Today, most people earn money by trading units of time. The problem with this approach is that there are only so many units of time available and there’s a ceiling to what people are willing to pay for a unit of time.
Of course, there are things you can do to enhance the value of each unit such as gain further education and training, but whether you stack shelves or perform open-heart surgery, you are fundamentally stuck on the treadmill of trading hours for dollars.
In this way, you are essentially stuck in the rat race. See, the challenge, even if you are a highly paid attorney is there are only so many hours in the week that you can trade your time, and as previously stated, there’s a ceiling to what people are willing or able to pay even if the value you provide is significant.
The biggest challenge when it comes to earning money in the sense of following the road to riches and the path that leads to financial freedom is that by operating within the rat race when you stop walking on that treadmill (i.e. swapping time for money) the money stops – as a result, if people want more money they tend to work more hours, which diminishes their quality of life and can eventually cause illness. Then, concerning this financial treadmill, if you get sick as you are unable to work the money stops.
There is, however, a better way.
Whilst the title of this post is the road to riches, which sounds somewhat grandiose, the fundamental concept behind what is about to be revealed is what the rich teach their children as it’s a completely different paradigm to those more familiar with the rat race. It’s important to remember when considering your income that it’s not all just about your net worth – it’s important to focus on the quality of your life.
The golden principle, if you want to follow the road to riches, is to build assets that generate wealth in perpetuity. As an example, think of someone investing in real estate whether this is via a platform such as AssetColumn or using a traditional realtor.
The wealthy are taught not to focus on short-term benefits (i.e. monthly salary) but to invest their time and resources into building assets that will mature and provide for them time and time again, in the future. In many ways, this could be compared to the homeowner vs. renter mentality.
When you build an asset, such as having several properties that you rent out it’s like planting a fruit tree that will produce fruit every year… all you need to do is a little maintenance and watering.
Imagine making $400 per month in profit on a property and having a portfolio of several properties that each yield this much profit; pretty soon you could have to build a chain of assets that generate an income over $20,000 per month. Most importantly, this income is generated passively in that you are not trading your time for money in the conventional sense of being employed on an hourly basis.
In summary, the road to riches involves shifting your focus from working for a job that pays a salary to build assets that generate a profit.
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