Debt Can Make You Rich!

Debt, in this context, refers to something owed, such as money, goods or services. It's the condition of owing.

For many years, I've known debt to be a bad thing and I've tried as much as possible to be debt free (I'm debt free). This is in line with the preconception that getting out of debt is ideal. Every financial expert would advise a client to get out of debt because debt is bad. After some research, I have realised that debt can also be a good thing and it can make you rich. Today, there's good debt and bad debt.

I know some people would be quick to point out that they know the difference between good debt and bad debt. I used to think so too. Growing up, bad debt was a jargon. We considered bad debt to be debt which would never be paid back. In an event where money was loaned to someone who'd not pay back, we often qualified the debt as "bad debt." Good debt on the other hand was considered to be debt which could be paid back. Those days are gone and my understanding of good debt and bad debt have changed.

According to Robert Kiyosaki, the difference between good debt and bad debt is simple - good debt makes you rich while bad debt makes you poor. Good debt puts money into your pocket while bad debt takes money from your pocket. In fact, debt can make you rich! How? Hear from the investor and financial guru himself - in the video below:




Make sense? The problem is, many people get into debt for all the wrong reasons - to impress. They get into debt and buy liabilities (things that take money from their pockets) - things like cars, boats, a Rolex watch on a credit card, a vacation on a credit card, cell phones, computers, you name it. Smart people on the other hand use debt to get rich. They buy things that put money into their pockets. In other words, they use debt to invest.

The bottom line is, debt can make you rich. But in order to make it happen, you need to know the difference between good debt and bad debt. Most people say, "get out of debt." If you ask me, get out of BAD debt!

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Passive Income: The Key to long term Wealth

Whenever I talk about money, many of my friends are quick to remind me that, "it's not all about the money". The truth is that life is theoretically not all about money. Practically, in the real world, it's all about the money. Believe it or not!

Everywhere I go, people spend the bulk of their waking hours working for money, yet they're quick to say money is not important. Without money you have no house, you have no car, you have no food, you have no medication, above all you and your kids would have no education without money. In fact, I don't know what on earth money does not affect.

We all aim to generate enough income to meet our needs. The problem is that many people know only one type of income and resign themselves to generating only that type of income. This is the case because it's the type of income many are educated to generate and it's the easiest and most convinient type of income. This type of income also happens to be the worst type of income. The question that arises here is, what is the most common and worst type of income?

Earned income is the the most common and the worst type of income. Earned income is income that is generated by working. It is salary or money made from employment. The downside of earned income is that if you're not working, you're not making any money. This means that earned income earners are condemned to working for money if they intend to have any money. Once they stop working or get fired (which is common nowadays), they make no money and they and their families suffer.

Many people consider earned income as a secured and safe type of income because no investment is required to earn it. On the contrary, I see it as the most insecure type of income because the earner has no control over it. Besides, it's taxed at a higher rate than any other type of income.

Prior to October 2008, I was trapped in the same mindset like many people and mistakenly thought earned income was the way to go. Needless to say, I was wrong.

I got involved in business on October 8 2008 and started researching on how people build wealth. I wanted to know why a sizeable minority of people become wealthy while the majority of people merely survive and live a life of struggle. I found out (among other things) that the type of income we generate determines whether we'd create long term wealth or not. Wealthy people understand that earned income would not create wealth. Hence, they build businesses that generate PASSIVE INCOME.

Passive income is money you get from your assets. For example, if you own a business that operates independently of your working for it. Once you set it up, it pays you whether you're still building it or not. Another example of an asset that can generate income is a pin ball machine. If you buy a pin ball machine, it generates income irrespective of whether you're there or not (Warren Buffet was once involved in this business).

Wealthy people invest in passive income businesses because it continues to pay them month after month long after they stop building the business. Some activities that generate passive income include:

• Multi-level or network marketing
• Rental income from real estate
• creating and selling intellectual property - books, patents, internet content etc.

It is impossible to find passive money businesses unless you're open to hearing about them. I got involved with my present network marketing company because I was looking for an opportunity to earn passive income. I would not have found the opportunity if I was not ready and open to hear about it. Once I found it, I researched it and it turned out to be what I've been looking for. Today, my business has expanded as far as Nigeria, West Africa. Guess what, this is just the beginning.

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Freedom is not Free!

Freedom is defined by the Merriam-Webster online dictionary as the quality or state of being free. It is the absence of necessity, coercion, or constraint in choice or action. Freedom also refers to liberation from slavery or restraint, or from the power of another. It means independence. It is worth mentioning that the word "freedom has a broad range of application and it's a very strong word.

All across the world, people want to be free. People want to be free from financial, economic, political or social restraint. Needless to say, freedom has a price and not everybody is willing to pay the price. If you want to be free, you must be willing and ready to pay the price for freedom. The question that arises here is, what do you want to be free from?

If you ask me the same question, I would tell you I want to be free from financial restraint. I want to be free from the restraints of having to work for money (that's why I do what I do). I understand I'm not free until I'm able to do what I want to do, when we want to do it and with whom we want to do it. Unfortunately, many of us are constrained by jobs and we don't really have a choice. We're not free! Whether you understand this or not, you have to realise that in order to be free you must be able to make money work for you or set up a system that generates income for you so that you'd have the time and freedom to do what you really want to do. You sincerely don't want to go to work, but you HAVE to. True or false? Unfortunately you MUST go to work in order to pay the bills. Are you free? The answer is NO.

