Bridget bought me this book awhile back, so I decided to take it with me on our European tour.
Basically the book talks about the benefits of being frugal.People who are wealthy don’t drive fancy cars, don’t live in giant mansions, and don’t eat at the finest restaurants. The phrase “Big hat, no cattle” was used throughout, meaning people who show off their money won’t have it for long.
Wealth is the ability to save money and to build it to keep growing. It’s not showing off.
THis is the reason we need to grown your money, not just spend it through. I’ve always been interested to why rich children sometimes become poor. Reason being is that the parents know how to save money. They worked hard and understand the importance. But, the rich children have no respect for it; spend it irresponsibly, and never are taught independence and what being on a budget feels like. Frugality is taught.
The overall idea is that wealth is gained by having assets: financial portfolio, house, rentals, etc. Rich is different. Rich are people who just consume. We live in a consumer world with watching famous people in their lavish lifestyle. However, rich people may not be weathly. And wealthy people do not need to give off that they’re rich. Wealthy people tend to buy used cars, have humble houses, and drink cheap beer (losers).
Here were some of the points:
- I am not impressed by what people own. But I am impressed by what they achieve.
- Do the best in your field, and $ will find you.
- Selling services is better than selling product
- Teach children independence to build confidence. You only hurt them when you give them $
- Are you helping or hurting a person when assisting them?
- Never say ‘Poor me’
- Be tough. Life is. There’s never a promise of a rose-filled garden.
- Say ‘yes’ to those who need help before they ask.
- Teach children frugality
- $ should not be wasted no matter how much you earn
- Teach to achieve, not to consume
- $ are like seeds. You can eat them and they’re gone. Or you can plant them and water them to grow into 10 foot sunflowers. I prefer to watch them grow.
- Luxury is for the unwealthy. it’s for the consumers.
- Self-Confidence is earned by going out into the world and experiencing by yourself.
- Net worth = (Net income * age)/10 – What you should have as assets.
- Invest first, then spend
- Lavish lifestyles don’t last. Don’t be a consumer.
- Play the tax game the best way you know how.