It all starts with this simple mind set: “You don’t work for money. You let the money do the work for you.”

Easy said that done eh? Yes, but before you let the doubt, fear and cynicism conquer your feelings, try to consider this thought.

Money is not a thing. It is just an idea. If you can think differently about money, how to generate it without having you to work and be there to earn it, then you have succesfully create a new thinking about money. If you can just get rid of the idea that you need to work hard to earn it (on hourly basis, on overtime basis), that you need money to get more money, then you will free your mind from that conventional, old way of thinking.

A simple guideline is this: You have to start investing on assets that will generate a passive income for you. You can then take this passively generated income to cover your expenses WITH the balance of that amount reinvested into new assets that will, again, generate passive income for you. If you keep doing this, you can start to see a cycle of nonstop passive incomes and this is how your wealth starts to build. And this is exactly how the rich get richer.

Other tips: Spend less on liabilities, spend on expenses only when you have a passive income that will cover those expenses, learn about the local tax system and law, invest on education and learn more to gain financial knowledge and finally, understand that the more money you need, the more money you’ll need to give/donate.

Read: Rich Dad Poor Dad.

Image by bian0821