Many people are under the false impression that all millionaires, or at least the vast majority of them, inherited their money from family. In fact, only about 10% of American millionaires actually inherited the money they have, the other 90% made it on their own.
The question is how. What most people don’t realize is that there are only 4 ways of actually making money (if you aren’t lucky enough to have a millionaire in your family that gives it to you). This 4 Part blog series goes into a little bit of detail about all 4 ways because, frankly, understanding the basics of how to generate income is the best way to actually begin generating its. Enjoy.
The vast majority of middle to lower class in, earners make money by selling their time.
If you work at a job where you get paid for doing something specific, you’re selling your time to your employer. Now, to be sure, there are many very nice people who sell their time, and we’re certainly not putting those people down (or anyone for that matter).
The problem with selling your time is that, depending on your skills, it’s one of the worst ways to make money. In fact, in order to make a lot of money selling your time, you have to spend a lot of money gaining skills and knowledge. If you’re a heart surgeon, for example, you can make hundreds (or even thousands) of dollars per hour, but it’s also going to cost you about half a million dollars to get the education you need to do that, as well as about 10 years of your life.
On the other hand, someone who bags groceries at the grocery store, while no less of a person, gets paid less because practically anyone in relatively good health can buy groceries. The cost to learn the skill is zero but the amount of money you can make doing it is very little.
What that means is that investing in yourself, getting an education or learning skills is the best way to make more money if you sell your time. You don’t have to go to college to do that either. You can become an apprentice and learn how to be a plumber, electrician, bricklayer or carpenter, all of whom make a very decent living working with their hands.
If you want to earn more as an office worker, learning more computer skills or other skills that employers are looking for will also increase your value as an employee and allow you to make more money selling your time.
The key is basically to increase your value as a worker so that your time is worth more money, and you earn more when you sell it.