Owning & Controlling Resources - Personal Finance 17 - (The Secret To Success with Antonio T Smith Jr) Podcast Details

Description

Personal Finance 17: Owning & Controlling Resources

5/4/22

When you own and control resources, the power is in your hands
When you own control resources, you sell problems you have solved, not products
When you sell problems you have solved, you don’t have to beg people for anything
Only when you own and control resources do you solve your problems

Rich Folk Facts

Rich people don’t come to win, they come to get paid
Rich people prefer MRI (monthly recurring income)
The wealthy don’t delay; they do things immediately
The wealthy do everything with the spirit of excellence
You will accidentally become a millionaire if you do everything with a spirit of excellence
The wealthy do things differently than everybody else
You can’t live on Earth broke
Wealthy people only fight vertical battles
Wealthy people are vertical owners
Vertical ownership is when you are the salesperson and you’re a partner in the product
When wealthy people need a certain amount of money, they don’t go to the bank and beg; they go to their community and serve
Wealthy people’s communities are partnerships
The wealthy have no intentions on not being wealthy
The only way to keep your wealth is to serve
Inequality is big business

WHY THE RICH GET RICHER

I have heard from many people around me that their expenses always seem to keep up with their income. They do not understand why they earn more than they used to but still have no money left at the end of the month. They struggle financially because when their income goes up, their expenses also go up. However, their assets do not increase, but their liabilities do! They work to make their boss rich, they work to pay government taxes, and they work for the bank to pay off their debts. Working harder means that you will have to hand over an even bigger share of your efforts to these three parties.
You must decide where you exist in this society
Money follows rules, and as long as you understand the rules, money will bend and bow to you
The rich get richer because their assets generate more than enough income to cover their expenses, and part of the income is then reinvested into new assets, therefore increasing the generated income even further. On the stock market, net income which is reinvested is called retained earnings. Reinvesting income into new assets triggers the power of compounded interest, to which Einstein once famously referred as the "eighth wonder of the world.”
A savvy person who understands business will keep their investments

You will work harder than anybody else, and make less than everybody else, or your money will work harder than anybody else and have more than anybody else.
Owning and controlling assets should be your new goal

Closing Thoughts

Emulate the wealthy
We have been talking about income generating assets, but what falls into that category? Here is a list to give some ideas:
Businesses that do not require your presence
Stocks
Bonds
Mutual funds
Income-generating real estate
Royalties
And really anything which appreciates in value over time
If you think investing is scary and just another word for gambling, then I advise you to read into the low-risk, high-return strategy used by the investment greats: value investing.

Rich Dad, Poor Dad in 20 Points

1. For most people, their profession is their income. For rich people, their assets are their income.

2. If I want to buy something, I must first generate enough cash flow from my assets to cover these expenses. Buy luxuries last, not first.

3. Excess cash flow generated by my assets should be reinvested into other assets.