by Amanda van der Gulik
Did you know that there is a very big difference between being rich and being wealthy?
Yup, it's true!
I had no idea there was a difference, I honestly thought they were the same thing...but that was before I met Robert Kiyosaki about 12 years ago. I read his first book, "Rich Dad, Poor Dad" back in 2000 and then went to see him live in person in Whangarei, New Zealand in May 2002.
I always knew I wanted to be rich and I knew that I wanted to own my own businesses and be my own boss...but what I didn't know was that I didn't need to be rich to be wealthy.
How is that possible?
Well let's think about it, what does it mean to be "rich"?
In short it simply means to have a "lot" of money, right? And the actual amount of money necessary to be classified as "rich" isn't clear, just that you have to have a LOT of the stuff!
Okay, so with that in mind we merely need to keep on saving money right?
Every month put away some money into a special bank account and let it accumulate and compound until you reach the "rich" mark.
But then what?
....AND how long will that make you rich for? That was the question that Robert asked us that day on stage. That was when the ball dropped for me!
Have I lost you yet?
Don't worry, you wouldn't be the first. I was at a loss when Robert Kiyosaki put that question to his audience back in 2002 as well.
What I learned from him was that being rich simply meant having a lot of money, but that if you stopped working, and stopped saving that money, then how long would it last you? How long could that money support and sustain your way of living?
That got me thinking.
So let's think about it together. Let's say that you put away $100 every month into a special savings account, and let's say that you earned 10% annual interest on your money (yes I'm being very generous here). What would that look like after saving your money every month and leaving that money to compound over 25 years?
You'd have saved almost $130,000! You'd be RICH!!! :D
It would seem that way for a lot of people, but now, let's think about what this really means.
Let's say that your monthly bills come to about $2000/month, which would make that about $24,000/year. (and that's without taking into account the rate of inflation!)
$130,000 saved over 25 years would give you just over 5 years of financial freedom.
What does that mean?
It means that you have saved up just over 5 years of retirement where your bills would get paid without you having to go to work. That may seem like a long time, but think about it, that means that after 5 years you'd have to get back to work again. So in truth you would only have a limited amount of "Richness".
That was a lot of saving and waiting for a very small reward.
But there is hope! Why bother trying to get "Rich" when you could get "Wealthy" instead!
So what does "Wealthy" mean?
It means financial freedom!
In short it means having enough money coming in every single month, WITHOUT you working for it, to cover the cost of all your bills!
Sound good?
Sounds like a hoax maybe?
It's not. It's true, and its possible. This is what I learned from Robert Kiyosaki, and is the whole reason I've devoted my life to teaching children and teens (and their parents and teachers) about money. This is where financial freedom comes in; where dreams come true.
All you have to do is figure out how much money do you need to have come in each month to cover the cost of all your bills and give you a little extra?
If we take the same example of $2000/month for your bills, then your goal would be to create an income that over time would earn more than $2000/month to cover those costs without the need for you to continue to go to your job each day. There by giving you financial freedom.
And it doesn't need to take you 25 years to make that happen...AND it will give you an INFINITE amount of years to enjoy for your retirement as opposed to the 5 years I showed you above!
Oh don't get me wrong, I'm not promising you that it will be easy or fast.
Those are the promises of scams and robbers. Nope, I'm promising you that if you learn how to create your own Wealth instead of focusing on getting Rich that you can create your own financial freedom. Freedom to do what you want, when you want it, without needing to head out to a job every single day.
So how do you do it?
By building up your own passive income on the side, while you go along each month working your regular job. The key is to create income that only requires you to do the work once and allows you to get paid recurringly...forever!
Actors do it. Singers do it. Writers, Stock and Rental Real Estate Investors do it too!
They create something once (a book, a song, a movie, a stock portfolio, or a place for others to live) and then get paid royalties, interest or recurring income over and over again indefinitely.
And you can do it too!
What's even better is that while you're doing it, you can teach your children how to do it too!
What better gift can you give than to teach your child how to create their own wealth.
So how do you do it?
In very simple terms you find something that you enjoy doing, creating, investing in, or are naturally good at, and you share that with the world. Whether it be finding rentals that you buy and then rent out each month, or write a book that you get paid royalties on over and over again.
Trust me the possibilities are as infinite as the universe!
To help you get started, here is one very simple and quick example of how I am doing it.
I don't believe in putting all your eggs into just one basket, just in case that basket were to fall over and break them all, so I've been creating multiple streams of passive income instead.
My ex-husband and I invested in rental real estate and that worked really well. That is definitely something I would like to do again for sure! (People NEED a place to live and I thoroughly enjoyed getting paid monthly for providing it for them!)
But I also love to create and to teach and help others so I've created courses, videos, books, etc. All of these took me only one time to create and I get paid for them over and over again. (through sales, royalties, commissions, and ad revenues.)
Here is fun example of one of the videos that I made so you can see how fun and simple it can be. You don't have to do something elaborate.
Just use the K.I.S.S. technique (Keep It Simple Sweetheart!)
