School Of Financial Freedom

It’s A Mindset

Congratulations as you are about to learn an amazing concept. A concept that is not taught in school, college or in most homes on this planet. This concept is so amazing that once you practice it and put into your action plan for life, you will be well on your way to achieving your dreams.

We are trained in school to think a certain way. Only the Rich and Wealthy teach these techniques to their children. They do this because they understand this concept is critical to their family’s financial success.

This concept is not for everyone. If you would rather sit on your couch and watch TV tonight and every night, then you can reading this article now. You see everyone on this planet has the same 24 hours in a day. This concept is for people looking for a better life but just have not been able to accomplish it.

Then why do some accomplish so much more. It is actually quite simple. It is through the power of leverage and mindset. I am sure you have heard of leverage before but it takes both Leverage and Mindset. These people have figured out that they must leverage their time in order to reach greatness.

So get your pencil and notepad out because we are getting ready to ROCK your world.

Leverage works like this. Let’s say you buy a franchise and you and your wife work this business. On an 8 hour day, your business is getting 16 hours per day of work. This would be you and your wife at 8 hours each.

Now let’s say that you hire 8 more people to work this business with you. You now have 10 people working 8 hours per day or 80 hours per day going into your business. This is a very simplistic example of leverage but I think you get the idea.

Now let’s talk about the mindset you need to develop in order to reach your dreams.

Do you understand that there is a huge difference between items purchased by the financially challenged, the Retirement Accounters and the wealthy? This difference is critical to understand if you are to change your life and achieve more.

I remember when I first learned of this concept; it knocked me off my feet. I asked myself, why haven’t I heard of this before? When you learn of this is not important, but the important part is that you are learning now. You will no longer have an excuse and be able to say “I didn’t know that”.

In order for me to show you precisely what I mean, I need to go over a few words we will be using in order to make sure everyone understands them.

These words are defined as follows:

Challenged: Individuals that will not be able to retire without the government’s assistance. This is not a negative term, just a description. The good news is if you are in this category you CAN change your life.
Retirement Accounters: Individuals that will retire but below the level they are accustomed to. Take a pay cut at retirement.
Wealthy: Individuals that retire and continue to increase their wealth even at retirement.
Income – All revenues or money that comes to you.

Expenses – All monies that you pay out.
Assets – Things you own that if make you money. A home is not an asset in our terms. Yes it will go in the asset column but it will not feed you or bring money in until it is sold. If you lose all your income tomorrow your home is now a huge liability. If you understand nothing else you must understand this.
Liabilities – Items that take money from you. Your home is a liability until you sell it.

Understanding these 7 terms can change your life… The great news is that you can always change your life for the better. Changing your current situation takes commitment and effort. Nothing good in this world comes from laziness.

Now let’s discuss the mindset of the Financially Challenged and what they buy on payday?

On the payday the Financially Challenged buy what I’m going to call Stuff. What is stuff? Inexpensive things that people buy that they don’t really need to survive. You go into someone’s house and you can’t find any counter or tabletop space in the whole house because of all the stuff on it. You can’t find a single foot of white space on any wall in their house because of all the stuff that’s hanging on it.

Where did they get this stuff?

They bought it at the flea market, at the garage sale, at the dollar store, at the craft show. Their house and their car is full and cluttered with stuff.

So income comes in on payday and then goes straight out the expense column to buy stuff. The Financially Challenged really never educate themselves on assets and liabilities. The Financially Challenged justify their buying all of this stuff by claiming that it costs so little. Yes, it was very cheap, inexpensive, not a lot of money. But over the years it’s all they ever had.

The problem is their income never produced or created more income. I know this group very well because this was me. This was the way I was raised. I in no way am cutting or undermining this group of people or any other group. I just see a lot of financial pain out there and it need not be that way. I only want to help you and hopefully you’ll pass this information onto people you care about.

Creating wealth is not a mystery; it’s a formula. The only reason someone doesn’t create wealth is because they don’t know or don’t apply the formula.

