源慰慰,博慰慰(哂猟井)-及10嫗
梓囚徒貧圭�鮗� ○ 賜 ★ 辛酔堀貧和鍬匈��梓囚徒貧議 Enter 囚辛指欺云慕朕村匈��梓囚徒貧圭�鮗� ● 辛指欺云匈競何��
!!!!隆堋響頼��紗秘慕禰厮宴和肝写偬堋響��
I run into this young couple all the time。 Their names change�察�but their financial dilemma is the same。 They e to one of my talks to hear what I have to say。 They ask me�察 �Can you tell us how to make more money�拭─�Their spending habits have caused them to seek more ine。
They don't even know that the trouble is really how they choose to spend the money they do have�察�and that is the real cause of their financial struggle。 It is caused by financial illiteracy and not understanding the difference between an asset and a liability。
More money seldom solves someone's money problems。 Intelligence solves problems�察�There is a saying a friend of mine says over and over to people in debt。
;If you find you have dug yourself into a hole。。。 stop digging。;
As a child�察�my dad often told us that the Japanese were aware of three powers�察 �The power of the sword�察�the jewel and the mirror。;
The sword symbolizes the power of weapons。 America has spent trillions of dollars on weapons and�察�because of this�察�is the supreme military presence in the world。
The jewel symbolizes the power of money。 There is some degree of truth to the saying�察 �Remember the golden rule。 He who has the gold makes the rules。;
The mirror symbolizes the power of self´knowledge。 This self´knowledge�察�according to Japanese legend�察�was the most treasured of the three。
The poor and middle class all loo often allow the power of money to control them。 By simply getting up and working harder�察�failing to ask themselves if what they do makes sense�察�they shoot themselves in the foot as they leave for work every morning。 By not fully understanding nioney�察�the vast majority of people allow the awesome power of money to control them。 The power of money is used against them。
If they used the power of the mirror�察�they would have asked themselves�察 �Does this make sense�拭─�All too often�察�instead of trusting their inner wisdom�察�that genius inside of them�察�most people go along with the crowd。 They do things because everybody else does it。 They conform rather than question。 Often�察�they mindlessly repeat what they have been told。 Ideas such as ;diversify; or ;your home is an asset。; ;Your home is your biggest investment。; ;You get a tax break for going into greater debt。; ;Get a safe job。; ;Don't make mistakes。; ;Don't take risks。;
It is said that the fear of public speaking is a fear greater than death for most people。 According to psychiatrists�察�the fear of public speaking is caused by the fear of ostracism�察�the fear of standing out�察�the fear of criticism�察�the fear of ridicule�察�the fear of being an outcast。 The fear of being different prevents most people from seeking new ways to solve their problems。
That is why my educated dad said the Japanese valued the power of the mirror the most�察�for it is only when we as humans look into the mirror do we find truth。 And the main reason that most people say ;Play it safe1' is out of fear。 That goes for anything�察�be it sports�察�relationships�察�career�察�money。
It is that same fear�察�the fear of ostracism that causes people to conform and not question monly accepted opinions or popular trends。 ;Your home is an asset。; ;Get a bill consolidation loan and get out of debt。; ;Work harder。; ;It's a promotion。; ;Someday I'll be a vice president。; ;Save money。; ;When � �get a raise�察�I'll buy us a bigger house。; ;Mutual funds are safe。; ;Tickle Me Elmo dolls are out of stock�察�but I just happen to have one in back that another customer has not e by for yet。;
Many great financial problems are caused by going along with the crowd and trying to keep up with the Joneses。 Occasionally�察�we all need to look in the mirror and be true to our inner wisdom rather than our fears。
By the time Mike and I were 16 years old�察�we began to have problems in school。 We were not bad kids。 We just began to separate from the crowd。 We worked for Mike's dad after school and on the weekends。 Mike and I often spent hours after work just sitting at a table with his dad while he held meetings with his bankers�察�attorneys�察�accountants�察�brokers�察�investors�察�managers and employees。 Here was a man who had left school at the age of 13�察�now directing�察�instructing�察�ordering and asking questions of educated people。 They came at his beck and call�察�and cringed when he did not approve of them。
Here was a man who had not gone along with the crowd。 He was a man who did his own thinking and detested the words�察 �We have to do it this way because that's the way everyone else does it。; He also hated the word ;can't。; If you wanted him to do something�察�just say�察 �I don't think
you can do it。;
Mike and I learned more sitting at his meetings than we did in all our years of school�察�college included。 Mike's dad was not school educated�察�but he was financially educated and successful as a result。 He use to tell us over and over again。 ;An intelligent person hires people who are more intelligent than they are。; So Mike and I had the benefit of spending hours listening to and�察�in the process�察�learning From
intelligent people。
But because of this�察�both Mike and I just could not go along with the standard dogma that our teachers preached�察�And that caused the problems。 Whenever the teacher said�察 �If you don't get good grades�察�you won't do well in the real world�察─�Mike and I just raised our eyebrows。 When we were told to follow set procedures and not deviate from the rules�察�we could see how this schooling process actually discouraged creativity。 We started to understand why our rich dad told us that schools were designed to produce good employees instead of employers。
Occasionally Mike or I would ask our teachers how what we studied was applicable�察�or we asked why we never studied money and how it worked。 To the later question�察�we often got the answer that money was not important�察�that if we excelled in our education�察�the money would follow。
The more we knew about the power of money�察�the more distant we grew from the teachers and our classmates。
My highly educated dad never pressured me about my grades。 I often wondered why。 But we did begin to argue about money。 By the time I was 16�察�I probably had a far better foundation with money than both my mom and dad。 I could keep books�察�I listened to tax accountants�察�corporate attorneys�察�bankers�察�real estate brokers�察�investors and so forth。 My dad talked to teachers。
One day�察�my dad was telling me why our home was his greatest investment。 A not´too´pleasant argument took place when I showed him why I thought a house was not a good investment。
