Chasing the Right Stacks: 3 Easy (But Not Obvious)Lessons 2020 Taught a Broke Guy About Making Money

Over the past year, I’ve made a serious attempt at learning about how to get money.

Not just a better job. I’m talking about YouTube “get 7 figures and brag about it about from my luxury house while I ask you to buy my course in an annoying YouTube ad” kind of money.

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I’ve come up with all kinds of ideas, experiments, schemes, and plans. (Most of which hasn’t worked by the way.)

But, there have been three principles that have stuck with me over the past year. I see these principles have been repeated over and over from people that have lasting wealth….meaning the exact opposite of the people who took one course or created one Shopify store and went rich.

Those 3 principles are:

Rule #1: Wealthy people don’t get rich buying stuff, they get rich buying assets

Rule #2: Wealthy people make money work for them, even while they sleep

Rule #3: There’s a difference between wealthy and rich

Here’s how I came to understand those principles:

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Rule #1: Wealthy people don’t get rich buying stuff, they get rich buying assets

Growing up, I watched “Lifestyle of the Rich and Famous” with Robin Leach, and MTV “Cribs”.

This led me to believe that all rich people do is have a lot of money and buy a lot of rich stuff.

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But that’s on the surface. In reality, there’s a lot to growing and maintaining wealth.

That hit me after reading “Rich Dad, Poor Dad”.

It was the first book that taught me that people with money stay rich because they’re not losing money (aka expenses).

People with a lot of money stay rich because they buy things that keep bringing money in (aka assets) like:

Real estate

Businesses

Investments

But the media teaches us to focus on the glitz and glamour. We don’t focus on how the rich make their money.

As a result, people chase the THINGS the rich have, not the METHOD they use to get that money.

Rule #2: Wealthy people make money work for them, even while they sleep

Most of us know that you need a lot of money to be wealthy. That’s why we focus on getting a higher paycheck, a winning Lotto ticket, a rich inheritance, or a rich spouse.

This is what I call “lucky money”, money that falls into your lap because of a rare event.

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This truth is, the wealthy focus on something different.

They focus on building consistent money that brings high returns.

Here’s how this works: Most of us go to work to earn paycheck. We spend it to live. Once that paycheck is gone, that’s it. We have to work more. (aka active income).

A wealthy person works to buy an asset that will earn money even after they stop working. Once they work to get something that makes money, it continues to make money (aka passive income).

The first type of income (active income) is what I focused on growing up, getting more active income. With that mentality, you are always chasing a higher paycheck even while you are spending it.

The second type of income (passive income) is what I’m focused on now. By increasing passive income, you decrease the amount of work you have to put in while increasing your cash flow. In short, you make money while you sleep.

Rule #3: There’s a difference between wealthy and rich

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Like I mentioned above, I always assumed the wealthy bought expensive things because they had more money than they knew what to do with.

For the most part, they do…but the book “The Millionaire Next Door” helped me see that “looking wealthy” is not the way to BE wealthy.

What I learned from that book is that the desire to look rich is an obsession for some people.

That obsession actually keeps them from being wealthy.

There is a difference between rich and wealthy. You can be both…but it’s not guaranteed.

You can buy things to make you look rich….through credit cards, loans, overspending, fraud, etc.

But if you don’t have the assets to back you up….that “rich” won’t last very long.

So what’s the morale of my story? What’s my point?

Building wealth is not easy. It requires learning how to earn and grow your money.

Building wealth is about building with something other than luck. You don’t get rich for nothing. Sure you can be born into wealth, be the one “American Idol” or viral SnapChat superstar or pick the winning lotto ticket, but you still must pay your dues. If you don’t build cash flow through assets and passive income, hour “rich” won’t last.

Building wealth is more than being “rich for show”. If you’re only getting rich to look rich, your “rich” won’t last long.

Written by

Techie. Writer. Entrepreneur. Investor. Badass College Dropout. Believer. #prayerwarrior #restoretheroar #blacklivesalwaysmattered #getafterit

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