They are accustomed to instant coffee and instant access to all sorts of things that were far from instant for previous generations. Alongside such instant gratification, they want instant riches too and off they go as if in search of the holy grail; the question is: does the thing they search for even exist? This is a condition that people have to be cured of and not unlike the famous character of Spanish fiction, Don Quixote, they have become obsessed with things of which they read and believe to be true, despite the fact that they are not.
Me and my wife are the perfect example. We are both very young (early 20's) we both work part time and earn combined a lot less than most people earn by themselves. We have $20,000 in debt, a child on the way and we live in an area that is fairly expensive. Despite these setbacks we are steadily making our way to become rich and we will be financially free within the next 5 years.
However, many other people we know work full time and so does their partner, they earn more than triple what we earn, they don't have any children and they have had 10-30 years longer to acquire wealth than us. I can honestly say that we are going to become financially free before most of them. So it is not how much you earn, but what you do with what you earn.
There are two key thoughts that I want to share with you today that will empower and enable you to become rich no matter your financial situation. These are the two things that have set me apart from the other people I know who will live their entire lives and fail to become rich.
There are multitudes of con-artists out there (who seem to particularly frequent the business opportunities market). Perhaps these people justify their actions by arguing that those who buy from them deserve to be trapped because of their naivety or perhaps they themselves were trapped by some 'how to get rich quick' scheme and their response is to exact revenge by trapping someone else. There is after all a price one has to pay for folly or naivety, and someone seeking how to get rich quick, needs to learn that the way things work in this world generally speaking (and with very few exceptions) is that wealth is a reward for diligence. As Genesis 3:19 makes clear: "By the sweat of your brow you will eat your food".
Your financial education will allow you to earn more money, pay less tax and will also allow you to have your money work harder for you. People with a low financial IQ will work hard, live frugal and save money. Their money will earn maybe 4% per year, be taxed at 50% leaving them with a 2% return on investment. All the while the value of their money is going down 3-5% per year. So they are losing 1-3% per year because they don't know how to invest.
With financial intelligence you can invest more intelligently and earn more money. Reading this article is a great first step to increase your financial intelligence. I also suggest reading any of Robert Kiyosaki's books. Eventually I will have some of my own books out, but until then you can read Robert's books or you can sign up for a free email newsletter that will teach you how to be rich. Invest in your learning, because it is your financial intelligence that will make you rich, not how much money you have.
Finding a balance between these two is something that we all (and all businesses) have to do. Earning money is therefore fundamentally an exchange of cash in return for service. To get rich quick, you either have to serve people more effectively by working harder or smarter for them (which won't happen quick) or you have to take more cash in return for less service (generally this can only be achieved by deception or dishonesty). The person who understanding this still wants to know how to get rich quick, needs to realise that generally speaking they will do so only at the expense of another. The stingy are eager to get rich and are unaware that poverty awaits them (Proverbs 28:22).
Character, reputation and income; getting the balance right
Assets are things that put money in your pocket on a regular basis without you needing to work for it, liabilities take money out of your pocket. A rental property can be an asset if the rental income is greater than all expenses, it can also be a liability if the expenses are greater than rental income.
Can you find an investor? Can you bring in additional knowledge from outside and offer shares to get your project off the ground? Can you afford to outsource specific tasks in order to move the project forward at a pace that you're happy with?
Assets that generate income make you rich. Money actually goes down in value over time because of inflation. Money goes down in value at about 3-5% per year. So if you are just saving money then really you are losing 3-5% per year.
But if you work not for money but for assets that generate an income then when the value of money goes down your income goes up (the expense is passed on to your customers/tenants) so you never lose money. Not only will your passive income increase but the value of your asset with increase as the value of money goes down. So when you own assets you are always getting richer and richer.
Me and my wife are the perfect example. We are both very young (early 20's) we both work part time and earn combined a lot less than most people earn by themselves. We have $20,000 in debt, a child on the way and we live in an area that is fairly expensive. Despite these setbacks we are steadily making our way to become rich and we will be financially free within the next 5 years.
However, many other people we know work full time and so does their partner, they earn more than triple what we earn, they don't have any children and they have had 10-30 years longer to acquire wealth than us. I can honestly say that we are going to become financially free before most of them. So it is not how much you earn, but what you do with what you earn.
There are two key thoughts that I want to share with you today that will empower and enable you to become rich no matter your financial situation. These are the two things that have set me apart from the other people I know who will live their entire lives and fail to become rich.
There are multitudes of con-artists out there (who seem to particularly frequent the business opportunities market). Perhaps these people justify their actions by arguing that those who buy from them deserve to be trapped because of their naivety or perhaps they themselves were trapped by some 'how to get rich quick' scheme and their response is to exact revenge by trapping someone else. There is after all a price one has to pay for folly or naivety, and someone seeking how to get rich quick, needs to learn that the way things work in this world generally speaking (and with very few exceptions) is that wealth is a reward for diligence. As Genesis 3:19 makes clear: "By the sweat of your brow you will eat your food".
Your financial education will allow you to earn more money, pay less tax and will also allow you to have your money work harder for you. People with a low financial IQ will work hard, live frugal and save money. Their money will earn maybe 4% per year, be taxed at 50% leaving them with a 2% return on investment. All the while the value of their money is going down 3-5% per year. So they are losing 1-3% per year because they don't know how to invest.
With financial intelligence you can invest more intelligently and earn more money. Reading this article is a great first step to increase your financial intelligence. I also suggest reading any of Robert Kiyosaki's books. Eventually I will have some of my own books out, but until then you can read Robert's books or you can sign up for a free email newsletter that will teach you how to be rich. Invest in your learning, because it is your financial intelligence that will make you rich, not how much money you have.
Finding a balance between these two is something that we all (and all businesses) have to do. Earning money is therefore fundamentally an exchange of cash in return for service. To get rich quick, you either have to serve people more effectively by working harder or smarter for them (which won't happen quick) or you have to take more cash in return for less service (generally this can only be achieved by deception or dishonesty). The person who understanding this still wants to know how to get rich quick, needs to realise that generally speaking they will do so only at the expense of another. The stingy are eager to get rich and are unaware that poverty awaits them (Proverbs 28:22).
Character, reputation and income; getting the balance right
Assets are things that put money in your pocket on a regular basis without you needing to work for it, liabilities take money out of your pocket. A rental property can be an asset if the rental income is greater than all expenses, it can also be a liability if the expenses are greater than rental income.
Can you find an investor? Can you bring in additional knowledge from outside and offer shares to get your project off the ground? Can you afford to outsource specific tasks in order to move the project forward at a pace that you're happy with?
Assets that generate income make you rich. Money actually goes down in value over time because of inflation. Money goes down in value at about 3-5% per year. So if you are just saving money then really you are losing 3-5% per year.
But if you work not for money but for assets that generate an income then when the value of money goes down your income goes up (the expense is passed on to your customers/tenants) so you never lose money. Not only will your passive income increase but the value of your asset with increase as the value of money goes down. So when you own assets you are always getting richer and richer.
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