Money is not the answer to life, indeed, a lot of times we find people chasing material things in order to prop themselves up – falsely believing that an external solution (such as a fancy car) will provide the answer to an internal challenge (such as low self-esteem).
What exactly is building wealth?
That said, the term wealth isn’t limited to the idea of amassing huge amounts of cash; there are two fundamental ingredients that synergistically work in tandem with each other, that of having enough time and money to enjoy life.
See, there are plenty of people that earn a lot of money but have no time to enjoy their life, and similarly, there are plenty of people that have a lot of free time but don’t have enough money. It’s somewhat like a see-saw, and true wealth is often about having a balance of both time and money.
The difference between how the wealthy use their time, money and resources compared to ordinary people, is that they invest their resources into building assets. These are then leveraged time and time again; whereas ordinary people get stuck on a financial treadmill where they swap a unit of time for a unit of money – meaning they are trapped.
What Are Investments
Investment means different things to different people, and it’s important to note that investing isn’t limited to the stock market, indeed many wealthy people have made their money by investing in property, and other people have ‘gotten lucky’ by investing in booming trends such as cryptocurrency; after all, think about how much $1,000 of bitcoin would be worth to you if you had invested a few years back! If you are thinking about doing something regarding bitcoin, then you might be interested in checking out this site about being able to buy bitcoin with paypal.
The fundamental difference between small business owners and employees vs. investors is that the small business owner and employee are both trading their time for money in a very linear way; for instance, both the factory worker and the lawyer are directly swapping their time for money – just in different amounts.
This is why investing your time, money and resources is the best path to wealth.
How to build true wealth
True wealth provides both the time and money to do whatever it is you want, when you want, with who you want… meaning you are living life on your terms… and if you’re stuck on the treadmill of trading time for money – this isn’t going to allow you the time freedom associated with true wealth.
The investor, in comparison, has leverage – and it’s this leverage that leads to true wealth because when they build an asset, such as a book or rental property, it can take a lot of initial effort to get this sorted but once it’s created they can then leverage the asset to generate passive income rather than having to trade their time for money in the linear way most employees do; for instance, they receive royalties from each book sold, or receive rent payments that involve a portion of profit in addition to the appreciation of the property over time
More conventionally, investors leverage their financial resources in order to make money by investing in companies, as an angel investor, or investing in the stock market. They will, of course, have to invest time into this process, for example they might spend a few hours a day reading the best technical analysis books in order to do thorough research on the market conditions, and due diligence on potential investments.
Yet, what you’ll notice is that they are not directly swapping their time for money, here, they are investing their time in education to master the art of investing; rather than being paid by someone for each unit of time they disburse.
The benefit of the investor paradigm, and how they go about making money is that they are leveraging their time, money and resources. This means that rather than having to work for their money on an hourly basis like average people, their money and other resources generate cash – meaning this is likely to be the best path to wealth, as it means they have both the abundance of money and time required to enjoy their life.
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