Money is a form of power, but financial education is more powerful. There is a difference between being poor and being broke. Broke is temporary, poor is eternal.
Normal people live in the fear of finances, and have greed. They all want a safe paycheck at the end of the month. They end hurrying up all the time and stressing out every month. It's a vicious endless unhappy struggle.
Fear of losing money - prevents them from investing in assets or stocks because of the risk involved. Greed encourages spending money to improve lifestyle which may seem like a safer option to investing in assets.
Gain financial knowledge to end the rat race. Understand the difference between an asset and liability and start investing in assets. It is the fear of losing money that prevents ignorant people from investing in assets.
Financial education consists of - investing, debt, risk, accounting, compound interest, stocks and many more. Educate yourself. Start early, enroll in seminars and finance classes, read as many books as you can.
Crucial for you to get a mentor. Find someone who has already achieved something you want, and ask them to teach you.
We need to know how to handle and manage risks. Investing and stocks and bonds generates more income in a short amount of time. The rich focus on their asset columns, while everyone else focuses on their income savings. You can never win without having lost sometimes.
Keep a list of wants and don't wants. Your list can contain anything from "I don't want to end up like my parents" to "I want to achieve financial stability". This list will keep you motivated in the face of adversities. Spending money on yourself before settling your bills is also another way to stay motivated. This may seem counter intuitive but you will have a precise idea of how much money you need each month to meet your goals.
Pay yourself first and this will create extra pressure which drives you to look for creative ways to make more money. This will also help you to develop financial discipline, a quality common to all financially successful people.
(How to know the value of a product for the price you pay? )
Stay motivated by reading about the life of wealthy individuals like Warren Buffet, Bill gates or Mark Zuckerberg. Their stories of overcoming challenges and adversities will keep you inspired.
An asset is something that generates more money for you. While a liability costs you money.
Assets can be anything from bonds, mutual funds, businesses, stocks, and anything else which generates income, appreciates over time and can be readily sold.
Investing in assets makes your money work for you by passively generating income.
Assets generate more money for you, and once you have enough assets to cover your expenses, you can reinvest that money into further assets, generating a compound growth effect.
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A profession is not the same thing as a business. Your profession is whatever you do as your day job that pays your bills, buys groceries, and generally covers your cost of living. A business, on the other hand, is where you invest money and time to grow your assets.
To create wealth, you must build a business while you work at your job.
When your asset becomes your primary source of income, that is financial independence. Sound knowledge of taxes is crucial. The rich have a deep understanding of taxes, and they handle them essentially different that the poor and the middle class. Wealthy people wrap a corporation around their assets. By doing that, they can hire professional accountants and lawyers, which help them reduce taxes and protect them from lawsuits.
Employees earn, get taxed and try to live on what is left. A corporation earns, then spends everything it can, and is taxed on anything that is left. This simple strategy is one of the biggest legal tax loopholes that the rich use.
The science of money making money involves strategies and formulas that use the creative right brain side.
-
Fear - The author explains that he has never met a wealthy person who has never lost money, but he has met a lot of poor people who have never lost a dime. The lesson being - we need to learn to manage the fear of risks.
It is how to handle the fear of losing money, that makes a difference. Winners are inspired by failure.
Most people struggle financially because they play not to lose instead of playing to win.
If you are humble enough, you can learn something from each person that crosses your path and every situation you encounter.
The words "I can't afford it" shuts your brain down. "How can I afford it?" opens up possibilities, excitement, and dreams.
-
Conclusion
Money comes and goes, but if you have the education about how money words, you gain power over it and can begin building wealth.
Never hesitate to invest in developing your mind. If it is trained well, it can create enormous wealth.
Know the difference between assets and liabilities, and buy assets. Keep expenses low, reduce liabilities and diligently build a base of solid assets.
True luxury is a reward for investing in and developing a real asset. Keep in mind that real estate is a powerful investment tool for anyone seeking financial independence or freedom. If you get the opportunity to invest in real estate, take it!
