All About Money
Money is not everything, but without it, we cannot do anything. And it pays our bills.
To achieve Financial Freedom, we need to understand money better.
What is the meaning of money to you?
How can you get money?
How can you use money properly?
Is money a good thing or a bad thing?
Some people might argue this differently. Some might say that money is everything, while others might contend that money is the root of all evil.
Meanwhile, money is simply an instrument of exchange to get the things we need.
Whatever opinion you might have about money, the following equation represents the reality of money.
Money = Tools = Needs
And what if we need money? How can we get it?
The first method is by working. This is commonly known as active income. We work to earn money.
Skill + time = money
In this scheme, we are exchanging time and energy to earn money.
The simplest example is that of an employee. An employee is paid for the time and skill he dedicates to the company he works for. Other examples are freelancers and people who are self-employed. Doctors, artists, and athletes are examples of professionals who exchange time and energy to earn money.
Acquiring money by this method means that we receive money only if and when we work.
The moment we stop working, we stop receiving money.
The second method is through passive income.
In this case, we use our time and energy to build an asset. And then this asset in turn produces money for us.
Skill + time = asset
Asset = money
An example is the owner of a telecommunication company.
You use a smartphone and you pay a telecommunication service provider to enjoy their facilities. Have you ever met the owner of the company? Or did the owner need to meet you in person to convince you to use their services? Highly unlikely.
An asset can be a system or any other working mechanism that produces money. Once you have built an asset like this you no longer need to use your own money, time or energy in order to earn money.
This is what passive income really means.
This is the way to achieve financial freedom.
And this is what you are going to learn in this course. Excited?
"You become ﬁnancial free when your passive income exceeds your expenses"
- T. Harv Eker