How the Rich Make Their Money

There are several ways you can make money; however, when we look at how the rich make their money, it comes down to usually one thing: business. Yes, they may be prolific investors, but the vast majority of them made it in business. You may scream, “What about Warren Buffett?” But, he makes his money investing predominately in businesses.

By far the best way to make money is by being a business owner or entrepreneur. You have much more control over the outcome and there is no ceiling because you are not swapping your time for money. As an employee, you can only swap your time for money, so there is no leverage opportunity. Statistically, the vast majority of people make their money in business and then invest that money to create the wealth they seek.

Sure, you can make an income and invest that money too, but considering most people are struggling to meet their monthly commitments and pay their credit card debt, there usually isn’t a huge amount of money left at the end of the month to invest with. Business, on the other hand, provides a vehicle to create the money you need to invest in your future and have fun right now.

All you need to do is get the vehicle that is right for your market. Then, just implement some tried and tested protocols to ensure your business capitalises on its intrinsic opportunities and doesn’t tie you in knots.

One of the mistakes I see time and again is the enthusiastic and skilled technician who takes the plunge into business for themselves. This is a commendable and often a brave choice. Certainly, being in business is the best way to make money, but only if you set it up correctly, and know your strengths and weaknesses. Just because you’re a good joiner or an outstanding chef, that doesn’t automatically make you a good business owner.

The skills you need to run a good business will probably not be the ones that prompted the decision in the first place. When you start a business, you suddenly need to be a good salesperson, too, as well as a manager of people, an administrator and a planner.

It isn’t long before you never see the inside of your joinery shop. Instead, you’re fighting fires and doing all the stuff you’re neither trained for nor good at, all while trying to juggle this monster you’ve created called your own business.

But, it doesn’t have to be that way.

By taking the time to make sure you have the right vehicle, your business can create the lifestyle and money you dreamed of. The key to making money in business is to understand the genuine purpose of business. It doesn’t matter if you are a joiner or a chef or a construction magnate – here is the truth:

Level 1: Success

When I first opened my real estate company, I was fortunate to become successful. I focused on giving great service; however, I measured everything by statistics, like how many properties we sold in a month, and then I had an epiphany.

Level 2: Contribution

Although we were regarded as a successful business, I started to feel a little jaded. In those quiet moments late at night, I often used to think, “Is this all my life will amount to, selling a lot of real estate?” Then one day it hit me. The purpose of my life was to add value; to make a contribution, and that was when my business took off. Not long after that, people wanted me to talk on stage about how I did it.

Now before you run off into the sunset to make a contribution, I need to sound a word of warning. Yes, I get a huge buzz out of helping people, but there is nothing wrong with you having an amazing life in the process. You don’t have to do this in sackcloth and ashes

Do you have a desire for a better life, more time, more control and more money? There is absolutely nothing wrong with that. We’ve been brainwashed into believing that wanting more money is a bad thing – that it somehow makes us dishonourable. Nothing could be further from the truth.

It is okay to be paid to serve people, while you make their life more amazing. Have you ever been served by an extraordinary waiter or waitress? Someone who just loves what they do? I am sure like me, it brings a smile to your face and brightens your day. Yes, they should get paid.

Listen up. My investment properties are the best maintained in the entire suburb. They are in mint condition and yes, I genuinely want my tenants to have a great experience; however, they also need to fulfil a need: freedom for myself and my family.

If your business is doing well and you are making money, then by definition, you are serving the customer. You are quite obviously delivering something to market that is wanted, needed and appreciated, so you are doing a good thing – not fleecing people. It may be possible to fool people into buying a bad product once, but not twice, so the idea of business being a ruthless exploiter of vulnerability is out-dated and just plain wrong.

Here is the bottom line. If we are investors and business people, we need to add great value by solving problems for our “clients.” We also need to make sure we don’t have a lot of negative conditioning about making money. I find that when I mentor people, deep down they have a lot of negative judgments on the rich. Oftentimes, they are shocked when they discover this.

It’s hard to become rich if you have judgments on the rich. After all, how can you become that which you judge?

By Brendan Nichols

Brendan Nichols has the audacity to believe you should work a little for a lot and shows his clients how he averages three months holiday a year. He is financially independent and a best selling author, published by the giant publisher, Harper Collins. He has appeared in the media dozens of times and about a million people watched an exclusive ABC television documentary on him. He has trained tens of thousands of people, on three continents. He originally started from nothing and had several successful businesses before he was an educator. One of these businesses was a highly successful Real Estate project marketing company, where he launched major campaigns.Brendan’s specialty is showing you the steps to make more money and have an amazing life in the process.To get more information, go to www.brendannichols.com.