Today in this blog,I will tell you the key reason that why only very few people become rich and most of the people stay poor or middle class
Their was a boy named Robert who had two DAD’s. First one had a Phd degree and was his actual dad and other one didn’t even passed 10th standard .Both of them were very smart and hardworking but both had very distinct thoughts and both used to teach different different things to Robert.
1st Dad used to say that money is problem of every thing .But other used to say that lack of money was problem of everything.
1st Dad always used to say no to luxuries or expensive things but other used to say that we should think and make ways so that we can achieve those things this will help to sharpen his mind and will also get new ideas.
1st Dad used to say work hard on studies so that you get a well settle job in good company, other one used to say do hardwork gain knowledge but start your own company, so that you can generate more jobs for people.
Robert had a advantage he observed both of them and noticed their growth and success and used his mind and followed his second dad advice who became RICHEST MAN of Miami Florida on the other hand his first dad was POVERTY STRICKEN for life time.
He learned very important thing from his second dad and that was FINANCIAL LITERACY which means knowing the difference between Assets and Liabilities.This is different from normal Commerce thing. Robert says Assets are those things which generates money or fill your pocket and Liabilities are those things which vanish your money.
Rich people are RICH because they make their assets but middle class people always spends on Liabilities.
For example: Rajesh and Suresh were two friends who worked on same position in a job.Whenever they get their salaries.Rajesh used to spend on new cloths, gadgets ,bike or car which make him feel like rich guy. But he didn’t knew that all these things are Liabilities which is taking his money not only when he buys them but also on their maintenance which won’t fetch them any good or generates money they will simply depreciate.
But Suresh never used to take all these type of things untill and unless it was important to but. He used to save money and spends on assets like stocks,bonds,reals estates or for increasing his skills which helped him to generate money.
After two year Suresh became wealthy and on the other hand Rajesh still was cursing his low salary and gave excuses that low salary is the reason why he is middle class
Cashflow of a poor person is like. He gets money amd spends on neccasities.
For a middle class it goes like this.He geys his salary, he spends on neccasities and Liabilities that’s why middle class and poor are almost at same level. Mostly middle class think their house is their asset but it is not as it doesn’t generates money unless it is on rent.
For rich people cashflow is they get money they generates their assets first and then spends from that money that they will from assets. That’s why they kept on increasing because their source of income is increasing.
If you want to become rich then you need to remember this thing that it doesn’t matter how much you are earning ,it matters on how you are spending them.
You have to shift from consumers mentality to Investors mentality.People complain that their low salary is a problem when they will get promotion their problem will be solved but problem is when Income increasing expenses also increase.Because more money you have more luxuries will tempt you to buy them like better phone, car , house , which all are Liabilities which will restrict you to become successful and rich.