The seven habits of the passive income millionaire.

There are few people who really own their life, those who do are the lucky ones. Many of us, own only a tiny slice of our own life, the so-called “free time”, which usually amounts to a few hours a week if you are married with kids and a bit more if you are single.

Most of the living hours are spent on activities that support this very rare and scarce resource called “free time”.

In the last centuries, many have died for true freedom, but the modern man has been beaten into submission by the requirements of today’s modern life. Working in a cubicle in exchange for money to pay for mortgages, schools, cars, travel, restaurants and fun parks. We have built our very own golden cages. Is there an alternative?

There is a way out. It does not have to be this way. Our healthies years are for us to enjoy rather than to sell them away to the highest bidder for money. There is no magic key out of the golden cage.

Each man and woman have different skills and resources and with those, they can engineer a way out of the cubicle hell hole to the life of financial freedom. Each one of us has different tools, skills and resources to build a ladder out of this hole. The climb out will be different for each of us, the result is the same: Financial Freedom through passive income.

No guarantees. Some will fail completely others will only achieve only a few years of freedom. Even one year of freedom (over and above retirement) will be worth the extra effort.

Financial Freedom allows you to live more, just because you can claim back more time for yourself. Spending time on things that really matter for you and that really have an impact on the things you care about is time worth spent. The journey of success is as important as success itself. The passive income journey is no different.

The ladder out is built one step at a time, through good decisions and habits that allow us to build reliable passive income streams for the long term

1. Sort your main problems out.

We all have an itch which is constantly bugging us, a problem which we avoided dealing with for a long time. Such a problem drains energy and does not allow you to focus on what is important.

Sorting such chronic long term problem(s) requires a change of mindset. This means one needs to looking at both the problem and at the solutions differently. Changing your state of mind requires you to change your thinking. Your thinking is like a treadmill of thoughts which are triggered by the people you most frequent, the stuff you most read and the places you must visit.  Changing those will change your mindset!

2. Set your goals

Your goals are the tool to extinguish all excuses. A higher goal eliminates all lesser goals. If your goal is financial freedom, then one step a day in the right direction will get you to your final destination.

Keep track of your errors rather than your success. The idea is not to let your guard down and to keep you on your toes. Think big! Do not record the money you saved but the money you spend in meaningless things. Striving for excellence is about eliminating in excellence.

3. Smart Frugality

Smart frugality is all about controlling your money in a smart way and getting more bang for your buck. Avoiding the daily Starbucks coffee makes sense, for those of us on a tight budget. However, it does have its place when you are demotivated, lack the energy and need a different space to work in. Frugality is about changing your mindset about your money; seeing it as a long term asset rather than a short term stop gap.

4. Learning and Networking

The people who have invested in BTC when it was $100 are by now millionaires, so are the people who invested in Amazon when it was a startup. Every few years opportunities like this come up but it takes A LOT of learning and networking to discover them. It also takes even more financial maturity to avoid all the scams that might look like the next Bitcoin or Amazon.

There are no rules in the quest for passive income. Making the most out of all tools available makes sense as long as it makes sense to the individual using them. Get out there both physically and electronically. Shake hands ask for recommendations and DYOR! (Do your own research)

5. Saving and Investing 

Saving and investing are the bread and butter for any financial freedom journey.  Real estate, Dividend Income and Crypto investments need capital upfront while most Side Hustles require time upfront. To buy passive income assets, seed capital is needed and usually, this is saved from personal income.

A popular basic formula goes as follows:

  • 50%: Your Needs
  • 20%: Your Savings & Debt
  • 30%: Your Wants

The disadvantage of this formula is that it does not take into account the level of personal income. High-income earners, (more than $10k monthly) should consider increasing their savings and debt and keep their needs and wants in check.

6. Creating and buying Passive Income assets

The best way to test your commitment to financial freedom is to start a side hustle. This is a good way to kindle your spirit of entrepreneurship and your business acumen. It will take time and gritted teeth to have something to show for your efforts.

Consider the following side hustles

Buying passive income assets is easier, but riskier. It takes a minute to buy an ETF, stock or cryptocurrency but if done without the necessary understanding the damage could take years to undo.


Some Riskier assets include


Most millionaires have more than seven sources of income. They all built them one at a time, start yours today.

7. Going forward. Your next steps.

Create a to-do list and put in the priorities next to each item. Then just start working your way through it. At the end of each session create another to do list for your next session. It is as easy as that!

Taking care of yourself, will increase your self-confidence and give you the strength to do the things which you have always wanted to tackle but never did. You know the basics of eating well, having a healthy weight and exercise.

Not investment advice. Not financial advice. Consult your financial advisor. Not a recommendation to buy, sell or hold. The staff of this site may own these digital asset/s mentioned on this page. Investing is risky and you may lose all your capital. See full disclaimer.

Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.

Author: Jim Reynolds
Jim Reynolds. Is passionate about finance, passive income and cryptocurrencies. He writes about his passions on He has worked in the tech and financial industry for a few decades. He holds a masters in business admin and a bachelors in IT. All his writings are not investment advice.

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