Here’s How To Find Out
You might think someone is wealthy if they earn a million dollars or six figures.
According to Robert T. Kiyosaki, this isn’t true wealth.
The average person would find this salary a good stinking deal.
Robert challenges you to rethink this.
And here’s why.
A person is more likely to have expenses that exceed their high salary.
Even though they’re earning a good amount of money, their expense loads cause that money to disappear instantly.
People habitually nullify their high salaries by spending more than their income.
Most people live above their means.
The more money they earn, the more they spend.
It’s the standard of how many live.
We earn.
We spend.
Saving, investing, and building assets are uncommon; your home isn’t an asset until it puts money in your pockets.
The First Thing That Happens to Your Salary
What’s the first thing that occurs when your paycheck drops into your bank account?
Taxes.
A hefty portion of your paycheck goes straight to taxes.
The more you earn, the more the government takes.
How Money Works In The Middle Class
1. Earn.
2. Pay taxes.
3. Spend.
How Money Works With Investors & Business Owners
1. Earn.
2. Spend.
3. Pay Taxes.
The middle class doesn’t get to touch their money until the government touches it first.
Furthermore, most (or all) of their leftover earnings go to liabilities and expenses instead of building assets (e.g., investing).
Investors and business owners, on the other hand, touch their money sooner than the middle class, and the government touches their money last.
Furthermore, their business can often pay for many of their expenses.
What True Wealth Looks Like
How much money do you earn without having to lift a finger?
The answer to this question is “zero” for most because they don’t have enough in their investments to create passive income or have no assets or businesses working around the clock for them.
When your passive income matches your monthly expenses, you become wealthy.
You become a wealthy outlier when your passive income exceeds your monthly expenses.
Why is this?
If you can survive without having to work outside of your assets working for you, you have reached financial independence.
Many will never reach financial independence and will focus on working and maintaining a job throughout their lives, which is building someone else’s (i.e., investors and business owners) fortune.
You can build wealth through having a job if you invest your income into assets (anything putting money IN your pockets) rather than liabilities (anything taking money out of your pockets).
But if you invest your money into liabilities, true wealth will stay out of sight.
Take Action
I want you to measure your current income that comes in without you having to do a single thing.
This income could be government income, investment income, royalties, benefits, product income, affiliate income, could even be income you regularly receive from friends, family, or programs.
Be careful of relying on people and programs as these can always disappear since they are not entirely within your control.
Now how long could you go without working the income you receive from these sources?
Is your answer days, weeks, months, or years?
For many of you it may not be long at all; this is the most common scenario. If this is the case, it’s time to take action immediately.
Work to find ways to increase your passive income, which will require an input of time, effort, and sometimes money.
Investing is the one that doesn’t require effort once you invest time and money. If you want to fast track real passive income, investing is the winner OR royalties that don’t require constant releases or advertising.
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Thank you for reading. Let’s comb through your financial strategy.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.”