– simply because that’s the way the generations before us have done it, and
investing and looking after our own financial well being seems to be no
different at all.
home, the car, and all our modern gadgets and accessories before we are even
able to afford them. In fact we often would rather first spend all our money on
liabilities (those things that make money leave our bank account every month)
than we would on income producing assets.
In all honesty, I have fallen victim to this way of spending too, until I
recently re-read Robert Kiyosaki’s “Rich
Dad, Poor Dad”. A part of me feels that I should really be kicking myself
for completely forgetting this rather important lesson – if you want financial
freedom, then I highly recommend that this is something you really start to
apply to your life and spending habits TODAY!
for example look at buying a car – quite often this is one of the biggest liabilities
a lot of us will take on.
– and ask yourself this question seriously. It is actually something I have
started to apply very regularly whenever the wife and I go shopping, whenever
one of us looks at a “big ticket” item – usually the type the requires some
kind of payment plan, I ask “how can we afford it?”
the monthly instalments would be, and how much we would end up paying for the
product at the end of the day. You will absolutely amazed at how many times
adding interest almost doubles the end amount paid. If you can, rather choose a
lay-bye option, you might get your new items later than you would like to, but
you will save a lot of money on interest.
be paying for, I then ask, what income producing asset we can invest in that
will create the income we need to cover the expense of the item.
first invest in assets that will pay you the money you need to purchase
liabilities. Do a little research and see what you need to do to earn that
extra money. Perhaps you would need to add more rental properties to your
portfolio, or perhaps invest in more dividend paying shares, or grow a network
marketing business, take on more freelance work, etc… you can even be creative,
do a little research you may be surprise by what you can come up with.
practice to your spending approach, you will find that you are far less likely
to find yourself in a “spot of financial bother” later down the line when the
expenses on your liabilities far exceeds the amount of money that you have
actually invested in the audio version of “Rich Dad, Poor Dad” too… for me to
listen to a lot more regularly, I highly recommend that you do the same, click
on the image below to get your copy now.