Secrets of the Capitalist Class: How to gain financial freedom
They work on projects that pay dividends for 25+ years, not just a single paycheck. (Focus only on projects that result in collecting income for long periods of time after the work is completed).Redeploy the revenues into new ventures, acquisitions or investments such as stocks, bonds, or real estate.
They diversify income sources as well as assets: The riskiest place you can be is depending on an employer for a paycheck.
The capitalist class prefers passive income* over active income. The more money you earn from passive income sources, the more time you have to find new opportunities, study new ventures, acquire more knowledge and skills, find great employees, and spend time with family.
*Two categories of Passive income are: 1. Passive income sources that require capital to start, maintain and grow. 2. Passive income sources that do not require capital to start, maintain and grow. Some examples are:
- Rent from real estate properties
- Patent royalties from an invention
- Trademark licensing fees for characters or brands you have created
- Royalties from books, songs, publications r other original works
- Profits from businesses in which you owe no day-to-day role or responsibility
- Earnings from internet advertising on a blog or website you own
- Dividends from stocks, equity mutual funds, or other equity securities
- Interest from owning bonds, certificates of deposit, other cash and cash equilivents
- Residual income for a slaes person from accounts that are typically renewed automatically
The capitalist class understands tha nature of money – Money can grow with the power of compounding. The longer the capital can be left to grow, the larger the ultimate fortune will be. Also rate of return is extremely important.
The capitalsit class makes it’s own luck. The capitalist class is constantly working, studying and creating opportunities. They are constantly researching investments, building shopping centers, finding investors, launching new products, or going after big clients every single day. When only one of these activities pays off big, it’s enough to be set for life.
The capitalist class doesn’t care what the market does.
The capitalist class understands taxes. A basic understanding of tax regulations can make building wealth much easier.
The capitalost class thinks of business as a game. This approach to business, and life, makes it easier to take risks. It removes a lot fo the fear because you know that if you lose money (which of course we avoid at all costs), you’re only one idea away from rebuilding the asset.
The capitalist class realizes money is a tangible commodity. When raising money to start or open a business, members of the capitalist class don’t care where the money comes from, only the terms and cost of the funds. The capitalist class doesn’t compartmentalize money like the middle class. They see every dollar as a dollar and put it towards it’s greatest use.
- Change the way youthink about money – Make it work for you
- Develop and understanding of the power of small amounts
- With each dollar you save you are buying yourself freedom
- You are responsible for where you are in life
- Instead of buying the product, buy the STOCK
- Study and admire success and those who have it, then emulate it.
- Realize that more money is not the answer. Money is a magnifying glass; it will accellerate and bring to light your true habits
- Unless your parents were wealthy, don’t do what they did.
Once you have made the choice and firm commitment to take control back of your life by building up your net worth, don’t give a second thought to the “what ifs”. Every moment that goes by you are growing closer and closer to your ultimate goal – control and freedom. Every dollar that passes through your hands is a seed to your financial future. Rest assured, if you are dilligent and responsible, financial prosperity is inevitable.