Cash flow is the most crucial word in the world of revenue. The second most crucial word is leverage. Leverage is the cause some individuals become wealthy and other people don't become wealthy. The reason less that five percent of all Americans are rich is because only five percent understand how to utilize the power of leverage.
Among the recognized forms of leverage is the leverage of borrowing cash. Millions of individuals scramble financially because the power of debt leverage is utilized against them. Great debt makes you wealthy and bad debt makes you poor.
The most potent sort of leverage in the world, your brain, has the might to make you wealthy or make you poor.
Wealthy individuals utilize rich words and poor individuals utilize poor words. Your mind may be your most powerful asset or it may be your most powerful liability.
The difference between wealthy individuals and poor individuals is that poor individuals state "I can't afford it" more often that wealthy individuals. If you wish to retire young and retire rich, you'll have to utilize your mind in your favor, not against you. Forbes magazine specifies rich as $1 million or more a year in revenue. The issue with having a job is that it gets in the way of getting wealthy. Most individuals have a plan to be poor. That's why so many individuals state, "When I retire, my revenue will go down." Put differently, they're stating, "I plan of working hard all my life and then I'll become poorer after I retire". Millions of workers are today counting on their pension plan, plans like 401(k) and IRA. Employees are now responsible for their retirement. In the Industrial Age, it was the company or the government that would mind of your financial needs once your workdays were over. There's one tragic flaw in these Information Age pension plans. The flaw is that most of these plans are indexed to the stock exchange, and as you might have noticed, stock exchanges go up and stock exchanges crash. Projecting to work hard all your life is a poor plan. For a lot of baby boomers, time, our most crucial asset, is running out.
In real life less than five percent of the U.S. population is wealthy because ninety-five percent of the population might want to be rich but only five percent takes action.
The three main assets that make individuals wealthy and let them retire young:
1. Real property
2. Paper assets
Retiring young and rich requires spending time acquiring assets instead of working for money. This book is written to help you in discovering your own financial freedom... freedom from the drudgery of just getting by. Poor individuals utilize poor words and poor words produce poor individuals. If you are able to change your words and your thoughts to those of the wealthy, retiring young and retiring wealthy will be simple. We all have questions. The difference is what we do with those questions. The greatest challenge you have is to challenge your own self-distrust and your laziness. It's your self-distrust and your laziness that specifies and limit who you are. If you wish to change what you are, you have to take on you self-distrust and you laziness. It's your self-distrust and laziness that keep you small. It's you self-distrust and laziness that deny you the life you wish. There's no one in your way except you and your doubts about you. It's simple to stay the same. It's simple not to change. Most individuals choose to stay the same all their lives. If you'll take on your self-distrust and your laziness, you'll discover the door to your freedom.
The reason many individuals don't do what they can do is because they don't have a strong enough "why". Once you find the" why", it is simple to find you own "how to" to riches. Rather than looking inside of themselves to discover their own "why" they wish to become wealthy, most individuals look for the easy road to wealth, and the issue with the easy road is that the easy road commonly ends in a dead end.
3 more paths to great riches are:
1. Bettering business skills
2. Bettering money management skills
3. Bettering investment skills
If you discover yourself arguing with a great idea, you might want to quit arguing. Whenever somebody states something like 'I can't afford it or can'' do it' to something they wish, they've a large problem. Why in the world would somebody state,
"I can't afford it' or 'I can't do it' to something they wish? I was arguing because I was protecting myself from the pain that dreaming big dreams may bring if that big dream doesn't become a reality. I had dreamed and bombed. I realized that I was arguing against failing again, not against the aspiration. A hint: I learned years ago that passion is a combination of love and detest. Unless somebody has a passion for something, it's hard to achieve anything. If you want something, be passionate. Passion provides energy to your life. If you wish something you don't have, discover why you love what you want and why you detest not having what you want. When you combine those two thoughts, you'll discover the energy to get off your seat and go get anything you require. I've heard many individuals state, "Money doesn't make you happy". That statement has some truth to it. But what cash does do is buy me the time to do what I love and pay others to do what I detest doing. How many of you plan on retiring early?" "How many of you would like to retire in your 40s and be financially free for the rest of your life?