8 Assets That Make People Rich and Never Work Again - Financial Freedom, Passive Income, Cash Flow
Rich Dad Poor Dad author Robert Kiyosaki explained a very interesting concept he calls the cash flow quadrant he says there is a thin line between the rich and the poor those on the left side of the quadrant work for money because they need security while those on the right side of the quadrant work for Freedom so they don't have to work hard their entire life here are eight assets that make people rich and never work again 1.
a business at some point in time all of us have been awestruck by successful entrepreneurs we wonder how they manage to amass billions of dollars in one single lifetime at times we also get swayed by Hollywood stereotypes we feel that the ultra Rich are corrupt and inhumane cronies who haven't sweat a drop in their lives but this thinking is our biggest mental block that keeps us poor our whole lives creating a profitable business requires every drop of your sweat and blood identifying a business idea and successfully scaling it into a multinational corporation is
no Child's Play Every self-made ultra-rich entrepreneur in the world including Elon Musk Jeff Bezos and Mark Zuckerberg was made in the same way through hard work the difference between Rich entrepreneurs and employees is the same as the difference between passive and active income entrepreneurs work really hard for the first few years to create a business while employees work hard throughout their lives entrepreneurs create assets that earn them money for the rest of their lives without working anymore while employees
live paycheck to paycheck entrepreneurs secure their own lives in their children's lives while employees die poor without leaving anything behind for the next Generations 2. real estate while creating a business is one of the best assets for ending up with millions in net worth it is not the only one all of us come from different Financial circumstances for many of us having a safe and secure job with benefits is crucial to stand on our own two feet with such constraints leaving job security and starting a business is
not always a risk you can take however that doesn't mean you have to break your back throughout your life working for someone else you can still get out of the Rat Race if you start making the right investing decisions at the right time in your life when you are young and earning an average salary buying real estate seems next to impossible however that's where OPM comes in and Robert kiyosaki's words OPM stands for other people's money simply put he encourages people to borrow money to buy rental real estate
such properties create a second income stream for you other than your nine to five job the rental income pays for mortgage payments and other expenses still adding some money to your pocket also real estate investment lowers your taxes which is like free money in your pocket so why not make use of the tax breaks that come with it gradually as you start acquiring more and more rental properties you become less and less dependent on your next paycheck and that's when you truly acquire Financial Freedom you don't have to work for money
your assets work for you and if you are smart about it you will start adding multiple passive income streams as you go creating wealth that you can pass on to the next Generations 3. paper assets we all know by now that businesses and real estate initially require time and effort before you can reap benefits from them most of us don't have that much time to spare after working for 10 to 12 hours a day in such cases Robert Kiyosaki shares another route to Financial Freedom it requires disciplined spending habits but it is
much easier to start for people with a time and money crunch instead of spending your hard-earned money on going to pubs and bars every week you can invest those in stocks bonds mutual funds and G sex each instrument has its own risk so you can choose based on your risk taking capacity these assets free you from tackling the challenges of managing a business or real estate and at the same time they allow you to invest in other people's successful and profitable businesses the more you save and invest the faster you
can get out of the rat race of nine to five and free up your time to add additional passive income streams to your portfolio 4. Commodities do you know why the dollar keeps gaining or losing value because paper money is a man-made concept it's not real it has value only because the government's back it and governments can back it because the FED can print more of it anytime it wants this means the dollar has no value of its own today the US is the world superpower so dollar is the most valuable currency
tomorrow if some other country beats the US to become the world's superpower the country's currency will replace the dollar so saving in just one currency is never the best asset to create intergenerational wealth no one knows when that piece of paper becomes worthless to overcome all these shortcomings of paper currency all ultra-rich individuals invest in what Kiyosaki calls God's money Commodities such as gold silver oil or even food grains and meat will remain valuable to humankind for the foreseeable future
Commodities as an asset are irreplaceable at the end of the day we need food to survive we need energy to commute and trade and we need precious metals to store wealth paper assets can't do these things for us with limited quantities and stable demand Commodities are also a great protection against inflation therefore it is always a good idea to diversify your portfolio with some investments in Commodities because they rise in value in tough times when other assets fall five time we've all heard the phrase time is money
do you know why it came into existence according to economists time is the most precious resource of humankind money comes and goes most NFL players become bankrupt the very next day they earn their first million dollars but time once gone never comes back your young age is your best asset it allows you to take more risks because you still have a long life ahead of you to earn back lost money but once you enter into old age there is no looking back therefore making the maximum use of your time is essential to retiring Rich a person who
starts say investing from the age of 20 will amass much more than a person who starts at the age of 30 even the Oracle of Omaha Mr Warren Buffett advises people to start young another way of making the best use of your time is to upgrade your skills a standard five-day Work Week leaves you with two days to invest in yourself you can either while it away in movies bars or hanging out with friends or you can work on yourself start a side hustle upskill to get a promotion at your job or even follow a passion who knows what life-changing
turn any of these could lead your life into at the end of the day wealth in any form creates a safety ring around you and your loved ones the true meaning of being wealthy is no matter how the world economics change you stay protected 6. your health while utilizing your time well is more of a mental Endeavor being physically fit is much needed to accomplish all of your goals and Ambitions most of us don't care for our bodies at a young age we eat junk food unhealthy restaurant food consume unrecommended levels of alcohol or even
smoke a few cigarettes we feel that we have worked really hard and that we deserve some slack then we go back to our jobs all happy ready to earn more money so we can do it all over again before we realize it we end up getting trapped in this cycle not only do these unhealthy habits eat into our current earnings but they also leave us with huge wealth eroding medical bills into our old age instead if we invest in our bodies and do regular exercise we can not only work more and earn more but we can live a long and healthy life with
our family and loved ones 7. online assets do you know what it costs to start a YouTube channel absolutely nothing it is free and have you ever learned something cool from a YouTube video everyone has we are all good at something some of us cook very well some love making others laugh and some are computer Geniuses so why not use your Knowledge and Skills to help people struggling with something you are good at and if your skills are really sought after you will have enough subscribers in no time and YouTube will
pay you you can even start generating ad Revenue similar is the case with all online assets be it online courses websites blogs and even your social media Pages once your online assets start earning you enough money you can even create a business out of it upgrade the content hire people to work for you and even join affiliate programs to add to your income streams if you're interested in making money on YouTube be sure to check out the free YouTube training in the description 8. your network have you heard the
saying a happy client is a referring client this small saying speaks volumes about why developing a personal brand or Goodwill is crucial to the success of any business big or small while doing good work can get you early success a few recommendations from your clients can completely shift the Paradigm for you suppose you start a catering business every party you cater to enlarges your network because if the guests like your food they will call you the next time they have a party therefore along with delivering quality
you also need to think of ways to Market yourself you can't wait for success to come your way you need to let people know you are behind all that good work.
blogpay
Total Comments: 0