Spending Habits For Poor (Financially Uneducated Person):

• Has a Job & Income,
• Uses Income to Fund their Expenses

Spending Habits For Rich (Financially Educated Person):

• Has Income Takes Income and
• Invests It in Cash FLowing Assets Assets like Real Estate, Business, or
• Stock Portfolio w/ Monthly Dividents
• Takes the Cash Flow from them and uses it to fund the Expenses

#CashFlow #Dividends

How the poor and how the rich spend their income. So today we're gonna talk a little bit, we're gonna compare the spending habits of a poor person and a rich person. Now, I'm gonna take out the word poor, and I'm gonna call it a financially uneducated person. So a financially uneducated person will have a job, they'll have an income, and they will use their income to fund their expenses. Expenses like car loans or groceries or phone bills, okay? The rich person, on the other side, who's a financially educated person, what they will do is they will have their income. They will take the money from the income, and first, they will invest it, okay? They will invest it in cash-flowing assets. What are cash-flowing assets? Real estate. They would buy a business perhaps that generates a cash flow. They will invest their money in a stock portfolio, which will provide them with monthly dividends, okay? These are all investable assets. Then you would take the cash flow off of these assets and use that to fund your expenses. So, for example, let's say you wanted to buy a car. The side on here, on the left, they will go out to the car dealership and get a car loan using their income, which will now give them $500 less every month to spend because they're using their income to buy the, to fund the loan of the car. Whereas the folks on this side, the rich, the educated, the financially educated, what they're gonna do is they're gonna go buy a house, for example. Okay, we're gonna use the house, example of real estate here. They're gonna go and buy a real estate asset. They're going to borrow all of the money, and they are going to buy an asset that will produce a $500 a month cash flow. Now, they'll use that $500 a month to go and lease their vehicle. Genius! Okay, think about it. They are now driving their car for free. Their tenants are paying for their car. And then after five years, they own the car, if the loan is paid off. And the asset is worth more so their mortgage is paid down by the tenants. And their home has appreciated in value and it's worth more. So instead of spending your money on a depreciating asset by putting all of it in there, go buy an appreciating asset, something that produces a cash flow, that will make you some more money. Well, who you work with matters