Try this -
Connect with successful people in the business you are interested in and learn as much as you can from them.
Normal people live in the fear of finances, and have greed. They all want a safe paycheck at the end of the month. They end hurrying up all the time and stressing out every month. It's a vicious endless unhappy struggle.
Fear of losing money - prevents them from investing in assets or stocks because of the risk involved. Greed encourages spending money to improve lifestyle which may seem like a safer option to investing in assets.
Gain financial knowledge to end the rat race. Understand the difference between an asset and liability and start investing in assets. It is the fear of losing money that prevents ignorant people from investing in assets.
Financial education consists of - investing, debt, risk, accounting, compound interest, stocks and many more. Educate yourself. Start early, enroll in seminars and finance classes, read as many books as you can.
Crucial for you to get a mentor. Find someone who has already achieved something you want, and ask them to teach you.
We need to know how to handle and manage risks. Investing and stocks and bonds generates more income in a short amount of time. The rich focus on their asset columns, while everyone else focuses on their income savings. You can never win without having lost sometimes.
Keep a list of wants and don't wants. Your list can contain anything from "I don't want to end up like my parents" to "I want to achieve financial stability". This list will keep you motivated in the face of adversities. Spending money on yourself before settling your bills is also another way to stay motivated. This may seem counter intuitive but you will have a precise idea of how much money you need each month to meet your goals.
Pay yourself first and this will create extra pressure which drives you to look for creative ways to make more money. This will also help you to develop financial discipline, a quality common to all financially successful people.
(How to know the value of a product for the price you pay? )
Stay motivated by reading about the life of wealthy individuals like Warren Buffet, Bill gates or Mark Zuckerberg. Their stories of overcoming challenges and adversities will keep you inspired.
An asset is something that generates more money for you. While a liability costs you money.
Assets can be anything from bonds, mutual funds, businesses, stocks, and anything else which generates income, appreciates over time and can be readily sold.
Investing in assets makes your money work for you by passively generating income.
Assets generate more money for you, and once you have enough assets to cover your expenses, you can reinvest that money into further assets, generating a compound growth effect.
-
A profession is not the same thing as a business. Your profession is whatever you do as your day job that pays your bills, buys groceries, and generally covers your cost of living. A business, on the other hand, is where you invest money and time to grow your assets.
To create wealth, you must build a business while you work at your job.
When your asset becomes your primary source of income, that is financial independence. Sound knowledge of taxes is crucial. The rich have a deep understanding of taxes, and they handle them essentially different that the poor and the middle class. Wealthy people wrap a corporation around their assets. By doing that, they can hire professional accountants and lawyers, which help them reduce taxes and protect them from lawsuits.
Employees earn, get taxed and try to live on what is left. A corporation earns, then spends everything it can, and is taxed on anything that is left. This simple strategy is one of the biggest legal tax loopholes that the rich use.
The science of money making money involves strategies and formulas that use the creative right brain side.
-
Fear - The author explains that he has never met a wealthy person who has never lost money, but he has met a lot of poor people who have never lost a dime. The lesson being - we need to learn to manage the fear of risks.
It is how to handle the fear of losing money, that makes a difference. Winners are inspired by failure.
Most people struggle financially because they play not to lose instead of playing to win.
If you are humble enough, you can learn something from each person that crosses your path and every situation you encounter.
The words "I can't afford it" shuts your brain down. "How can I afford it?" opens up possibilities, excitement, and dreams.
-
Conclusion
Money comes and goes, but if you have the education about how money words, you gain power over it and can begin building wealth.
Never hesitate to invest in developing your mind. If it is trained well, it can create enormous wealth.
Know the difference between assets and liabilities, and buy assets. Keep expenses low, reduce liabilities and diligently build a base of solid assets.
True luxury is a reward for investing in and developing a real asset. Keep in mind that real estate is a powerful investment tool for anyone seeking financial independence or freedom. If you get the opportunity to invest in real estate, take it!
Try this -
Connect with successful people in the business you are interested in and learn as much as you can from them.
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