“You can only choose between rich and poor. The middle class is gone.” – Robert Kiyosaki
Welcome back to WF.
With the school season coming to a close, it is important to evaluate what your core principles for wealth are. Here are a few that are crucial to your road to riches.
I believe that everyone deserves to be rich. But why is it that the resources are only found in the hands of a few? This is a question that comes up often – but I don’t think the answer is that far fetched. The rich have learned timeless and powerful principles that allow them not only to make money but also continually make money and be in possession of it. These principles that they have mastered are what separates them from everyday people.
Circumstances may change, but Principles stay the same.
Rich People Think Abundance. Poor People Think Lack.
The rich have a completely different mindset when it comes to how to make money. It begins with how they think. Scripture says, ‘as a man thinks in his heart, so is he’. One thing that the rich have been able to master is their art of thinking. They understand that their thoughts breed actions and therefore, their actions would breed results. They understand that the power of the function “first within, then without“. Who you become on the inside is fully reflective of what is shown on the outside. When you recognize that most people are poor, you will purposefully choose not to go on the same mental path that they have chosen.
Rich People See Opportunity. Poor People See Problems.
For Millennials, there are a plethora of problems we come across. For one, many university students do poorly in courses that are obligatory to their completion of their degrees. Now, imagine that there was a test taken place in an economics class. The class average was a poor 50%. The professor is shocked at angered and exclaims “this kids area the dumbest I have ever had!”.
In comes another teacher who notices this problem and decides to start a program where students can study together online for the same or related test. This not only helps the students, but this is an opportunity to make money. The difference between the two teachers is that one saw a problem and the other saw an opportunity.
Rich People Allow The Interest On Their Investment To Compound.
The truth is, no matter how talented or efforts, some things just take time, Warren Buffett says. Building wealth is one of those things. There will always be a time interval between the time you start your investments and when your investments will yield dividends. The rich understand this law of Delayed Gratification, where the poor do not.
The poor believe in quick gratification and will be satisfied with little to no real gain, as long as they can buy little trinkets along the way to show people that they have something they, in reality, do not – real wealth.
The rich also understand the principles of Compound Interest and they make it work for them. They simply take the interest that accrues from an initial capital invested and put it back into the business in order to generate more profit from the initial profit. Simple!
Rich People Mind Their Associations, While The Poor Do Not.
It has been said that your Network is your Net Worth. Rich people are careful and deliberate in creating a network around them – people with empires in their mind. They surround themselves with people who have ideas in their mind, which once worked on, will become gold mines. Spending time with wealthy people is vital if you want to succeed financially. When you work and hang around others who are wise, you ultimately will become wise. Birds of a feather do flock together. You will be amazed how your perspective changes when you hear about how much people are making in a year.
I sat down at a Starbucks attached to a tall building in the Financial District in Toronto last summer. Amongst me were men in clearly bespoke suits and women dressed with the finest fabrics. One gentleman was talking to his friend about how he made nearly $300,000 last year. But he said it’s nothing compared to his boss who made upward of $2 million dollars that same year. Now, I know not everything is about money. But I can guarantee you that you’ll learn more about building wealth from the guy making $2 million a year compared to the bus driver that took you downtown. Both have value, but in wealth building, talk to those with wealth, not those without. I urge you to stay clear of myopic thinkers. Nowadays, people are either myopic or farsighted – choose your circle wisely.
Rich People Make Their Money Work For Them While The Poor Work For Money
A very large number of people work for money due to the impression that they were given while growing up. They have been brainwashed to believe that to become successful, you must study hard, get good grades, go to the best school, secure a good paying job, and save until you retire. There is nothing wrong with this, as long as you truthfully feel fulfilled from that – which many people do. To me, the problem with this approach is that the only way you make money is if you are working. What happens then if you are ill or lose a limb? For a group of people who depend on safety, depending on one income isn’t safe at all. The only thing of value that you have to exchange is your precious time. When you exchange your time for money, your earning potential is limited. You only make more money when you work longer hours, which is physically taxing.
If on the other hand, you have real estate properties, dividend-yielding stocks, businesses, etc working for you, your earning potential is unlimited. The poor work for money while the rich make money work for them. Time is the most precious asset. I will be damned to spend every moment of my life working until I’m at the age where I am in and out of the doctors every week. By learning to invest and creating assets that generate passive income, you can set yourself in such way that you no longer have to work again! The wealthy prefer to spend their money on assets where the poor prefer to spend theirs on liabilities (cars that they can’t afford, homes where their mortgage takes up the majority of their income). At just 21, I have been blessed enough to have an inert desire for freedom and have set myself up in such a way that if I were to no longer be able to work, I can maintain my lifestyle. I want more than what I want now, therefore I continue to compound my investments until that future date. You can do this too. Just organize your priorities and pick up proper principles and habits. You also can reach out to me, as I am always willing to give insight and opinion.
Until next time,
Live Long & Prosperous.