One thing that I do not think a lot of people consider is how your money has to ability to work for you. As people get older, people hope to have more and more income. Personally, I think it would be awesome to have an income of $500,000.
In order to achieve this dream, I need to have a larger income. My initial reaction was that I would need to work 60 hours a week in order to reach this goal. However the more and more I thought about it, I realized that I would not be able to sustain this for very long. I want to spend my life with my wife and (hopefully) future children. Instead, I need to have someone else working for me. This conclusion led me to think about starting my own business. However, I am not the next Steve Jobs (yet).
Finally, I realized that it did not take an extraordinary effort to reach this goal, but it was going to take effort. From Rich Dad, Poor Dad, I read about the importance of having money work for you. The author, Robert Kiyosaki, talks about having streams of cash flow come to you. Some examples of this are rental properties, stock investments, and hobbies.
Stocks and rentals can be forms of passive income. Passive income is income generated without direct work. For example, a stock pays a dividend each quarter. This is new income that you can now save, spend, or invest. Likewise, the stock price will generally increase and you can make a profit. Think about this, let's say you buy a stock in Google. thousands of people that work for Google now work for you! Making you money in the process.
Kiyosaki describes having this income is something that separates those who are poor from people that are rich. I know I want to be rich. For me, I am good with numbers and analyze a lot, so I have looked into stock investing.
Every person out there has strengths and passions. It is important to identify what drives you. Once identified, there are countless opportunities to earn money. I challenge all of you to take some personal reflection and think how you can make a passive income to be rich.
P.S. I know rental properties can be a lot of work. Kiyosaki describes rentals as passive income because his strategy involves buying the correct properties and having the right people to help you manage this units.
A quick rundown on some of the changes I have made.
- Added a Navbar to the top of the screen.
- Filtered my posts based on Financial Analysis, Money Management, and Book Reviews.
- Added a Twitter Feed (please follow!!!)
- Add a new landing page (enhancements coming)
Forgive me for the huge UI enhancements.