Putt Toxey
Aug 18, 20196 min
#saving #living #goodcredit #betterliving #financialfreedom #choices #learningtoday #rolemodels #mentors
adjective\ ˈpu̇r , ˈpȯr \Definition of poor
1a: lacking material possessionsb: of, relating to, or characterized by poverty2a: less than adequate : MEAGERb: small in worth3: exciting pityyou poor thing4a: inferior in quality or valueb: HUMBLE, UNPRETENTIOUSc: MEAN, PETTY5: LEAN, EMACIATED6: BARREN, UNPRODUCTIVE —used of land7: INDIFFERENT, UNFAVORABLE8: lacking a normal or adequate supply of something specified —often used in combinationoil-poor countries
You might impress your friends and neighbors today, but how long can you keep it up? Have you ever brought something and, immediately you knew it was a bad purchase? Did you ever make a large purchase now have to work extra hours at work just to pay for it? How about moving into a new apartment or house then getting evicted or had to move out a few years later? What about going on an expensive vacation and being behind in all your other bills. The most common one that comes to mind people using their income tax to get something they can't maintain after the check is gone; Like a new car.
I don't know if you realize this, but if you, are using credit to pay for anything and, don't have the money to cover it on the spot you are considered poor. If you go window shopping and, already know where you are spending your next check, you are poor. If you borrowing money just to make until the next check you are poor. If you to decide to spend the money you have on either lunch or dinner because you are low on funds you are poor. If you get into an accident and you settle fast because you need the money or you keep borrowing a loan from the case with high interest, you are poor. If you owe a bunch of people money and don't have enough to pay them back and live your lifestyle you are poor.
If they had a choice most poor people would work their 40 hour week, get their check and that's it. Most poor people don't try to improve on anything when they are comfortable. Most of them hang out instead of working out. Most watch two to three times as much tv as a rich person would. That means, they read fewer books and, when they do read it's never educational. Most poor people won't risk their savings on a chance. They will, however, spend the same saving on a material want. Most poor people already know everything they need to know in life. The fear of not knowing the results of anything would stop them from pursuing their dreams.
Wealth is made up of a few things but the main two are these:
1. If I stopped working today how long can I sustain my current lifestyle? If it's less than 6 months you are considered poor. It does not matter if you make a million dollars a week, what is considered wealthy is how long can you last if the money stops today.
2. How many assets do you have? If your assets can cover the cost of your liabilities each month then you have wealth. The biggest problem with poor people is education. I'm not referring to your grades in school I'm talking about how well do you know about finances. Most poor people are uneducated on what is considered an asset. They think a big house and fancy car is an asset. Only if the house is bringing in an income the car as well other than that they are both liabilities.
The first thing you need to know is the difference between good and bad debt. Bad debt is spending your credit card to go shopping or taking out a loan to buy a car or go on a vacation. Good debt is using that same card to buy supplies for your business or taking a loan to start or expanse a business. Buying rental property is good debt but only if you know the market. Purchasing anything at the wrong time without doing your research will keep you poor. Make sure to learn everything about the investment before you sink your life's saving into it.
If you want to become wealthy do like the other successful people do. They pay someone smarter than them to run their companies. Most millionaire and billionaire have a team of great people running their business. Yes, in the beginning, they are the only ones putting the long hours and doing all the work. Then something happens one day the company picks up and now you need help. If you want to become wealthy it starts by learning how to find the right people for the job. Knowing whichever business you are in better than anyone else. Learn how to optimize and utilize every resource at your disposal. Learning how not to spend any money useless it comes from profit. Plus the most important rule to being wealthy is to pay yourself first. This is something most poor people were never taught because all their lives they were shown to pay what is owed and then save whatever is left. You guessed it there is never anything left after rent, taxes, bills, children, shopping and hanging out.