In his groundbreaking, bestselling book Rich Dad, Poor Dad author Robert Kiyosaki said a lot. He mostly spoke about real estate and other financial findings that honestly slipped most of our minds, but there were certain gems that every Tom, Dick and Harry can imbibe and earn a secondary income while still maintaining a job. One of the gems – Don’t Work For Money; Make Money Work For You.
How the hell are you supposed to do that? You may ask. Well, the best possible way is to SAVE. That’s right. Instead of thinking that you need to WORK to earn, you just need to SAVE to earn a fixed income. You see, we have been taught since the time we are in school, through teachers and parents alike, that it’s only when we get good grades, earn a degree and work as an employee in a regular job are we going to get rich. Kiyosaki proved that wrong.
So this is how you do it: When your salary gets credited, you first PAY YOURSELF. Exactly. Usually people think of paying their bills, reducing their debt, paying the rent or mortgage – but here, you first keep some amount aside in the form of INVESTMENT. You may argue that you don’t have enough then to pay your pills and your creditors will be banging on your door. So that should give you incentive to work harder and earn enough to pay yourself and have ample over to cover all your bills.
An important point to remember is that when you pay yourself, you don’t just leave that money in a bank account. You keep rolling that investment. Warren Buffet said the same thing: never pull out the money invested. Not even the interest. Use the accrued amount to invest in something more exciting. The $20 that he and his wife kept putting in month after month from the age of 24 is still being rolled into investments even in their old age.
Yes, you may feel the pinch for a while, since you are so addicted to paying for things that will get you momentary satisfaction, but if you hold the cravings, in no time you will find yourself smiling in pride as you watch your investments grow in front of your eyes. That’s the magic of money: it can gain you the freedom to earn a secondary income with no effort.