There are a lot of get rich quick strategies out there that will promise you riches but they almost always fail to deliver on what they promise. There are very few real strategies to get rich and stay rich. If you can learn the principles you need in order to get rich and stay rich then you can live a wealthy life no matter what comes your way.
It is funny because the principles for getting rich are fairly simple, and there are not many of them. If you can understand them and outwork them then you can become extremely wealthy. Most people are poor because they fail to understand these truths, they refuse to accept them or they forget to outwork them. These financial truths may go against what you and most people believe, but most people are not rich so why believe what they believe. This principles are what rich people believe and they have made these people rich.
Rich People Buy Assets
Rich people buy assets, and poor people buy liabilities. You need to know what an asset is and what a liability is before you can correctly purchase assets. Lots of middle class people purchase liabilities and think they are assets. In fact a friend of mine, who claims he is financially intelligent, has held onto one of his liabilities for a long time. It costs him money every month and stripped him of his cashflow. He is now selling that liability for a profit to buy himself another liability that costs him more money every month. He is becoming more and more tied to his job.
An asset is something that generates you income without you needing to work for it. A liability is something that costs you money on a regular basis. To put it in even more simple terms if you quit your job an asset will feed you and a liability will eat you. The more assets you have to richer you will become while working less and less. The more liabilities you have the poorer you will become by working more and more.
Rich People Don’t Work For Money
Most people work for money. They need money so they can cover the expense of all the liabilities that they own. But rich people don’t work for money. Rich people work to acquire assets. Money, by its very nature, actually goes down in value over time. So by working for money you are working for a liability. But assets go up in value as money goes down in value, and they also generate you an income without you being required to work for it. So instead of working for money you should work for assets.
An example from my life is this. I am good at finding positive cashflow real estate. I have had people offer to pay me money in order to find them real estate, it is known as a finders fee. But this would mean I would be working for money. So instead I have decided to joint venture with these same people. I get less money up front but I get a share in an asset and I also get monthly income. So I am getting richer and richer because I decided not to work for money.
Rich People Protect Their Money
A lot of people think that if you are rich you have to pay lots of taxes. But really rich people pay the least amount of taxes because they are good at protecting their money from people trying to take it from them (eg. The Government). Rich people structure their money in corporations that protect their money from the government and from people wanting to sue them. Rich people also protect their money by buying assets. By buying assets they are not losing money from inflation, but their cashflow goes up as inflation goes up and so does the value of their asset. This way they protect their money from depreciation. If you are just saving your money in the bank you are not protecting it because you are losing money because of depreciation. If you want to be rich you need to know how to protect your money.
Rich People Have Better Financial Information
Rich people become richer because they have access to better information. If you want to be rich you need to be constantly improving your access to better information. The best way to do this is through education. I invested in a free library card not that long ago and I have used it to read a lot of books on finances. I have learnt lots and I am now able to read financial reports and find great property investments. My education allows me to earn more money from my investments and to get rich quicker.