Once, I watched this simple yet powerful video, “what the Wealthy Buys on Pay-day”.
It is created by Tim Sales and it illustrates this wonderful concept of how to be Wealthy. It is not really the amount of income that a person makes which decides if this person becomes Wealthy, but rather, what he/she does with the income that comes in.
In summary,
1) The poor buys “stuff”, things people buy and do not really know why they buy it for.
2) The middle class buys “liabilities”, which are things that you will have to continue to finance out of your pocket once you buy it. E.g. are like cars, boats, houses, timeshare program, a the latest electronic gadget etc etc… which once you buy, you will have an increase in your monthly/ yearly expenses. That is why the middle class are the most ‘stressed-up’ people, having tonnes of expenses and bills to pay every month. These people have the highest monthly expenses. Please do note that these can potentially become “assets” as well… if you know how to turn them into assets.
3) The wealthy buys Assets. Assets are things that put money in your pocket, as simple as that.
Some very common assets known to most people will be fixed deposits, annuities and bonds.
Once you buy these assets, money will be generated for you on a yearly/ monthly basis.
More savvy investors can make their money work harder. Compared to fixed deposits, annuities and bonds which typically gives a rate that does not even match inflation, stocks, real estates, land, commodities have a better track record at beating inflation and making your money work harder.
That being said, if you DO NOT have the Proper “Education” regarding these classes of Assests, i rather you delay your ACTION to buy them.
People who “anyhow” buy these assets may end up buying themselves sleepless nights and a dip in their investment/savings jar. So if you are ready to take Action – Invest in yourself first, by becoming more Financially Intelligent.
In this blog, I want to share what has created results for me. I understand that there are many different types of investments such as precious metals, wine, land, paintings etc etc, and I want to share with you those that I have created results in. Many years back when I was in the university business school, I was taught by Professors who never had businesses and do not invest. That is why I did not learn how to build businesses and how to invest from them. Subsequently, I had the good fortune of meeting real businessmen and real investors who had results and they mentored me.
Personally, the assets I buy (currently) are:
1. Stocks
2. Real Estate
3. Land banking
These assets have been working well for me and i enjoy the cashflow coming from each of these assets.
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To your dreams,
Mind Kinesis Research Team