2 Money-Making Ideologies That You Probably Don't Know

There’s a formula that I’ve learned in my search for the reason why the rich are rich, how they stay rich, and how they build wealth then pass on that generational wealth. I’ll be referring to this class of wealth as the 1% as I explore the teachings of "Rich Dad, Poor Dad".

1. The 1% have more assets than liabilities and most of their income is passive.

By this, I mean that the 1% invest by buying shares and pieces of small companies before they get known to the public ear. (An awesome startup investment company that I use is called republic.co) After all, if you’re hearing about a company or stock on the rise then you’re probably already too late. Another thing is that the 1% DO NOT think of their house as an investment. And the reason why is because there are so many things that can go wrong with the property that you own or lease. The property that you pay a mortgage on towards a 30-40 year mindset of owning a home could possibly be the largest financial burden to the lower and middle class. But also, a house isn't an asset because most likely your house does not put money into your pocket, it instead takes money out.

I want you to picture yourself as a 20-year-old that gets paid every two weeks in every paycheck is $900. Within that $900 paycheck you pay yourself first, meaning you invest some of your money in a small startup company or stocks and you spin spend a fraction of that money on a hobby or passionate you enjoy. After you're done ‘’paying yourself”, you pay your bills, and you pay your liabilities with that one income.

The single stream of income will keep you in a “Rat Race” of paying bills had you not invested, multiple streams of income would have you with backup options in case that you lose that job. Examples of streams of income that are simple to manage are owning vending machines, learning a trade that you can use as a side hustle and work on your own time (barbering or cosmetology), host training classes that will teach someone to know profitable skills (running classes for beginners if you were a runner at some point in your life), organizing houses, cutting grass.

Anything you enjoy, you can almost be certain that you can monetize it. Let’s fast forward 5 years from now and you’re 25. Out of those five years you worked that job, you invested in a different startup company every month. Totaling in 24 startup companies, 5 were on the rise and now you’re sitting on millions of dollars of shares. Those hobbies that you monetized are now full-scale businesses that you own, profit from, and you don’t even have to physically be in your business to make money. Now that is how some of the 1% get rich.

2. The 1% have a can’t stop, won’t stop mindset.

Instead of saying “I can’t,” which is definitive and requires little to no brain activity or thought, the 1% says “how can I?” This “how can I” forces your brain to think, to be open minded to think of all the possibilities and place them in orders of “Plan A, Plan B, Plan C” and so on…

Your brain is a muscle, and doing the same thing everyday creates a dull atmosphere like Groundhog Day. If you don’t believe me, think of our society as bees, we’re essentially bees in one form of another in terms of working for money (honey) as in infinite goal. Our society was put in place to create workers. In order to get out of a worker’s mindset you need to think about a boss’ mindset.

In this instance I'd like to refer to a classic episode of Rick and Morty where Rick creates a world of workers within his car to make energy for his car. The entire time the people of this “car world” are fueling energy for his car and don’t even know it. I’d like to compare myself, and today’s field of workers to those workers of the “car world”. In one way or another we’re all contributing someone else’s entrepreneur lifestyle. We work long, hard hours while they use their brain to find legal loopholes to keep profits, legally not get taxed as much as the middle class and pick their off days and vacations without answering to anyone.

So, with that being said I encourage you to pursue that invention that’s been sitting in the back of your head, to start crafting an idea that can become a source of income, to start teaching others what you know and make a profit off of your own knowledge and expertise.

Want to learn more about financial freedom? Here are some books I’ve been reading on the path to financial freedom (most libraries have them):

-Carnegie, D. (1998). How to Win Friends & Influence People. Pocket Books.

-Hill, N., & Pell, A. R. (2005). Think and Grow Rich: The Landmark Bestseller Now Revised and -Updated for the 21st Century (Think and Grow Rich Series)(Revised&enlarged ed.). TarcherPerigee.

-Kiyosaki, R. T. (2017). Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! (Second ed.). Plata Publishing.

-Lakhiani, V. (2019). The Code of the Extraordinary Mind: 10 Unconventional Laws to Redefine Your Life and Succeed on Your Own Terms (Reprint ed.). Rodale Books.

-Willink, J. (2017). Extreme Ownership (How U.S. Navy SEALs Lead and Win) (1st ed.). St. Martin’s Press.

Thank you for reading! Like this story and want to learn more? I'll continue to post about my financial exploration. But, if you'd like to read more, visit the rest of my stories and enjoy my more creative side!