The first book I picked up on my journey to developing the millionaire mindset was by Robert Kiyosaki - Rich Dad Poor Dad. The book opened up my mind and changed my idea and mindset towards money and success. The first rule of money in the book was "The rich do not work for money". That rule aroused my curiosity and encouraged me to read on. The author actually went on to explain and elaborated more on what the rule actually meant. The rich do not work for money-they have money work for them.
Everyone must have two professions, one for them and another for their money. For example, if you are a teacher then your profession is teaching. Your money needs to have a profession too, that is done by investing your money or starting a business. When you start investing your money, your money is technically "working" for you - 24/7 rain or shine. When you start a business, you buy a machinery that lasts you a few years and is an asset that helps you make work simpler and more efficient - that is in a way your money "working" for you.
We must understand that there are two main types of income. Active income and passive income. Active income is the money you earn by giving your time for money. you have to be physically present there working - in order for you to earn that type of income. Passive income on the other hand is money that you earn regardless of you being present there physically or not. The main idea is to make money your "employee". It has to "work" to bring you more money consistently whether you work or not.
Passive income can be created in many ways. One of the sure way to transition from active to passive income is to abandon the idea of time for money- that is active income and it is limited. Passive income on the other hand can bring you money in the form of payment checks month after month for a few years if done properly. An immediate example of passive income is you giving your apartment for rental to a family looking for a place to stay. The rental you get monthly keeps coming in automatically without you being present there physically(except to collect the cash of course!) as long as the family stays there and pays you.
In short, there are many ways to create a passive income that flows steadily to you without having to give your time for money like a 9 to 5 job. I will be sharing more information on the ways to earn and create passive income in my future articles to come.
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