The Rat Race - Does school prepare children for the real world? "study hard and get good grades, and you will find a higher-paying job with great benifits." This phrase is not valid anymore, the rat race is what everyone tries to escape, yet 90% of people end up right what they wanted to avoid "The Rat Race."
Education By Rich And Poor - When we ask an educated person about what they recommend as a career, they say a job that pays well, whereas if we ask a rich person, he would say that working for others can't be a smart career option. The thinking differs; the rich don't work for money; they make money work for them. On the other hand, the poor always work hard for their entire life for one fixed job to receive their paycheque at the end of the month. Hence trapped in the rat race for their entire life.
Financial Literacy - Most people don't understand that life is not about how much money you make; it's about how much money you keep. Most receive basic education, even higher-level education, but what you hear from them is, "I need a raise, my boss does not pay well, I will quit," This is cause they dont have financial literacy. Some people end up happy even if they earn less; on the other hand, some may get the highest paycheque, they are always wining for more. This is the cause of lack of financial literacy, the school educates us to get a job, but the financial prospect is completely ignored.
Assets over Liability - What would you do if you receive a whole chunk of money overnight. 90% of you will get a house, a car, a fancy mobile etc. We need to know that this all are liabilities. We need to know the difference between an asset and a liability. All the items listed above are liabilities cause they tend to depreciate with time. Did you know the moment you drive your brand new car out of your showroom, its value depreciates to 70% or lower. This isn't an asset; assets are those items whose value increases with time. Stocks, real estate, gold etc. are proper assets. Focus on buying assets at an early age and not liabilities.
Invest over Save - The rich invest money; they make the money work for them. Saving isn't the best option at an early age. That time you should invest as you are capable of taking risks. Saving is important but don't put whatever you earn to your saving account. A smart person never put all his eggs in one basket. Invest in all kind of places, make money work for you. Saving should be done to attain some long term aim like retirement. As long you can take the risk go for it.
Business over Job - You can't straight away open a business. You would need to work, but the point doesn't just work. Work and what you earn buy assets from that money building your asset column strong. When you will have a strong asset column, cash will never be a limitation for you. Each penny will work for you that you put in your asset column.
Rich just dont become rich from nowhere, they work hard too, but most importantly, they work smarter than harder. Knowledge is key to success.
You must be logged in to post a comment.