CHAPTER 2:How Money Works

Many people want to be rich, but few understand how money really works. If you don't control your money, your money will control you. In this chapter, we'll break down the basics of earning, saving, investing, and multiplying wealth.

The Four Pillars of Wealth

To become a millionaire, you need to master these four key areas:

1.Earning Money – The more you earn, the faster you can build wealth.

2.Saving Money – Keeping a portion of what you earn helps you create a financial safety net.

3.Investing Money – Making your money grow through smart investments is the key to long-term wealth.

4.Multiplying Money – Using systems and passive income to make money work for you.

How the Rich Use Money Differently

Most people earn money and spend it immediately. The rich, however, follow a different pattern:

●They pay themselves first. Before spending on lifestyle, they set aside money for investments.

●They focus on assets, not liabilities. Assets (stocks, real estate, businesses) make money. Liabilities (cars, designer clothes, unnecessary debt) take money.

●They make money work for them. Instead of just saving, they invest in things that generate passive income.

The Power of Compound Interest

Imagine putting $1,000 into an investment that grows 10% each year. In 30 years, it wouldn't just be $4,000—it would be over $17,000! That's because of compound interest, where your money earns money on top of itself.

Action Steps: Mastering Your Money

✅ Track your income and expenses for one month to see where your money goes.

✅ Start saving at least 10% of your income every month.

✅ Learn about different investment options like stocks, real estate, or starting a business.