I bet you have heard at least one rags to riches story in your lifetime. Well I want to show you how anyone (including yourself) can go from rags to riches. No matter what your financial situation you can be rich, it just takes a little hard work and a bit of education. This short article will teach you the basics of going from rags to riches.
Create Or Buy Assets
The major thing that sets the rich apart from the poor is the way they spend their money and their time. You don’t get rich working for someone else, you get rich in your spare time by creating or acquiring assets. The first step towards becoming rich is know what an asset is. If you know what an asset in then you can focus on creating or buying them and that will make you extremely rich over time
An asset is something that generates you income on a regular basis. To put it simply an asset puts money in your pocket. A liability is something than takes money out of your pocket. Rich people focus on using their money to buy assets that generate them income. When the rich invest they invest into things that give them cashflow, not things that cost them money to own. Poor people buy things that increase their expenses and thus make them poorer.
So if you want to be extremely wealthy, and if you want to go from rags to riches the you need to change the way you spend your money. By spending your money on acquiring assets you are constantly increasing your income. This then gives you more income to spend on more assets, which in turn will increase your income even further. This is how the rich get richer and richer.
If you are poor then you are poor because of what you know and what you are doing with what you know. Rich people know better and therefore they do better. Knowing the difference between assets and liabilities is an example of how rich people know better and thus they can do better by buying assets. I suggest you invest into your education and focus on increasing your financial intelligence.
The best investment I ever made was my investment to get a library card. The card was free and it allowed me to learn from some of the greatest wealth teachers in the world. It’s free to hire a book and the more you read and learn from rich people the richer you will become. If you do want to go from rags to riches then you need to never stop learning, keep learning and keep improving upon your knowledge.