HOW TO GET RICH
You would have wondered why some people become so rich and some people so poor? Let’s understand.
There was a boy named Robert having 2 Fathers, don’t take it wrong, first one was his own father and the second one was his friend’s father who usually treats him like his own son. His first father has done Ph.D. and the second one didn’t even pass class 8th. Both were very hard working and smart but were of different thinking and both used to advise a different thing to Robert. The First one used to say The Money is the reason of all bullshit but the second one used to say lack of money is the main reason of every bullshit. First one always uses to say no for the expensive items to Robert as it is out of our Budget, the second one used to say Robert should think a new to buy those all expensive items which will make his mind sharper and will give him new ideas as well. The first one used to say study carefully and work hard so that you would get a good job in MNCs to become rich. The second one says study carefully and work hard so that you would be able to build your self to provide jobs other people.
Robert was having an advantage of having different thinking of his both father as he saw growth, achievement, and lifestyle of both. He used his brain and followed the instruction & advice of his second father which made him no. 1 rich people of Miami Florida and made Billions, on the other hand, his first father always remained the same financially.
One of the important point Robert learn from his second father was Financial Literacy which means the difference between assets and liabilities. It’s not the one which a commerce student study in their course. Robert has described this in very easy words which are like Assets are those which create Money or gives cash flow in and liabilities are those which reduce or money or take your cash flow out. Rich people are rich just because they create assets and all the middle-class people expense only on liabilities. For ex. Ramesh and Suresh were two friends. Both were in the same situation at the same position and same salary. Whenever they get salary Ramesh used to buy new clothes, Mobiles, gadgets, bikes etc. which makes him to feel so rich but he was not able to understand that these all are just liabilities which is making his cash flow out and also affecting his money in future as maintenance and repairing also its will value will become less and will give nil money in return. But Suresh was not like this. He did not purchase these all items until it becomes very important for him to purchase. He used to save his money and expend in creating assets such as stocks, bonds, real estate and self-improvement . after 2 years Suresh became a billionaire and Ramesh remained the same with his less salary feeling himself unlucky and unfortunate and used to say less salary is the reason of being middle class.
Cash flow of a poor people is getting money and expanding it in necessities. A middle class has some different cash flow he gets income and expands it in necessities and liabilities hence there is not too much difference between middle class and a poor. Most of the middle class think that their house is their assets but it’s not true. Your house doesn’t create money unless you make it rented. On the other hand, the rich people have the cash flow like this, taking money and creating assets from that money and then they expend this money for personal consumption and hence they become rich because they increase their source of income
If you want to become rich keep this point in mind, it doesn’t matter how much you are earning but the important is how you are expending that amount.
You will have to change your mentality from a consumer to investor. People complain about their expenditure reason is low salary and if salary increases they will survive better but the problem is as income rise the expenditure also rises because higher incomes make you to buy more things like Mobile, house, car etc. which is nothing but a liabilities which will never let you become rich.