X-Curve Concept

Law of building wealth Law of Decreasing Responsibility

sBig Money Line Big

Resp. Responsibility Line Savings

Basic Needs Basic Needs

Health Health

PASSIVE INCOME
ACTIVE INCOME

No No
Savings Resp.

Die Too Early 3 Live

IF’STooofLong
LIFE Get Sick
Instant Money Investments Health Care
Insurance

In X-Curve Concept, we have that is called “The Law of Building Wealth” and “The
Law of Decreasing Responsibility”. In this concept we can see the relationship while taking
responsibility and building wealth.

Overtime, a person’s responsibility should decrease and their wealth should

increase. This x-curve contains two lines that run to opposite directions during the lifetime
of a person. The blue line represents our money line; it is in upward direction because as we
age we should accumulate wealth or our savings will grow and the red line represents the
responsibility line; it is in downward direction because as we age our responsibility should
decrease

In financial life of a person, he/she starts with a big responsibility with no savings.
Basic needs such as; food, shelter, clothes, for education and for health are the reasons of
having a big responsibility. This permanent responsibility will rely on your income which is
your active income wherein you are working hard for the money in exchange for your time.

When the time comes for our retirement, of course we still need to eat even without
work, your house will be repaired and you will replace your clothes with new ones. In our
health, when is the possible time of getting sick? Of course when we get older, we don’t
have a job but we have maintenance. So what should we do? We need a passive income
wherein the money will work for you

In our lives, we have 3 If’s that we need to be prepared. First, what if you die too
soon? Is it your problem or to your lover ones? Of course to your love ones where you left
off, so you need to protect them. Instant money or insurance or income replacement is
needed to help them to recover for the responsibility that you left off. Second, what if you
live too long? Is it a problem or not? Yes it is if you are not prepared. You need to think what
life you will take and where will you get your expenses? When you get older you will still eat
and get dress, so these basic needs are lifetime. This will rely on your passive income and
you are living on interests because of your investments came from your saving when you
have your job. The last one is what if you get sick? Anytime there are possibilities that we get
sick so we need also to prepare for it. If you get sick on the time during that you are saving,
you need to have emergency funds (e.g. you are covered in your company) and you need to
have you own long-term healthcare account. Make sure that during this scenario you will
not use your savings.

All in all, this x-curve concept will guide you to have a good financial life.