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I credit this post to the author of Rich Dad Poor Dad by Robert Kiyosaki which is also my source of information
From time and time again you've probably heard the saying from your parents that if you get good grades in school, go to college and get a good job you will be bound for success. In America, some 20 million students attend college on average every year. Also in America, the number of millionaires totals 11 million and billionaires at just 540.
Now, what would you say the path from 20 million college students a year to 11 million millionaires in total looks like? It's hard to tell with these numbers but I can definitely tell you its not about getting a job and working for money the rest of your life. Granted, you could do that and save up enough to become a millionaire when you retire but what's the fun in having money when you're limited to what you can do with it.
Why working for money doesn't make you rich
I've bet most of you have it made, at least in your plans. You probably know what job you want or you might even have the job you want. You might have given up dreams to pursue a secure job with great pay. But where does that money go you're making? Maybe you save some but it's to keep funding your life and family. It's active income. You trade your time for money.
This is where the rich different from the poor or middle class. instead of working a job trading their time for money they look for ways to maximize their time through assets. They build passive streams of income that generates them money every day even when they're sleeping.
They have multiple investments and they own business, or they invest in businesses to own them. You see, you could be the top CEO of a company but you're still working for your money and not having your money work for you.
What the rich do to make money
The rich class put their money into investments that provide them with passive income through returns, dividends, and interest. They also build business and OWN them NOT run them themselves. Yes, they make decisions for the business but they appoint a CEO to run the company for them. They don't do the work they just have the highest decision-making input. They also own real estate like they do investments that payout every month for them.
What you need to do to have money work for you
So you may be thinking well do to all that you need money to make money. And that's the difference between rich and poor. The rich have their money work for them rather than working for money. So to begin the transition to the rich class you first must be saving money you're getting from your active source to start investing in passive income sources. What source is the best? Any of them. It doesn't matter what gives you the highest return but it does matter what you're willing to put effort towards learning. You can learn stocks, real estate, or how to build a business. You get to choose but make sure you like what you're doing that way it's easier to fund and you don't get discouraged.
Thank you for reading this short excerpt on the differences between the rich and poor/middle class. I'd love to hear feedback in the comments and question you might have!
Isaac
My current books:
Rich Dad Poor Dad by Robert Kiyosaki
The Handbook by Epictetus
The Art of Talking to Anyone by Rosalie Maggio