I want to let you in on a secret – you’re not going to get rich by working for money. You will get rich by making money work for you. What does that mean?
There are so many people – highly educated men and women – who work for a company all their life, 10 hours a day, morning to evening. They do all the right things – keep their expenses under control, invest in their children’s education, build a house, and invest the surplus in retirement savings, diversified mutual funds and fixed income.
Yet, they never really become rich as such. Don’t get me wrong – you can have a comfortable middle class life by going to school, getting a good job and saving the surplus income, but you’re not going to get “rich”. If you want to become rich, you should make money work for you instead of working for money.
This requires a completely different mindset. You should stop being just a saver. Saving will not make you rich. You should instead understand money and how it works. Making money work for you means owning businesses and investments that produce a good cash flow for you every month.
Instead of saving money in the bank, invest in assets that generate an income for you. What does this mean?
First, let us understand what it means to work for money rather than have money work for you.
Working for money
When you work for money, you are focused getting a good job, earning a decent salary, which should help you keep up with your expenses.
You are completely reliant on your job, and on your paycheck for paying the bills. You save what is left, hoping that it will make you rich someday.
That rarely happens.
Making money work for you
When you make your money work for you, you will have a different mindset. You will be focused building cash flow generating assets and not on the salary you get from a job.
You will build your own income through your investment in these assets, and pay out your expenses from this. No, you will not bother about living below your means; you will live your life to the fullest. After all, we only get one shot at life; why not make the most of it?
Instead of living below your means, you will look for ways to expand your means. Your #1 focus will be on making the right investments that will allow you to do that by generating a good income every month, instead of simply managing to keep up with your expenses.
This is a big, big difference.
How can you make money work for you?
You can make money work for you by investing in small businesses in your area, in rental properties, or giving small loans on a high interest to people.
You can also invest in high dividend stocks, high interest corporate bonds and other financial instruments that give you good returns.
We are in the internet age now and the internet has created more millionaires in the last 15 years than any other medium. You can start your own online business, write eBooks, try your hand at affiliate marketing, start a YouTube channel – these are some of the ways you can use the internet to get rich.
Remember – your goal should be to develop assets that generate a good, solid income every month. That’s how you can make money work for you instead of working for money yourself.