The general population has a love/hate relationship with riches. Ironically, most people who resent those who are wealthy spend their lives trying to acquire wealth.
Explore your creativity with classes in illustration, photography, design, and more. Start a Free Trial today.
The reason majority of individuals never accumulate wealth let alone substantial savings is because they don’t comprehend the nature of money or how it works.
Being rich is much more about your mentality and your financial intelligence than it is about how much income you have. Rich individuals save and invest a portion of their income.
What Passive income streams pay them whether they work or not? If you’ve no savings, then it doesn’t matter how much income you make annually; you aren’t rich.
If you quit working today, how long could you continue to pay for your current lifestyle? A calendar month? 6 months? Twelve months?
The longer you could go, the more affluent you are. The richest individuals are those that are financially free. That means their passive income streams are enough to cover their expenses. In fact, they could go on forever at their current level of living without working again.
To become wealthier, you need to first understand how to manage your cash flow and investments. This also has a lot to do with your mindset, your buying habits, and financial intellect.
Who doesn’t want to get rich? Most people if not everyone wants to be rich. It is normal that people always seek something more and something better. And if you’ve been searching the internet on how-to-get-rich, you’ll realize that among the most common types of streams that the rich have been;
Earned Income – This is your day job and most people’s primary source of income. this one’s easy to understand and most people’s primary source of income. You trade your time for money.
Business Income – You own a business. You either make and sell something, or you provide a service.
Interest Income – This is income you make from lending your money out. This might mean a CD, P2P lending, real estate crowdfunding, funding fix-and-flip debt deals, or simply money in a savings account.
Dividend Income – This is money that’s distributed as a result of owning shares of a company.
Rental Income – You own something and you rent it out. Probably the most common is owning a rental property, such as a multifamily apartment building (renting apartments in exchange for monthly payments).
Capital Gains – This is money earned when you sell an investment, like stocks.
Royalties / Licensing – You create a product, idea, or process, and you let someone use it. They pay you a small fee every time they do.
The rich also invest a lot in themselves, growing their skills, expertise, reading books, taking courses, getting mentors. So make out time to invest in yourself.
Here’s something noteworthy;
The single most crucial thing you’ll ever hear about wealth: Getting rich is simple. Not easy, but simple.
And the second most crucial thing you’ll ever hear about wealth: You have no excuse not to be rich. Like Bill Gates said,
Start today, first you earn, discipline yourself, control your expenses, save and invest!
Let me know in the comments below what other rules you have learned from the rich and wealthy.
#TodayILearned #MoneyTalks #Investing #personalfinance