![]() The good news is that you don't have to start your own business to mind your own business. Knowing what I know now about running a company, I wouldn't wish that task on anyone. If you're an accountant, hire other accountants and build a bigger client base.Īt the end of the day, however, I don't encourage anyone to start a business unless they really want to. If you studied engineering, start a firm. Rather than go to school to become what they study, I encourage people to mind their own business by focusing on their asset columns.įor some, this means owning your own business. They manage or work for other people's businesses. The reality is that most people have a job, not a business. They are confusing their profession with their business. When I ask people what their business is, they generally tell me what they do. Their profession will earn them money while they mind someone else's business. They will become engineers, scientists, cooks, police officers, bankers, and so on. Their lives will revolve around finding a good wage to fill their income column while filling their liability column with all sorts of gadgets. Our current educational system focuses on preparing young people to get good jobs working for others. Of course, this is what they're trained to do. Many people have nothing to show for all their efforts at the end of their working days. Rich dad taught me, "Becoming rich and financially secure means minding your own business."įinancial struggle is often the direct result of people working all their lives for someone else. Middle-class people think a good job is a sure financial foundation, but it’s not. When middle-class people lose their jobs, they generally become poor people very quickly. Your biggest "asset," your home, becomes your biggest liability as you pay the mortgage each month and real estate taxes each year but have no income coming in. Your $1,000 golf clubs aren't worth $1,000 any more. And when that happens, you realize all the "assets" you thought you had are really liabilities. When downsizing happens, you no longer have income come in. The problem is that relying on others to give you a living is the biggest risk of all. When you have to cling to your job in order to survive, you're unable to take any risks. The problem for most people-the reason why most people struggle financially-is that they rely on their job for income rather than on their investments in assets. While it makes sense to make more money, it is only helpful if you use the money you make to purchase cash-flowing assets that in turn help you make more money. But the problem with these statements is that they focus on the income column of the personal financial statement instead of the asset column. In some circles, these are considered reasonable and sensible ideas. "I've been working a lot of overtime to make ends meet." "I'm going back to school for more training to get a better job." When I talk to people about their financial situation, there are a few phrases that I hear frequently: Investor- finally, by investing in assets, the only thing working is your money. Here, you have people using their time, energy and effort making money for you. The challenge here, however, is that if you stop working, you may stop receiving income.īusiness Owner - As a business owner, you’re the boss. Self-Employed - While being self-employed, you work for yourself,and though you don’t have a boss, your income depends on your working time. Let’s start with our cashflow quadrant, below:Įmployee - As an employee, you exchange your time and your effort for income. ![]() The lessons I learned from my experiences, successes, and failures allowed me to adjust my plan so that I could become financially free again by the time I was 47 years old. I had flaws in my plan, flaws that taught me some valuable lessons. ![]() The problem was that I immediately lost all that money. When I was a young man, I set a goal of being a millionaire by the time I was 30 years old-and I did. Do you have a job or a business? Are you working long hours to help someone else reach their financial dreams? Here’s why minding your business starts with building a financial foundation, and learning the difference between assets and liabilities. ![]()
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