The Way We Think
This chapter will give you tips on how to think about cash the way the wealthy do. It will help you become financially smarter also.
The greatest misconception about being wealthy is that you have to flaunt your wealth to show individuals that you're wealthy. Believe it or not, there might be millionaire families on your street and you'd never know it.
That's because most millionaires look like regular individuals who don't flaunt their wealth.
They own regular houses and automobiles. They might have a few luxuries but most average millionaires can't be spotted on a daily basis as they prefer it to be that way and don't show off their wealth.
You have to memorize the difference between an asset and a financial obligation. An asset is something that puts cash in your pocket without you having to execute much work for it.
A financial obligation is something that takes cash out of your pockets and doesn't put cash in your pocket. If you wish to be wealthy, you demand to acquire as many assets as possible and do away with as many financial obligations as possible.
The wealthy are concerned with educating their youngsters on the importance of having a good financial education as opposed to a common, more traditional education youngsters are taught in school.
They know their youngsters aren't going to study financial skills in school on how to produce cash with their ideas and businesses or learn the info they require to get wealthy and stay that way.
Consequently, you need to teach your youngster the real rules of cash and value that education a bit more than a college education. I'm not telling you to tell your youngster not to go to school. I'm telling you to instruct them in the importance of having a great financial education.
The wealthy are concerned with producing as much passive revenue as they may and working less and less for earned revenue. This, they know will help them continue getting wealthier and richer. You goal ought to be to earn as much passive revenue as you potentially can and convert earned revenue from a occupation into passive revenue.
Be open-minded. It is so simple to have preconceived notions on a matter, but fight the urge and listen to the statement or issue presented to you.
Don't draw to speedy conclusions even if they look apparent. Think of it as attempting to solve a mystery on TV. The evident answer is rarely the correct one. Reaching the answer involves gathering facts and discarding biases.
Believe outside the box. I'm sure you've heard this phrase but it's the critical thinker's motto. Believe differently than everyone else. It's simpler said than done but a trick I utilize isn't reading or listening to others ideas till I have drawn my own conclusions. It's so simple to be drawn into one way of thinking once hearing another's ideas so do your best to abstain till you trust you've solved the issue.
A different trick I find helpful is to try and believe like a youngster. I know this appears silly, but it's amazing how young kids may solve riddles before adults may. They believe on a completely dissimilar level and rarely over-believe things as most adults do. It all calls for practice.
Explore statements. I can't say enough on this matter. Erroneous statements are made daily and "poor" thinkers take them and run.
They don't bother to check the facts for truth; it's much easier not to. They'll eventually look like fools when the garbage they've been repeating is proven false and any believability they had will be gone. Believability is everything.
Check your facts before you repeat them and you'll gain believability and the respect of other people.