Now we shall consider the mentalities of the poor, middleclass and rich, and assets and liabilities in few words. You will find out if you have been thinking as the poor or middleclass. If you are thinking like the rich you will likely know it because you will know why you want to be rich, how rich you need to be (to accomplish your "why"), and how soon you will be rich.
THE MENTALITIES OF THE POOR, MIDDLECLASS AND RICH
The Poor
The poor spend on liabilities (or perishables), like food, clothes, shelter, vacations, parties, largesse, etc; and have no investment besides savings [in the bank and co-operative societies].
The poor favour job security. People who love job security want a lucrative job with excellent benefits. The problem with this is that they cannot be rich, neither can they retire. Should they resign, retire or be retrenched, their finances will nosedive because, they are the assets, and have no other investments; at least not assets that can sustain them without a job.
The Middleclass
The middleclass spend on liabilities and barely enough on worthwhile investments.
They may have beach houses, yachts, limousines, etc., but they cannot stay rich when they retire, neither can they retire early, as they are neck-deep in debt with mortgages.
But they can afford to retire, only that they won't be rich, and may never be, if they do not start increasing or improving their portfolios.
In other words, if they do not start acquiring assets or developing a multi-billion dollar business (like Coca-Cola, Google, Facebook, etc.), they won't be rich.
The middleclass favour financial security. They have a job and usually a small business, and do not invest actively.
The Rich
The rich spend more on assets, they shop more for assets, while the poor and middleclass shop more for groceries and all kinds of perishables and liabilities.
As Robert Kiyosaki, bestselling author of, Rich Dad, Poor Dad, puts it, "If you want to be rich, be a business owner and investor."
The rich favour financial freedom, so they keep acquiring businesses and investments.
Assets and Liabilities
An asset is anything that generates money enough to cater for its maintenance and to enrich you. E.g. a business, rental properties, stocks, commodities,
On the other hand, a liability is anything that depreciates in value, or doesn't produce enough to cover its maintenance. E.g. the house you live in, whatever kind of house it is, as it isn't yielding rent or profit enough to cover its maintenance and to produce another like it.
Ultimately, an asset should be able to yield another one like it. So if you have a thriving business, you are on your way to owning a corporation, if you have your priorities right.
Other kinds of liabilities include: clothes, groceries, vacations, parties, mortgages taken for tuition, personal apartment or house, weddings, lottery, luxury items, etc.
Instead of taking a loan for any of the above, take a loan for a business or a rental property, or develop a business that requires what you have to get you where you want. Ultimately, take advantage of the internet, especially if you are starting from the scratch.
God bless you.
