Investment is when you put Money into an Asset that pays out more than you put in.
- Stocks
- Real Estate
- Your Own Business/Books
- Networking (Affiliates and Referrals)
Here is how this works:
Stocks is you buying a portion of a Business so you become the Business Owner… only, you’re not making any operation Decisions. You are simply “The Investor.” How well the Business does depends on the Business Model.
Your Investment Profit is what is “returned” to you plus your initial Investment, which is called The Return On Your Investment. AKA, ROI.
In Real Estate, you want to make sure the deal is a good deal. You need to ask the question “What makes a good deal in Real Estate vs. a Bad One?” You need to work 15 hours a week in Real Estate to get the tax advantages.
In Real Estate, you need a team. You will need Investors, a Building Manager, and an Attorney. You *must* have a Network going in to Real Estate. You will want a building with 30+ apartments so you are not struggling if one or two tenants don’t pay on time.
Buying your own home is buying a liability and is the dumbest thing you can do. Don’t do it. It is only for the super-wealthy and even then, most of them won’t do it.
On your own business, read Rich Dad, Poor Dad. And follow that up with Book #2 in his series. Pay close attention to The Cash Quadrant.
When you register your business, file for a C-Corp. Not an LLC. This will give you tax advantage.
Networking is where the wealthy make money. “I’ll introduce you for 20% of whatever deal you guys cut.” Make your connections like that. Meanwhile, pick up Affiliates, Finders Fees, and Referrals.
I know people who have made their Millions this way.