Your parents will tell you study hard and find a stable job. This myth of job security is designed to keep you poor for the rest of your life.
“A job is really a short-term solution to a long-term problem.”
People with jobs believe that their ‘income’ is representative of their wealth. The questions they ask are, “who do you work for, how much do you earn?” or “what car do you drive?”
These people fall into the category of “looking good, going nowhere.” They buy stuff to look and feel rich. To sustain their lifestyle, they continually work harder, longer hours and constantly educate themselves to become even more specialized.
Will Getting a Bigger Pay Check Make You Rich?
A paycheck, no matter how big, cannot be defined as wealth or riches. Most people think that getting a bigger pay check or salary is making them richer. Nothing can be further from truth. In fact 95% of people spend every dollar they earn. By the way, job could be considered as an acronym for “Just Over Broke.”
We need cash flow to pay our bills, put food on the table, send our kids to school and sustain any kind of lifestyle. But if your cash flow is solely reliant on your pay check, you are at grave risk. You can fall ill, have an accident or lose your job! Ask the millions who have lost their jobs in the financial downturn.
“Job security is a myth…it is also risky for self-employed people in my opinion. If they get sick, injured, or die, their income is directly impacted.” –Robert Kiyosaki
Having a job severely restricts your cash flow capabilities. You can work for only X hours in a day. Your pay check will be limited to the number of hours worked multiplied by your hourly rate.
True Wealth Comes from Passive Cash Flow and Asset Base
Your first step to creating wealth comes when your cash flow starts coming from passive income rather than your regular paychecks. In other words, your investments and businesses pay you money whether you get out of bed or not.
The next step forward is to create long-term passive income cash flow backed by a solid asset base. Wealth is all about owning assets. However, an asset must have both capital growth and income. You must first concentrate on generating a rather large passive income. Cash flow not only complements your lifestyle but also has the ability to get loans to help buy income producing assets.
Passive cash flow is generated from investments (paper assets or properties that are fully paid for), businesses that have systems in place and do not require your day to day presence, or your income is generated because of royalties from intellectual property rights that you have created. To grow rich, you have to make either money or people work for you even when you are sleeping.
Generating Massive Passive Cash Flow
The quickest way to become rich is to generate a massive cash flow through a business that has proven, working systems in place. You then have to buy assets that give you not only a passive income but also capital appreciation. If you do not have a huge capital to start a business, join a good network marketing company; it is a good passive income generator, you will receive personalized coaching in business, marketing and leadership skills from those who have stakes in your business.
Every night before you go to sleep: calculate the number of hours you have spent in creating passive income for yourself as against the number of hours you have spent in generating linear income that has helped others get rich because of your effort. You must set a target each day to add more and more hours towards generating passive income. If you do this simple exercise on a regular basis, you will make a giant leap towards attaining financial freedom.
To understand the difference between linear and residual income is critical to your financial well-being. Most people do not understand this distinction and stay stuck to a job profile their entire lives, or run a ‘mom-and-pop’ business that requires their attention and presence seven days a week. So whenever you are looking at a business or an investment opportunity, look at the residual aspect. If it is not there then give it a miss. Never ever forget the commandment if you want to become truly rich: Thou shalt work once and be paid for a lifetime.
If you wish to bust the myth of job security and create sustainable wealth then start devoting few hours each day in creating passive income. Gradually increase these hours till you start devoting hundred percent time and effort in creating only passive income.