We have not been educated properly when it comes to money. Why do our school systems teach us nothing about money? Money is definitely the lubrication to allow you to pass through life easier. Most of us are taught to go to college, get a 8-5 job with good benefits & invest in the 401K. These ideas may have worked for our parents in the Industrial age, but will this work for our best interests, in the Information age?
Since I was 9 years old, I have fantasized about owning a professional sports team, owning my own yacht, circumnavigating the world & becoming ultra rich and wealthy. I made a personal decision that I wouldn't depend on anyone else for financial support. We have all been fed the saying, "It takes money to make money." Is this actually true? I believe this statement is detrimental in the development of our financial decisions. Why do securities (a safe job with benefits) turn out to oppose my individual freedom. If you work your whole life in a corporation, you will be dependent on others, spend your money, and be broke. I'd rather invest in myself and be in charge.
I was that student athlete who went to a University to continue my education but also because I loved the game of baseball. It was a way for me to continue doing what I had always loved to do, which was to play baseball. As I went through the motions of showing up to class and getting my grades to where I could receive a college degree, I knew eventually I was going to have to grow up and become that entrepreneur that I desired to be when I was a child.
I believe most of us understand the growing problems of student loan debt and how its surpassed credit card debt in our country. The problem lies where our education system hasn't been able to keep up with the changes in time. Financial knowledge, would be key in developing a better world. I recently reviewed a presentation called "Your Guide To Wealth" by a very popular man that goes by the name of Robert Kiyosaki. He is very well known by professionals as his publication "Rich Dad, Poor Dad" has reached millions and the effect he has had on the entrepreneurial world has sparked so many to gain control of their financial life and biggest concerns.
One of the biggest reasons people are having trouble, is that most people don't know the difference between being wealthy and being rich. Wealth is measured in time and rich is measured in money. So if you have 10,000 dollars in savings and your expenses are 1,000 dollars a month then this means you are 10 months wealthy. You can survive for 10 months. Most people are afraid they don't have enough wealth and that they will run out of money during retirement.
Robert also describes what knowledge's people should possess in today's times of economic trouble. The 3 knowledge's being Academic knowledge (the basics), Professional knowledge (Specialists (CPA, Lawyer)) & Financial Education(Money).
It all starts with vocabulary and the definitions of the words we use. When you get a mortgage for your house, people tend to call their property an asset, when in reality, its an asset to the bank and a liability on you. Never call a liability an asset.
You don't want to work hard for your money, you want your money to work hard for you. When listening to Robert, he lists what he calls the cash flow quadrant. The quadrant lists employees first then self employed or small businesses, then big businesses or business owners and then finally Investors. Robert elects to share financial knowledge to allow us to understand how most of us have been living an extremely harder life than we really have too. Robert speaks on how you should work in the Business owner quadrant where you will have a team of people working for you, where you can take profits and carry over to the Investing quadrant. This of course, is where your money will begin to make money, thus obtaining Cash Flow. The goal is to be able to get paid from the Investing Quadrant so you can spend your time where you need to.
- Work Hard
- Save Money
- Get out of Debt
- Invest for the long term
- Diversify your portfolio
While this is not entirely bad information, the point he makes about the crashes of the stock market at the turn of the century, cost small business investors from 2000 to 2004, an estimated 7 trillion to 9 trillion dollars while wall street paid out some of the biggest bonuses out in history. Over the last 20 years, things have certainly changed and what you will find out is that savings, stocks, bonds & mutual funds are the riskiest of all investments & people actually think these things are safe. Since we went off the gold standard in 1971, our money turned into currency. The currency is designed to lose value, so our government can keep running up debt. The debtors win, when the value of the dollar loses its purchasing power. Point is, why save your money when the money your saving is losing you money by design.
So in order to gain further understanding, we have to understand that these institutions are spitting out students with very poor cash flow. Robert learned from the "Monopoly" game as a child. If you remember the game, one of the main objects was to purchase 4 green houses to trade in for a big red Hotel. This financial plan that Robert followed thoroughly, should be exactly what every entrepreneur should shoot for.
We need to understand that we have to go from a passive investor to an active investor if you want to eliminate risk of losing your money. You eliminate risk by taking control of your investments. Take time to understand how to read into a company's financial statements and cash flow. If you take control of these 6 financial Investor controls you will find yourself controlling your financial future. The 6 controls are Income, Expenses, Assets, Liabilities, Financial Management/Education & Insurance. Begin to learn more and take action and you will begin to reap the benefits of having your very own cash flow.
My passion is driven by my appetite to help others achieve their so desired dreams. Intelligence is finding the right life for yourself. Not everyone will succeed in becoming a doctor, a lawyer or an accountant, but everyone can learn to work with a team of individuals who can let your creativity shine. So instead of knowing a lot about a little, you should push to know a little about a lot. I can't find what I am good at until I have the courage to find the environment where my genius can come out. Do what you know God would want you to do and you shall find the environment you're looking for.
I recently found my environment where my unique ideas and creativity can shine. I can finally start to control my investments because I decided to stop being lazy. I found that knowledge itself can provide all the assets you need to make money to gain wealth. After all education pays, or at least it is supposed too.
This next picture can help even the poorest man to become wealthy. If you don't have your health, your wealth means nothing. If you enjoy your money, you need to take care of your health.
Decide now which person you would like to be:
Even if I had absolutely zero dollars I would find a way to be Person A rather than Person B.
If this seems like a stepping stone for you to get closer to your dreams and away from the corporate shackles, please feel free to contact me through the information provided below. I am in the global search for entrepreneurial talents who are looking for more family time & financial freedom to enhance their efforts through multiple streams of income, thereby leveraging and compounding their assets.
Published by Jeremy Wilson
(859) 539-1513
JeremyWilson@CampaignForNutrition.com
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