I see a common poor person mistake in the comments of the question. It appears to focus on income and a bigger mistake, talking about working income. Wealthy people do not focus on the quantity of their working income. They focus on what they do with their income. Robert Kiyosaki and Sharon Lechter probably explained it the best. What they basically say is:
1• Poor people spend their money first on things.for example, if they get more money say by taking that third job.they buy nicer clothes or a phone or some bling and treat themselves to a cup of starbucka.
2• Middle class people take on more debt and try to increase their lifestyle. When the make more money they buy a newer car A boat or a TV or a bigger house or a apartment.
3• Wealthy people spend their money first on things that make more money they start by putting a good portion in the bank then buying assets that bring income
For example, I knew a person mowed lawns. He saved $200 from mowing lawns and bought a bunch of stuff at a thrift store, which he sold at a yard sale for a profit. He repeated the process until he had $1000. He bought 2 house trailers with the $1000, lived in one and rented the other. Eventually he bough a house and another and another. I’ve known him for about 15 years. He is worth about $20 million and owns over 100 houses. He makes $100,000 a month, but only takes home about $4000 a month in income. He lives in a giant house (14,000 to 15,000 square foot), but rents out a wing of the house to cover his expenses. Poor and middle class people reading this will probably wonder how he can be rich on $4000 a month. it is because the $4000 a month is pure spending money. As a rich person, he does not buy something that costs him money without first buying something that will make him enough money to pay for it. He has no mortgage or rent, no car payments, his renters cover his utilities, etc.
So here is how the person in America with 3 jobs and kids gets wealthy. Actually, it’s how anyone gets wealthy. It will really suck for the first 2–4 years, but it will be worth it. Cut back their expenses to the bare bones. My family spent a year only eating stuff that was on sale and we had a coupon for it. I got the grocery budget down to $10 a week. Start saving 10% of every dollar that comes through the front door. Sell everything you don’t actually need and put the money away. Educate yourself. Now this is free with libraries and the internet. I would recommend these authors in this order, Dave Ramsey, T. Harv Eker, Robert Kiyosaki. Stop buying things unless they are necessary to live or they will make money. Start finding out where positive, successful people hang out in your area and start going where they go. In my area, there are business clubs and some really neat grass roots charities run by wealthy people. Find a wealthy person who is doing something in which you are interested and ask them to teach you. I like buying tax liens of properties. Most people turn the corner in 2–4 years. It feels like a huge weight is lifted. Dave Ramsey calls this living like nobody else so that in 5–10 years you can live like nobody else. I can’t describe how it feels to go from working three jobs and worrying about paying the electric bill to working only one job that you don’t really need and being able to give someone a stack of Benjamins to cover an unexpected expense. I hope that everyone who reads this pays attention and can get those feelings for yourself.
Once you own enough things that make you money without you having to work on them, you’ve won. I have some friends that stop at that point and kick back. I know some who just keep going and buying. They usually use the extra money to help family, friends and neighbors. Some are religious and give a lot to their church. Many hire more and more employees, because they see every job they provide as a family they are helping. I have a couple of friends that give free talks and training sessions to spread this m
1• Poor people spend their money first on things.for example, if they get more money say by taking that third job.they buy nicer clothes or a phone or some bling and treat themselves to a cup of starbucka.
2• Middle class people take on more debt and try to increase their lifestyle. When the make more money they buy a newer car A boat or a TV or a bigger house or a apartment.
3• Wealthy people spend their money first on things that make more money they start by putting a good portion in the bank then buying assets that bring income
For example, I knew a person mowed lawns. He saved $200 from mowing lawns and bought a bunch of stuff at a thrift store, which he sold at a yard sale for a profit. He repeated the process until he had $1000. He bought 2 house trailers with the $1000, lived in one and rented the other. Eventually he bough a house and another and another. I’ve known him for about 15 years. He is worth about $20 million and owns over 100 houses. He makes $100,000 a month, but only takes home about $4000 a month in income. He lives in a giant house (14,000 to 15,000 square foot), but rents out a wing of the house to cover his expenses. Poor and middle class people reading this will probably wonder how he can be rich on $4000 a month. it is because the $4000 a month is pure spending money. As a rich person, he does not buy something that costs him money without first buying something that will make him enough money to pay for it. He has no mortgage or rent, no car payments, his renters cover his utilities, etc.
So here is how the person in America with 3 jobs and kids gets wealthy. Actually, it’s how anyone gets wealthy. It will really suck for the first 2–4 years, but it will be worth it. Cut back their expenses to the bare bones. My family spent a year only eating stuff that was on sale and we had a coupon for it. I got the grocery budget down to $10 a week. Start saving 10% of every dollar that comes through the front door. Sell everything you don’t actually need and put the money away. Educate yourself. Now this is free with libraries and the internet. I would recommend these authors in this order, Dave Ramsey, T. Harv Eker, Robert Kiyosaki. Stop buying things unless they are necessary to live or they will make money. Start finding out where positive, successful people hang out in your area and start going where they go. In my area, there are business clubs and some really neat grass roots charities run by wealthy people. Find a wealthy person who is doing something in which you are interested and ask them to teach you. I like buying tax liens of properties. Most people turn the corner in 2–4 years. It feels like a huge weight is lifted. Dave Ramsey calls this living like nobody else so that in 5–10 years you can live like nobody else. I can’t describe how it feels to go from working three jobs and worrying about paying the electric bill to working only one job that you don’t really need and being able to give someone a stack of Benjamins to cover an unexpected expense. I hope that everyone who reads this pays attention and can get those feelings for yourself.
Once you own enough things that make you money without you having to work on them, you’ve won. I have some friends that stop at that point and kick back. I know some who just keep going and buying. They usually use the extra money to help family, friends and neighbors. Some are religious and give a lot to their church. Many hire more and more employees, because they see every job they provide as a family they are helping. I have a couple of friends that give free talks and training sessions to spread this m
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