Go to school, get a good job, and then “work hard!” Typical advice we hear all the time. It’s even a compliment, “Oh that so and so, they are such a hard worker!” That is great especially if they are repairing your roof but the problem employees and self-employed professionals have is the harder we work, the more we pay in taxes. As our income goes up, so does our tax bracket and the longer into the year we pay Uncle Sam before we get a paycheck. This is where a major mindset change is required. Employees and self-employed individuals work hard for money. The rich – big business owner or investors – make money work hard for them. It seems that the status quo of people my age was get a good job, then buy a new car or pickup, buy a house, and buy expensive toys that get used less than ten times a year but require payments twelve times a year. As their payments went up, they worked harder and put in more hours. As we are trained through our traditional education, we focus on our income and increasing that number as much as we can. We’re proud of it. The problem is, one injury, transfer, shut down, you name it and it all comes tumbling down. The rich mindset is to focus on assets. This is a key term to remember. An asset is: anything you buy that provides monthly cash flow. This isn’t everyone’s definition, but it is mine and Robert Kiyosaki’s. If you work hard to buy assets, then those assets naturally produce the income to buy the liabilities or “toys” of life. Plus, you have a life raft should your job end suddenly. The real kicker is you even get tax breaks for some assets as well. Lastly, though the talking heads say incomes are on the rise, in reality incomes have been going down the last 10 years. As the Federal Reserve Bank has been printing money, those dollar bills now buy less and less. Even the dollar menu at McDonald’s is all but gone. So as your income goes up, it takes more and more money to maintain your lifestyle.