The Best Piece of Financial Advice for Young People
Focus as soon as possible on generating Passive income.
The money you make from your work will NOT make you rich or give you financial freedom.
That is the most common misunderstanding and idealization of how rich people actually acquire all their wealth.
Take McDonald’s for example. How do you think they make all their money?
If you think they made it through Burgers and French Fries you couldn’t be more wrong.
McDonald’s is one of the largest owners of Real-Estate in the world.
That is where most of their income comes from because it is passive income. (Mcdonald’s Real Estate: How They Really Make Their Money — Wall Street Survivor Blog)
Passive Income will eventually make you rich because it means your money will work for you!
Now, I am not going to tell you to buy a certain type of passive income generating asset, but rather that you should figure it out on your own as soon as you can and then invest in the things you know about.
There are different types of Income Generating Assets you can buy ranging from stocks to real estate to car washes and more (those are the most common ones).
In the end, what you invest in is up to you, but experts always recommend investing in what you are most interested and/or knowledgeable about.
If you have not already I suggest reading the following two books as a start:
Rich Dad Poor Dad — by Robert Kiyosaki
Money Master the Game — by Tony Robbins
Right now you have time. You are young and it is honestly never too late.
The sooner you learn about how to invest your money the sooner you will feel confident in investing it.
And, at this point, the earliest you can start, the soonest possible point, no matter your age, is now.
Doing this will not make you rich fast but it will make you rich eventually, if you learn how to do it right.
CONTRIBUTED BY Lukas Schwekendiek
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