Harry works and earns $3,000 per month. Notice: I didn’t specify if he works at a job or works for himself.
Jennifer spends her time each month acquiring passive income streams, focusing on
creating an additional $500 per month cashflow. She is starting off broke.
Let’s see what happens over the course of the year, assuming they both work full time.
Posted in One of the key concepts that I loved from the book “Rich Dad Poor Dad” was that of measuring wealth in terms of time. Here’s how it works.
Most of us are taught to look at a person’s “net worth”, as how much money they have
in the bank or in reserve.
But if you have a million dollars in the bank, are you wealthy at that point? Are you financially free? Not necessarily.
Let’s look at three different people and see who you would rather be.
How the rich approach work and money.
First of all, rich people don’t work for the money to spend on things. Rich people don’t spend their money on liabilities.
They use their money to buy or create assets that pay for those liabilities. This way they keep their money and still get the goodies.
Do they work sometimes? Yes, but only to create or build assets. They work to find ways to have their money make them money. They work to find ways to have other people’s money (OPM) make them money.
They leverage other people’s time to make them money (like employees). They DON’T spend their time working for money and they don’t spend their money on liabilities.