Three Ways to Make Money
Number two is making money through other people. That means leveraging – in a positive way – the time, talents, and experience of other people to produce services or businesses that you can scale. You can make a business larger by leveraging employees, staff, workers, and contractors.
Number three would be making money with money. That is being an investor.
All three ways of making money are important. Typically in our lives, we start out with number one, trading time for dollars. We go to school, we get an education, and learn certain skills that we use in the workplace. We trade those skills and our time for money. That's where it all starts.
For number two, some people (not all) have the desire to translate their skillsets into a business operation whereby they can scale what they know, scale the capital markets, and build a larger structure where they get more profit if it's done right. This is done by utilizing, again, other people's time, skill sets, experience, knowledge base and connections. If you know how to do business and enjoy running a business, it's a great way to go.
The third one, again, is making money with money. This is using money that you don't want to put into another business or to add more capitalization in a specific business. You've got extra capital, extra profit. What do you do with it?
Well, you save it first but then, you should invest it. How that capital is invested is probably the biggest failure I see in most people today. They’re hardworking, have time, talent, expertise, and are specialized in a certain field. Many of them even have their own businesses, or in this case, professional practices. They work their talents and businesses very well, but the aspect of actually making their money work for them is where it all falls apart.
It's an abdication. Why? “Because the world's too complex. I don't know how to do this. I don't have the time.” So you give your money to a money manager and you keep your fingers crossed and hope for the best.
That doesn't usually work out very well. In fact, whatever that model has produced in the past decades will be far short of anything it produces in the future. Why? Because the markets have changed. The dynamics have changed. The economics have changed. The politics have changed.
Everything is far different than it was in the decades prior. We’re going into a very momentous time in history where you will have to throw out everything that you’ve believed in the past – you’ll have to be on your own frontier. You’ll have to protect what you created and protect what you want to preserve for future generations. This is key. This is one thing you just cannot abdicate. As much as you don’t want to get involved in finances and orchestrating your financial future, I will be dogmatic to say, you need to to some degree.
This doesn't mean you don't have other people around you or you don’t use the expertise of others, but you need to be on the forefront of knowing what you want and need, because there is nobody other than you, who will take care of your assets, your money, better than you.
P.S. Whenever you’re ready, here are some other ways I can help fast track you to your Freedom goal (you’re closer than you think) :
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