Books
in black and white
Main menu
Home About us Share a book
Books
Biology Business Chemistry Computers Culture Economics Fiction Games Guide History Management Mathematical Medicine Mental Fitnes Physics Psychology Scince Sport Technics
Ads

Automatic wealth The 6 steps to financial independence - Masreson M.

Masreson M. Automatic wealth The 6 steps to financial independence - Wiley & sons , 2005. - 291 p.
ISBN 0-471-71027
Download (direct link): automaticwealththesixstepsto2005.pdf
Previous << 1 .. 32 33 34 35 36 37 < 38 > 39 40 41 42 43 44 .. 110 >> Next

He was making plenty of money, spending plenty of money . . . and he felt good about it. He wasn’t generating much wealth, but he didn’t care. “I can always earn more money if I need it” was his philosophy.
Then disaster struck. In a three-month period, he lost his job, lost $50,000 on a stock tip, and got hit with an expensive lawsuit. He did everything he could to work himself out of this hole, but things went from bad to worse. By 1995, when I met him, he was bankrupt.
We plotted out his comeback plan. He set his goals, got a good job, and began to create additional little streams of income. His situation went from extremely bad to not-so-bad to better. But at the end of each month, he still had no savings.
After some discussion, he agreed to work with Louis, who guided him through the same monthly balance sheet program he’d taught me. Gradually at first, and then like a torrent, LJ broke his spending habit and became a saver.
“Too much of a saver,” his wife complained one day. “The dishwasher has been broken for six months and he won’t put a new muffler on the Volkswagen.”
LJ had made a dramatic change. He’d gone from being a spendthrift to being a miser. “It doesn’t make any sense to spend money on the dishwasher,” he told me. “We are perfectly capable of washing the dishes by hand.” By “we,” he meant his wife and kids. He was too busy.
“Your intentions are laudable,” I said with a straight face. “But being committed to getting wealthy doesn’t mean you have to deprive yourself.”
That’s what I told him, though I wasn’t entirely sure what I meant by it at the time. I knew that I had managed to get wealthier without scrimping—but I didn’t know if that would work for everyone. Could I teach anyone to live rich without spending a fortune?
The more I thought about it, the more possible it seemed.
96 AUTOMATIC WEALTH
HOW TO LIVE LIKE A BILLIONAIRE WITHOUT SPENDING LIKE ONE
If you could enjoy the best things money could buy—the most cherished material goods that even the world’s billionaires can enjoy—yet spend little more for them than you spend now, would you do it?
There is a way. The trick is to separate the wheat from the chaff. To figure out what things in life can bring you pleasure, how much pleasure they offer, and what you have to pay for them.
Don’t wait until you become wealthy and have this type of thinking forced on you after you have the supposed privilege of spending a fortune on objects that give you almost no pleasure. After you’ve bought the big house, the expensive cars, the ostentatious clothes and jewelry—and then realized how little genuine pleasure they were giving you. Think about the things you have now—the car you drive, the clothes you wear, and the toys you play with. Think about them and their value.
In fact, make this into a little game. Take a sheet of paper and draw a vertical line down the middle of it. On the left side of the page, under a column marked “Things I Enjoy,” make a list:
• Time with family
• Time with friends
• Reading
• My hobbies (list them)
• My house
• My car
• My stereo
• My television
• My clothes
• and so on . . .
On the right side of the page, write down a number from one to five that indicates how much ongoing enjoyment you get from each thing. What you’ll probably find out is that most of the best things in your own life, as the saying goes, are, indeed, free.
That’s the way it is for you. That’s the way it is for me. And that’s the way it is for everyone else, including billionaires.
Step 3: Develop Wealthy Habits 97
HOW MUCH MONEY DO YOU REALLY NEED?
By Bill Bonner
"Women," said my old friend, Michael Masterson. "That's the reason we earn money."
I misunderstood at first. Yes, a woman can cost a lot to maintain. She will need food, clothing, transportation, and shelter. Her children will need braces and tuition. But it is not need that underlies man's drive for wealth; it is desire.
People do not buy chateaux because they need a place to live. Nor do they invest in stocks because they need pocket money. They seek wealth and its trappings for other purposes.
Dorothy Parker said, "You can't be too rich or too thin." But when Howard Hughes died, it looked like he was both. Hughes had the kind of wealth that meant he could do what he wanted. He didn't have to listen to anyone. He was so rich he could eat Campbell's chicken noodle soup every day if he wanted and wander around with Kleenex boxes on his feet.
In the end, Howard's wealth may not have helped him much. It cushioned him from reality, protecting him from the things that might have brought sanity to his life.
He might as well have been on welfare. Those people, too, are cushioned from the reality of everyday life, so they never have to learn how to earn a living and get along in the real world. That is also often true of the children of rich people. They don't have to learn how to hustle, and many never do. In this sense, wealth is not merely a burden like the Chateau de Bourg Archambault, but a threat.
Previous << 1 .. 32 33 34 35 36 37 < 38 > 39 40 41 42 43 44 .. 110 >> Next