Hello everyone, this is Arpit Rana from learnsomebusiness.com and today I am going to teach you how to become rich. I am not joking, there is a complete mechanism behind becoming rich. So, let us start.
First do you know how many factors contribute to be rich?
Do you know what is income?
Income is the money that comes to you when you do any work.
Two types of income to understand how to be rich
But do you know there are two types of income-
- Active Income
- Passive income
If you understood the principle of income then you will yourself become rich.
So, first of all Active income.
- Active income- This is simply income that you get from your job or business, that you primarily do. If you are a teacher in school, active income is what school gives you for teaching. Active income is dependent on your seniors and promotions.
- Passive income- Passive income is the income that you get from ‘side hustle’ As I said suppose you are a teacher who works from 9 to 5 but what work will you do after 5 and if that work contributes for your income, then it is passive income. This income source is made by you and developed by you. So, your growth is entirely dependent on you.
So, to be rich what you need to grow faster?
Yes, but which type of income you can grow faster?
Active or passive?
Active is dependent on seniors while passive is in your hand. So, passive income can grow faster.
Now, what a poor or average does is that he only focuses on active income source but what we need to be rich is a passive income source.
So, find passive come sources like- rent building, websites, blogs etc.
Once your passive income surpasses your active income, this is the time to grow passive income double of the active. Do it up to the day your passive income becomes twice of active income. Now you can comfortably leave active income source and work for growing the passive income.
You can develop as much as passive income sources you like.
Now do you know what is investment?
Before understanding what is investment, if I give you 3 Million USD what will you do?
The two options are, you will buy a sports car or you will buy land.
If you buy a sports car, you will spend
If you buy land, you will invest.
What’s the difference?
A spend is something that takes money from your pocket and investment is one that makes money for your pocket.
So, as car needs repair, service, petrol etc, it is a spend. But a land will increase it’s price with years, so it is an investment.
Poor spend money while rich invests.
So, there are different types of investments and each investment involves some risk.
So, what you need to do is to understand the risk associated with investments and hence you can be rich.
Like- High risk investments is share market and low risk investment is bank saving.
But high risk investment also means more money and more return, but it also means more risk of loosing money.
So, learn investment properly before doing it.
So, these are the two basic things to be rich but I want to tell you one more thing. There is a habit in rich people that poors don’t have. Develop that habit also.
The habit of NOT making EXCUSES.
Poor makes excuses for almost everything, rich people don’t make excuses and work until they get success.
So, will you become rich or not?