When it comes to building wealth, there are a couple of things that the wealthy do that the poor and middle class don’t do.
According to Bones Rodriguez, there are subtle differences between the rich and the poor and middle class. A New York City native, Rodriguez is an author, entrepreneur and actor. As an entrepreneur, he helps people build their own part-time online business so they can work from home and still earn an income.
Rodriguez says there is one thing that the rich do that the others do not that makes all the difference.
“It’s not about what they do, but what they buy,” he said.
Further, it is related to income and expenses. The rich also factor in liabilities and assets.
“The rich have different definitions of assets,” he said. “It is something that pays you.”
It comes down to this: income is money you make; expenses are the money you spend; a liability costs you money and assets pay you money.
For the middle class, monthly living adds up. Many people seek more things until they ultimately end up living on credit card that they pay a part of every month.
“Ultimately, their monthly debts catch up to their monthly income and they are trapped with what I’ve heard called ‘Golden Shackles,’” Rodriguez explained.
The wealthy don’t by items that become liabilities. They buy assets.
There also are assets that may not be immediately evident as assets. For example, Rodriguez notes that education can be an asset if you learn how to do something that can help you make more money.
The rich create wealth when they buy or create an asset that is a business, especially a business that can create passive income.
“They buy businesses that pay money and then take that money and buy another asset that produces more money,” Rodriguez explains. “That’s the recipe for wealth.”
Whether you are in real estate or some other endeavor, Rodriguez’ simple points offer a path to wealth that anyone can follow.