BUY ASSETS!
BUILD ASSETS!
If there is one thing I can’t stress enough, it is the fact that income producing assets are the ONLY way to financial freedom.
Some might say the lottery is a way to financial freedom. For us yes, winning the lottery will send us on our way to financial freedom, because we understand how to spend that money. But sadly, for most people, winning the lottery will not lead to financial freedom.
This is because they don’t know how to spend their money properly.
They don’t buy assets!
Think about how many professional athletes go broke. Let’s face it, just one or two seasons in one of America’s top professional leagues is like winning the lottery. And so many go broke.
Let’s say John Doe wins the lottery. He wins $10,000,000. What’s the first thing he does? He quits his job and buys a big house on the water. He thinks it’s an asset.
It’s not an asset, it is not bringing in money. Maybe it’s appreciating, but he’s paying all the expenses himself and probably lives there until the day he dies. Your own house is not an asset.
Then he goes and buys a fancy car. Gets a prestigious golf membership. Buys a whole whack of jewellery. Maybe buys some crazy marijuana stock only to find out it tanked 89% (been there, done that).
During this whole time, his net worth is diminishing.
Meanwhile, we cashflownaires are spending our time acquiring income producing assets.
These income producing assets should include businesses (that we understand), real estate, loan agreements, etc. Basically, anything that produces income.
And as time goes on, our net worth grows.
If we won the lottery, we would take the $10,000,000, buy income producing assets, and live off the income.
That is income for life!
So the takeaway from all of this, whether you are self-employed or still working for someone else, is that to gain financial freedom, you need to accumulate income producing assets.
Eventually, those assets will provide you income for life.
To your financial freedom,
Mike
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