| Some people think that to become wealthy, they | | | | 'liability', it won't take long until they wind up highly |
| need to live in a certain lifestyle and buy certain | | | | stressed out in a financial turmoil. In the end, the |
| things that the real wealthy people have. By doing | | | | middle class find themselves enslaved by their |
| so many of them would finally end up in a financial | | | | jobs because of the liabilities. It means they have |
| turmoil and are far from being what they had | | | | no choice than to go to work and make more |
| always dreamed of: real wealthy or simply | | | | money every month to be able to pay off their |
| financially free. | | | | liabilities. |
| The truth is, different people with different | | | | The problem with both the poor and the middle |
| financial conditions buy different things on payday | | | | class is, generally their income is dependant on |
| not because of how much money they have but | | | | their own effort/ time. The case with the poor is, |
| because of their particular mindset that drove | | | | that they exchange their time with their |
| them to buy those things in the first place. | | | | employers money -- while there is only so much |
| When the poor go shopping... | | | | you can do in 24 hours with your own effort. On |
| Poor people would go and buy the things we | | | | the other hand, the middle class exchange their |
| would simply call 'little stuff'. They buy things that | | | | high education and expertise with someone else's |
| are inexpensive (and sometimes useless) simply | | | | money. As soon as they stop 'exchanging' time |
| because they are inexpensive.The 'little stuff' | | | | and education, the money stops coming. |
| won't cost them much but it won't worth | | | | When the real wealthy go shopping... |
| anything to them over the years -- and because | | | | Real wealthy people would go out and buy things |
| the money was all spent on 'little stuff', this will be | | | | that we would call 'asset'. Assets are things that |
| the only thing they will have. | | | | pay you money. The example would be |
| Some people who are even less fortunate like | | | | investments, stocks, bonds, real estate,... Another |
| many in my own country, Indonesia, won't even | | | | example of asset is education. If you buy |
| have 'stuff'. When they go shopping on payday | | | | education and apply it to produce income, your |
| they buy food and maybe some clothes -- just | | | | education is an 'asset'. |
| basic things they need to survive for one month. | | | | Real wealthy people would always put aside a |
| The poor won't have enough money to save, let | | | | certain portion of their income to buy assets like |
| alone invest. So what comes in on payday, goes | | | | those. The wealthy simply spend their money on |
| out on 'little stuff' or food to survive. They simply | | | | things that can produce more money. |
| just don't educate themselves that their income | | | | If you want to become wealthy you have to find |
| could have been used to create more income -- | | | | assets that would earn you income and with the |
| and this has caused a lot of financial pain. Yet, it | | | | income, buy more assets to earn you more |
| does not need to be this way. | | | | income and so on. One example of affordable |
| When the middle class go shopping... | | | | asset you could buy is a business. Any business |
| These are successful people with well-paying jobs | | | | that creates for you passive ongoing income is |
| and great carreer. Because of this, society | | | | your asset. |
| mistakenly considers them as 'the rich'. The middle | | | | Passive income is income that requires little work |
| class would buy things that we would call 'liabilities'. | | | | or no work at all. This type of income is the |
| Liabilities are things that cost you money. A car | | | | income that you earned from work you did just |
| would be a liability -- you would spend money on | | | | once. |
| gasoline, insurance and not to mention the | | | | There are numerous of passive income creation |
| thousands of dollars of monthly payment for the | | | | opportunities. One asset that I have found (and is |
| new car. A house should also be considered as a | | | | affordable for me) is investing in my own small |
| liability -- although some people would call it 'asset', | | | | business, Success University. I find this an |
| we can't escape the fact that buying and owning | | | | invaluable asset because I have free access to |
| a house would actually cost you -- which makes | | | | the most powerful success oriented personal |
| this more a 'liability' instead of an 'asset'. But when | | | | development education, presented by over 50 of |
| you buy a house and rent it out and it pays you | | | | the world's greatest minds in personal |
| money regularly, then the house is called an | | | | achievement. The education that I get is applied in |
| 'asset'. | | | | my day job, causing me to earn even more |
| Typically, the middle class split their big fat check | | | | income than before. And the business opportunity |
| into two and one portion of it goes out to pay | | | | of Success Universityis just an outstanding asset |
| for the downpayment of a new car (or a new | | | | that allows you to earn money even during your |
| house) or anything that are actually 'liabilities'. By | | | | 14 day free trial. |
| the next month, they will have created another | | | | This article has been written in the hopes that it |
| thousands of dollars of monthly expenses for | | | | will be an eye-opening piece of information on |
| paying the installments. After this, they would | | | | managing you personal finances better. |
| want a new Rolex watch, or another car, or a | | | | Resource Box: |
| boat, or an expensive vacation. | | | | Dinar P. Wiria-Atmadja earns money as a student |
| The middle class may make big fat paychecks | | | | of Success University. She is also the owner of |
| because of their successful carreer. But if the | | | | Proven Map to Success & Financial Freedom. |
| money that comes in are constantly spent on | | | | |