Why They Are Rich

The One Secret Only Entrepreneurs Know About Money Couples of weeks ago I had a meeting with one of my business protégés where he tried to share his business plan with me. However after listening to his plans, I saw something unentrepreneurial in his plan and that was, he would have to work for every dollar he makes. That’s not how real entrepreneurs build businesses and make money. Employees work for every dollar they make; entrepreneurs work to create a system that prints them money more than they work for. In this article, I’ll be sharing with you the one secret only entrepreneurs know about money.

Now think about it, doctors make a lot of money but they have to work for every dollar they make. Accountants, Lawyers, and some highly educated people earn much money but they only work for an income which means that they earn money for the hours they put into their works. That’s the reason why these people rarely become rich. But think about entrepreneurs. A true entrepreneur works as hard as everyone but he doesn’t work for an income. He works for an asset. The difference here is that working for an income means that you make money for performing certain duties within a certain period of time, like one week or a month while working for a lasting asset often means that you may work hard building something for several months or even a few years and not having an income. But this often means that such assets you work hard to build can continue making you money in the next decade. Take, for instance, some of my company’s products were created as far back as 2013/14 and we still make money from them till today. Yes, there could be a few adjustment and upgrades here and there but that’s not an everyday thing. That’s the secret only entrepreneurs know. Almost everybody in the world work for an income.

Entrepreneurs don’t work for income. They work for a lasting asset and that’s why they are the richest people in the world. Math is actually very simple. Imagine two individuals, Mr. A, and Mr. B. Mr. A is a doctor so he gets paid some very good money; let’s say $200,000 a year but he has to work hard every week to get this amount. Mr. B is an entrepreneur. He works hard the first 3 years with little and no reward but in his fourth year in business he has a breakthrough and one of his company’s products becomes successful. Aside from the fact that Mr. B can make more money in a few months than what the doctor has made in the last five years, Mr. B can as well employ other people to handle many parts of his business while he gets busy thinking about how to create some other important products. Year after year, Mr. A will continue working hard to earn income while Mr. B will be busy creating business assets like products and services that can keep on making money year after year. A decade after, the Doctor has gotten some promotion and he can now earn $300,000 every year but an entrepreneur is now making $3 million after tax because he has built 10 different products that make him money while other people work to maintain the system he has built. Working for a high paying job will make you work hard forever while working to build money-generating assets will give you financial freedom because you can build a product or service that can continue making you money for a decade or more but you can’t make money from your last year’s labor as an employee. That’s what entrepreneurs know about money which makes them richer than everyone. Remember I told you about the product my company created as far back as 2013 which we still sell today. The implication of that is that every other year after 2013 we’ve created more and more products and services which are still capable of making us money for several years to come. This means that an entrepreneur can increase his revenue 100 times faster than everybody else and that’s how to make a lot of money. But if this is the case, why are most people not building assets that can generate money year after year? Why do most people work for income, if building assets are better? I’ll give you 3 reasons; Lack of financial education Almost every one of us attended school for many years. From the elementary school to high school and college, the objective of the school is to teach you how to work for income all your life. Because we were never trained to work for an asset, it’s just natural that we all want a high paying job. If you want to change this old age programming of working for an income, you’ll really need to change your mindset about how money works. You have to start seeing money as what people get from assets, not what you should work for. Assets are what you should work for. It’s an asset that produces real money. Assets are things that make you money without having to labor for it continuously.

A unique product or service that people are willing to buy, a book which people are willing to pay for, a monetized blog that generates traffic from the search engine, a YouTube channel that can make you money while you’re sleeping. These are all assets. While not everyone can create significant assets that can make them good money, if you think you can do it, you can do it. The second reason why most people prefer working for an income is because of their inability to work for free As at the time we’re making this article, we have a particular business we’ve been working on for over two years and we are yet to make any meaningful money from it, even as we have spent money on it every month for the last two years. How does that make sense? Well, that’s what it takes to be an entrepreneur. You must be willing to work for several months or even years without having any reward. Most people cannot do this. For most people, they will love to get paid in the next few weeks after they start working and that’s the reason why the only thing they can work for is an income. If you’ve read the Rich Dad Poor Dad by Robert Kiyosaki you’ll remember one of the first lessons Robert’s rich dad taught him about money; you must be willing to work for free. Robert’s rich dad taught him this lesson by employing him to work without paying him. This way, he would not be addicted to the paycheck. Most people are addicted to the paycheck and that’s the reason why they can never become rich. Yes, you have bills and probably some college debts but if you truly want to create assets that make you rich, you can have a side hustle and be willing to work on your side hustle for free for as long as I take. The third reason why most people cannot work for an asset is the lack of vision Why am I able to work on and invest in the business for two years without making any meaningful money? It’s because I can see the picture of the future. With our projection, we can see hundreds of thousands of dollars coming to us every month in the near future. That’s the reason why we are willing to work for free for a few years. Most people cannot see tomorrow. The only thing that matters to them is what they will get right now, today. You must be able to have a vision of the future. Jeff Bezos started Amazon in the year 1996 when nobody knew we’ll ever buy things from the internet. The company obviously wasn’t making any money for years. The only thing that could keep Bezos was the vision.

Elon Musk is currently investing in SpaceX, Tesla, etc., many of these products aren’t making him any money but they will make him billions a few years from now. You must be visionary if you want to build some lasting assets which bring you money year after year. In conclusion, the one secret that entrepreneurs know is that you can’t be rich working for an income. You can only be rich by working to create a lasting, money generating assets that can make you money year after year. To do this, you must change your mindset about money. You must be willing to take actions and make mistakes. You must be willing to endure for a few years without making any money.