I want you to look around at all the belongings in your home. How much have you paid for all the items? Your car, your couch, your computer, cell phones, the whole lot. If you could give it a number, what would that number be?
Ok, now let’s say something happens tomorrow and you have to sell it all. How much could you get?
Is it more than your previous number, or is it less?
If it’s less, then congratulations, you are part of the majority or as Robert Kiyosaki put it, the rich buy assets, the poor buy liabilities.
When we have a poor mindset, we make poor financial decisions. We get a loan to buy that fancy car. We max out the credit cards to go on holiday. Or we buy those overpriced clothes that we know we shouldn’t, just so we can look good to people who really don’t matter.
And I’m not saying I’m perfect either, in fact, no-one is. Learning to have that restraint takes certain level of discipline and the more you do it, the easier it becomes. Much like training a muscle.
But how do the rich buy such items because by all account, there’s aren’t enough hours in a day.
That’s the thing. They don’t work for their money. They make their money work for them.
And that’s what Robert Kiyosaki meant when he said the rich buy assets, the poor buy liabilities.
When you have a rich mindset, you’re more strategic with your money.
In fact, a friend of mine went shopping the other day and even when buying clothes she was strategic. She used her credit card to buy gift cards from the store, to accumulate points on her credit card. Then paid for her items using the gifts to accumulate even more points, and receive a discount, just for using those gift cards.
That right there is a rich mindset. It doesn’t matter what you’re spending your money on, your money should always work for you.
So how do you invest?
Well, you need to invest in yourself first.
Invest in your health, invest in your mindset, invest in your relationships, and most importantly invest in your financial literacy. Because though it may seem easier to give your money to an expert to make it grow, you need to understand HOW money works to ensure you’re making the right decisions and working with the right people.
The number of people I’ve helped who have told me that they’ve lost money in the past in property, or investing in general is too high and that is because they did not educate themselves first. In fact, here at JR Prosperity, we educate our clients so when we make recommendations, they understand exactly why we recommend that strategy and property.
Start with you, and I guarantee you’ll not only be more knowledgeable, but you’ll also expand your social circle. More importantly, you will learn to live more graciously and see more opportunities and be a lot happier because now you know exactly what you want and how to get it.