Reading a Financial Statement:
One of the most horrible subjects for me was accounting, I sleep during my accounting periods in high school. My accounting teacher had no idea what accounting was.
A Financial Statement has:
- Income Statement
- Balance sheet
- Statement of cash flow how
Today 99% of all people who graduate from school don’t even know what a financial statement is and if they do they probably had an accounting teacher who wasn’t an accountant, he had a master’s in accountancy but he had never been an accountant. Accounting is the most important subject for individuals because this is what your banker wants to see. Your banker wants to see a financial statement, this is your report card when you leave school.
If you have a good financial statement bankers will give you all the money you want. Bankers will never ask you about your grades or what college which you went through. Bankers wanna see this, if you have this you’ve all the money you want.
- The Different Types of Income:
- Employee: A person who works for money, and wants job security, paycheque, and pension.
- Self Employed: They are small Business Owners, Doctors, and Lawyers. They work for Tips.
- Big Business Owners: The person who has a business maybe 500 or more employees.
- Investors: These people are Insiders, they are like shark tanks in a TV show.
There is a big difference in all the above income sources, that’s what schools are not teaching you, the difference between all these people.
When students were at a particular age they had to choose which side they want to be on.
Let’s say a software engineer:
- He can do a job in a company.
- Create solutions for people and work as a self-employed engineer.
- Owns an IT Company that creates digital solutions.
- Invest in an IT company.
That’s the difference in the mindsets and skillsets, you don’t just make crossings in all these fields, but the education is extremely different on each side.
Work for Assets, not for Paycheck:
Many Individuals need a high-paying job, they want to be able to pay the rent, eat, and all that stuff. The Dream about the Big House and a nice car. That’s the reason why 99% of the people are broke.
Many people are focused on the income side, like getting a job, getting the pay raises, an increase in the hourly wage, or working more hours to get more.
Instead of focusing on acquiring income, what if we acquire assets?
When this happens the assets will go into the income process, and once you put this into your mindset you will not focus on income but assets.
Most people are so busy working for money, so busy trying to pay their bills, and so busy buying liabilities they think our assets, but once you understand this you will be financially free.
Why Savers are losers:
Types of Money:
- Gods Money: Gold, Silver, etc
- Governments Money: Fiat currency like dollar, yen, etc.
The government’s money is fake, and the young generation is working for this fake money. On the other hand, gold is God’s money, it will be here when we even are dead.
When you are saving those fake dollars you are not saving anything that thing will lose its value every day.
The purpose of the central bank, or the bank of japan, or the European bank is to protect the bank, not you. They pump out fake money, don’t save money, and don’t save the government’s money because they are corrupt. If you want to save, save God’s money.
Don’t Be Afraid to Make Mistakes:
In today’s generation we all have our cellphones and many of us the history, the generation knows all the answers but they can’t do anything, the reason they can’t do it is that there are people who say you must make a mistake, you can hurt someone, etc.
You must understand what is risky and what is not risky, in today’s generation they make you learn answers to mitigate the risks. But if you don’t take risks you don’t get smarter, so the generation today may know the answers but can’t do anything, because they are not willing to take risks.
So if you want to be successful you have to take risks.
Taxes Make you Richer
You have to understand tax, this is all over the world, and there is very little difference.
Employee: They have to pay 40% in Tax. It’s like for $1000 they pay $400 as tax.
Self Employed: They have to pay 60% in Tax. It’s like for $1000 they pay $600 as tax.
Big Business: They have to pay 20% IN Tax. It’s like for $1000 they pay $200 as tax.
Investors: These guys are paying 0% in Tax.
To become rich you have to focus on Business and investments. This is a lot harder than any job but in the long run, it’s fun.
So it’s all legal, you have to understand this, it is legal you can invest in something and pay 0 tax on it.
What school Teach you about Money?
The school doesn’t teach you about a financial Statement. Your banker doesn’t care about the grades and all but he needs to see the financial statement.
Today most politicians don’t have this either. Our School system will never teach us this because they don’t know it. There is some evidence that the school system is hacked by the rich, and they don’t want you to know all this. Political Leaders today are broke because they don’t know this either.
Many rich people are not paying taxes, they don’t pay any tax. That’s why they teach you to work hard and hard. Don’t expect the government to take care of you.