How to Get Richer and Richer

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Have you ever noticed that rich people seem to get richer and richer? Have you also noted that poor people seem to have trouble after trouble when it comes to money? If you want to be someone who gets richer and richer, instead of someone who struggles for money, then you are in the right place.

It is not how much money you earn that makes you rich, it is about what you do with your money that makes you rich. I have seen many rich people who have spent their entire lives working and learning upwards of $ 100,000 per year, and after 40 years they are still not financially free. I have also seen people come from nothing to become financially free in a small space of time because they knew how to get their money to work for them.

Rich people get richer because of what they do with their money. Rich people are constantly using their money to purchase assets that increase their income. Poor people use their money on temporary things or things that cost them money to own. If you want to get richer and richer the best way to do it is to seek to increase your income.

Most people only earn an income from their jobs, so if they stop working then the income stops. The key to becoming richer and richer is to turn your earned income (money that you have worked for) into passive income (money that you do not have to work for). An example of passive income is income from a rental home, where the rent is more than all of your expenses, leaving you with a surplus.

By generating a passive income you are doing two things. You are giving yourself more income, because you now have your job AND your passive income, and you are also giving yourself more time. Because as your passive income goes up you can work less and less. If you want to get richer and richer then the two things you need are time and money. Money to invest with, and time to find good investments (and to live the high life).

Starting your passive income stream is not as difficult as it might sound. One of the best streams of passive income is from positive cashflow real estate. That is real estate where the rental income is greater than all expenses. This is a great way to build passive income because you can get a lot of tax benefits and it is also great because as inflation goes up your income will also go up, making you increasingly richer.

You can also invest money into stocks, bonds and mutual funds, though these offer less control and often lower returns if you do not know what you are doing.

If you do not have a lot of money then your first step might be starting a business. Starting a business is a great way to build an asset for cheap, and eventually can become a great source of passive income. If you have no money to spend starting an internet business can be less than $ 100 and the income is unlimited. Open your mind and think about how you could start a business in your spare time, while still working to pay the bills.

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Source by Ryan Mclean