Watch how in this short video I show others how easy it is to fold a shirt, in a super cool way. I allowed Google to place ads on the video for me and that provides me with monthly recurring ad revenue.
Check it out, it really is super easy and cool to do! You're kids will have so much fun trying this technique out and you may no longer need to fold any more laundry! ;)
COOLEST Way EVER to Fold a T-Shirt!!!
Some of my videos can earn over $50/month, if my monthly expenses are $2000/month, then I would only need to create 40 of these videos to meet that target. If I'm on the 25 year path then that would be just less than 2 videos to make per year! Not too shabby for an endless retirement plan! :D
And...that would also mean that the 41st video could then earn me extra income that can help me to enjoy my life even more!
More time with my family, more time traveling the world and doing fun stuff!
Now I'm not saying that every video you put out there is going to earn you money. Some of mine don't earn anything at all. But it's the idea of it, and in the end, it's a numbers game. Perseverance will help you every time. Some will earn you money, some won't, so what? NEXT! :D
I hope I've been able to open your mind to the endless opportunities and given you some hope for creating your own wealth.
You don't need to be "rich" to be happy!
You just need to be creative, and never give up ... and look for the opportunities to grow that passive income to help you build your Wealth! :D
Cheers…Amanda van der Gulik…Excited Life Enthusiast! ;o)
Best-selling author, Amanda van der Gulik, has been homeschooling her own two children for over 11 years. She loves to share her own experiences to help other families and is the founder of www.TeachingChildrenAboutMoney.com. Visit Amanda’s site today to grab your FREE copy of one of her amazing money tools for kids and teens, like her eBook, “Goal Setting for Families” workbook or her “50 Money Making Ideas for Kids and Teens” eBook to help your child find some fun ways to make their own dreams come true!
Did you know that there is a very big difference between being rich and being wealthy?
Yup, it's true!
I had no idea there was a difference, I honestly thought they were the same thing...but that was before I met Robert Kiyosaki about 12 years ago. I read his first book, "Rich Dad, Poor Dad" back in 2000 and then went to see him live in person in Whangarei, New Zealand in May 2002.
I always knew I wanted to be rich and I knew that I wanted to own my own businesses and be my own boss...but what I didn't know was that I didn't need to be rich to be wealthy.
How is that possible?
Well let's think about it, what does it mean to be "rich"?
In short it simply means to have a "lot" of money, right? And the actual amount of money necessary to be classified as "rich" isn't clear, just that you have to have a LOT of the stuff!
Okay, so with that in mind we merely need to keep on saving money right?
Every month put away some money into a special bank account and let it accumulate and compound until you reach the "rich" mark.
But then what?
....AND how long will that make you rich for? That was the question that Robert asked us that day on stage. That was when the ball dropped for me!
Have I lost you yet?
Don't worry, you wouldn't be the first. I was at a loss when Robert Kiyosaki put that question to his audience back in 2002 as well.
What I learned from him was that being rich simply meant having a lot of money, but that if you stopped working, and stopped saving that money, then how long would it last you? How long could that money support and sustain your way of living?
That got me thinking.
So let's think about it together. Let's say that you put away $100 every month into a special savings account, and let's say that you earned 10% annual interest on your money (yes I'm being very generous here). What would that look like after saving your money every month and leaving that money to compound over 25 years?
|
Year |
Amount Saved |
Total Saved plus 10% Interest |
|
1 |
$1,200.00 |
$1,320.00 |
|
2 |
$1,200.00 |
$2,772.00 |
|
3 |
$1,200.00 |
$4,369.20 |
|
4 |
$1,200.00 |
$6,126.12 |
|
5 |
$1,200.00 |
$8,058.73 |
|
6 |
$1,200.00 |
$10,184.61 |
|
7 |
$1,200.00 |
$12,523.07 |
|
8 |
$1,200.00 |
$15,095.37 |
|
9 |
$1,200.00 |
$17,924.91 |
|
10 |
$1,200.00 |
$21,037.40 |
|
11 |
$1,200.00 |
$24,461.14 |
|
12 |
$1,200.00 |
$28,227.25 |
|
13 |
$1,200.00 |
$32,369.98 |
|
14 |
$1,200.00 |
$36,926.98 |
|
15 |
$1,200.00 |
$41,939.68 |
|
16 |
$1,200.00 |
$47,453.64 |
|
17 |
$1,200.00 |
$53,519.01 |
|
18 |
$1,200.00 |
$60,190.91 |
|
19 |
$1,200.00 |
$67,530.00 |
|
20 |
$1,200.00 |
$75,603.00 |
|
21 |
$1,200.00 |
$84,483.30 |
|
22 |
$1,200.00 |
$94,251.63 |
|
23 |
$1,200.00 |
$104,996.79 |
|
24 |
$1,200.00 |
$116,816.47 |
|
25 |
$1,200.00 |
$129,818.12 |
You'd have saved almost $130,000! You'd be RICH!!! :D
It would seem that way for a lot of people, but now, let's think about what this really means.
