It’s your thoughts determine whether you are Rich or Poor
If you’re filled with poor thoughts about Rich then you are poor because you tend to spend more to look rich, it’s a misunderstood concept.
One who save become rich not one who spend
If you spend all your monthly earnings on expenses, you are poor and
If you spend 65% of your earnings on monthly commitments (which include household expenses), you are rich.
The thoughts of Poor make them more poor. They subconsciously feel they are not rich. They move to the mode of spending in front of others to show they are rich. Actually they overspent on each category.
While buying a house they spend on more decorative things to look rich, actually in crises these decorative things will not fetch even 10% of the cost spent. Buying a Car on EMI, and struggling to maintain. Buying more land and gold seeing their investment locked up dead because there will be no increase in cash flow immediately. Buying a house on Loans and paying one and half times interest on the cost of the house and losing all their cash flows. Maximum Use of Credit Cards and pay the minimum amount and end up paying a minimum of 36% interest.
Poor accumulated assets paying a minimum of 2.5 times that price. They discount their future life for enjoyment today; by paying interest. They believe in passive income more than hard earned income to become rich. Richness was more towards discipline of expenses than revenue of income. If you watch every time you get an increment you tend to spend more than you save. So, Increase in income will not make you rich.
Who is Rich?
Buying Car on loan by paying 30-40% as margin.
Buying Home paying at least 50% as initial payment.
Use of Credit Card as an option for cash and paying in full on the due date.
Buying Insurance on bulk payment to safeguard his family.
Investing in SIP in Mutual Funds to average risk in order to earn high returns
IF you watch your life according to your income, you learn more. Spending is not rich but spending on investment is the only way to escape from being Poor!!
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