Although success in life also includes a happy love life as well as achieving your non-monetary goals, I shall not discuss them in conjunction with money. I always have this mindset from the Chinese saying: "钱不是万能的，但生活没有钱也是万万不能"
Simple translation would mean money can't buy you everything in life, but we can't survive if without money. I'm pretty sure every people would have heard this statement somewhere, sometime in their life. But what can someone take away from the meaning of this statement? That has to depends on your mindset.
In many of the times, that sentence was only relayed the first verse or "钱不是万能的". I could understand why people always have this mindset. One example could be someone whom despise the Rich and felt that they do not have anything other than their money. So, this person may preach to others that a person should always stay happy and not go for being rich.
Now, Does that idea sound familiar to you? Or maybe you know somebody who may have that mindset. I'm sure there are plenty of people believing in the statement but are struggling in life due the their financial difficulty. I recalled watching TV series and too many a time, the drama would show a happy family with 3 children living happily but the dad is struggling to make ends meet. Thus, The family would lead a poor but 'happy' life.
I guess that would only happen in TV dramas. No offense to anybody here, but i believe that if the family is financially struggling, there ought to be quarrels about money issue. Unless the children are taught to be mature, they would rise questions like "Why my friend's father give him pocket money of $10 a day and i only get $2?"
I told myself, that i would never want that kind of scenario happen to my family, my wife, my children. In fact, I would like to challenge the thinking that "who says being rich in life would be poor in relationships?" or "who says a rich family would not be a happy family?" I aim to prove this statement wrong be being happy and rich in my life!
That's what being success in life would mean to me.
As promised, I've posted my own financial statement which i picked up from Robert Kiyosaki's book. It's a simple chart and i believe anybody is able to do it
I'm currently in a position of a very unhealthy financial situation. I have 4 fixed expenses monthly and i do not have a constant income due to me being unemployed. Although things are going to change once i got back to RWS. My Income would then be able to come in to balance out my 'Profit and Loss statement'. Right Now, I'm currently having a NET LOSS.As for balance sheet, you may ask why i classified Noble group stock as a liability since it should be considered an Asset. The reason being, Here, the definition of being an ASSET is anything that PUTS MONEY INTO YOUR POCKET! and for the Noble stock, I've made a LOSS which would make it a liability since IT TOOK MONEY OUT OF MY POCKET!
Robert Kiyosaki mentioned in his book that not all stocks you bought are considered ASSETS unless you make it an asset. This, i find it rather true and i agree on his statement. A stock that does not make you money should be considered a liability! What do you think?
Below, I did up the movement of cash or the usage of cash for a normal person.
As you can see, the Orange arrow denotes the Monthly income for the person. This is income normally derived through working a full-time job. Upon getting his/her paycheck, most people would start to enjoy and spend money to what Robert Kiyosaki considered as liabilities. Something like Tour, Dining, Shopping for new shoes, clothes, Etc. All these items are money spend which ultimately takes your monthly income away from you! True or true? TRUE!Then again, I'm not saying that you should not spend on things that i mentioned above. After-all, what life would you be leading if you don't even do those activities? So, an alternative solution in solving the problem is to adopt the cash movement of a Rich person.
You would have noticed that the liability column is the same as an poor/middle class person. But the major difference, which the rich does while the normal people does not is to buy Assets that would earn them what we known as PASSIVE INCOME!I do not know how much of understanding you have when people ask you about multiple streams of income but unless you are a professional sports star, lawyer, or any person whom is paid highly in their field of expertise, I would reckon that a single stream of income is insufficient and is the most dangerous thing a person can do to him or herself.
Too many a times have i heard of people getting retrenched and have to start all over again in climbing the corporate ladder. But little did they know that even if you had scaled to the highest on the ladder, you are still on a SINGLE INCOME stream. In other words, all it takes is for you to lose your job and you'll have NOTHING to fall back on! True or true? TRUE!
These not only explains a clearer picture as to why people shouldn't be always looking for job security if they want to leave the rat race, or the financial liquidity trap. This also allows people to go on and do what they really dream of doing or owning. For example, If i dream of owning a BMW, i would not use my direct income to purchase it. I would rather use my direct income to BUY assets enough to generate sufficient money for the purchasing of my BMW!
Now that I've shared a clearer picture as to the difference in the cash movement of the Rich and the Middle/ poor people. You should be the judge of your life and choose.
Which path do you want? Only you can decide and steer your ship towards that goal.
I shall end today's post with one of my strongest, deeply root-ed mindset:
"钱不是万能的，但生活没有钱也是万万不能"
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