Many of them are worth more than 50 million dollars, and more of them are experts in creating and increasing income.
Besides, I have built a prosperous and profitable business for myself and earned enough money (if I want to) so that I can retire and travel for the rest of my life.
The above are the lessons I have learned from my own wealth accumulation, which I believe will have the greatest impact on your wealth accumulation.
1. Don't save for a rainy day, save money and invest in assets.
Most people save money for a rainy day.
This is the wrong way. ...
Of course, we should reserve 3-6 months of living expenses to maintain our living.
But most of your savings should be invested to create wealth.
This is a deal. ...
If there is 1, 000 or even 1, 000 dollars in the savings account, you may get 1% interest, but this will not change your rules of the game. Considering that inflation is increasing 1-3% every year, even if you are "saving money", you are actually losing money.
However, putting the same money into suitable index funds, real estate transactions or businesses can help you get a return of 10%, 30% or even 100% on the basis of the original principles.
The money saved is only enough to last for a few months, and then all the excess capital is invested in assets that can generate cash flow, that is, assets whose value can increase exponentially over time, or better yet, both.
If you have no assets, you are working in other people's assets.
You can't get rich by saving.
If you spend 30 hours a month cutting coupons, negotiating a monthly savings of $65,438+00 on cable TV bills, or spending the whole afternoon in court fighting for your $50 parking quotation and looking for frugal change, you can reduce your monthly expenses by $500 to $65,438+000.
But at a certain point, you can't cut costs any more.
However, there is no limit to the amount of money you can earn. The same 30-odd hours can help you get an extra $500, $2,000 or even $65,438+$0,000 a month.
With this model, you can have your cake and eat it.
I don't believe in getting rich by saving. I believe that you have a cash surplus every month to create so much value, so this is not a problem at all.
You can live the life you want, enjoy your guilt, and have enough money to spend the most difficult time with you and invest in profitable transactions.
The most important thing you should care about is saving time. Avoid doing stupid things that will not add value to your life, and avoid wasting your limited energy.
3. Passive income is 10 times of working income!
This is difficult to grasp, especially for high-income people.
Every dollar you earn passively is equivalent to 10 dollars you earn through trading time.
When you generate passive income, you create the ultimate form of freedom.
Let me ask you something. ...
Are you willing to work 70 hours a week and earn $654.38+$200,000 a month to earn money to support your family?
Or $4,000 a month, and you can get it without doing anything (or very little).
When you consider factors such as stress, time, energy, family and lifestyle, the answer should be obvious.
Once your passive income is $4,000/month, nothing can stop you from working 10- 15 hours a week, and increase the overtime pay for passive income to $8,000, then 10000, or even higher.
I think it is unhealthy to stop working completely and do nothing, because you have passive income, so I suggest you spend a few hours every day doing what you like and gradually increase your passive income.
When you use your own time, work by yourself, and the pressure is low, you will be surprised to find how quickly your passive income increases. In this 10- 15 hours, you may have finished more work than 70 hours of working for others, and these jobs are slowly killing you.
This is actually a kind of fun, just like a game, how much passivity you can add every month.
The sooner you let your money work for you, and the sooner you can generate cash when you sleep, the sooner you can live the life you want, reduce your stress and possibly live longer.