Do you think your college degree will guarantee you wealth?
How many educated people do you know, maybe even have a master’s degree but cannot make much money?
And how many people do you know who aren’t well educated but are earning a good amount of money?
Today we’ll talk about ways to earn money in life and increase your wealth.
People will tell you many ways of earning passive income and becoming rich.
I love the book “Rich Dad Poor Dad” in this book, there is a deep insight into how anyone can become rich, even if he doesn’t have enough money.
There are many hacks out there in the world.
But what are these things?
What is wealth? What is income?
We’ll understand these basic concepts today.
What is Your Income?
Income is the money that you earn at a particular time.+
Like the salary, you get every month.
Wealth is your asset. The things that you and your family own.
This can be your home, car, or jewellery and gold.3
If you want to understand it in the language of finance, then your assets form wealth.
If you’ve opened an account in a bank and opened a Fixed Deposit (FD), you are earning interest from that FD, which is considered your asset.
Liabilities Can Make You POOR
Liabilities, in simple words, are those things that take money out of your pocket and decrease your wealth.
If you’ve purchased a credit card and paid the bills, that is a liability.
If you’ve taken a loan and have to pay the EMI, that is a liability.
If your income increases but you ignore savings and investments, your wealth will stay where it was earlier.
If you want to become rich, you should use your savings and investments to make assets.
The rich people quickly make assets from these savings so that in the future in life, the return of these assets, the income that comes from these assets, makes them secure.
In America, a study of 600 millionaires was conducted, and they got to know that rich people are the ones who handle their expenses and increase their wealth.
If you use your income not to increase your assets, but to increase your liabilities, buy things on EMI, and use money through credit cards, then your wealth increases are reduced.
Passive Income “Earn While Sleeping”
Have you ever thought you’re sitting comfortably on a beach, and the money flows into your account?
So how does this happen?
This is called ‘Passive Income.’
The money for which you don’t need to work hard.
So how do people earn Passive Income?
If you have talent or some knowledge, you can make an online course or video of the same.
After making any course or video, a small regular income will keep coming your way.
In this way, you can use your money and make your money do the work for you.
After investing the money, your money will work for you 24/7 and give you a ‘return’.
Types of Investments “Don’t Ignore”
So now we’ll talk about some different types of investments.
Which will increase your money for you.
Or you can purchase a thing whose value will increase with time.
Like Real Estate, Gold, or different types of Currencies.
Or you can give some money as debt.
When you open an FD in a bank, you give your money to the bank as debt and receive some interest from that amount.
Or you can invest in someone’s business and buy some shares or a part of that company.
If their business is going well and increasing, your investment value, your money, will also increase.
Investing in the Mutual funds can make you a crorepati at the time of retirement. We already had published an article on that topic.
If you are a teenager and want to secure your future, you must start investing from now.