The key to financial freedom and great wealth.

 The key to financial freedom and great wealth is a person's ability to convert earned income into passive income and/or portfolio income. (Robert Kiyosaki).

People with so much money are usually tempted to think they can never be broke. Unfortunately this is not usually the case. I have personally seen people with so much money lose it all and become depressed. It has happened to many lottery winners , athletes, musicians etc. What would cause someone with millions of dollars lose all their money almost overnight?Unlike the lottery the pain hits differently when you have worked so hard to earn your money .

The sad truth is if one has failed to manage $100, they can't manage $1,000. And if such a person won $100, 000 they still won't manage and they will get back to zero. A wise man once said " If all the money in the world was distributed equally to everyone in the world, after some time, the money would still go back to those who had more." .That is simply because money stays with those who know how to manage it so when you don't know how to manage it no matter how much you are given you will go back to where you were. That is why two people can have the same salary one will seem to do better than the other.

Mike Tyson earned up to $30 million per fight at the peak of his career. Some estimate he made over $300 million throughout his career.

After living an extravagant lifestyle, in 2003 Mike filed for bankruptcy with over $27 million in debt. I've heard people say if only I had such money I would do this and that yet they have bad debt with their income. That is already a sign of lack of financial discipline. It simply means with more money you most likely accumulate more bad debt.

We may learn from multiple stories as the one above. Most of them will lead us to the same conclusion. People may possess generational fortunes but if they lack knowledge they will destroy their wealth.

On the other hand, with knowledge you can make money and most importantly keep it. That is why Robert kiyosaki said " Its not the amount you earn that matters the most, it's how much you keep and make it work for you for generations". If one doesn't learn how to turn earned income into passive or portfolio income, they can never be wealthy. Yes they can be rich but can never be wealthy because they are trading their time for money hence working for money. As Warren Buffett said " If you don't find a way to make money while sleeping, you will work untill you die.

However despite going bankrupt, Mike Tyson managed to pick up the pieces and learnt how to manage money, Something many have failed to do . Many have ended depressed and in some cases, commit suicide. Today Mike Tyson's current net worth is estimated at $10 million.

We learn both from our mistakes and other people's mistakes. Don't wait untill such happens to you because you may fail to handle the pressure. Learn how to turn your earned income into passive income