New Way of Thinking About Money.


I was introduced to a different way of thinking about money. Since then, I’ve read a lot of books on passive income, wealth creation, and business (read my favorite books here). I’ve learned so much about how to think about money, in a way that is different than ( work hard for your money ).


So, here’s my list of 12 money secrets I doubt anyone has talked much about to you.

12 Money secrets:

  1. It is really hard to get ahead and make a lot of money by relying on one source of active income. (Here’s a list of 45 ways to make extra money if you want to get started with more ways to earn an income!)
  1. Relying on one source of income means you’re completely dependent on that source for money. It’s better to diversify your sources of income. Or put differently, create multiple streams of income. Read my post about bihari hacker blog posts to learn more about creating multiple sources of income.
  1. There are three types of income. If you work and then are paid for that work, what you’re receiving is called “active income”. But if you invest in the market and make money from your investments, that income is called “portfolio income.” Finally, if you have a business or real estate that produces income, that income is called “passive income.” These types of income are all taxed differently (active income is taxed the highest).
  1. Passive income and portfolio income are the shiznit. They’re the best way (in my opinion) to make money and build wealth (because they’re taxed better and not contingent on trading time for money).
  1. The word “assets” includes: business, real estate, investments, and property. To really be wealthy, you have to have assets. It’s not enough to just make a lot of money. Here’s a look at each asset class…
  • Business. A business is an asset. It produces passive income and sometimes active income. I make money from blogging. This is a small business. I actually made $30k from blogging just a side job last year alone. So, if you’re stuck and need to make more money, starting a business, like a blog, may be your answer. I can teach you how to start a blog (it’s super easy, actually).
  • Real estate. Real Estate creates cash flow and is considered an asset when you own it as a rental property. Buying a house with a 30 year mortgage for personal use (without any equity in it) is only an asset, to the extent you have equity in your home (i.e. you’ve paid down your mortgage). Be very careful considering your personal residence as an asset. People make this mistake all the time. In general, it’s really meant to be your home, not to produce income as an asset. Read my home-buyers guide for more info on home ownership.
  • Investing. When you invest in the stock market and your investments grow, you earn portfolio income. You do this in your retirement accounts (learn how to save for retirement here) and in your own personal investment account. Investing is one of the most common and popular ways to build wealth.
  • Property. Owning other types of property is considered owning assets. Examples include cars, jewelry, fine art, etc. Just be careful when you think about accumulating these things. Typically they don’t produce income for you to use until you sell them, and some are even depreciating assets.


  1. In order to accumulate assets, it’s important to learn a lot about investing, real estate, and business. I recommend the book. I Will Teach You To Be Richn by Ramit Sethi as a introduction to investing.
  1. Building wealth requires a positive net worth. This means your assets are worth more than your liabilities (e.g.: you don’t have credit card debt, student loan debt, etc.). Mortgage debt may be okay, but not too much of it. In general, think about owning things outright when you think about being wealthy. Debt should be minimal. (I can teach you how to to get out of debt here.)
  1. There’s an important difference between budgeting and net worth. Budgeting looks at your monthly income and expenses (also called your cash flow) — it’s the money coming in during the month. This affects your lifestyle day to day. I can teach you how to budget in The Ultimate Budgeting Guide. However, net worth is different. It measures your assets against your liabilities. It’s a measure of your wealth. You should be tracking your net worth, too. It’s important! (Download my budget and net worth templates to get started tracking both now.)
  1. We all have a money blueprint. A money blueprint is the beliefs we hold about money from our past (usually how our family talked to us about money growing up). We all have certain views about money and we act accordingly. Even if you think you want to be rich, if you hold negative feelings about rich people, you’ll find it very difficult, if not impossible, to actually build wealth. You won’t just attract the opportunities you need to in order to be wealthy.
  1. Money is a reflection of you. You, yourself, will attract or repel money and opportunities. If your money is a mess right now, you need to work on yourself before you can work on your money. I have a cool post about 19 ways to become a better person. Start there.
  1. You are the average of the five people with whom you spend the most time (more on that here). So, if you want to be successful and make money, start hanging out with other people who are successful and know how to make money.
  1. No one will care about your money as much as you do, so choose professionals carefully. This is why I learn about personal finance. It’s too important not to.


Now more than ever, people are looking for new ways to make money 24 hours a day, seven days a week, without the need to remain stationed at a desk. But, these new passive ways of earning money do require you to invest a small amount of time automating your work processes. Let me take you through the process.

There are thousands of ways you can make money on the side nowadays. As long as you have an internet connection and a computer or mobile device, your opportunities are endless. Examples of new jobs you could consider for your side hustle include:
  1. Blogging
  2. Teaching online
  3. Creating ebooks
  4. Building and flipping websites

While the opportunities for online work are endless, automating them can be more challenging. Although working online will allow you to work from anywhere, it would also be nice to have so spare time on your hands, am I right? If you have found work you enjoy but want to take it a step further by generating income while you sleep, check out my top 10 secrets.

1. Simplify your outputs.

You can't do everything, especially if you want to automate the operational aspects of your business. To get everything done to the best of your ability, you need to simplify your outputs. To do this, hone in on what you are offering.

Instead of offering a huge variety of products and services to your audience, focus on a maximum of five that you do perfectly and grow from there. Take Starbucks, for example. The brand offers coffee, sweets, and some fast food. The simplicity by which it operates is a key reason why it's able to expand its offerings on a global scale.

2. Become an affiliate.

There are a number of ways you can make money without really doing much. For example, you could become an Amazon affiliate. If Amazon makes a sale that comes from the link on your website, you make a profit. Simple. If you have the right following, you could find affiliate marketing extremely profitable.

3. Invest in other companies.

An investment is, in simple terms, a way for your money to make more money. Although your lending needs to be calculated, you should invest some of your profits into other companies that fulfill other needs your customers may have. It's a good way for you to make more money while establishing yourself as a figure that helps others and understands your audience's desires.

 4. Optimize your efforts.

Once every aspect of your company is up and running, you must evaluate, re-evaluate, and optimize them to ensure they are performing to the best of their ability. You wouldn't write a blog post without proofreading and optimizing it; the same goes for the rest of your marketing, sales, finance, and other operations.

5. Promote yourself as a brand.

Whether you have already found success or are still on the path to finding it, you should look at ways in which you can promote yourself as a brand. Of course, your chatbot will help with minor marketing tasks, but you need to promote yourself in a way that makes others aware that you are a trustworthy, reputable, and a reliable authority figure in your industry.

To achieve this, create informational products, such as books, videos, and online magazines for your audience. Once you've put in hours creating these pieces, the next step is simply to market them and watch the money roll in.

Finally…

Automating your processes will help you organize yourself in a way that makes your operations efficient. By doing so, you will not only make money while you sleep, but you will also have more time to invest in other projects that can be automated in the same way, creating a money-making lifecycle that could eventually make you millions.


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