Originally, I wanted to write a blog entry about working for money vs money working for me. While doing a bit of internet research, I discovered this quote from the book : Your Money Ratios by Charles Farrell.
The unifying theory of personal finance that the book proposes is:
As a laborer, you are paid a wage for … doing some form of work. You are exchanging work for money, which means you must labor for your money, and are thus a laborer….As a capitalist, you are paid not for the value of your labor, but for the use of your money. This payment can come in the form of interest, dividends, or price appreciation, but in one way or another, you are being paid to allow others to use your money. This is the essence of investing, and thus being a capitalist. If you hope to retire someday, you will need to become a capitalist–someone who generates income from their capital.
One paragraph completely summarized my various steps (1, 2, 3, and 4) on financial independence. I love it. I don’t think I can say it better so sharing this quote for today. I just ordered this book and added to my growing list of books to read.
I will strive to be a capitalist by investing in myself, investing my money, and investing in my family's future.
Ricky
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