Let's say that your monthly bills come to about $2000/month, which would make that about $24,000/year. (and that's without taking into account the rate of inflation!)
$130,000 saved over 25 years would give you just over 5 years of financial freedom.
What does that mean?
It means that you have saved up just over 5 years of retirement where your bills would get paid without you having to go to work. That may seem like a long time, but think about it, that means that after 5 years you'd have to get back to work again. So in truth you would only have a limited amount of "Richness".
That was a lot of saving and waiting for a very small reward.
But there is hope! Why bother trying to get "Rich" when you could get "Wealthy" instead!
So what does "Wealthy" mean?
It means financial freedom!
In short it means having enough money coming in every single month, WITHOUT you working for it, to cover the cost of all your bills!
Sound good?
Sounds like a hoax maybe?
It's not. It's true, and its possible. This is what I learned from Robert Kiyosaki, and is the whole reason I've devoted my life to teaching children and teens (and their parents and teachers) about money. This is where financial freedom comes in; where dreams come true.
All you have to do is figure out how much money do you need to have come in each month to cover the cost of all your bills and give you a little extra?
If we take the same example of $2000/month for your bills, then your goal would be to create an income that over time would earn more than $2000/month to cover those costs without the need for you to continue to go to your job each day. There by giving you financial freedom.
And it doesn't need to take you 25 years to make that happen...AND it will give you an INFINITE amount of years to enjoy for your retirement as opposed to the 5 years I showed you above!
Oh don't get me wrong, I'm not promising you that it will be easy or fast.
Those are the promises of scams and robbers. Nope, I'm promising you that if you learn how to create your own Wealth instead of focusing on getting Rich that you can create your own financial freedom. Freedom to do what you want, when you want it, without needing to head out to a job every single day.
So how do you do it?
By building up your own passive income on the side, while you go along each month working your regular job. The key is to create income that only requires you to do the work once and allows you to get paid recurringly...forever!
Actors do it. Singers do it. Writers, Stock and Rental Real Estate Investors do it too!
They create something once (a book, a song, a movie, a stock portfolio, or a place for others to live) and then get paid royalties, interest or recurring income over and over again indefinitely.
And you can do it too!
What's even better is that while you're doing it, you can teach your children how to do it too!
What better gift can you give than to teach your child how to create their own wealth.
So how do you do it?
In very simple terms you find something that you enjoy doing, creating, investing in, or are naturally good at, and you share that with the world. Whether it be finding rentals that you buy and then rent out each month, or write a book that you get paid royalties on over and over again.
Trust me the possibilities are as infinite as the universe!
To help you get started, here is one very simple and quick example of how I am doing it.
I don't believe in putting all your eggs into just one basket, just in case that basket were to fall over and break them all, so I've been creating multiple streams of passive income instead.
My ex-husband and I invested in rental real estate and that worked really well. That is definitely something I would like to do again for sure! (People NEED a place to live and I thoroughly enjoyed getting paid monthly for providing it for them!)
But I also love to create and to teach and help others so I've created courses, videos, books, etc. All of these took me only one time to create and I get paid for them over and over again. (through sales, royalties, commissions, and ad revenues.)
Here is fun example of one of the videos that I made so you can see how fun and simple it can be. You don't have to do something elaborate.
Just use the K.I.S.S. technique (Keep It Simple Sweetheart!)
Watch how in this short video I show others how easy it is to fold a shirt, in a super cool way. I allowed Google to place ads on the video for me and that provides me with monthly recurring ad revenue.
Check it out, it really is super easy and cool to do! You're kids will have so much fun trying this technique out and you may no longer need to fold any more laundry! ;)
COOLEST Way EVER to Fold a T-Shirt!!!
Some of my videos can earn over $50/month, if my monthly expenses are $2000/month, then I would only need to create 40 of these videos to meet that target. If I'm on the 25 year path then that would be just less than 2 videos to make per year! Not too shabby for an endless retirement plan! :D
And...that would also mean that the 41st video could then earn me extra income that can help me to enjoy my life even more!
More time with my family, more time traveling the world and doing fun stuff!
Now I'm not saying that every video you put out there is going to earn you money. Some of mine don't earn anything at all. But it's the idea of it, and in the end, it's a numbers game. Perseverance will help you every time. Some will earn you money, some won't, so what? NEXT! :D
I hope I've been able to open your mind to the endless opportunities and given you some hope for creating your own wealth.
You don't need to be "rich" to be happy!
You just need to be creative, and never give up ... and look for the opportunities to grow that passive income to help you build your Wealth! :D
Cheers…Amanda van der Gulik…Excited Life Enthusiast! ;o)
Best-selling author, Amanda van der Gulik, has been homeschooling her own two children for over 11 years. She loves to share her own experiences to help other families and is the founder of www.TeachingChildrenAboutMoney.com. Visit Amanda’s site today to grab your FREE copy of one of her amazing money tools for kids and teens, like her eBook, “Goal Setting for Families” workbook or her “50 Money Making Ideas for Kids and Teens” eBook to help your child find some fun ways to make their own dreams come true!
