I am by no means an expert on money or business. Recently I talked about reading ‘Rich Dad, Poor Dad” by Robert Kiyosaki.
It really did have an impact on me and I’ve been thinking about how to use my dispensable income wisely. I thought of the ways money flow in and out of my life. As well as saving, which I can’t really afford to right now, I thought of four others.
Two are positive and two are negative. Two are extreme and can make or break you. The other two aren’t as drastic.
Plus is money that comes into our lives through selling something we already have. What we are really selling are valuable assets which are more valuable than we realize. The main one is time which is extremely valuable but we usually sell it quite cheaply. In my case this involves labouring on a building site for minimum wage while I could be at home using my time to start a business. Another example is a skill such as a builder building a house for money. While you are getting paid, like time you have to actually show up and produce every time in order to receive your money.
Once we get our money we usually spend it. Subtraction is money going out of our lives in small steps. These are usually essentials such as food but can include things we waste our money on such as a new TV or a restaurant meal.
Division is when we use money to buy something but it also takes money away from us on a regular basis in the form of bills, maintenance or credit. Kiyosaki calls this a ‘liability’ which includes a car, a house, sky/cable TV and addictions such as smoking. Liabilities can easily lead to debt.
Ã—Multiplication’s are the best things you can seek. These are ‘assets’ and when you buy them they keep giving you more money. This is how the rich get rich and they use money from their assets to buy more assets. According to Kiyosaki when you have enough assets then you can buy liabilities and luxuries.
I suppose it’s easier said than done and I have yet to buy any assets. At least I now know what to look for and I’m a bit more conscious with my money.
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