time. Really? How can I be sure?

"Well, did AK expect that he would do so well today, say, 20 years ago? Honestly, no.

"I had an inkling of what had to be done and I set out to do it.

"Having a system that works well is important but luck is important too and I have been lucky not once or twice but more than a few times in the last 20 years.

"The Global Financial Crisis was unlucky for many but it was a lucky break for me, for example.

"If we do the right things, we are helping Lady Luck to help ourselves.

"Keep doing the right things and the right things will have a higher chance of happening for us."

Patience is, sometimes, the hardest thing on our journey to financial freedom.

Be patient.

Don't give up.

All in good time.


Related posts:
1. The secret to AK's success.
2. How did AK create a 6 digit passive income?
3. To retire by 45, have a plan.