Don’t work for money, let money work for you

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“Don’t work for money, let your money work for you” is that the most popular term utilized in the finance world. All of us know that no-one can become rich and stay wealthy by just working for money. But still many people don’t make their money work hard for them.

The most common reason is that many of us lack financial knowledge. From our childhood, we were taught that we’ve to study hard, earn a degree, and obtain a high-profile job to earn money. But unfortunately, we were never taught the way to make our money work hard for us.

According to the author of “Rich Dad & Poor Dad”, most of the people attend school but hardly find any way to make their money work for them.” As a result, they spend their lives working for money.

If you don’t find a way to make money while you sleep, you will have to work until you die.

Warren Buffett

Before going forward, first let us know who was Robert Kiyosaki and how his book, “Rich Dad & Poor Dad” help many people to become rich by making their money work hard for them

The Story of Robert Kiyosaki

Robert Kiyosaki is the author of the most popular book “Rich Dad & Poor Dad”. The book tells that he has two dads- his father & his friend’s father. One dad was rich and the other was poor. Robert Kiyosaki observed that both dads have different thoughts and opinion on the money.

Poor Dad says that “money is not so important” but rich dad says that “money is power”, money is important.

Poor dad taught him to study hard to get secure and high-paying job.

But the rich dad taught him to study hard so that you can buy a good company and create multiple job.

Robert Kiyosaki observed both dads and realized that different people have different thought for money. He understood the concept of investment, return, spending and earning from them. Finally, he realized that “if you have to become rich and successful then you have to make your money work for you.”

Financial Literacy

Financial education teaches a person about different aspects of cash. It teaches you the way to utilize your money and invest your surplus funds in such a way that it starts earning like an earning member for you.

In schools, we were taught how to study that we get a better job. But we were never taught how to make our money work hard for us.

This sort of education is not only provided in developing countries only. Even in the United States of America, schools and colleges are producing employees. As a result, people spent their entire life, working for money, working for someone else.

Understanding how can we make our money work for us is very important. There is no guarantee that you will get a good position in any organization and earn a lot of money. But if you under how money works then you can generate wealth regardless of where you belong, from which family you come, what is your education qualification.

Difference between Assets and Liabilities

To learn “how money can work for you?”, you have to know the difference between Assets and Liabilities.

The Assets and Liabilities mentioned by Robert Kiyosaki is different from the Assets and Liabilities which is been taught in our school.

According to him, an Assets is anything that puts money in your pocket even you are not working.

A liability is anything that takes money out of your pocket.

According to the book “Rich Dad & Poor Dad”, Rich people acquire assets, poor only have expenses and middle class acquire liabilities, thinking it is assets.

House: – Asset or Liability

According to the accounting concept, your house is an asset for you. But Robert Kiyosaki was not agreed upon it. In his book he told that your house is not an asset for you, rather it is a liability.

If you buy a house then you have to pay its cost. Your hard-earned money gets to lock-in that house, additionally thereto, you have got to pay various expenses like monthly EMI.

Your house is not getting to offer you any income until and unless you rent it out and earn rental income. It is an asset for Banks and Financial Institutions; they get monthly income from you within the sort of EMI.

Cash Flow Pattern

There are three types of people

a) Poor People

b) Middle Class

c) Rich Class

Cash flow pattern of Poor People.

Poor people always struggle for money. They hardly make enough money to satisfy their basic needs. Forget about any investment, they can’t save enough money to face any uncertainty in their life.

Cash flow pattern of Middle-Class People.

Middle-class people enjoy a way better lifestyle as compared to poor people. Their earning is far higher and a few of them have a high-paying job. Their earning is quite enough to satisfy their necessities. After meeting all their basic needs, they spend their money on purchasing luxury items like jewellery or expensive mobile-phones because they need to seem rich.

Due to the shortage of monetary awareness most of the people especially youngster hardly save any money for his or her future. Nowadays, thanks to the advancement of technology and tons of advertisements by various financial institutions many of us started saving money and investing them in mutual fund and other investment options. But their portion of the investment is far lower as compared to their earnings.

Cash flow pattern of Rich People.

Rich People invest their money and meet their expenses from the return of these investments.

They invest their money to acquire assets which bring more extra money in their pocket. They further invest this return to acquire more assets and in this way, they make their money work for them.

How can you make your money work for you?

Most of us belongs to a middle-class family and we all face financial problems somewhere in our life. In this situation investing money seems dream for us.

Fortunately, there are many investment options available where you can start your investment with little amount. Fixed Deposits, Recurring Deposits, Mutual Funds are the most popular options.

There are 4 ways by which you can make your money work for you


Budget is that the most vital thanks to handle your money. But unfortunately, it is the most ignored area in the step of making money. Once you start making a budget for your income and expenses, you start making your money work for you.

Your budget is a tool to help you to cut all the unnecessary expenses and help you to utilize it in the best possible way. Once you start making your budget, you will find a way to invest your money.

As soon as you receive your salary, transfer a small portion to another saving account or start investing through SIP or Recurring Deposit. During the initial few months, you may face some difficulty to manage your expenses from the remaining uninvested amount, but in the long run, this small savings will convert into huge wealth.

Eliminate your Debt

No one can become financially secure by having a debt burden. The cost of debt is far higher than the return from any investment. So, if you have got debt, your priority should be getting rid out of it.

Just imagine, how much extra cash you would have each month if you are completely out of debt.

Don’t keep an excessive amount in saving account

No one can rich just by keeping his money in a saving account. Saving accounts in India offer an interest rate of 3%-4% annually, which is far less than the average inflation rate. This means you’re simply losing the value of your money by keeping them in saving account.  

Save and Invest your money

No one can become rich just by saving money and not investing them. Only saving of cash isn’t enough, you have to invest them also.

But before starting your investment, you would like to secure some money for the emergency needs. Save your money for the emergency need for 3-6 months then start investing. You have to adopt a systematic investing approach or SIP approach. First, you don’t need to bother about investment. Second, thanks to their very nature, SIP gives you the advantage of rupee cost averaging.

As you start your investment it’s necessary to diversify your portfolio. You can invest in Fixed Deposit, Stock-Market, Mutual Fund etc., to diversify your investment. 


Next time when you purchase something to consider about assets and liabilities. Put your hard-earned money to work instead of paying EMIs.

Following are the assets where you can make your money work for you:

  • Start SIP
  • Recurring Deposit
  • Dividend Stock
  • Interest Paying Bonds

Soon your liability will shrink and your assets will grow and you’ll build wealth on the road of monetary freedom.


  1. Hi Mohit, I love Warren Buffet’s advice. He is so wise with money. Compounding is key to make more money and saving before spending is a habit that should start in childhood. I remember my grandfather always talking about it and showing me his accounts. Back then, interest rates were 18%. I wonder if we will ever see that again in our lifetime!

    1. Thanks Lisa, I know that the habit of investment should start from our childhood but unfortunately this doesn’t happen especially in India where less than 5% people do investment.

    1. Nothing is better than starting your own business. But doing Business is not so easy. You have to work hard and there is no fixed regular source of income in business.

  2. Yes! This post nailed it all down. My husband and I recently read the book Quit like a Millionaire and will def start investing so that we can retire early/well. I highly recommend this book (for those who are American or Canadian).

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