There is a lot of talk right not about people being “Financially Independent” and “Retiring Early”. The acronym for this is FIRE. But if you want to know how to become rich, you need change the way you think. I learned how to become rich and now I live the life of my dreams.

Financial Independence Retire Early

In my opinion, there are many ways to reach FIRE but there is only one way I recommend. More about that in a moment…

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Everyone has the ability to reach FIRE, it’s just that most people don’t know how. First, they have never been taught how and second, they have actually been taught the exact opposite.

If you want to be rich, you need to start thinking like the rich.

Well, first you need to know how the rich think, right?…

This is what we are going to be looking at today. How to think like the rich and how to become rich? You see, the rich do not have a different set of rules than the rest of us. They just know how to have those rules play in their favor.

In America, we all have the same laws that govern everyone.

Here is an example of what the rich know that most do not:

Did you know that you can differ taxes over and over again to avoid paying them until MANY years in the future?

It’s true. The tax code allows for an investor to differ their taxes with a 1031 exchange. Usually when you sell an investment property, you are taxed on the profit you make on the property. So, if the sale of the property puts $20,000 in your pocket, then that $20,000 is taxable income. The IRS will tax you on this.

Now, the rich know how to become rich so they use a 1031 exchange that will allow them to differ (not evade) taxes until a later date. To do this, they take the $20,000 and use it to buy another property that makes them even more money without being taxed on the $20,000.

They can do this over, and over, and over again. It is only when the rich person sales the final property and takes the proceeds from the sale. Then, they are taxed on that property only, not all previous property profits.

So, there are many laws that we (poor) people have no clue about and are never taught that in government schools.

 

How to Become Rich – Government Education Has Failed

You and I have both been lied to.

We have been conditioned to think that the only way we can make money is to have a job.

All our lives, we are taught the only way to make money is to follow these steps:

1. Go to school
2. Go to college
3. Get a job
4. Buy a house
5. Invest money in the stock market
6. Retire when you are 68 years old (if you can)

Now, to be fair, this plan provides a person a fine life for the majority of the people out there.

The problem is that I don’t just want a normal life.

I want a fantastic life.

Think about these questions:

1. Why follow these rules? Why not retire at 58, 48, 38, or even 28?
2. Why can’t it be YOU that owns the business and has other people make money for you?
3. Why can’t you be an investor who makes money with money?
4. Why can’t you be the author that makes money passively doing what you love?


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How to Become Rich | Rich Mindset vs. Poor Mindset

The Poor Think Like The Poor:

  • Buy liabilities that take money out of your pocket
  • Take out a car loan for a car they cannot afford to buy with cash
  • Use credit cards to purchase things they do not have money for
  • Buy the newest items like iPhones, tablets, etc.
  • They do not invest their money rather they spend their money

The Rich Already Know How to Become Rich:

  • Buy assets that puts money into your pocket
  • Can pay cash for a new car
  • Spend less than they make in a month
  • Wait until those new items are discounted or lower priced
  • They invest their money instead of spending it

 

A New Way of Thinking About Money

To be honest with you, there is absolutely NO reason why you can’t do the things the rich do. It is time that we un-condition ourselves in the belief that the only life we can have is an average life.

I say, average is good for some, but not for me. I want amazing!

This is why I worked hard for 9 years to build my real estate rental property business enough so I could quit my job.

At age 37, I worked the last “job” I will ever have. Gone are the 9-5 daily grinds. Replaced by spending time with the wife and kids, lots of 6 week vacations, and doing WHATEVER I WANT! 🙂

A rental property that you purchase today will make you money in 6 different ways:

  1. Cash Flow – Money going into your pocket
  2. Equity Capture – Money made when you buy the property
  3. Equity Buildup – Money made as your tenants pay down the mortgage
  4. Market Appreciation – Money made over time
  5. Forced Appreciation – Money made when you fix up the property
  6. Tax Advantages – Money saved when you have a rental property business

 

Learn How to Become Rich to Start Living The Dream Life

When is the best time to plant a tree?

The best time would have been 20 years ago. Then you would be enjoying the benefits of the tree. The fruit it produces, the shade it gives, the less attention you need to give it, and the less resources from you it requires.

When is the second best time to plant a tree?

The second best time to plant a tree is TODAY!

Starting a passive income business is just like planting a tree. If you would have started it 20 years ago, you would be financially independent AND never work a job again.

Likewise, the second best time to start a passive income business is today.

After just 6 years investing in rental properties, I had enough money coming in every month that I replaced the income from my job with it. I really didn’t need to work any longer.

Now, years later, I don’t have to work at all on my real estate business. Just like a tree planted 20 years prior, it produces for me, takes none my time, and none of my resources. I live in my business and do not work at all.

Now, I have more time to spend with my amazing wife and kids. I also travel the world and best of all, do only what I want to do.

That’s one of the many reasons why I love the fact that I started my own business.

You may have your own reasons for starting a business, so really think about what those reasons are. Reflect on that, and use that as motivation as you move forward.

 

How to Buy A Car AND A Rental Property With the Same Money

The first time someone told me I could afford anything by changing the way you think, I thought they were pulling my leg.

But then I tried it. And you know what? It works.

Here’s why…

When you change the way you think, opportunities and solutions present themselves to you.

Let me give you a personal example. I wanted to purchase a new Dodge Ram Truck to replace my old Nissan Titan. Also, I didn’t want to pay any more money than what I could sell the truck for.

So, my requirements were:

  • Purchase a new Dodge Ram Truck
  • Pay no more than what I could sell my Nissan Titan
  • Try to make money in the process

I know, right!? How can I make money buying a new truck?

Now, here is where we change the way we are thinking to get what we want.

I paid $11,800 for the Titan 4 years prior and sold it for $10,200. With the $10,200, I was able to purchase an inexpensive home in Ohio for $10,000. Yep, that’s correct. $10,000. (You can see the Pro’s and Con’s of buying cheap homes on my blog here.)

With this one rental home, I make $550 a month in rent.

Instead of paying cash for the truck like I usually do, getting an auto loan for the new truck allows me to pay for it in monthly payments. The auto loan for a $30,000 truck is $500 a month. The one rental property is able to cover the bank payments every month!

The best part is after the truck is paid off in 5 years, I still own the truck AND the rental property that makes $550 a month!

Do you see how by just changing the way you think, you can afford anything you want? Think of it like a problem you need to solve.

Whatever you want to buy, do, have, all you need to do is change the way you think. If you want to be free and independent from a job, change the way you think.

I quit my job with passive income. You can too!

Give it a try – you might be surprised!

 

Change Your Mindset, Change Your Life

If you want to be like the rich, you need to learn how to become rich.

More importantly, you need to start THINKING like the rich.

Implement all these things into your life and you will become rich.


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This Is How to Become Rich and Wealthy