1. Don’t Save For a Rainy Day, Save to Invest
Most people save money for a rainy day.
This is the wrong way to do it…
Sure, you should stock aside 3–6 months worth of living expenses to cover your ass.
But the vast majority of your savings should be allocated towards investing to create wealth.
Here’s the deal…
Having $10,000 or even $100,000 in a savings account will maybe help you earn 1% interest.
However, putting that same amount into the right index fund, real estate deal, or business could help you earn 10%, 30%, or even 100% back on the initial principle.
Save just enough to cover a few months of living and then invest ALL of your excess capital into cash flow producing assets.
If you do not own cash producing assets you are working inside someone else’s asset.
2. You Can’t Save Your Way to Wealth
Most people think that you can save your way to wealth.
As usual, most people are wrong.
Think about it…
If you spend 30 hours a month clipping coupons, cooking foods at home instead of eating out, and finding ways to scrimp and save spare change, you might be able to cut $1,000 to $2,000 a month in spending.
But after a certain point, you can’t cut anymore.
However, there is NO cap on the amount of money you can earn and those same 30 hours could help you generate an additional $1,000, $2,000, or (if you know what you’re doing) even $10,000 in extra revenue per month.
With this model, you can have your cake and eat it too.
I don’t believe in saving your way to wealth I believe in creating so much value that you have a surplus of cash every month.
You can live the life you want to live, enjoy your guilty pleasures, and still have enough money to carry you through the hardest of times and invest in lucrative deals.
3. Passive Income is Worth 10x Working Income!
This one is hard to grasp especially for high earners.
Every dollar that you earn passively is worth $10 that you earned by trading your time.
When you generate passive income, you create the ultimate form of freedom.
Let me ask you…
Would you rather earn $12,000 a month working 65 hours a week and killing yourself to bring home the bacon?
Or $4,000 a month that you have to do NOTHING (or very little) to acquire.
The answer should be pretty obvious especially, when you consider stress, time, energy, family and lifestyle factors.
Now, consider that once you’re making $4,000/month in passive income there is nothing stopping you from working an additional 10–15 hours per week to increase that passive income to $8,000 then $10,000 and beyond.
I don’t believe it’s healthy to just stop working entirely and do nothing with your life since you have passive income so I recommend you focus just a few hours per day doing something you enjoy to slowly increase that passive income.
You’d be surprised at how quick you can grow your passive income when you are working on your OWN time, for YOURSELF, with low stress. You’d likely get more done in that 10–15 hours than you would 65 hours working for someone else.
It’s actually kind of fun and just becomes a game of how much passive you can add monthly.
The quicker you can get your money working for YOU and generating cash while you sleep, the quicker you’ll be able to live the life of your dreams, reduce your stress and likely live longer too.
4. Debt is Slavery Period.
When you owe money that you don’t have to someone else, you are effectively their slave.
I’m not one of those financial pundits who will tell you to cut up your credit cards.
I have several cards that I use (and then completely pay off) each month to earn points and make sure that I’m capitalizing on the opportunities offered by credit card companies.
The trick is that you have to PAY THEM OFF each month with an automatic payment and never worry about it.
5. You Are the Best Investment on the Planet
If you want to make more money than you currently believe is possible, then there is one investment that you MUST make.
The investment in yourself.
When you grow your skill-set, knowledge, and network, you are directly increasing your ability to earn more money and create lasting wealth.
You can’t calculate the ROI that one powerful idea or one good connection can have in your life.
You are only one skill-set, one connection, or one big idea away from your first million dollars.
The day your life will change forever is the day that you start investing in yourself.