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When are you wealthy? When are you rich? When are you classified as poor? When are you happy? That’s an interesting topic to discuss, don’t you think?
My definition of wealthy people
Wealthy people have an income from their assets that lies higher than their spendings on liabilities and daily costs. Besides their income from work, if they work at all, they can easily pay all their bills from the income of their assets.
My definition of rich people
Their income is higher than their daily spendings. But they are at the mercy of their bosses, the housing market and the inflation or devaluation of money. When their boss is firing them, they can get into big troubles easily. Or when the housing market collapse, their so-called “asset” is devaluating in price.
My definition of poor people
Poor people can no longer make ends meet. They do not own assets and they live from paycheck to paycheck. They have to work, sometimes 2 jobs to be able to pay their bills.
My definition of happy people
Satisfied people are happy people.
What brings in happiness?
You don’t have to be rich to be happy. There are happy and unhappy people in all regions. So, it’s not the money what makes people happy. However, the lack of enough money can make people very unhappy. The fear of not being able to pay the bills. But also the having of loads of money can make people very unhappy. The fear of losing the money can weight heavily.
What makes people happy?
There are 3 standard conditions:
- Health – Gratefulness to be healthy
- Love – Being in love, loved, or spending time with loved ones
- Shelter – A roof, basic needs
When one of the 3 disappears, people often can cope with the situation. When 2 out of 3 disappears, depression comes dangerously close by. When all are disappearing, people will be totally disrupted. You lose your job, you have to deal with illness and your marriage is on the rocks. Then, people who are in the category rich or poor, are losing all their securities. Only the wealthy people, who have taken care of assets, which brings in the security, will survive crises like this better.The difference between rich and wealthy people is the question: How many days can you survive without your income from a job? Click To Tweet
Assets vs liabilities
What is an asset?
- Stocks – After buying them they bring in money
- An extra house – Brings in money by renting it to others
- A camper – Brings in money by renting it to others
- Everything you own what brings in money
What is a liability?
- A house to live in – Cost money – Mortgage
- A car to drive – Cost money
- Everything you own what coast you money
You have no money, how to create assets?
Which assets can you create?
- You have a creative mind and you have invented something, you can apply for a patent.
- You can write a bestseller (Harry Potter’s J.K. Rowling)
- You can start a website – affiliate websites bring in money
#Assets vs #Liabilities read more
A Website As An Intangible Asset
What will be your investment?
- Training and education
- Domain name purchase
Training and education
When you are new in this kind of work and don’t know where to start, a thorough education is needed to create a solid foundation for your new business. It’s not just getting out there and the money flows in. You need to know how you can build, market and fill your website. My No #1 recommendation for a complete course, inclusive website, security, hosting and support is Wealthy Affiliate. Domain name purchases are there available too.
When you want to be taken seriously by Google, you do need to work with an owned domain name, not a subdomain name. You can purchase domain names everywhere on the internet. But there are huge differences in pricing, security, and hosting. You can buy from plain simple domain names, with no extra’s, to complete packages, with SSL security and solid hosting. The pricing is from about $2 to $20 a month.
Setting up a website, and get it going, cost time and perseverance. In the starting up period, you must count on 2-3 hours a day, studying and applying the learned material. The most convenient of getting yourself into this kind of online business is that you can do this in your own time at your own pace, next to an existing job.
I have a couple of websites running and they start to turn into assets for me. It turns out to be a good investment. And to get back to the definition of an asset: Everything you own what brings in money, makes my website fit in that category. I own my websites, and they bring in money.
3 videos to explain affiliate marketing, the Wealthy Affiliate premium membership, and the Wealthy Affiliate free membership.
How do affiliate marketing websites work?
When you have created a solid base for your online appearance, your website will get traffic and will provide profit, even when you are on a holiday for a couple of weeks. When the costs become lower than the profit, an affiliate website turns from a liability into an asset. Of course, it takes time, perseverance and effort to turn your website from a liability into an asset. But when you reach that stadium, you have grown from poor to rich into a wealthy person.
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