What it Means to be Rich

Many people have a false understanding of what it actually means to be rich. If you were to ask a stranger what makes a person rich, he or she would say "A person is rich if they have a lot of money and can buy whatever they want!". But that isn't what it means to be rich. This is what it means when a person is rich: The person's assets create enough cashflow every month, to cover his or her expenses. So basically being rich means that whether you work or not, money will still be flowing into your pockets.

Creating assets is the key to becoming rich. The rich have many different assets, which provide them with a monthly income. The truly rich people are those who don't work for a paycheck because their assets provide them with a lot cashflow. So if your assets make more than enough money to cover your expenses, you're rich. Having a large sum of money in your hands may cover your expenses for a while, but it isn't going to last forever.

When you're rich, you're making your money work for you. You send your money off into bonds, stocks, businesses, gold, or real estate, so that it'll make more money. You don't really have a job, because you don't need one. The rich let their money do all the work, so that they don't have to. But many of the people who became rich weren't born with a silver spoon in their mouth. It takes hard work and dedication to become rich. We grew up believing that if we don't get paid by the hour during a job, then we shouldn't do it. The rich aren't addicted to an hourly wage. They'll work for hours, days, months, and years without pay in order to create their assests. Once the assets are created, little or no more work is required, and the cash just flows in.

During high school, we're taught that you can only make a lot of money by getting a good job. Because of this, many of us become addicted to an hourly wage. When a friend or relative gets a new job, we congratulate them and then ask, "So, how much do you make an hour?". Once in a while you may ask your boss for a raise, because you feel you work really hard and deserve it. The rich don't ask, "How much do you make an hour?", or, "Can I have a raise?" they ask "What's your monthly cash flow from your assets?", and "What's the dividend yield on your favorite income stock?". Many employees say "I'm going to retire with $700,000.00 in my 401K!". The rich say "I'm going to retire with $30,000.00 a month coming from my assets".

So it's easy to tell when a person is rich or not. If a persons assets produce enough money every month to cover his or her expenses, then that person is rich.

Michael Press is an investor and teenage entrepreneur. He currently owns and operates PassiveIncomeInfo.com, a free website with articles about how to build wealth.

---

5 Easy Ways to Save and Build Wealth

1. Pay off high-cost debt. The best investment most borrowers... Read More

Learn How to Bank Like a Banker

The business of banking has changed dramatically over the last... Read More

A Completely New Way To Get Rich Rapidly

This new way is catching on around the world. People... Read More

The Financial Equation that Will Set You Free!

I have a good friend who works in an area... Read More

What Do You Mean By Diversity?

The word 'diversity' is a unique one. It can represent... Read More

8 Tips for Keeping More of Your Hard Earned Money

Masters degree not required...just a little common sense, a $5.00... Read More

Do You Want Money?

Let me ask you a very simple question. Do you... Read More

Endowments and Endowment Shortfalls - What You Need To Know

Endowments and endowment mortgages have received a lot of bad... Read More

Wealth Secrets: Saving Your Way to a Fortune

SCENE 1: Pharaoh has just woken up from a very... Read More

A New Economic Policy

Anyone knows that material wealth is measured in goods: apples,... Read More

Plan For Wealth

One very important wealth creating habit is to set up... Read More

The Top 10 Steps to Extraordinary Personal Wealth

I recently came across startling figures about the average American's... Read More

7 Power Habits that Build Financial Independence

Financial independence is having the freedom to support yourself through... Read More

Wealth Building Strategy

There are many of us who are working on our... Read More

Why Get Rich When You Can Be Wealthy?

"Any fool can rich, the wise get wealthy." Chris WidenerGetting... Read More

Top 7 Lucrative Paper Businesses You Can Run

Why not run a lucrative paper business? Paper businesses do... Read More

How to Save Money for Retirement

Saving money for retirement can be easy or difficult depending... Read More

Let Me Inspire You - You Aint Seen Nothing Yet! (PART-1)

You know about compounding right? You understand what pyramiding your... Read More

Why do Some People Rake in the Dough while Others Spin Their Wheels to No Avail?

Here's the truth: I have read hundreds and hundreds of... Read More

Mastering Your Money

One of the things most of us have old ideas... Read More

A New Paradigm Shift In Earthly Wealth

Hello,If you dont understand this yet, or have not heard... Read More

Get Rich Doing What Others Dont

"The quickest way to wealthThat I've found to be true;Is... Read More

Financial Planning For Singles

Financial planning often gets a bad rap. Part of the... Read More

Budget Tips

To budget, to have a budget and to be on... Read More

Gain More Control of Your 401k - What It Can Mean to Your Future

Points to ponder as you consider what can be done... Read More

Your Wealth Cycle Foundation

The four main steps in building a wealth cycle foundation... Read More

Get Rich Slowly

Is it hard to get rich? If you're young, not... Read More

Thieves Continue to Pull Off the Biggest Heist in History?Until Now!

Imagine being able to steal untold millions of dollars in... Read More

Money Mastery

Money can be your servant or it can be your... Read More

My Entrepreneurial Fire-I Grabbed My First Million Before I Got Too Old

My First Million took me exactly 27 months to achieve.... Read More

The Hawk and the Mouse - Saving for Retirement

There once was a hawk, ferocious and swift. He was... Read More

The Difference Between Wants & Needs

So you want to become wealthy? While there is no... Read More

The PDQ? Factor

It's the beginning of a brand new year: a time... Read More