478. Passive Income

It does not matter where you earn your money or what job you have. What matters is that you convert the maximum percentage of it into portfolio and passive investment as efficiently as possible.

410. The Practice of Red-Lining

Avoid red-lining. This is the practice of getting things done just barely in time or of spending nearly all your money and being broke just before pay-day. Make a budget for yourself for every month and live within it. Do 1, 3, 5, 7 and 10 year budgets. Revise and refine them regularly. Train yourself to live on 19 - 20% of your income and use the rest in accordance with the income allocation plan set out above.