How Do You Become Wealthy?
Do you think wealth is a state of being or a mindset? Letâ€™s take a look at lottery winners. Many of them wind up completely broke within a few years. Why? They never truly possessed a wealthy mindset because they were superficially wealthy.
No matter how many good things come your way, if you donâ€™t know how to utilize the time and money you have, you will be lost.
Choose to be Wealthy
Wealthy people view their time and money in a way that is fundamentally different from the rest of the population.Â Rather than seeing money, they see assets. Most importantly, they understand the difference between passive income and active income.
Active Income – income generated from trading time for money
Passive Income – income that continuously generates regardless of whether time is put in or not
I want to point out that there is nothing wrong with active income. In fact, most people around the world make their living in this way. The only problem is your time is limited.
How to Build Wealth
- Generate income
- Obtain capital
- Generate a source of cash flow
In the beginning, all of yourÂ income will start off as active income. But,Â by utilizing your time and money wisely, you can begin to cultivate assets and investments that will continue to pay you forever.
Think about it…
- An author only writes a book once, but they continue to sell it for as long as they are alive
- A business owner can continue to derive profit from their companies long after they stop managing the day-to-day operations
- Property owners rent out their homes and enjoy a steady stream of income from renters
All of these people gradually transitionedÂ away from active income to passive income. The wealthiest people use their passive income to buy even more assets, continuing the cycle further!
Your time is a limited, precious resource. Spend it wisely and it will provide you with returns beyond anything you could imagine.
Are you a business owner struggling to transition away from
active income to passive income?