The first book I picked up on my journey to develop the millionaire mindset was by Robert Kiyosaki – Rich Dad Poor Dad. The book opened my mind and changed my idea and my mindset to money and success. The first money rule in the book was "The wealthy don't work for money". This rule aroused my curiosity and encouraged me to continue reading. The author has in fact continued to explain and further develop what the rule actually meant. The wealthy don't work for money, they have money for them.
Everyone must have two professions, one for himself and another for his money. For example, if you are a teacher, your profession teaches. Your money must also have a profession, this is done by investing your money or by creating a business. When you start investing your money, your money technically “works” for you – rain or sun 24/7. When you start a business, you buy a machine that lasts you for a few years and that is an asset that helps make work simpler and more efficient – it's sort of your money that "works" for you.
We must understand that there are two main types of income. Active and passive income. Active income is the money you earn by giving your time for money. you have to be there physically to work – in order to earn that kind of income. Passive income, on the other hand, is money that you earn, whether you are physically present or not. The main idea is to make money your "employee". It has to "work" to bring you more money steadily, whether you work or not.
Passive income can be created in several ways. One of the sure ways to go from active income to passive income is to give up the idea of time for money, that is to say active and limited income. Passive income, on the other hand, can earn you money in the form of payment checks month after month for a few years if done correctly. An immediate example of passive income is to give your rental apartment to a family looking for accommodation. The rental you get monthly continues to arrive automatically without you being there physically (except to collect money of course!) As long as the family stays there and pays you.
In short, there are many ways to create passive income that reaches you regularly without having to give your time for money like a 9 to 5 job. I will be sharing more information on ways to earn and create passive income in my next few articles to come.