Page 181

Chapter Five Poor people focus only on the expense column. They earn enough to survive day to day with a roof over their heads, food on the table, gas in the car, and clothes on their backs. It is not a matter of how much they make. It is what they think is important. There are many people who make a lot of money, but spend it all through the expense column. They live paycheck to paycheck, even if they make a lot of money. They have no future because they live for today. INCOME STATEMENT Income

Expenses

the poor focus here BALANCE SHEET Assets

Liabilities

the middle class focus here

The middle class focuses on the liabilities column. They want liabilities that improve their lifestyle. For the middle-class lifestyle, looking rich is more important than being rich. They want a bigger house, cars, fine food, vacations, education, and life’s luxuries‌ all paid for with debt. They spend more money than they make, and sink deeper and deeper into debt. Rather than buy an apartment house, they buy a bigger house in a better neighborhood that puts them in a better school district. If they invest, they turn their money over to financial planners because they would rather enjoy life than take classes and learn how to manage their own wealth. 172

Profile for Jamiel Cotman

Unfair advantage ebook  

by Rich Dad, Robert Kiyosaki

Unfair advantage ebook  

by Rich Dad, Robert Kiyosaki

Profile for jfcotman
Advertisement