Are you a PAW person?

0saves

Are you a PAW?

Gold coins and fat purse The richest man in Babylon

source: morguefile.com By smileyhaiku

By PAW I don’t mean Post Apocalyptic World person. That is something else. Well, to tell you why out of the blue I asks this question is because while looking back at my old post(while I cringe as I see grammar and spelling errors) I happen to read again my post about the 3 types of wealth accumulators in the book Millionaire Next Door(click here to re-read that post). That was 2010 and I myself got myself thinking and asking if for nearly 5 years have I become a PAW which means Prodigious Accumulator of Wealth.

Well to tell you the truth I believed I got stuck to the AAW(Average Accumulator of Wealth). I am still working as an employee instead of my money working for me. I can say I am living comfortably with the savings and earnings I have but my investments in stocks got stunned with the turbulent years and of course my carelessness of not making good trades. I even ignored it for so many months when I have the chance to really take advantage of the  bear market. But that is another story.

Being a PAW just means that one has to have multiple sources of income to the point that you no longer need to be employed because as Arkad of the book “Richest Man in Babylon” taught that you should only enjoy the earnings of your money’s great-grandchildren. Besides having multiple sources of income you need to grow your money from such income streams so that literally your living and luxury expenses are so small compared to the magnitude of your earning’s earnings.

So how can you go above AAW to become PAW?

Well there is no short-cut. You need to accumulate your wealth so that it becomes a capital enough to be invested in an earning income stream. And you don’t stop there. You need to make sure that your lifestyle is not that lavish so that you can keep your capital working and earn for you. It is at this stage that most of us fail. An increase in salary/wage or a big sale in the business makes us go big at times like buying an expensive watch or a new gadget to tell our selves that we deserve it and it is reward to ourselves for the hard work. At times this goes on and on and thus in the end that extra earnings that could have earned more  are wasted.

It takes discipline to be a PAW and to have a simple lifestyle in spite of the leap in ones buying capacity.

With this I would like to remind you to not only be a saver but also look into the potential investments that can be a source of extra income. It could be the stock market, it could be rental property, it could be a small business, or maybe you can share in a crowdfund scheme investment aligned to your passion or beliefs(check this site here). It is not to late to change, as they say change is the constant thing in this world. If you are going to change, then change for the better. Change your old and bad ways and become a Prodigious Accumulator or Wealth.

 

Financial Freedom Advocate About the blogger

Louis Delos Angeles is a Certified Public Accountant, blogger behind Investing in Philippines, and author of Investing in Stocks: Preparing for the future small amount at a time. Check him out in Google+ Learn more about Louis and his financial freedom advocacy here.

Enjoyed this post? Please consider leaving a comment , subscribing to the RSS feed, or join our email list .

Your ideas, opinion, and contributions to the topic will help us learn more ways towards financial freedom! Please leave some in the box below and make our quest more exciting!

%d bloggers like this: