No, I am not telling you off.Â Â “Mind your own business”Â is one of the advices that you can find in “Rich Dad, Poor Dad” by Robert Kiyosaki.Â The meaning behind this is that you should focus on building on your own business; and your own businessÂ revolves around your asset column, as opposed to your income column.
I found this article by Sharon Lechter on motivation.blogharbor.com, which summaries the essence of this phrase very well.
Are you minding your own business? If you are an employee, it is not what you do from 8-5 that counts. It is what you do with your paycheck after you receive it that counts.In other words, what you do from 8 to 5 is your profession or your job. What you do with your paycheck is your business. Too many people rely on their employer or their government to take care of them.
Who are you working for?
Letâ€™s say you have a salary of $ 48,000 per year. In other words, you are paid $4000 per month to mind your employerâ€™s business. Then you receive your paycheck and it is for only $2500. The $1500 of withholding taxes is you minding Uncle Samâ€™s business. Then you have to make your mortgage payment to the bank of $1500, which represents you minding the bankâ€™s business. Oh, and letâ€™s not forget that credit card balance that you let get away from you. That $400 payment is you working for the credit card company. Another $440 goes for living expenses. What are you left with? At the end of the month you are lucky to have $160 for investment, thatâ€™s $1 per hour that you are earning working for yourself.
Salary: $4,000 You working for your boss Less: Taxes $1,500 You working for the government Less: Mortgage $1,500 You working for the bank Less: Credit Card $400 You working for the credit card company Less: Living $440 You working for your creditors Less: Net $160 You working for you!
It isnâ€™t how much money you make that counts, it is how much money you keep. Most people work for everyone else but themselves. Financial struggle is often a direct result of people working all their lives for someone else and at the end of their working days they have nothing left for themselves.
To become financially secure, you need to mind your own business. Your business revolves around your asset column, as opposed to your income column. Learn the difference between assets and liabilities and start buying or building assets. Assets include businesses, real estate and paper assets.
The rich focus on their asset column while everyone else focuses on their income column. Many people think we are telling people to quit their jobs. For some that may be the right answer, but it is not the right answer for everybody. We want people to take more responsibility for their own financial decisions. Realize that you have the choice with every dollar you receive, how you are going to spend it.
Start buying or building real assets, not liabilities or personal effects that have no real value once you get them home. Build your asset column and keep it strong. Once a dollar goes into it, never let it come out. Think of each dollar as your employee. Money in your asset column is money working for you instead of you working for money.
You can start minding your own business today!