Many people will ask on how to earn money and how to invest it. This is the best question if you want to get out from the rat race. Getting out from rat race is not an easy task, it is not and overnight thing to do that by the next morning you are rich already and bye bye poor life. It needs discipline and determination and in fact your worst enemy here is no other than yourself.

There are many ways to earn money before you could invest it. If you are an employee then you need to pay yourself first like setting aside at least 10% of your monthly gross income. It might be very hard for you at the beginning but you will use to it later. If you feel that your income is not enough, try to stop other expenses like smoking, eating outside, coffee from canteen and you will be surprised how much you will save. Pack your launch too or better walk if the working area is walking distance. You will not only save money from fare but also your health because you exercise everyday. The point here is save, save, save as much as possible.

If you are self employed then you you can expand your business because nobody will stop you or will care your business but you. Expand it or maybe you could franchise it to other people if you master your business plan. Leveraging is the key here. In fact you have the advantage from employee because you are in the field of being independent already. Employee will become businessman first before they could become financially free. You are in the second stage ahead of the employee. Again save 10% or more from your gross income. You need to separate your business account from your personal account so that you will not touch your business money.

After you accumulate money from your business and job then you start investing by buying things that will generate income for you without much work or no work at all. Real Estate, stock, mutual funds, franchise business and other royalty are what we call investment and will produce passive income for you. If you have these kind of asset then you will end financially free.