The Money Cycle: For Richer or For Poorer

This post will talk about the money cycles of the world and will aim to help readers figure out how to create wealth for themselves as simply as possible.

 

There are two main cycles of money, the ‘Least’ cycle and the ‘Wealthy’ cycle. Both cycles involve a source of income, liabilities, taxes and expenses. What separates the two is the added structure in the cycle of the wealthy that aids in the building and sustainability of wealth. This structure involves paying yourself first which means putting aside 10% or more of your income before it gets taxed from you and investing it into assets that provide cash-flow and capital. This initial investment starts to create passive income for itself which then gets reinvested into assets that ultimately create more wealth. For those of you living in the ‘Least’ money cycle, the way to your riches is by moving into the ‘Wealthy’ money cycle.

 

Here are two diagrams of the cycles:

Posted By Michael Campbell