Mind Your Own Business
The author explains beautifully that most people confuse their profession with their business. They spend their entire lives working in somebody else’s business and making other people rich. Instead they should mind their own business if they want to become financially free. They should figure out ways to become their own boss and build their own business.
Things to know about the poor and the middle class:
- These people work for everyone but themselves. Primarily they work for the owners of the company, then for the government of the country by paying taxes and lastly for the bank that has the mortgage on their homes.
- When the factor of downsizing came into play, millions of workers who considered their houses as their assets realized that this 'asset' became their biggest liability at that point. What they thought was an asset couldn't help them in times of financial crisis.
Things to know about the rich:
- The rich always focus on their asset column when everybody else focuses on their income statement.
- The rich have this habit of minding their own business. The author says to keep your day job but start buying assets like real estate and stocks. Do not buy liabilities or personal expenditures that add no real value to your net worth.
- As assets increase the income will also increase. This would result in an urge to buy luxuries. The rich buy assets last. Buying luxury on credit is the most fatal. The debt of the luxury product eventually becomes a financial burden. The aim should be to build income-generating assets that can buy luxuries.