This article is as simple as can be. NOW is the time to start thinking as rich people think. TODAY is the day you need start to invest in the world as rich people would. And how do rich people invest in the world? They use earned income and business income to buy assets that pay them money. This money from their investments is what they use to fund their lives. They do not work a job to pay bills and fund liabilities. This shift in thinking is critical to becoming wealthy, and also to creating generational wealth. The more assets you build now, when you are young, the greater the multiple of wealth is built. Time is the best builder of wealth.
Let’s say a rich person wanted to buy a car that cost $1,000 a month. Instead of having a job and using earned income to buy that car, they would buy assets such as real estate and dividend paying stocks. When they were able to generate enough income from these investments, then they would buy the car, from the passive income. YES, it is a huge shift in thinking. It will take time to generate this amount of income from your investments. But the best part is, you would never have to work for that income again. Your real estate and stock would continue to pay you, whether you are working or not working. Did I mention that these passive income sources are subject to less taxes as well (no social security, medicare etc.)? Best of all, those investments would continue to pay your family throughout the following generations.
So today, decide how much income you need to completely live from. If it is $3,000 a month, set a goal to build a portfolio of at least $3,000 a month from real estate and investment income. This would be your financial independence number. It is a great starting place. Kris and I will be financially independent and work-optional in roughly 3-4 years. It feels good. We can live off of $3,000 a month. However, we will continue to fight in the trenches and build more passive income sources. In the end, we want to be financially comfortable. We also want our kids to be able to be work optional and focus on building great lives. Building streams of income that do not require our family to exchange time for money (earned income) is a vital part of leading a fulfilling life, in our opinions.
SO now is the time and TODAY is the day to start learning to think as the rich. Only 3 out of 100 people will ever be rich. This article is not for the majority of individuals out there. You may be one of the few. If this article makes sense to you, and you feel as though it is just common sense, you may be one of the few. Build your mind via books. Find a mentor and start on your journey of financial indepednce. Good Luck!
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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