"Live Within Your Means."
Ever since we are young the working class has been told that we need to live within our means. What the hell is this supposed to mean? Growing up I accepted it and tried to apply it to my life. I personally think it was one of the worst pieces of advice anyone could have given me.
Like many of you I read the book, "Rich Dad Poor Dad" by Robert Kiyosaki. This book taught me many things but the one that applies here is below.
"My poor dad was frugal and thought that was a virtue. If he wanted a luxury item, he’d simply deny himself that item. He said, 'We can’t afford it."
My rich dad loved luxury and if he wanted a nice toy, he’d find a way to buy it. He wasn’t reckless with his money. Rather he was smart in how he made it work for him and used his financial education. He asked, “How can we afford it?"'
The take away is that if we want something we need to gather as many assets as needed that will produce the extra income to pay for whatever it is we want. We are taught to use credit to pay for non income producing things like a house or a car but we should be using credit to produce income to pay for those non income producing things.
At first it might be difficult to understand but I will give you an example. The working class was taught that we should buy a car with credit based on our current income. The wealthy take that same available credit and produce more income that pays for the car which has no negative effect on their income.
Instead of saving for a car, a house or anything else you might desire it is time you start making money work for you.
“To be a master of money, you need to be smarter than it. Then money will do as it is told. It will obey you. Instead of being a slave to it, you will be the master of it. That is financial intelligence” Robert Kiyosaki.
Some of you might think I am crazy to think this way. You might be right but if you are still working a job to pay your bills instead of investing your money and available credit to build your dreams then I say you are crazy.
