Financial literacy versus instant gratification: that’s the real problem. We often think the rich get lucky or their parents gave them money, and do on, but that’s a poor person’s mindset of thinking. If only in school they would provide us with some type of basic financial literacy by teaching us how to invest in income producing assets and not liability, or even about multiple streams of income. The real issue here is that we are told from a very young age that if we go to school and get a degree, we will have a great life. When you break it down, we are brainwashed from very early on that trading time for money is the way to go. What we forget is that, with some calculated risk, you can get rewarded. If you invest some time in getting some financial education, you can eliminate that risk to a certain degree.
When someone decides to take that risk to start their own business, it’s because they do not want to work for anyone else but themselves, as they realize that when they work for someone else, you get zero tax advantage. Ultimately, the ones who benefit are the owners of the company, the government, through the collection of taxes, and finally the banks that own the mortgage. If you change your poor man’s mindset from trading time for money and get some type of financial literacy, you’ll soon realize that you can get all sorts of different tax advantages.
That is one of the main reasons my team and I utilize real estate with all the many tax advantages and benefits that come with it.
The majority of people are scared to take the risk to invest in assets and not liability. Most people are only focussed on how to get that raise so that they can trade more time for money. It’s only the people who know that investing in an asset produces income understand that it is the quickest way to financial freedom. However, most people do not know the difference between a liability and an asset. Once you realize that you can invest in a liability that creates income to pay for your liability, this becomes a game-changer in your everyday life.
The best thing about money is that it works 24 hours a day and can work for generations as your cash flow grows. You’re also able to use all tax advantages that come with it to create long-term wealth.
If you’re thinking about changing your financial situation, start educating yourself by picking up a book, going to networking events frequented by high-net-worth individuals and surrounding yourself with great people
If you are looking for more guidance, please feel free to reach out for a virtual coffee. I would be glad to help.