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ASSETSDo you really know what assets are? Are you ready for the SECRET? An ASSET is “something that PAYS you money.” This is the definition known by the wealthy. Non-wealthy people think the definition is “anything owned that has value.” The SECRET is…the difference in these two definitions is a HUGE outcome in income. Examples include: real estate investments, businesses, websites, stocks and mutual funds. Buying several income-producing investments creates MULTIPLE STREAMS OF INCOME. This is powerful. Your money works for you. You do not work for money. A LIABILITY is “something that COSTS you money.” Examples of liabilities include your vehicle, credit cards, STUFF sitting around in your house, recreational toys and even your house. So, what is the BIG SECRET? Only pay for your liabilities with the cash flow from your assets. The more your investments grow, the more your cash flow grows, and the more liabilities you are able to buy. I found this secret in the amazing book, “A Happy Pocket Full of Money” by David Cameron Gikandi. It is OK to have liabilities (a house, a mortgage or car payment) as long as you have the cash flow from your investments to pay cash for it or to make the payments. THINK OUTSIDE THE BOX: Never use earned income from a job to pay for your liabilities. Use earned income from a job to obtain income-producing investments so you can replace the job entirely! You mean stop buying all the STUFF like what is in my garage and spare bedrooms and start buying income-producing investments? THINK OUTSIDE THE BOX: Do you think it is impossible to buy an income-producing investment? Do you assume that you don’t have enough money to buy a Business? …Did you know that a vending machine is a business? Do you know how Warren Buffet, one of the richest men in the world, started in business? He bought a pinball machine and put it in a barber shop. Then he made the most important decision…he didn’t spend the money the machine earned. He saved the money it earned until he could purchase another pinball machine, which he put in a different location. And on, and on, and on. He purchased something that continued to pay him over and over again. He purchased an income-producing asset. Buying a simple income-producing investment… -and investing the proceeds into another income-producing investment… -and investing the proceeds into another income-producing investment… -and investing the proceeds into another income-producing investment… -expands exponentially to become a fortune. What if you could start a small business? What would it be? The INTERNET opens the business world to almost everyone for a minimal investment. But just because you have a website doesn’t mean that anyone can find your site. Spend money on education, training seminars, books and new skills to know more about internet income, if you are interested in an internet business. My favorite book on this subject is "Multiple Streams of Internet Income" written by Robert G. Allen. The world is full of possibilities. All you have to do is CHOOSE the most appealing to you. Have fun along the way and watch your fortune expand as you enjoy the ride. To your success… What is Your Financial IQ?
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