Why are some so successful in wealth creation while others are not?
Like any other game, you need to understand the rules to have a chance at winning the game. Once you know the rules you take action and you win! That’s it!
Here are 4 ideas from the book Rich Dad Poor Dad that changed my perspective on money, taxes, and wealth creation.
1 — Have money work for you
“The poor and the middle-class work for money. The rich have money work for them.”
The idea is simple. Buy or build assets that generate money and you’re putting your money to work for you.
2 — Buy or build assets
Buy real estate. Build a business. Invest in small businesses or startups. Buy stocks.
3 — Don’t work for someone else
High-paying jobs mean 2 things:
- You’re working for money.
- The taxes you pay will increase with your income.
And as your income increases you work more months for free (for the government)!
4 — Learn how taxes work
“It’s not how much money you make. It’s how much money you keep.”
All tax rules favor business owners over workers. Create value through your business and pay very little tax on that income.
Change your perspective to become good at this game
All you need to do is to:
- Understand the rules.
- Take action.
Here is the summary
Generate money; don’t work for it!
Take calculated risks.
More money means you can take more risks.
You can invest in risky assets. Buy weirdly-named cryptos! Be an early investor in startups!
If you don’t have money-generating assets and all your income is from your labor you will not have the risk tolerance to jump into high-risk/reward opportunities and you miss your chances.
Wish you all the best on your wealth creation journey.
