The Wealthy know that they do NOT Work for Money.

If you have a wealthy mind-set, then I'm sure you understand the title.

If you do not understand the title, then you need to pay attention to this lesson.

It is true, wealthy people absolutely do not work for money. Wealthy people work to build assets that generate income which then adds to building further wealth.

When I started my business and worked long hours, took risks etc. I did not do it just to earn money, I did it so I could generate the means to purchase assets that generate more income.

My aim was to work to build an asset portfolio that would generate income that I could reinvest in order to buy more assets, to then generate more income so I could buy more assets, to then generate more income so I could buy more assets, to then generate more income......... Do you understand?

I was never working for the money... I was working to create an asset portfolio that would generate continual income so I would not have to work - ever again.

Your average person goes to work for 45 to 60 year of their life, working 8 or more hours per day to "make money" (some paying huge taxes for the privelege), so they can pay their bills, pay their mortgage, pay for holidays, buy a car, put food on the table and so on.

They will do this until they are in their 60's or 70's, or until some other factor forces retirement on them. At this point, life is on a permanent budget, as they watch the buying power of their limited retirement savings erode away due to inflation and daily living.

A wealthy person works to create an income producing portfolio of assets, where the assets also appreciate with time. The wealthy never have to be concerned about income, as they know that their wealth will actually grow over time.

Their assets grow in value as the years pass by, as does their income. As a result, inflation can actually be beneficial to the wealthy - which is the opposite to how inflation affects the average person.

A truly wealthy person will never run out of money even though they do not actually work.

Rather than watching their wealth errode over time, as does the average person, the wealthy person will have their net worth increase in value over time.

If you have read the other lessons, you will know and understand the following points:

1. Money is actually worthless. It is a creation made by man to facilitate transactions. Other than that, it has no intrinsic value.

2. Money (cash) loses value (buying power) each and every year at whatever the rate of inflation is. So why would you hold too much cash?

3. Assets (eg: property, stocks, commodities etc) actually increase in value against money at whatever the rate of inflation is.

4. Income producing assets (property, stocks, businesses etc) also increase in value against money by the value of inflation PLUS they have the added benefit of producing income while the value of the asset increases! The income can then be used to purchase more assets that then produce even more income.

5. The wealthy understand that working for money is pointless and increasing paid hourly income by working, is the most tax inefficient way of trying to create wealth. The highest tax is paid by the "employees" of the world.

6. The wealthy do not work for money to pay for their "liabilities" such as their holidays, cars, boats, holiday homes etc. Such liabilities are paid for by income from assets.

7. The wealthy understand the difference between an asset and a liability.

8. The wealthy understand the importance of compounding and time.

Money is not what the wealthy work for, income producing assets are what they work for.

Once a person has built their wealth by creating income producing assets, they then use these assets to provide the funding for their "toys" such as boats, cars, holidays etc.

The assets provide the income for the their lifestyle and future investing.

This is why the wealthy never work for money, and when they "retire", their wealth continues to increase into the future.