Art of Making Money

What would you do, if you win 1,00,000 dollars while reading this post?

80% of us will spend this money in a span of a month. 16% will manage to save mere 1000 dollars. Only 4% will multiply the amount by utilizing the power of their inner genius, Financial Intelligence.

Thousands of people who win lotteries become poor again in no time due to this human behaviour. Majority of us rely on “working for money, instead of money working for us.”

We go to school, get educated, a good pay job, and wait for promotion to make money. We forget to realize, harder we work, more taxes we pay, our expenses rise, luxuries increase with the pay. We buy a car, house with our hard-earned money. That’s how an average person spends money and lives his life, dreading for more and more. Wanting to improve his lifestyle and work hard each day for someone else. We forget to mind our business in this process, business of making money work for us instead of working for money. And often we get trapped in the rat race where we never have enough money because of our spending patterns.

Robert Kiyosaki, author of bestseller, “Rich Dad Poor Dad”, describes how understanding of assets, liabilities, basic investing can ensure to make anybody Rich.

In his words, “An asset is something which generates cash flow over a regular period of time. A liability is anything and everything which doesn’t generate cash flow.”

Example:- A Car, House is a liability until it generates money. He suggests, buy assets first instead of liabilities. Buying them on loan is further a trap as it increases the expenses each month.

An intelligent (Rich) person will buy these luxuries from his cash producing assets instead of buying them on loan or promotion. How?

Paying himself first, then his creditors. Instead of going for savings, investing the money to multiply, thereby, converting his ordinary income to Passive and Portfolio income. And while doing this minimize the expenses. Once the assets cover the initial amount invested, he can choose to invest in other options available. The earlier we start in life, better chances of learning it quick and becoming rich.

“A rich person sees opportunity, when the world sees it as recession, depression.”

Financial literate is one who knows the art of making money is when you buy, not when you sell. The process can be classified in this process

Search ->Offer->Reject->Negotiate->Accept.

What are these assets which produce regular cash flow?

Example:- Passive Income: Real estate investments, rent from tenants.

Portfolio Income: Stock market, etc

How to acquire them?

As we go to school for studying concepts, subjects. Study Financial literacy, enroll for courses, attend seminars, workshops. Read books on the subject. Follow the leaders who are making money, Warren Buffet, Bill Gates, The Wall Street Journal. Search where are they investing, the market trends analysis. Hire Accountants, legal attorneys, property managers, brokers who are also into minding their business, who have invested themselves. This serves the purpose, they will teach you and give their opinion to benefit you. Pay them well. Why would someone work for your benefit when you don’t pay them well? Instead of bargaining their commission, pay them a little more than what others offer in market. They will come back to you with better opportunities to buy and invest.  A successful entrepreneur is one who hire professionals smarter than him.

Where can we find them?

You can find deals even in the neighbourhood, while walking, jogging or driving in the area of your routine. Observe the sign, “property on sale.” The ones which are available for a long time is a good buy as there are less prospective buyers. And for stock market, investing in new companies is a good choice before they go public, because the share price intends to rise in the initial phase of a good company. After a month or so, the initial money invested is covered, you can take out that money to invest in other financial instruments. And the cycle continues. For real estate, buy them during the time of market crash, As soon as the market goes up, you can sell it to buy another higher value property. Generate regular income through tenants. And buy higher value property from the last purchase.

A smart investor is making money all the time. He doesn’t wait for market to crash or go high. By using his Financial knowledge he prospers everyday.

Do what you love, make money from your passion and utilize that money in investments.

It is easier said than done, however if you want to live a stable job, fixed life, don’t invest. Save money with bank, rely on them and your kids after retirement.

A successful person is not someone who has never failed and learned lessons from those failures. As we fail in the beginning learning anything, similarly, success follows failures. There is no shortcut. Start early. Be smart. Listen to your gut feeling. Overcome your fear of failure. Don’t listen to others who create self doubts in you for getting rich. World will stereotype success and money, it comes with hard work. Listen to your heart and follow your financial guts once you acquire knowledge and you start practicing it.

“Money grows as your knowledge on money.”

As it is said, the art of giving is the Law of Life. You will be astonished to experience, “Whatever you ask, you shall receive, once you give the same.” “You want Happiness, give Happiness. You want Hatred, give Hatred. You want Love, give Love. You want Knowledge, share your Knowledge. You want Wealth, give money to the needy.”




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