The Poor Work for Money
Rich dad said, “The poor work for money. The rich make money work for them.”
It’s assumed that most everybody wants to make a lot of money. In order to make a lot of money, the general consensus is that you have to work harder and longer. This is why in the U.S. everybody is overworked.
Consider these facts:
The average U.S. worker clocks in about 1,804 hours per year at work — the highest output in the world
56% of Americans report doing work from home
20% report doing it every day of the week
25% didn’t take any time off last year
43% took less than a week off
Those numbers represent a 400% increase in productivity since 1960 — and a lot of tired, time-constrained Americans chasing the almighty dollar.
Why the poor stay poor
If you ask most people why they’re doing all this work, they’ll tell you it’s for money.
By this, they mean a steady paycheck that provides security. Money is one of the primary reasons people take on thousands of dollars in college loans to get a degree for a high-paying job that they don’t like but which they spend most of their waking hours at — all while the things they really love in life sit on the sidelines waiting for them to finish working.
The problem with this approach is that you only make money as long as you work. The only thing of value that you have to sell is your time. So, in order to make more money, you have to work longer hours, which is physically taxing.
Because you only have a finite amount of time and energy, as an employee, you’re earning potential is finite.
Why the rich get richer
Conversely, if you ask most rich people what they work for, they’ll tell you it’s for assets.
By this they mean investments and businesses that provide steady cash flow each month with little-to-no work. Instead of spending their life working for money, the rich work to understand how to make money work for them through financial education.
Adding more assets is much different than working for a paycheck. For instance, adding assets doesn’t require working longer or harder. In fact, the higher your financial IQ, the less you have to work to acquire high-quality assets. These assets then provide passive income, even while you’re sleeping or playing.
In other words, money works for the rich.
Plan to get rich
This is not to say that the rich don’t work. They just work differently.
Each year, Kim and I sit down together and set goals as to how many new assets we want to purchase. It’s important to note, we don’t make goals to make more money. We don’t spend our time looking for a better, higher-paying job. We know that if we focus on finding high-quality assets, the money will come — and for many years to come, even after the work of acquiring our assets is done.
Kim and I have spent many years building our portfolio slowly and steadily and investing in our financial education. Today, we make millions of dollars a year in passive income — money that works for us instead of the other way around.
We could retire if we wanted to, but we love what we do, so we choose to spend some time working on building our collection of assets. But we also have a lot of fun and free time to pursue the things we love.
What are you working for?
How about you? What are you working for? Are you working towards making money work for you through the power of assets? Or do you spend your days toiling away at a job you hate in order to make money? If so, what’s holding you back?
Today, I encourage you to start investing in your financial education and building for your future through the power of assets.
To help you get started, check out our free, financial education resources here.