True North Mastery Blog

How Do We Spend Our Money?

People with Poor Thinking spend like the Rich! VS People with Rich Thinking spend in Richness! Is the above statement true for you? For me it was, my rich dad that said our income will never exceed our self-image and we must have the self-image to handle wealth. I believe we are stewards of mother earth and its resources, how we manage and grow them is our collective responsibilities. But first are we responsible for our own personal wealth creation. My story, I came across a substantial amount of wealth in the year 1995 after selling of my private property. I was a poor thinker spending like the rich. Bought a second hand car in cash to help a friend out who was having financial difficulties. I bought a home and renovated like the rich, personally selected Italian tiles for my home, bought designer lights from Europe which cost about $1’000 per piece. Bought even a marine coral fish tank, a self- sustaining system which was about $10’000. All for what, to impress the Joneses, living like the rich but thinking like the poor. Invested in a business, losing all my money made me realize what a fool I was. No financial literacy period. It has taken me awhile to learn these lessons and the first lesson is learn to think like the rich. The rich tracks and keeps records of their finances by way of an Income/Expenditure and Asset/Liability account while the poor only have an Income/Expenditure account. What I discovered is the poor spends money on consumer products, which we all love to do and probably it will end up in the trash. While the rich invests money in assets which produces income. Asset puts money in your pocket while Liability takes money out of your pocket. This would be a good place to create your very own Income/Expenditure and Asset/Liability account. Please click here for Rich Dad’s Personal Financial Calculator. What’s the point in becoming rich if you do not know where your money is going? That’s what happened to me, I become temporarily rich and lost it all. Once a acquaintance said this; “The essential miracle is not walking through fire, or on water: it is waking up!” +Dilip Mukerjea+ So wake up! First you need to start thinking and acting like the rich before we can spend like the rich. Your first step to being rich is to start reading this book by Robert Kiyosaki, “Rich Dad Poor Dad” to change your thinking next start acting by creating your very own Income/Expenditure and Asset/Liability account.
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