Many people ask for investing advices before they put their money into some form of investment. They usually focus on the kind of investment they have to make, thinking that is the major component in investing. Investing is not a product. Investing is rather a plan, and the reason why people don’t get rich is not because they are not earning enough.

It is because they don’t have a plan to become rich. The reality is most people plan to get poor. They work for their whole life and when they retire they have a plan to become poor. Whenever you plan, you should focus on making it Safe and secure, comfortable and it should be a plan to become rich. Most educated people have a plan to become safe and secure because of their pension plans. To be comfortable they may invest in real estate or pick and choose a stock.

There is a big difference between rich people who are employees, self-employed and businesspersons, even if they earn the same amount of money. It all depends on how the money is made. All of the above people make their money in different ways. Because of this the businessperson is miles ahead of the others. He is going to exceed the wealth capability because he has full control over how the money is made. As the employee and the self- employed have no control over how they make the money or the various entities, they can’t increase the amount of money they make.

Sometimes the employee makes more money in earlier life because of the safe and secure job. But if the businessperson understands and catches on, he can have a better income, because he can make more money and the tax is on his favor. Employees become frustrated when they know that they are stuck in the employee quadrant and they have to quit their job to get into the businessperson’s quadrant. While investing, it is important to consider the velocity of the money that we put in.

The velocity of investing tells us how fast we get the money back. For instance the money that is put in a pension plan is too slow in replacing itself. But if we think of money put in a piece of real estate, we can get the money back so fast and invest it in another property. Investments with a very low velocity have very little potential for growth.