How do the rich become richer?
In the past 5 months I have had a new understanding of self-worth.
I used to divide my money into two categories: salary and savings. The process is very simple. I use my time and skills in exchange for money. Then I will keep part of my paycheck every two weeks and put all the rest into a savings account.
The truth is, this is how you earn money, which doesn’t make you get a lot of money.
In The 4-Hour Workweek, Tim Ferris shared the story from a second-lowest salary person at the company that led him to establish Brain QUICKEN LLC and slowly build it. This venture has turned his 40k year into 40k a month.
If Ferris is satisfied with his only source of income and concentrates all his energy to get promotion in the company, he will not become a businessman icon that we know today.
The key to making more money starts with understanding higher levels of wealth, and there are two other ways for us to determine income.
The first thing is active income. This is your full-time or part-time salary. It is also other overtime work such as freedom, Uber driving, gigs, etc. It is a process you change your time to get money.
The second thing is passive income. These are income items that do not require much work, including investment, real estate, e-commerce, copyright …. This allows you to have financial flexibility outside working hours. There is no need to appear to gain benefits.
The secret to financial success is …
Understand how to build many sources of revenue combined with active and passive income.
A lot of people feel fine with the current salary, the fortunes of a decade have not changed. If your ambition is just that often, then just keep that steady mindset. But to be in the top class of the rich group, you need to start looking for other ways to make money.
At the moment, I have 4 sources of income:
– Full-time marketing job.
– Medium’s partner program.
– Savings investments
I hope by the end of 2020 can add at least 4 things in the list below:
– Personal training.
– Paid survey.
– Business or real estate investment
– Robo investment consultancy (Betterment, Acorns).
– Selling books.
– Write lyrics for music.
These incomes, if counted separately, are modest. When they combine, they raise me to another level of success.
Ashton Kutcher is a great example. You can know him as a famous movie / television star. He has a respectable career and earns a lot of money. But even if he doesn’t get another role, Kutcher will still be richer than 99% of the world’s population thanks to many sources of income. From the early 2000s, he owned a manufacturing company, invested in technology start-up companies and established a venture capital company.
Wealth is more than money, it is a series of learned strategies and behaviors
If we control our wealth, we will be free; if wealth controls us, we will be poor.
I’m sure most people who read this article don’t have more than a few sources of income. If you have, it’s great. You are on the way to coming to greater wealth in the future. If not, don’t panic.
Even if you have only one source of income, it’s okay. Your goal should be to look for opportunities out there to make money.
Let’s start with something as simple as investing a small part of your salary. Over time you can build other sources of income until your external income corresponds to your salary.