Wednesday, March 26, 2008

How To Be Wealthy

I read part of the book "Rich Dad, Poor Dad" during our vacation. The author gave the secret to being wealthy, and it's one you and I have heard before. It really is true, though, and people seem to ignore it anyway.

Ready? Here it is. Acquire income producing assets. Also known as spend less than you earn and save. Also known as put something away for a rainy day.

Simple, isn't it? Why don't we do it? The advice is the same from "The Richest Man in Babylon." Put some money to work for you. Let it earn interest, or buy you a part (or all) of a business that earns income, or purchase some other asset that is designed to produce money rather than consume it. Once your assets produce enough income to cover your expenses, you're wealthy enough to manage your assets rather than work for money.

Now we know how to be wealthy. Can we do it?

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