I just don’t know what to do with my money… so I will buy a more expensive car instead

Dear reader, in my previous posts we have discussed two of the most common barriers to overcome in order for us to start investing in passive income ideas:

  • I don’t have enough money to invest in passive income
  • I’ve got some money, but I don’t have the time to find ways to grow it

In today’s post, I am going to talk about the correct mindset needed to achieve an ambitious and long term goal. To do this, I am going to share another complaint I frequently hear when I talk to people about passive income:

I just don’t know what to do with my money… so I will buy a more expensive car instead

In reality, this kind of comment is usually a sabotaging thought generated by our brains, just because we are moving on to something new and unknown. In fact, there are lots of studies about what is called cognitive therapy, or how to make permanent desired changes in the way our brain approaches new situations. I am not a scientist or a doctor, but this topic has caught my attention, and therefore I’ve done some research on it.

Our brains tend to share negative or sabotaging thoughts all the time. Some common examples below are:

  • Rationalization: “It doesn’t matter if I spend some money on this new gadget because…
  • Underestimation of consequences: “It doesn’t matter if I subscribe to this new Direct Debit, it’s only £20 a month.
  • Self-deception: “As I am paying for Netflix, I want to make the most of it. Therefore, I will keep watching this TV show instead of investing time to find a new source of passive income.”
  • The ability to “read minds”: “My brother-in-law thinks I am wasting my time trying to look for new investment opportunities instead of playing tennis with him.”
  • Exaggeration: “I can’t wake up 30 minutes early every day to boost my morning and have more time in the afternoon for myself: I feel so tired when I do it.

I’ve concluded from the studies I’ve read about this topic that people can learn how to change their behaviour, and more importantly, make these changes permanent. However, it’s a process, and it takes time and determination. That’s why I am going to share some tips on how to start changing your mindset:

  • Find a sentence that inspires you, write it on an A4 paper, and make it visible. For example, I’ve got the following sentence: “Hard work is so often the answer. The question is so often irrelevant”, by Ross Edgley. I’ve set up this quote as the picture background on my desktop, and I also have a copy on the fridge, in order to ensure that I read it every day. By the way, in case you don’t know him, Ross Edgley is the first person that has ever swam all the way around Great Britain. He has written a book about this journey, called The Art of Resilience. I can honestly recommend it. It might even change your mind in lots of ways. And of course, it is in my library.
  • Prepare a list of reasons why you want to find some passive income in the first place. What’s your motivation for all of this? Again, print it out, and make it visible.
  • As mentioned in my previous post, prepare a calendar of your daily routine to ensure you find some time to read and gather information about new projects related to passive income.
  • Set up a realistic goal. Don’t expect to become rich in a couple of months! This is a long journey, and it’s important to celebrate small achievements. Think of it as a marathon, not a sprint. You might have a long term goal (i.e. obtain £500 per month from passive income). However, as Rome wasn’t built in a day, you might want to split this big goal into smaller ones. For example, in my case, I added some milestones for 2021:
Goals 2021Achieved?
Generate some extra savings to use for passive incomeYES
Free up some time in my diary to investigate new ideasYES
Set up at least one recurrent passive income in 2021YES

Although I am still quite far from my very last objective, which is  being able to generate enough passive income to have the choice to stop being employed, when I review my goals for 2021, I feel happy to see that I was able to generate more than £4,000 in 2021. I achieved this simply by selling stuff I don’t use anymore and making some savings after I sold our second family car that we were not using. And more importantly, I now have my first passive income! By renting my unused parking space, I generate £30 per month, that is Real Passive Income.

In my next post, I will be writing about the importance of managing your personal & family finances. I think it’s essential to ensure that as a family you have a budget that includes all sources of income and expenses, and of course, that you are able to save some money recurrently.

I will also share my TOP-10 motivational quotes that help me fight these negative or sabotaging thoughts, so hopefully you will be able to use some of them.

As always, thanks for reading! Feel free to contact me with any feedback or suggestions here, and please subscribe if you like this blog.

Thanks again!

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