There are two basic ways to help accelerate your wealth and net worth. The first is what is known as playing financial defense. In other words, keeping your spending within reason and maintaining low revolving debt (or credit card debt). The second way is to play good financial offense, or to find ways to increase your income.
How to Make More Money
There are some obvious ways to make more money and increase your income. You could ask for a raise, get a second part-time job, sell things on ebay, etc. But how do you do you really make more money in a way that will have long term results and make you rich?
The most effective that the wealthy class increases their income in a way to make them rich is by creating additional income streams that brings money in over and over again, regardless if they are putting forth any effort or not. Probably the best and most widely adopted example is real estate. Rich people tend to also be real estate owners because the process goes like this:
- Search for a property that produces positive cash flow every month
- Purchase the property
- Hire a management company to show, rent, and maintain the property and collect the rent checks
The wealthy investor only had to find the property, make sure it would be a profitable purchase, close on the property and then hire the management company. That upfront work only had to be done once, and the investor makes money over and over
Repeat the process and you have multiple income streams that are brining in income with very minimal work.
Source by Ryan J. Taylor