Investment: The Road to Riches

2018-04-12T08:33:56+00:00
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Whether you read the book “Rich Dad Poor Dad” by Robert Kiyosaki or The Millionaire Fastlane by MJ DeMarco, you’ll see there is a common theme in the sense that both talk about the difference between how the wealthy use their time and resources.

In many ways, the rich invest their time building assets and then leverage those assets time and time again rather than trade time for money like traditional employees; as an example, people with more of a millionaire mindset will spend time visiting sites like homeequitylineof.credit in order to find  good deals on property finance that can be used to buy a second home, and rent out that second home to generate passive income..  

Robert Kiyosaki suggests that employees and small business owners are on the left side of the quadrant whereas big business owner and investors are on the right – the fundamental difference being that those on the left side of the quadrant are trading time for money in a very linear and transactional way, whereas the big business owners and investors are building assets and income generating networks, which are then leveraged time and time again.

Employees are the most common demographic, yet they are usually the most taxed and lowest paid.  It could be surmised they appreciate the certainty of a steady paycheck and the convenience that employment brings.  Being an employee, however, is not the path to wealth as employees tend to have salaries that are static and dictated to them by management… they’re also trading their man-hours for cash meaning there’s an intrinsic limit to how much they can earn, because there are only so many hours in a week.

Similarly, there’s a limit to how much small business owners can make as they are usually stuck in the trap of swapping time for money too; particularly solo practitioners such as personal trainers, accountants, hairdressers, graphic designers and even barristers.  See, you could be the best barrister in town, bringing in a fair amount of revenue – and you’ll certainly have a lot of cash… but wealth goes beyond cold hard cash… true wealth offers a balance of having both the time and money to do whatever it is you want to do, and if you’re stuck on the treadmill of trading time for money – when you stop working, the money stops too.  Therein, lies the problem with both of these categories.

Investors, however are leveraging their financial resources in order to make money – they might spend some time researching deals, monitoring the temperamental wobbles of bitcoin.org, or evaluating the pros and cons of mutual funds… but, they aren’t directly trading their time for money in the linear and transactional way employees and small business owners do.

Essentially, the investor has true leverage; rather than working for his or her money they have their money working for them.  This is why it’s so important to start investing, even if you’re currently an employee or small business owner, siphon off a certain percentage of your income each money to invest… as this, is the only path to true wealth.  

If you want confirmation of this, just think about how much you would be worth today, if a few years ago, you invested just 5-10% of your monthly salary into bitcoin!

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