Everyone wants to be rich right?!
Everyone may not admit they want more money but deep down they wouldn't complain if it was given to them. It's one thing to just want to be rich but it's another thing for it to be your goal. Money is attracted to people who search for it, it's quite simple. Before we go onto the 2 fundamental things you need to become rich we must first understand what differentiates a poor person from a rich one! And YES this goes beyond what they wear, drive and where they live, it is what they know.
What the rich know that differentiates them from the poor!
Chances are you have heard this saying before in your financial learning:
"The rich don't work for money they make money work for them"
The great man Robert Kiyosaki said this and the more I learn about investing and finances the more I agree. If you haven't heard of Robert Kiyosaki there's a big chance you live under a rock! He is everywhere over the internet when it comes to financial mentality, most famous for being the author of Rich Dad Poor Dad. This book sparked my passion for financial learning and I highly recommend you read it if you have not already. But anyway back to the quote above!
The rich have adopted the mindset to make money work for them instead of working for it! This goes totally against how society is bringing us up. That is get good grades at school, seek further education at college or university to acquire a good high paying job so you can trade your hours for money! In order to cross the bridge between rich and poor you need to start to figure out how to make money work for you! This leads us into the 2 fundamental things you need in order to become rich!
Change of mindset
The first difference between the rich and the poor is mindset. Of this the rich as said above have the broad mindset that they want their money working for them making them more money! This is the opposite of a poor persons mindset who believes in order to make money they must work their 9-5 job. And if they want to make more money they must work more hours!
This poor persons mindset of trading their time for money, is a concept that is embedded into their minds at a young age and I for one am guilty of this too! Most of us grow up thinking we will go to school, get an education, get a high paying job then BOOM you've succeeded in life. But that is so far from the truth and it is what separates the truely rich from the poor.
One of the hardest things to do is to change a mindset and belief you have had for many years. However adopting a mindset where your goal is to make your money work for you making you more is essential.
Sources of Income
Another HUGE difference between the rich and the poor is the number of sources of income. The poor typically tend to have 1 source of income that being their job. This restricts them straight away and they don't even know it! Firstly they have to worry about job loss, what happens if they are suddenly fired, made redundant or are incapable to work? Instantly they have lost their one and only source of income. Secondly their ability to make money is limited. As spoke about in our passive income post they are restricted to 24 hours a day! And as we all know you are not capable of working 24 hours a day consistently!
Whereas the rich have multiple sources of income. They may have their normal day to day job ("9-5") however they also have other income streams in the background. This can come in the form of example investments. Investments such as mentioned above real estate and stocks both can provide another stream of income. Along with this there are so many more sources of income that you can add to what you already have! With multiple sources of income they no longer have to worry if one source of income suddenly fails. Multiple sources also quite obviously will give a much higher overall income than someone with one source (obviously depending on the quality of the source of income.) This is what really sets the rich apart from the poor, they don't have to rely on one source of income! This is one of the most crucial steps you have to take to in order to make the leap from poor to rich!
What action you can take right now to become rich!
In order to take that step towards becoming rich you need to shift your mindset to making money work for you. I am not saying give up your day job right away and try multiply what you have. I am saying you need to explore INVESTING whether that be for starters real estate investing or investing in stocks and the share market. By exploring I would suggest you read, watch and learn about both of these cash vehicles as they are historically proven to turn your money into more money! (If done correctly!) By doing this you are also starting to build more sources and streams of income! The other step to becoming rich!
Make sure you check out other posts on The Game of Money to learn even more about how you can dominate the game of money and become rich!
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