Like most young African-American kids, I never really had the opportunity to learn about wealth. It wasn’t until I started doing research on my own, when I learned wealth building concepts and applied them to my life. In this article, we’re going to discuss 3 Wealth Concepts I Wish I Was Taught As a Kid.
Concept #1: Differences between Good Debt and Bad Debt
There are probably millions of people today who are just drowning in the amount of debt they carry. I’m not just talking about any debt, I’m talking about bad debt.
I never knew there was good debt and bad debt. I only knew of bad debt and even found myself creating negative outcomes in my life because of it.
Bad debt is any form of debt that decreases your income and your wealth. Good debt is any form of debt that increases your income and your wealth. The differences between good debt and bad debt lie in the way debt is used.
For example, lets say Matt takes out a personal loan of $25,000. The personal loan itself is neither good debt or bad debt until it is used. If Matt chooses to use the loan to purchase a car he can’t afford then this would be bad debt.
If Matt chooses to put the $25,000 down on a rental property that produces $600 per month in cash flow then that would be an example of good debt.
The rich who use debt [some like to only use cash] use it in a way to produce more income and wealth for themselves. This is how they continue to get richer.
Concept #2: Cash Flow & Profits vs. Salary
As a young kid, I was never taught the different ways of earning money. I only knew of one way and that was to go out and get a job.
The concept of owning a business didn’t hit my mind until I was in high school. Many kids had the same experience as me, we are only taught to earn money one way.
The sad part is that earning money from a job is one of the worst ways to make money. For most jobs, you are trading your time for money and everyone knows there are only 24 hours per day.
This means that there is always a cap on how much money you can make. Also, if you don’t work you won’t get paid. So, to pay your bills you are forced to clock in to work just to get by.
Related: The 9 To 5 Mindset
If you are working for profits by owning a business, the game is completely different. Your income is not tied to how many hours you work.
This means you can potentially earn unlimited income with a business that can scale. This is how people are able to become millionaires within a short amount of time. It’s not because of a job, it’s because of the profits from their business.
On top of the unlimited income you can make, you can also choose how you live your life. If you want to travel the world while making money from your laptop, it’s much easier with your own business than finding a job with that ability.
Concept #3: Investing in Yourself
Investing in yourself is the most important thing you can do if you want to get rich. With self-education, you can go from broke to millionaire within a few years time frame.
The great part about it is that with technology today, you can purchase an eBook for under $10 and learn from the mistakes of others in a similar business. The problem is that most people don’t want to read and are not committed to finding the solutions to their problems.
For those who want to become wealthy, always be investing in yourself. Read books, listen to podcasts, go to seminars.
Do anything you can to expand your knowledge. Also, remember that knowledge isn’t power. Applied knowledge is power, so, apply the knowledge you learn and you’ll be one step closer to becoming wealthy.
Thanks for reading 3 Wealth Concepts I Wish I Was Taught As A Kid. If you need help applying these wealth concepts and starting your own business, download our free guide here: 25 Six Figure Businesses You Can Start Today.