This book was written in 1997 and cost about £15 ($20), a great investment that will challenge your views on not just how money works. But, also give you an insight to the formulae of been financially successful in a world where there’s a misnomer that when you earn £100,000 plus a year then you have made it.
It goes without saying that the biggest asset given to any living human being is time. How we use it makes the difference between the rich and poor.
Okay, for some their back is against the wall and have been positioned to fail from birth but for the most part it is a known fact we have the same 24 hours just like anyone else.
95% of those who are fit and able, sell their time for a fee which is typically in the form of service employment. Not that there’s anything wrong but to get into the 5%, you must be in control of the time you are selling which is practically appears impossible because we all have bills to pay right?
Well, that is the difference right there.
After work (where most of sell our asset), we turn off our asset machine (our body) that bring homes the bacon just so we can rest and start again the next day. To be really rich your asset machine(s) must be working 24 hours a day and 365 days a year.
What you will find is that those who sell their time want to first own a big residential property (which is not really an asset but a liability or capital gains), drive exotic cars (liability) and send their children to expensive private school (liability) just because they are on £150,000 a year.
Not that there’s anything wrong with having the finer things in life. The real difference is the rich will first create an asset that works 24 hours to pay the expensive goods the poor or middle class sell their time sell for.
Why?
Because unlike the rich, if the poor and middle class gets fired from their fancy jobs, they lose everything if they cannot find anyone to buy their time in two or three months.
Moral of the story is, it is not about living below your means. Why should you not enjoy all the world has to offer and more. The question is do you have the means or asset(s) to sustain your liabilities?
The book is must read for those seeking financial literacy.
Click HERE to watch a short clip how it works.