Assets make your rich.

The first step to getting rich is knowing the difference between liabilities and assets. Liabilities take money out of your pocket, Assets put money into your pocket. By investing in assets, you are investing into your future earnings. The key is to do this early, in your 20s. The simple formula to get rich is to live cheaply in your 20s and 30s and use your savings to purchase assets that will produce income for the rest of your life. It compounds over time, so your earnings from your assets can be used to purchase other assets. This pattern of savings and investing isn’t a forever thing, only until you can support your ideal lifestyle. The not rich will spend all of their earnings on liabilities, and they spend before they really have the income to support the purchases.

Suggested reading: Rich Dad, Poor Dad

Recent Posts