Do You Think Like The Rich??
“The rich aren’t like normal people.” Hemingway once said. “Of course not.” Fitzgerald cleverly replied, “They have more money.” To most of us Hemingway-minded people, this basically means that money sucks and you and I will never have it. But Fitzgerald makes a point here we often dismiss to our own self-pity. The rich have more money, yes. So what on earth is stopping us from being rich? The answer, as you might have guessed, is nothing but mindset. Start thinking like the rich.
The classic goal of getting good grades, heading off to a good school, getting a good job, starting up a good savings account and retiring with a good little 401k is a chain keeping one bound to a broken idea. This concept that has been shoved down our throats since kindergarten is a great way to end up in debt up to your ears. Even with the best job out there, you are still, in point of fact, limiting your potential to the whims of an “employer”. Not only that, you are giving up much of your life to a desk.
What if you could reverse those roles? What if you could make your money work for you, not the other way around? The rich know how money works, so they become rich and continue to become richer. In that way, Old Hemingway and Fitzgerald are as wrong as can be. The rich don’t acquire money spontaneously. They think differently, and in ways that MAKE them money.
Think like the Rich
First, ironically, you need some money to get started, and it’s not as hard to get as you might think. Now, you could use your life savings and run the risk of ending up penniless, but… why take that chance with your family? Don’t ever spend your own money when someone else’s will do just as nicely. Banks exist for a reason, as do private lenders and investors. Get a loan. Build credit first with a credit card or bank account, and make the banks eat out of your hands. Second, make that money work for you. Invest that money, but don’t throw it around. Create for yourself a “money making machine.”
One way to “print money” is to invest in rental properties. Cheap housing and land is all around us since the housing bubble crash, and people always need a place to live. Find yourself a good property with rental possibilities and a low mortgage. Hire someone else to manage the property It is cheap, and they will do all the dirty-work and collect all rents for you. No worries about middle-of-the-night calls to fix a toilet!
Now that it’s yours and being taken care of, rent it out for more than the mortgage and the landlord’s cut. What you are left with is the holy grail of the rich… passive income. At this point, the property is making you more money per month than you are paying-out, so what is left is all profit. What a concept! You have a self-paying mortgage and the extra lining your pocket, month after liberating month. Thank you America!
Now what? Step three, ladies and gentlemen. Do it again with another property. And again. And again. Depending on the profit from each rental property, you may be able to replace your income after acquiring 10-15 rental properties. Money begets money, and the best part is it doesn’t cost a dime out of your pocket to begin with.
The rich don’t get rich because they take more risks, or have more money than you. They simply understand how money works. So yes, get yourself a good job, make some money. But don’t just let it sit. That savings account doesn’t have to be for your more wrinkly days, and as inflation works at a higher rate than your bank will give you, holding it in savings is a losing investment anyhow. Let it work for you now, and you just might enjoy an early retirement.