Best Ways To Invest Money To Make Money Fast

have you ever wonder how the rich getting richer, while broke people still broke? And the middle class seem to be shrinking. What you about to learn today is really going to change your life, that means, if you know what you are doing.

Creating wealth isn't a mystery, is a formula, and the only reason someone doesn't create wealth is that they either don't know the formula or they don't apply the formula.When I examine the differences in, 

• How The Broke People
• The MIddle-Class People
• Rich People  

         Spend Their Money?This simple concert hit me out of my chair when I finally understand it.I'm going to show you exactly how the rich spend their money and you can evaluate for yourself why they keep getting richer and the broke keep getting broker, and why the middle class remains so stress-out.To Get Start: I like to review some Financial Terms, I would be using in this article.

Financial Terms that you need to be familiar with are

• CashFlow = which means "money you bring in"

• Expenses = which means "money you spend"

• Assets = These are most confusing one, the definition of an assets "is something that pays you" and that is the definition I would be using.

• Liabilities = something that costs you money. Anything that cost you money is a liabilities.

How the Broke People Spend their Money

Live from paycheck to paycheckI'm speaking about the large portion of our society that live from paycheck to paycheck, and to never seem to have any money. In fact most time there is more month left at the end of their money. Am sure you can relate to that group.Buy "stuff"Broke people buy what am going to call "stuff"  
What is Stuff?That is an inexpensive thing that people buy that they don't really need to survive.You go into someone house and you can't find any top space because they have all this stuff on it. They get all this stuff on the free market, at the garage sale, etc.Then cash flow come in and then go to straight to expenses column to buy stuffBroke people never really educate themselves on assets and liabilities.They justify, buying all this stuff, by claiming that it cost a little. But over the years, it all they ever have.The problem is their cash flow never a produces or created more cash flow.Please understand, am not undermining or taking any shot at any group. I just see a lot of financial difficulties out there and it really doesn't need to be that way.Like I said earlier, Creating wealth isn't a mystery, is a formula, and the only reason someone doesn't create wealth is that they either don't know the formula or they don't apply the formula.

How the Middle Classe Spend their Money

The middle class is a group of society mistakenly thinks are rich. But they are not.They typically earn a 6-figure income, but it's what they buy with their money that keeps them prisoner of the middle class.What they typically buy are Liabilities.Remember the definition of liabilities, "things that cost you"By buying the liabilities, the money gets pushed up out the expenses column.

Liabilities are items like

1. Car
2. House
3. Credit Card Dept
4. Boat
5. Air Plane

Let See How These HappenThe middle class gets a nice paycheck, let say $10,000 per month.They then split that down in the middle, and they pay their monthly expenses with half, and with the other half, they make a down payment on a new car.

The car cost $5,000 down, and after the insurance and the maintainers, that liabilities now cost $11,000 every single month.

After few months, they bought

• Boat
• They are on Vacation home
• Rolex watch on their credit card
• A vacation on their credit card

Before you know it, their liabilities have raised their expense level above their income level.They actually spend more than they makeThat means they have to go to work every single month just to cover their liabilities.The other important issue with broke people and the middle class is that, normally, all of their cashflows is depended on their own effort. Meaning,They educated themselves to exchange their knowledge and expertise for someone money.
Also, the money they earn is usually the highest taxes form of income.

Here is an example, Tonny, is knowledgeable about the law. So people pay him/her in exchange for that knowledge on the hourly basis

The problem here is that, if Tonny doesn't share that knowledge with a client, then Tonny isn't making any money.This cost a lot of stress in their life, and if you even ask them to take an afternoon off to play golf with you, they can't. Becuase they know how much money it would cost them to take that time off.On the service, life is pretty good, but the reality is, it's a roller coast to ride.Now let take a look

How the Rich People Spend Thier Money

Rich people acquire Assets. Again an asset is something that pays you.
If you want to become rich, buy assets that pay you.

The money cycle work like theseAcquire Assets assets that produce cash flow Invest the profit to acquire more assets that produce more cashflow Invest those profit to acquire more assets that produce more cash flow

The rich spend their money and acquire things that produce more money.Here are few examples of assets that produce more money

• Stocks
• Bonds
• Real Estate
• Education

If you learn how to do something that produces more money for you, and you actually do it, that is buying assets.There is a great quote that goes"If you think education is expensive, you should see how expensive stupidity is."Another example of assets you can acquire that pay you are

Cash Generating Opportunities

Especially those opportunities that can create a passive cash flow. Passive meaning that once you build it up, the money continues to flow whether you still building it or not.Here is a small example. Let suppose you buy a pinball machine and you put it in Babar shop. And you don't spend any of the profit, you save them, until you can buy another pinball machine, and put it in another Babar shop.The rich are extremely eager to find those passive cash generating opportunities because those opportunities continue to pay them month after month, year after, year, and long after they stop working the opportunities.

Conclusion

Here is what I learn over the years.You can't find this passive cash generating opportunities unless you are open to hearing about them.Then once you find them, you must be willing to see what fit you and then act.If you are not a member of this blog yet, I will advise you to enter your email address below. As I would be publishing new passive income opportunities that I found online direct to your inbox