I want to talk to you about something near and dear to everybody’s heart:
Why you don’t have it, why you’ve struggled with it, why I struggled with it…
Money—what is it worth really?
Who decides what it’s worth?
Warren Buffett says people that learn how to earn passive income will be free one day from having to work for earned income, meaning the goal is to have more passive income than earned income.
The smart ones are going to figure out how to take their earned income and use the money to not just buy stuff but to also invest that money.
The first lesson that you need to learn about money:
Money only becomes valuable when it’s used.
A passport isn’t valuable while it sits in a bag or the safe or in your back pocket.
It’s only valuable when you walk through security at the airport and you want to leave the country.
You don’t always need to use the toilet but when you need it…
Money is worth something when it’s used.
Money is not valuable in the bank just sitting and waiting for your retirement.
It might give you some peace of mind, some idea that you’re going to be fine and be protected, that you’ll retire and live happily ever after.
The truth is you can’t produce money when it’s in the bank.
The second lesson is all money is someone else’s money.
It’s not your money.
The problem is people go into protection mode rather than going out and getting more money.
This is why people become complacent.
“Money’s not everything”
“Money won’t make me happy”
People make sense of their situation and they’re complacent with what they have because they’re trying to protect it rather than get more of it.
The mindset is that the money that they now have is THEIRS.
All the money that you will have today, all the money that you have in the bank, all the money you will have in the future…is someone else’s money.
Third rule: once you get surplus money, how do you get money to multiply and have money coming in from different sources?
There’s got to be money coming in from different places—this is called multiple flows of income.
You need your money invested.
If it’s not gonna make you more money, than other than food, water, housing…except for basic living all other money should be put into investments that make you money or give you the potential to make more money.
We’re told as kids to save your money, protect your money, don’t waste money, don’t play with money…
But you aren’t told…
- Money is useless without using it
- All money is somebody else’s
- Invest all of your surplus
Hope these thoughts help you today.