Skip to main content

What Happened?

 Have you ever heard a story about a lottery winner who wins BIG… but then loses everything a few years later?

 

Or the sports star who’s popping champagne and kissing models at 21, but working at a carwash for minimum wage at 29?

 

Maybe you have that friend who thinks he’s a millionaire because his house, his luxury SUV, his fine wine collection, all add up to a million dollars.

 

Or the one that wants to become a millionaire, but she decided to get a loan, get an Ivy League degree, and then—maybe—get a “safe”, salaried job.

 

Financially ignorant people come in all shapes and sizes. But I won’t let you be one of them.

 

So, I want you to drill these three principles in your head:

 

#1. If it doesn’t put money in your pocket, it’s not an asset. The house you live in, the car you use every day, they take money out of your pocket. So don’t call them assets. They are liabilities.

 

Assets put money in your pocket, and the only real assets are: real estate, businesses, and paper assets (stocks that pay dividends, and some commodities.)

 

Rich people buy assets (ideally with debt, or other people’s money), and prefer to rent their liabilities.

 

#2. It’s not about equity, capital gains, or net worth. It’s about cash flow. That’s the money that comes in each month that’s left over, after accounting for expenses.

 

The minute your passive income is bigger than your living expenses, you’re financially free.

 

You don’t have to be a millionaire to start acquiring assets. But if you start acquiring now, you can be well on your way to becoming one. 

 

The average Jane or Joe with two investment properties producing $1,700/month in rent (and who only has $1,550/month in expenses) is already financially free.

 

While the “high net worth” suited-up executive earning $25,000 a month (who spends $27,000/month) is stuck squarely in the rat race.

 

#3. It’s not about how much you make. It’s about how much you keep.

 

This is how lotto winners go broke in a few short years. Cruises through the French riviera, watch collections, new cars, a new penthouse with a massive home theater… 

 

All of that is great, but the rich only get the lifestyle AFTER they have assets producing cash flow to support it. 

 

The financially ignorant get the lifestyle instead of the assets, then go broke.

 

What’s the takeaway from all this?

 

If you’re still reading, you’re well on your way to having the kind of knowledge that will make you rich. 

 

Now is the time to take action.

Labels:

Comments

Post a Comment

Popular posts from this blog

First of all is the Fed.

 Every week we talk about inflation calming down. This week there is a hint that maybe December’s interest hike might only be a 50 basis point move as opposed to the expected 75 basis point move.  This is why you’ll hear markets “cheer, everything is still going up. They're seeing an end in sight to these interest hikes. This is important because if one can reasonably assume the interest rate peak is going to be in February, then they can start deploying their funds accordingly.
4 comments
Read more

Why you should believe in Bitcoin 2023

  Here is why we think Bitcoin is making a comeback SOON! So, you better get ready. Bitcoin is about to make the “geniuses” at the Federal Reserve look, well…. Stupid.  Bitcoin  is “halving” and there is a great chance this could be a major spike in the asset's price.   But you need to be an early adopter to grab this opportunity.   What is halving?   It’s what makes the dollar look ridiculous!   While the Federal  Reserve an d Treasury are printing more money and devaluing the dollar, Bitcoin is doing the opposite.   Bitcoin is making it twice as hard to mine and thus slowing down the number of Bitcoin in the world.   Bitcoin is making itself more valuable.   Take lessons Powell, you might learn something!   To learn more about halving and profit from it,     Don’t be a Powell, ILLBERTIC
Post a Comment
Read more

NFT

  And this segues into our NFT section where Coinbase is adding support for PYR (the primary utility token of the platform). It's called Vulcan Forged. Remember, anytime you see an exchange listing, you should sell. Because the coin will pump, and nine times out of 10, probably 99 times out of a hundred, actually, the thing's going to fade back to the pre-listing price. For that reason, I do think this is going to fall back to $3. It did bounce to $3.30, which is about 10%. But that's always a great time to sell. You can always buy back in for 10% less in theory. But you have no idea if the market is going to keep it going but statistically, that's just what happens almost all of the time. We also have OpenSea launching on BNB Chain. Now the funny thing is I never thought of BNB Chain as a very NFT centric chain. Solano is the other bigger player, and Polygon is catching up. Also, a lot of these other chains like Avalanche are trying to get onto it, but it's not rea...
Post a Comment
Read more