Developing the Mindset of a Millionaire
The first book I picked up on my path to developing the millionaire mindset was Robert Kiyosaki’s Rich Dad Poor Dad. The book opened my mind and changed my idea and mindset towards money and success. The first rule of money in the book was “Rich people don’t work for money.” That rule piqued my curiosity and encouraged me to continue reading. The author went on to explain and elaborate more on what the rule actually meant. The rich don’t work for money, they have money working for them.
Everyone should have two professions, one for them and one for their money. For example, if you are a teacher, then your profession is teaching. Your money also needs to have a profession, that is done by investing your money or starting a business. When you start investing your money, your money is technically “working” for you, rain or shine 24/7. When you start a business, you buy machinery that will last you a few years and is an asset that helps you make work easier and more efficient; 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, so you can get that kind of income. Passive income, on the other hand, is money you earn regardless of whether you are physically present or not. The main idea is to make your “employee” money. It has to “work” to consistently bring you more money, whether you work or not.
Passive income can be created in many ways. One of the surefire ways to make the transition from active to passive income is to abandon the idea of time for money, that’s active income and it’s limited. Passive income, on the other hand, can bring you money in the form of paychecks month after month for a few years if done right. An immediate example of passive income is renting your apartment to a family looking for a place to stay. The rent you get monthly still comes in automatically without you 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 constantly flows to you without having to spend your time on money like a 9 to 5 job. I will share more information about ways to earn and create passive income in my next articles.