This is a video from Bones Rodriguez titled “The ONE Thing That RICH People Buy – That the Poor and Middle Class Don’t!”
Do you know why the rich gets richer? And the other way round for the poor and those in middle class?
It is not about what they do, but what they actually buy.
Before we continue on, there are 2 important terms that you need to know, and understand. Those who have experience with accounting will have a different opinion to these terms. If you are an accountant, you will just need to put that knowledge aside and just continue reading with an open mind.
- Liabilities – Something that TAKES AWAY you money.
- Asset – Something that PAYS you.
If you have read Robert Kiyosaki’s “Rich Dad Poor Dad” or other of his books, I am sure that you would have heard of these before.
The rich buy assets.
They will always look for ways to use their money to make more money.
The poor and middle class usually buy liabilities.
They usually look for their dream cars, their dream house, and they pay them on credit which will take money away from them every month. They purchase the latest gadgets on credit, watches, new furniture etc. and all these little expenses add up and their monthly debts catch up to their monthly income.
They are trapped in what Bones call “Golden Shackles”.
They also usually trade TIME for MONEY. When they need more money, they will take up a second job…which leads them to trade even more time for money.
The wealthy buy assets. These assets make them money and they use this money to create more money to purchase more assets.
So what are the assets they buy?
When you talk about investment, people will usually say stocks, real estates, bonds etc. However, these are not REAL investments.
When talking about buying stocks, most people will just hope (and pray really hard) for the stock price to rise. They are essentially trading. However, the rich purchase stocks which pays out dividends. They will receive money regardless if the market crashes. They buy assets which puts in money in their pocket every month. They do not trade / gamble.
Regarding real estates. Most people will preach “buy low, sell high” to earn that capital gain. The rich will buy real estates which gives them a positive cash flow every month. Again, if the property bubble gets busted, the rich will still have a stable passive income.
When you want to become a professional (lawyers / engineers / doctors / programmers etc.), you will enrol yourself in the top university and pay for the education.
If you want to be wealthy, this concept applies. However, you will need to receive the correct education. You will need to look for the correct mentor.
Most of the time, people are not willing to pay to learn how to create assets. They are not willing to invest their time to learn the skills required to create assets.
In the make money online niche, people are expected to be spoon-fed just as how the current education system is (at least in my country) and they have unrealistic expectations.
“If you think education is expensive, you should see how expensive ignorance is”
This is the asset class that the wealthy will eventually get into. They create business which will generate a passive income.
In the video, one good business model that Bones mentioned was a vending machine. You set up a vending machine selling drinks at a high traffic place, you earn the money, you pay people to refill the machine, and this machine will produce you more money.
You use this money to purchase even more vending machines to create even more money.
We are fortunate to be in this age where creating an online business online is so easy. Furthermore, there are so many resources which can help us to do this.
Did I mention that the cost to start a business online is so much cheaper than a brick and mortar business?
Let’s look at what you can be doing to build an online business. Basically, you will be allocating your monthly income purchasing assets (investment, education, business).
There are many forms of online business but I will stick with affiliate marketing and the my assets would be:
- My email list
- My blog
Using free traffic methods, I will be building my list. However, I will purchase traffic, mainly solo ads from Udimiwcc, to build my email list. I use paid traffic as it brings results faster and it is easy to scale it up. I build my list using the Web Copy Cat system.
I invest in education by constantly purchasing courses. One of the most beneficial courses which I will recommend to everyone is Lee Murray’s Breakfast Embed because it covers both email list building as well as blogging and it also provides you with an actionable plan.
When I build my email list, I will earn affiliate commissions. I will also share the content on my blog to increase my traffic and with time, create organic traffic, which will further grow my email list and the cycles continue.
Not bad for a business model.
At the end of the day, when the business nurtures itself, you will be finding yourself with a lot of free time.
Your “work” will only include sending out 1 email a day. Creating new blog post which you can outsource to really get your money working for you. Purchase traffic to grow your email list (just a few minute and a few clicks of the mouse).
Ready to start building assets?
Start building your list with Web Copy Cat.
Start building your blog the Breakfast Embed way.
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