Developing the mindset of a millionaire

The first book I picked up on my journey toward developing the millionaire mindset was by Robert Kiyosaki, Rich Dad, Poor Dad. The book opened my mind and changed my idea and my way of thinking towards money and success. The first rule of money in the book was “The rich don’t work for money.” That rule piqued my curiosity and encouraged me to keep reading. In fact, the author went on to explain and delve deeper into what the rule actually meant. The rich don’t work for money, they have money that works for them.

Everyone should have two professions, one for themselves and one for their money. For example, if you are a teacher, your profession is teaching. Your money must also have a profession, which is made by investing your money or starting a business. When you start investing your money, your money technically “works” for you, rain or shine 24/7. When you start a business, you buy machinery that lasts a few years and is an asset that helps you make the job simpler and more efficient, that is, in a way, your money “works” for you.

We must understand that there are two main types of income. Active income and passive income. Active income is the money you earn by giving your time for money. you have to be physically present there working in order to earn that kind of income. Passive income, on the other hand, is the money you earn regardless of whether you are physically present or not. The main idea is to make money for your “employee”. It has to “work” to bring you more money consistently, whether you work or not.

Passive income can be created in many ways. One of the sure ways to transition from active to passive income is to abandon the idea of ​​time for money, which is active income and is limited. On the other hand, passive income can bring you money in the form of paychecks month after month for a few years if done correctly. An immediate example of passive income is handing over your rental apartment to a family looking for a place to stay. The rent you receive monthly keeps coming in automatically without your being physically present (except to collect the cash, of course!) As long as the family stays there and pays you.

In short, there are many ways to create passive income that flows steadily to you without having to spend your time for money like a 9 to 5 job. I will share more information on ways to earn and create passive income in my next articles. .