Why do you need to Live a Net Positive Life?
In an exceedingly capitalist world, most people find themselves living on the edge. It takes self-awareness, acceptance and determination to live within your means and ultimately a net positive life. A net positive life has more pros than cons and we all should strive to live it while tirelessly working towards our goals. I am aware of critics of net positive living especially because they consider such a life too comfortable to allow anyone to grow. The Net positive approach I have in mind does not allow for a comfort zone, rather it allows one to accumulate enough resources for better chances at growth.
Affordable living encompasses life expenses that include rent, food, utilities, transport, and leisure among many others. As people who are investment oriented we ought to live a life that allows us a chance to take on more opportunities. How do we get there? We have to reduce our expenses on the items mentioned above. The expenses are relative to one’s income. For instance, a $1,500 monthly rent would be insignificant to someone with a $20,000 monthly income. The same cannot be said for a person paying a $250 monthly rent on a $500 monthly income. The same scale applies to food, homemade food versus take outs; utilities, premium internet service and subscriptions versus modest ones; and on transport, expensive cars versus modest ones or public transportation.
It is mostly recommended that for rents for instance, we ought to live in places that cost us at most a third of our monthly income. I am not trying to give you figures for your living, I am sharing a perspective towards productive frugality. You should be able to use the rent provision as a benchmark for your living expenses. Sometimes it takes extreme conditions to make us understand the need for frugality. The pain or disappointment gotten from such events tend to be lessons that have seen many successful investors turn around their lives. For instance, driving a Mercedes S Class while you can hardly meet your monthly rent expenses would most likely lead you into defaults. You also need not to be driving to be in default, you could simply be in a rented house that strains your income. The first thing to do after self-awareness is to adjust accordingly.
The Net Positive perspective adopts a realist way of life, which is you need to have more money to yourself than you are giving away. This way, you will in little time accumulate a pool of funds which will help you make more investments. You will be able to regularly invest in your index fund or mutual fund, fund your life insurance plan, pension or savings account, buy a business, or grow your current venture or career.
In essence, living a net positive life grants you the ability to make more. You will be able to form better relationships just by being able to access quality people and minds. You will also become a better friend, partner, parent, or mentor as stress and depression from money issues will be no more. Further, better relationships make people easy and comfortable with each other which makes them share opportunities with ease.
The opening up of more opportunities will need you to have available cash to take on the new ideas. A net positive life will keep you liquid hence the ability to take calculated risks. Remember, you only miss the shots that you do not take, which means taking on new ideas will most likely set you up for increased success than it would have been the case with living a net negative life.
When you are liquid and making more investments that allow you to be on the path of success you tend to be a joyful person. You will be able to give more to the needy and worthy courses. This gives you self-fulfillment. As a result you will be able to impact other people positively and before you know it, you will be an icon of success and positive living. Why should you not live a Net Positive life?
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