The following diagram illustrates the difference in perception between my rich dad and my poor dad when it came to their homes。 One dad thought his house was an asset�察�and the other dad thought it was a liability。
I remember when I drew a diagram for my dad showing him the direction of cash flow。 I also showed him the ancillary expenses that went along with owning the home。 A bigger home meant bigger expenses�察�and the cash flow kept going out through the expense column。
Today�察�I am still challenged on the idea of a house not being an asset。 And 1 know that for many people�察�it is their dream as well as their largest investment。 And owning your own home is better than nothing。 I simply offer an alternate way of looking at this popular dogma。 If my wife and I were to buy a bigger�察�more flashy house we realize it would not be an asset�察�it would be a liability�察�since it would take money out of
our pocket。
So here is the argument I put forth。 I really do not expect most people to agree with it because a nice home is an emotional thing。 And when it es to money�察�high emotions tend to lower financial intelligence。 1 know from personal experience that money has a way of making every decision emotional。
1。 When it es to houses�察�I point out that most people work all their lives paying for a home they never own。 In other words�察�most people buy a new house every so many years�察�each time incurring a new 30´year loan to pay off the previous one。
2。 Even though people receive a tax deduction for interest on mortgage payments�察�they pay for all their other expenses with after´tax dollars。 Even after they pay off their mortgage。
3。 Property taxes。 My wife's parents were shocked when the property taxes on their home went to 1��000 a month。 This was after they had retired�察�so the increase put a strain on their retirement budget�察�and they felt forced to move。
4 Houses do not always go up in value。 In 1997�察�I still have friends who owe a million dollars for a home that will today sell for only 700��000。
5。 The greatest losses of all are those from missed opportunities。 If all your money is tied up in your house�察�you may be forced to work harder because your money continues blowing out of the expense column�察�instead of adding to the asset column�察�the classic middle class cash flow pattern。 If a young couple would put more money into their asset column early on�察�their later years would get easier�察�especially as they prepared to send their children to college。 Their assets would have grown and would be available to help cover expenses。 All too often�察�a house only serves as a vehicle for incurring a home´equity loan to pay for mounting expenses。 In summary�察�the end result in making a decision to own a house that is too expensive in lieu of starting an investment portfolio early on impacts an individual in at least the following three ways��
1。 Loss of time�察�during which other assets could have grown in value。
2。 Loss of additional capital�察�which could have been invested instead of paying for high´maintenance expenses related directly to the home。
3。 Loss of education。 Too often�察�people count their house�察�savings and retirement plan as all they have in their asset column。 Because they have no money to invest�察�they simply do not invest。 This costs them investment experience。 Most never bee what the investment world calls a ;sophisticated investor。; And the best investments are usually first sold to ;sophisticated investors�察─�who then turn around and sell them to the people playing it safe。 I am not saying don't buy a house。 I am saying�察�understand the difference between an asset and a liability。 When I want a bigger house�察�I first buy assets that will generate the cash flow to pay for the house。
My educated dad's personal financial statement best demonstrates the life of someone in the rat race。 His expenses seem to always keep up with his ine�察�never allowing him to invest in assets。 As a result�察�his liabilities�察�such as his mortgage and credit card debts are larger than his assets。 The following picture is worth a thousand words��
Educated Dad's Financial Statement
Ine=Expense
Asset ゞ Liability
My rich dad's personal financial statement�察�on the other hand�察�reflects the results of a life dedicated to investing and minimizing liabilities��
Rich Dad's Financial Statement
Ine 〃 Expense
Asset 〃 Liability
A review of my rich dad's financial statement is why the rich get richer。 The asset column generates more than enough ine to cover expenses�察�with the balance reinvested into the asset column。 The asset column continues to grow and�察�therefore�察�the ine it produces grows with it。
The result being�此�The rich get richer��
Why the Rich Get Richer
Ine ´〃 Assets ´〃 More Ine
Expenses are low�察�Liabilities are low
The middle class finds itself in a constant state of financial struggle。 Their primary´ ine is through wages�察�and as their wages increase�察�so do their taxes。 Their expenses tend to increase in equal increments as their wages increase�察�hence the phrase ;the rat race。; They treat their home as their primary asset�察�instead on investing in ine´producing assets。
Why the Middle Class Struggle
Ine goes up�察�Expenses go up
Assets do not increase�察�Liabilities do increase
This pattern of treating your home as an investment and the philosophy that a pay raise means you can buy a larger home or spend more is the foundation of today's debt´ridden society。 This process of increased spending throws families into greater debt and into more financial uncertainty�察�even though they may be advancing in their jobs and receiving pay raises on a regular basis。 This is high risk living caused by weak financial education。
The massive loss of jobs in the 1990s´the downsizing of businesses´has brought to light how shaky the middle class really is financially。 Suddenly�察�pany pension plans are being replaced by 401k plans。 Social Security is obviously in trouble and cannot be looked at as a source for retirement。 Panic has sei in for the middle class。 The good thing today is that many of these people have recognized these issues and have begun buying mutual funds。 This increase in investing is largely responsible for the huge rally we have seen in the stock market。 Today�察�there are more and more mutual funds being created to answer the demand by the middle class。
Mutual funds are popular because they represent safety。 Average mutual fund buyers are too busy working to pay taxes and mortgages�察�save for their children's college and pay off credit cards。 They do not have time to study to learn how to invest�察�so they rely on the expertise of the manager of a mutual fund。 Also�察�because the mutual fund includes many different types of investments�察�they feel their money is safer because ii is ;diversified。;
This group of educated middle class sub