Most people sell their time to get a paycheck. And then they spend that money to buy the material things they want, forcing them to sell their time again, to get another paycheck. It’s a cycle they repeat every month.

Rich people on the other hand, use the money they make to buy assets that generate more money, which allows them to enjoy more free time, since their money makes money.

The takeaway: Rich people buy assets (stocks, real estate, businesses, and startups), poor people buy liabilities (cars, houses, bling, and gadgets). These are things that don’t pay you.