SAVE MONEY OR EARN INCOME?
What is your perspective when it comes to money? Do you want to save money or earn more income? This article tells you about the financial perspective of two different fathers: the poor dad and the rich dad. Let us assume both of them are retired.
Poor Dad: Live Below Your Means
If you want to be rich, go to school, get a job, and save your money. This is the guiding principle of the Poor Dad on money. He worked all his life and focused on saving money for the rainy days. He channeled all his energy into working to make money in order to pay expenses and save what was left, which was always very little. Also, he struggled financially.
Poor Dad always lived below his means. His money management style was to cut down expenses in order to meet his income and survive. So whenever Poor Dad wanted something for himself or his family, he would deny it. They never went on a trip or ate in a restaurant even once because he believed they did not have enough money to afford those things.
At the end of his working year, Poor Dad was penniless. His entire savings were eroded and he had no investments to fall back. And worse, he never became happy. His family never became happy.
Rich Dad: Expand Your Means
For Rich Dad, savers are losers. If someone wants to become rich, do not just save the money and make it work for you. He understood money and how it worked. He did not just save the money, he invested it in assets that generate income for him.
Rich Dad owned several businesses and investments, which produced cash flow for him and his family every month. He focused on building cash-flow assets through his investments and increasing it. He believed he should pay himself first and then take care of his expenses. Whenever he has an extra cash, he invested it, too.
He never worked for anyone in the name of money. Rich Dad let the money do the work for him. He was able to send his children to the best schools. They were able to travel the world. Not to mention he donated a huge amount of money to build a church in his community and support some children in their schooling.
Even before entering his golden years, Rich Dad was wealthy in many ways and lived life to the fullest with his family and friends. That is because he has a financial freedom.
So what is your financial perspective? Do you think like a Poor Dad or a Rich Dad? Whatever is your answer to this question, it is up to you. Your mindset tells it all. Your mindset encompasses you.