What is “Creating Wealth?

Creating wealth is about how money get’s into your income. The most common way is through a Salary. Most people have jobs that generates income by them working, but this isn’t always the most efficient way to have money coming into you income. Many people get highly taxed on their income which means even though their working very hard to make money, their not keeping all of it because some of it is going to their Employer/Boss as well as the Government.

Creating Wealth More Efficiently

While many people think the only way to make money is by working for it in a job, their are other ways. You are able to create income without even working! Crazy right? This is through the use of Assets. Assets are things that put money in your pocket (with minimal effort). Obtaining multiple jobs all generating income for you would take a lot of time and effort and would be heavily taxed. However, obtaining multiple income generating Assets wouldn’t take your time or effort and it would be untaxed or taxed very little.

Where To Start?

Now that you understand the importance of Assets and how you can generate income differently without a job? How do you obtain Assets? Ironically, you probably need a job. To obtain assets, you need initial money, and you get that money(most likely) by working. If you just had $10,000 to start buying Assets, that would be perfect and if you did it right, you probably wouldn’t have to work at all. But, people don’t have initial money to start investing, so you get this money by having a job.

What To Do With Your Salary

You understand that you need to obtain assets, and you need to get a job(most likely) to do so. Well if everyone has a job, why doesn’t everyone have assets? Well, as said in the book”Rich Dad Poor Dad”, The Rich by assets, and the poor and middle class by liabilities(something that takes money out of your pocket) thinking that their assets.Poor class people’s income goes straight to their expenses and they don’t have any extra money to spend.

Middle Classes Salary

Middle Class people will see that they have extra income from their job that doesn’t have to cover their expenses. Then they will say, ” Well, I have extra money, I should save and get a larger house or a new car.” Then they save and get these “assets” but it doesn’t make them money. In fact, it ends up costing them money with all the expenses like mortgages, utilities, and property taxes.

Rich Classes Salary

Rich class people will see that they have extra income from their job that doesn’t have to cover their expenses. Then they will realize that instead of spending money on liabilities that would cost the money (like a bigger house they can’t afford), they could buy assets ( like stocks, bonds, real estate properties) and these could make them money without them having to work any more than they already have to. What do they do with the extra money they make from their assets? They invest it into more assets to compound their money.

How to Get A Job to Start Generating Income

Click here to learn about the things you can do to get a job and start making your money to invest. The first step in your journey to wealth!

What Assets to Start Investing In

Click here to Learn about Assets, what they are, different types of assets, what to do with profits, and more.

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