One of the Biggest Fallacies in Life.
"Live Within Your Means."
Ever since we are young the working class has been told that we need to live within our means. What the hell is this supposed to mean? Growing up I accepted it and tried to apply it to my life. I personally think it was one of the worst pieces of advice anyone could have given me.
Like many of you I read the book, "Rich Dad Poor Dad" by Robert Kiyosaki. This book taught me many things but the one that applies here is below.
"My poor dad was frugal and thought that was a virtue. If he wanted a luxury item, he’d simply deny himself that item. He said, 'We can’t afford it."
My rich dad loved luxury and if he wanted a nice toy, he’d find a way to buy it. He wasn’t reckless with his money. Rather he was smart in how he made it work for him and used his financial education. He asked, “How can we afford it?"'
The take away is that if we want something we need to gather as many assets as needed that will produce the extra income to pay for whatever it is we want. We are taught to use credit to pay for non income producing things like a house or a car but we should be using credit to produce income to pay for those non income producing things.
At first it might be difficult to understand but I will give you an example. The working class was taught that we should buy a car with credit based on our current income. The wealthy take that same available credit and produce more income that pays for the car which has no negative effect on their income.
Instead of saving for a car, a house or anything else you might desire it is time you start making money work for you.
“To be a master of money, you need to be smarter than it. Then money will do as it is told. It will obey you. Instead of being a slave to it, you will be the master of it. That is financial intelligence” Robert Kiyosaki.
Some of you might think I am crazy to think this way. You might be right but if you are still working a job to pay your bills instead of investing your money and available credit to build your dreams then I say you are crazy.
Hello @hilarski,
Congratulations! Your post has been chosen by the communities of SteemTrail as one of our top picks today.
Also, as a selection for being a top pick today, you have been awarded a TRAIL token for your participation on our innovative platform...STEEM.
Please visit SteemTrail to get instructions on how to claim your TRAIL token today.
If you wish to not receive comments from SteemTrail, please reply with "Stop" to opt out.
Happy TRAIL!
Thank you guys!
@hilarski I FREAKIN' LOVE THIS POST!
word on this ...
reminds me of something that goes .." My money is ma' slave it works had for me and multiplies more money ... but then maybe because I also don't hate it. People unconsciously loathe it that it shies itself out on them..
am growing geese and playing cash flow with my friends every month .. you, too?
You bought the game?? I already played it on the app. That must be fun to play with your friends...:)
@liliana.duarte I played it on the app but it's way different.
No I didn't buy the game cause three of my friends already have them so we just meet up in one place to play for 3 hours. It's way different than the app and yes it's so much fun to play it! It'll teach you to really be good at making decisions at the same time train your brain to be decisive :) highly recommended :)
I think @hilarski would love it since I've read on the thread that he actually has experiences with real estate. The only thing is that it's very American .. concept wise. We could still apply a few situations in Europe and the idea of doodad will really make you understand the short cut of being financially free and no it's not winning the lottery or getting a huge inheritance. It's earning while sleeping and spending less than what you are earning and I don't mean being frugal nor thrifty .. as to how that works I suggest that you keep playing the game in the app you'll figure it out there, too.
Good luck!
You are lucky to have a bunch of friends that cares about this subject and plays (practice) with you. I'm needing that kind of friends!
@liliana.duarte yes I think so, too specially that they are the kind who are very supportive. Actually, the last time I got out of the rat race was because my closest friend among that circle helped us all. Instead of getting out to the next level she stayed inside so she could help us.
I think you're on the right track now.. since you're already playing the game ..ask the universe you'll soon attract them :)
Have you been out of the rat race in the app? If not yet .. I'll share you the secret to do so ;)
I played it about 1-2 years ago. I understood the mechanics of the game. I easily get out of that rat race and soon feel bored with the game...Though it was fun to discuss some of those topics with my beloved one. :p It's a lot harder in real life!
I grew up hating money. Now I do exactly as you say. I have never actually played the game just read all the books.
@hilarski I did, too till I read that freaking book and met T.Harv Eker and Nisandeh Neta.. life changer ..
As for playing the game it's freaking financially educational.. such a learning experience but then better play it with people who have the same mentality as you do .. then it's more fun. I've been out of the rat race several times in the game.. in real life ... still working on it.
The secret (now divulged) is to simplify!
It doesn't mean sacrificing or depriving yourself - just managing your money properly. I'm still not an expert of it.. still practicing ..my husband is and luckily he infected me hahaha
I did the same with my wife. We bought the book in Spanish. She is loving the new knowledge she is learning.
@hilarski Lucky us!
Regards and much luck!
Knowledge is freaking power!
Well done, i like the part about job, really job is a financial prison even if we liked it or even enjoyed it
Nice concept, our attitude with money determine who is in control, $ or us
Thnx for sharing @hilarski
It imprisoned me for many years, now we are free!
Till now i am a prisoner, i like my job (at least most if the year) but it don't secure me and my family financially. I wish some day i will work because i like to work regardless of the salary.
I hope we will be free like anything with blockchain.
Crypto can send us all free :)
It sure can, just a few good investments and being part of startups can change our lives.
inspirational bud!
Really, really, really good!
You got that right. The more I work the more I find that time is my most valuable commodity. It makes me think about investing in passive income all the time.
Fact!
I guess one of the things I am grateful to my father for teaching me is that "cash flow" is typically more important than simply "a pile of money." As long as you have adequate cash flow, you can usually make things happen.
That is the key, once we understand the power of cash flow it changes our lives.
Tweeted @RandyHilarski
https://twitter.com/RandyHilarski/status/838768370250039296
Disclaimer: I am just a bot trying to be helpful.
Great advice Randy. The only thing I am beginning to question is about building available credit.
I see where you are coming from and as a real estate investor in a past life, see where it was vital. I never could have purchased real estate without it. But I'm also finding the cost of "building credit", at least in the traditional ways, is too high.
In too many ways it requires selling your soul to the central banks, and a time is coming where that soul you sold could be completely devoured by them.
I see a future where credit can be built on blockchain technology and outside of the regulated banking system. In fact, that is already happening with alternative funding sources.
So maybe instead of building credit, we should focus on building credibility. That way we can use those other funding sources to fund our our ideas, without selling out to the enemy :-).
Absolutely building credit in the traditional respect is getting very difficult. Especially for those of us who started from scratch in a new country but I know it can be done. Crypto is the path that we chose and it is paying off.
This post has been ranked within the top 10 most undervalued posts in the second half of Mar 06. We estimate that this post is undervalued by $26.65 as compared to a scenario in which every voter had an equal say.
See the full rankings and details in The Daily Tribune: Mar 06 - Part II. You can also read about some of our methodology, data analysis and technical details in our initial post.
If you are the author and would prefer not to receive these comments, simply reply "Stop" to this comment.