Make Your Money Work for You

The Rat Race. We are either in it or we fear it. According to Robert T. Kiyosaki, the Rat Race is the idea that "fear of being without makes them (people) work hard and earn a paycheck, but once they have that money, greed gets them thinking about all the things they could buy. Which makes them need more money, which makes them spend more". It is a never-ending cycle of working to make more money but never actually getting wealthier.

Why do we never get any wealthier? Because we simply spend that extra income that we are receiving instead of investing it and allowing that money to continue to grow. This is why people that work hard often do not get rich. You can't simply just make a lot of money. You need to know how to properly USE all that money.

Most people in the Rat Race have a low financial aptitude, or as Robert defines it, "what you do with the money once you make it, how to keep people from taking it from you, how to keep it longer, and how to make money work hard for you". These people are using their income to purchase liabilities and then pay their expenses. Rich people use their income to buy assets and then use the money made off those assets to pay their expenses.

They allow their money to work for them rather than working for their money, a concept that Robert drills into your head in his book "Rich Dad Poor Dad". You're probably wondering, well why doesn't everyone do this if this is how wealth is made? Risk. Most people are too scared to invest their money because it doesn't give them an immediate reward. Yes, you could lose it. But you could also gain so much. Use the gain to buy luxury items or make a down payment on your house rather than just throwing it all away before it has the opportunity to grow.

So I challenge you to take that $100 of shopping money you have in your budget and invest it in a stock that has the potential to grow your income exponentially. See how you can make the $100 work for you.

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