subject: How to grow rich [print this page] How to grow rich How to grow rich
The most important thing that you must understand about growing rich is that you need to grow your assets and reduce your liabilities. People get in debt and never grow wealthy because they don't understand these terms, so I'm going to start off by explaining what they mean.
Assets:
Assets are things that put money in your pocket, for example a rental property, where the tenants pay you each month. Another example of an asset is stocks and being a member of Club Asteria.
Liabilities:
Liabilities are things that take money out of your pocket. An example of a liability is the house that you live in, it takes money out of your pocket because you have to pay a mortgage, up keep, and bills. Another example of a liability is a car that you own.
This may sound like a clich but it is vitally your spending must be lower than your income for you to be able to buy assets. After you grow your assets, they will provide you with an income to pay for your liabilities or to pay for luxuries. Buying assets lets your money work for you. Your money makes you more money without your input. Therefore your making money 24hours a day.
You can start to acquire assets if you have an income, this can come from any means like a job salary or an income from a business you run. The next step is to keep you liabilities low enough so you have a surplus of cash. Instead of saving all of this surplus money you should invest your capital into assets which directs cash into your pocket. It is also equally important that you keep a liquid fund of cash to pay for new asset opportunities that may come along.
So the main message that I'm trying to get across is don't spend your earned money to buy liabilities that take money out of your pocket, but instead invest in assets which will eventually fund the luxuries you desire. Ultimately there will come a time when you have invested in enough assets which put money in your pocket that you don't have to work to earn money, instead MONEY WORKS FOR YOU.
