mikecrei
Give people a platform, not a ceiling. -Seth Godin http://bit.ly/ebONPQ
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What is Asset Spending?

Sep 2nd 2010 at 6:35 AM

 

It's not your salary that makes you rich, it's your spending habits. -Charles A. Jaffe

There are many quotes you will find that echo the same point as that one.  What you spend your money on is an indicator of what you value and directly affects your financial condition.

Regardless of your job, position, or income, have you ever said "may paycheck is gone before I get it"?  That is the sign stating that you are spending too much of your income on liabilities instead of assets.

Robert Kiyosaki has the best definition for assets and liabilities that even an economics professor can understand.  Assets put money in your pocket and liabilities take money out.

In today’s economic times it is important to pay more close attention to where your money is going and to whom it is benefiting.  I often come across people, friends included, who may be struggling financially but they have the newest smart phone, premium cable/satellite TV, and the latest hot fashions on.  If they can't be financially fit, might as well pretend, right?

Everyone understands residual income.  If you've been to a network marketing seminar then you've been exposed to it full on.  Residual income works against you too.  Think about this.  How many times did the cell phone company sell you the phone and service?  How many times do you pay them?  How many times did the Cable/Satellite guy sell you their product and service?  How many times do you pay them?  Every month you contribute to your poverty while making someone else rich.

I'm not one that subscribes to "cutting back" to grow wealth.  You should enjoy life and have everything that life offers.  What I suggest is to shift your spending habits.  Instead of spending your earned income on liabilities, spend it to obtain cash flowing assets that then can be used to buy/ expense the things you enjoy. 

When making spending decisions ask yourself, "is this product or service making me richer or poorer?"  Become customers of businesses that are dedicated to making you richer.

Thanks for reading.  Please comment and share.

MikeCREI

"Building Wealth One Friend at a Time"

                                                                                                              

2 comments
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Sep 2nd 2010 at 10:36 AM by mikecrei
Thank you for the comment Chuck. 50% is amazing! I have to go get T Harve Eker's book now. Thanks for turning me on to it.
   
Sep 2nd 2010 at 7:44 AM by ChuckBartok
You are spot on my friend. T Harve Eker points out in his book a secret to Creating Wealth is to spend 50% of your take home pay for food shelter and clothing etc. Then set up Cash accounts with the other 50% for Long term and short term purchase goals, charity, and retirement. Works really well... But takes a firm conviction in believing in SELF and not allowing one self to be enslaved by Social pressure. System has been working for 100's of years for the TRULY successful
   

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