Business By Hormozi #206: Learn to Make Money Before Making Your Money Make You Money

The Internet’s Misleading Advice

In today’s fast-paced digital world, many are bombarded with tips and tricks on how to turn their income into passive wealth. It’s all about creating systems where your money works for you, whether that’s through investments, automated businesses, or other passive income streams. But despite the allure of passive income, there’s a fundamental step that often gets overlooked: you need to learn how to make money first.

Before you can rely on your money to work for you, you need to understand how to earn it in the first place. This is the groundwork for all future financial success. Without a strong foundation in making money through active means, it’s incredibly difficult to create sustainable, reliable passive income.

Mastering the Basics of Earning

Making money is a skill that involves hard work, dedication, and a deep understanding of your market or industry. You need to have the ability to generate consistent income before worrying about how that money can be invested or used to create more wealth. It doesn’t matter how many people tell you to get rich quickly or promise easy investment strategies—the truth is, no one has ever built lasting wealth without first mastering the basics of earning.

Start by learning the key skills of your industry, whether that’s sales, marketing, programming, or any other field. Focus on improving your craft, delivering value, and mastering the art of earning money actively. Only once you’ve honed these skills should you consider branching out into ways to make your money work for you.

Building a Solid Financial Foundation

Learning how to make money first is about building a solid foundation. This foundation comes from your ability to earn, save, and manage your finances. The more you understand about generating income, the more you can apply that knowledge to other financial ventures. If you try to leap straight into passive income ideas without the proper financial skills, you risk losing the money you’ve earned because you haven’t learned the essential principles that guide sustainable wealth-building.

For example, investing without a solid understanding of how money works can be a risky endeavor. You may get lucky in the short term, but long-term success requires knowledge and a well-rounded approach to finances.

How to Progress From Earning to Investing

Once you’ve mastered the art of earning money, the next step is to start using that income wisely. This is where investing and building multiple income streams come into play. But to make your money work for you, you need to understand how to manage it effectively.

Focus on financial education that includes understanding how to invest, budget, and plan for long-term wealth. Make sure you’re saving and putting aside money to invest in ventures that can grow your wealth passively. Whether it’s real estate, stocks, or other forms of investments, the key is that these strategies will be far more effective once you have a steady income stream from your active earnings.

Conclusion

Before trying to make your money work for you, focus on learning how to make money. Once you’ve built a solid foundation of financial knowledge and earned income, you can then look into strategies that will allow your money to generate passive income. The ability to make money is the cornerstone of financial freedom—it’s what sets you up for success in the long run.