Reading Rich Dad Poor Dad and the Cashflow Quadrant when I was 21 years old. I was getting kicked out of college because I couldn't afford school and I failed to qualify for a loan. I was extremely bitter. In spite of a 3.5 GPA and numerous involvements I was still broke and couldn't continue school. My mentor at the time left me with this. "If there's anything I can leave you with. Read Rich Dad Poor Dad and The Cashflow Quadrant. If I read these books at 15, there's no telling where I'd be. I'm begging you to read it."
First week back I read through both books.
You really have to get a deeper understanding of how money works and how the rich do it.
Like I said, the rich buy
assets. And assets produce
leveraged, passive and portfolio income. This is money you're getting without WORKING long hours for it.
That's the secret. It's money, yes. But it's also
TIME.
If you're trading your time to get paid, your income is EARNED income. But with leveraged income... you are leveraging the efforts of others or a system to make MORE money. There's a big difference between a lawyer and owning a few Starbucks franchises. One makes $125,000 a year but works 70-80 hours a week. The other makes $125,000 a year but leverages the efforts of the baristas, the accountants, the managers... they work 40 hours a week running the system and the operations. The owner may work 10 hours a week and all they do is look at spreadsheets and paperwork because they've established a SYSTEM that makes money for themselves without them having to be there to work night and day.
The best indicator of wealth is this: take every penny out of your bank account. Quit your job. Go on vacation for six months. Come back. Look at your bank account. If nothing has been deposited into your account, you have NO wealth whatsoever. In this case, YOU are your only ASSET. And as the saying goes, "if you don't get your ASS ET to work you won't get paid."
The rich BUY assets. That's why you hear them saying buy
Nike stock instead of Nike sneakers. Nike stock can turn your $250 into $500 in a year.
Portfolio income. Your sneakers will wear away and be useless in no time.
The rich BUY real estate? Why? Because you can rent it out....
passive income. Leveraged income, because you're leveraging the efforts of the people who are working their jobs... so they can give you their money.
The rich BUY income producing businesses. You hear all the time about how companies acquiring other companies...
Comcast buys Dreamworks.
Amazon buys Whole Foods. It's simply rich people saying, "hmmm this makes a lot of money every month without me having to do much, lemme buy that."
These income producing sites are assets. It's worth getting into the game.
Good sources?
Rich Dad Poor Dad The Cashflow Quadrant
Start there.
If you have any more questions lemme know.