Lets continue on and look at the middleclass. The middleclass is the group that the society mistakenly thinks are the rich; they are not. Yes, they typically earn a six-figure income but what they buy on payday keeps them prisoners of the middleclass.

What they buy on payday are liabilities. Remember the definition of a liability? Things that cost you! By buying liabilities, the money gets pushed up and out their expense column. Liabilities are items like cars, boats, houses, airplanes, credit card debt.

Let me explain the way this happens. On payday, the middleclass make a nice bid pay check. Lets say 15 thousand dollars for the month; they then split that down the middle and pay their monthly expenses with half, and with the other half they make a down payment on a new car.

The car costs 7 thousand dollars down. And after they tack on the insurance and the maintenance, that liability costs them 11 hundred new dollars every single month. A few months go by and they want a boat; then a vacation home; a Rolex watch on the credit card; a vacation on the credit card.

Before you know it their liabilities have raised the expense levels to near or above their income levels. They actually spend equal to or more than they make, meaning that they have to go to work and make a certain amount of money every single month because of their liabilities.

The other important issue with both of Financially Challenged and the middleclass is that normally all of their income is dependent on their own effort. Meaning they’ve educated themselves to exchange their knowledge and expertise for someone’s money.

Here’s an example, an attorney is knowledgeable about law, so people pay him or her money in exchange for that knowledge on an hourly basis. The problem there is that if they are not the attorney sharing that knowledge with a client, then the attorney is not making any money. Their stress level is as tight as a piano string. And if you were to ask them to go to dinner with you they bare rarely can because of how much money it will cost them to take that time off.

On the surface life is merry, the reality is that it’s a roller coaster ride – that’s the Retirement Accounters.

Now lets look at what the wealthy buy? On payday, the wealthy buy assets, again an asset is something that pays you. If you want to become wealthy buy assets that then earn you more income.

The money wheel looks like this:

Buy assets that produce cash.
Take that cash and buy more assets that produce more cash.
Take that cash and buy more assets that produce more cash.

The wealthy spend their money in buying things that produce more money. Here’s a couple of examples of assets that produce more income. Investments are the obvious, stocks, bonds, and real estate. Education is another asset. If you learn how to do something and actually do it that produces more income, that’s buying an asset. Find a Mentor and learn how to be financially free.

I heard a great expression once, “if you think education is expensive, you should see how expensive stupidity is!”

Another example of assets you can buy that pay you is businesses. Specially those businesses that can create a passive income. Passive meaning that once you build it up, it pays you whether you’re still building it or not. You build it once and it continues to pay you year after year.

A little example is if you buy a pinball machine and put it in a barbershop. You don’t spend any of the profits. You save them until you can buy another pinball machine and put it in another barbershop. This by the way this was Warren Buffet’s first business. Warren Buffet by the way is one of the top two richest men in America.

The wealthy are extremely eager to find those passive income businesses because it continues to pay them month after month, year after year, long after they stop working the business.

That’s actually the way I created my lifestyle. I found a passive income business that I built up and it continues to pay me month after month, year after year. I then took those profits and multiplied them in another passive money business and then again in another.

In conclusion here’s what I have learnt, you can’t find these passive money businesses unless you’re open to hearing about them. Then once you find them be willing to research them.So these businesses are out there you just got to find them. You’ve also got to be educated enough that when the right situation does present itself you don’t miss it.

So remember,

The Financially Challenged buy stuff
The middleclass buy liabilities
And the wealthy buy assets, preferably business that can create passive money, then take that money and buy another asset that produces more money.

That’s the wealth creation formula

I sincerely hope that you’ve learned couple of things from this explanation.

Now the key is to take action.

Step 1. Set up a home budget

Step 2. Cut out buy of stuff and liabilities

Step 3. Find a Global Mentor that will teach you how to make more money. THIS IS KEY

Step 4. Dedicate yourself to your new business and decide to become financially free.

Step 5. Enjoy your life.

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School Of Financial Freedom

It’s A Mindset

Claim Your New Life Style Here

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