You might argue that money is not everything. I perfectly agree with you. Life is not all about money. But, tell me something on earth that money does not affect. Money influences the school you and your kids go, the car you drive, the house you live in, the food you eat, you name it. The bottom line is, money is important but many people are in denial. Until we learn to have money work for us, we'd be constrained to work for money until old age renders us incapable.

My favorite song is about freedom. The song never fails to inspire me to get out there and fight for my freedom. It's a song by Akon entitled FREEDOM. You've probably listened to it before but take a listen again and pay particular attention to the lyrics:



Many of us enjoy good music but very few of us pay close attention to the lyrics. In case you missed the lyrics, FREEDOM by Akon is the story of a boy who left Senegal, West Africa for the United States in search for freedom. He had a talent in playing drums so he took along his drum and one other thing - a dream. He knew the world was up for grasp so he searched to find his freedom.

Freedom remains an illusive concept for many people but you can gain your freedom if you know what you want and you're ready to pay the price. Make no mistake about it, freedom is not free. That said, make sure you don't stop till you find you're freedom!

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4 Categories of People: To which Category Do you Belong?

You would agree with me that if your business or job (rat race) requires you to do presentations and meet as many people as possible each day, you have the bittersweet experience of meeting different types of people. It's a great experience because you interact with people and get their perspective on a variety of issues. It's also a depressing experience because some of the people you meet share their stories and expose you to some of the harsh realities of life... realities that cause you to have a rude awakening and remind you that life is not a bed of roses. It is no secret that people make lots of sacrifices just to put food on the table and support themselves and their families. A majority of people trade the bulk of their waking hours for money, with little or no time to do other things that are equally (if not more) important. Very few people have figured out how to strike a balance.

In the course of building my business and sharing the vision that we can do better than we think, I have traveled around a little bit. During my travels, I have had the pleasure to meet and work with many people. From my experiences and encounters, I can safely classify people into 4 categories. These categories include:

1. No money and a lot of time
2. No money and no time
3. A lot of money and no time
4. A lot of money and a lot of time

From the above categories, I am sure you can tell where you fall. Your level of success depends on the category in which you operate. Permit me to briefly explain each category.

1. No money and a lot of time. Many people have a lot of time in their hands but they are not using the time to generate any income. This is because most of them don't have any means of generating income. A good example of people who fall in this category are the unemployed - people who have no job, no business or system that generates income for them. Sadly, there is an unprecedented increase in the number of people in this category. This is a sign that the economic recession is taking no prisoners. The global economy is showing no signs of recovery and more and more people are losing their jobs and businesses. This leaves them with no money and a lot of time. This is not a good category to be in.
2. No money and no time. People in this category are mostly employees. They work for the state, an organisation or for someone else. These are people who exchange their precious time for money. They generate earned income (the worst kind of income). If they don't put in working hours, they don't make any money. In this category, people work very hard and put in extra hours of work just to be able to put food on the table, pay the mortgage, make payments for the car, credit card and other expenses. They work so hard that they have no time for themselves, their families and friends. They have to choose between spending time with their family and friends or exchanging time for money in order to make a living. On pay day, these people make some money but after paying all the bills, they are left will little or nothing. They live paycheck to paycheck and work a job until old age renders them incapable, leaving them with no choice but to retire with a meagre pension.
3. A lot of money and no time. People in this category work a job, make some good money but they don't have time to relax and enjoy what they work so hard to earn. I'm thinking about doctors, lawyers, you name it. Just like in any other job, if they don't show up for work, the consequences will be grave - they won't make any money and/or they would be fired. The bottom line is people in this category are employed and paid a good salary to get the job done or get fired. Society mistakenly thinks people in this category are rich. Yes, they make a nice big paycheck but the problem here is that if they are not exchanging their time, knowledge or expertise, then they are not making any money. Stress level is high in this category.
4. A lot of money and a lot of time. People who fall in this category are those driving the porsches and the mercedes, those playing golf on a Monday morning, those who spend all the time they need with their kids and watch them grow, those who leave a legacy for the kids, those who travel as much as they want to, those living the life they deserve. Chances are people in category own their own business or have set up a system that generates passive income (the best kind of income) for them so that they can have time and money to do other things that matter. They make their own rules, decide what to do and when, decide who they want to work with and as if this is not enough, they write their own paycheck.

I don't know about you but most people would like to be in category 4. The problem is many have been unable to figure out how to get there. However, there is some good news. I have my hands on an opportunity which has the potential to place ANYBODY with a good work ethic in category 4. It's a proven system. Believe it or not, we need opportunities and opportunities don't go away, they simply go to someone else who is ready. The question is - are you ready to take your game from the ordinary to the extraordinary? Don't let fear, indecision and doubt overpower you.

For tips on the business opportunity, watch this news clip - click here.

I invite you to comment below if you have a question, comment or suggestion. Warm regards!

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