Why do the rich get richer and the poor get poorer?
I started reading Rich Dad Poor Dad by Robert Kiyosaki a couple of days ago. I wanted to know what all the fuss is about. After all, Rich Dad Poor Dad is the #1 selling personal finance book of all time!
I honestly gotta give it to Robert.
One of the main ideas in the book is about making a clear distinction between “assets” and “liabilities”.
My simple take on it is this:
Whatever can generate an income on autopilot is considered an asset.
- Stocks, bonds…etc
- A business where leverage is implemented
- Real Estate ( if rented out)
- Precious Metals ( gold, silver…etc)
- Network marketing as a business (leverage)
….and so on.
Whatever is taking money out of your pocket without any return is a liability. (It’s anything that doesn’t belong to the list above.)
- Any toys. A brand new car ( You roll out of the lot and all of a sudden you loose 25% of it’s value) Ouch!
- Anything on a daily basis that you spend money on.
What you have to understand is the rich cover their expenses from the profit that their assets generate. The left over profit is turned back into the asset column for generating more profit. That my friends is an upward spiral.
The poor on the other hand live paycheck to paycheck. Known for their narrow mindset; they desperately want to appear rich. So they use credit cards to buy themselves a fancy car, with money they don’t have, in order to impress people they don’t like. This is what we call a downward spiral.
The poor work for money, while the rich have money work for them.
I know it may sound way too simple, but if you read Robert’s book you will see the basic theory of why the rich get richer boils down to this.
I wouldn’t say I’m rich, but I’m certainly headed in the right direction……
Let me tell you why…….
I stared investing in silver bullion (asset) about 2 years ago. About 6 months ago I decided to tap into the beauty of network marketing (asset). Robert Kiyosaki, Donald Trump, and Warren Buffet all say network marketing is the “business model of the 21st century.”
I was searching for a company to join when it donned on me: ”Is there a network marketing company that deals with silver and gold?” Oh yeah baby! Sure enough I found an MLM company that does just that.
Think about it! How cool is that?
A home based business that cultivates real assets and real wealth. What I discovered is not a weight loss juice, or a beauty product that has an expiration date LOL! I found something that has lasting value.
Think about it for a second: What would you want to have a garage full of? Weight loss products or silver? It may seem like a dumb question, but many people don’t see the opportunity that is staring them in the face.
The bottom line: In order to be financially independent you must make your money work for you. You gotta invest in assets and let your money do the work, because that’s what money does best.
That’s the reason I’ m into network marketing, and I joined a company that deals with silver and gold.
If you think the government or your “secure job” is going to take care of you, I urge you to think again. There are no guarantees in this world, but you can up your odds by taking full responsibility for your actions and decisions.
Now you know why the rich get richer and why I urge you to take care of yourself and your family.
And finally remember there is nothing good or noble about being poor. It’s like thinking that going to war is noble in any way.
Show me your alive!
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