We live in a world opposites. This tutorial concerns the rich and the poor & middle class.
Some Rather Consistent Statistics
This is the world of the 5% and the other 95%.
Here are some alarming statistics. They are more or less consistent across the board...
95% of the folks that make up our population (on the average) are comprised of the middle classes, the poverty-stricken ...and those that are not even counted in the Dept of Labor statistics.
That leaves a 5% of folks that run the massive businesses and top investors. We know who many of these are, others we don't even know about. Some are open to educating us folks in the lower classes and some are totally untouchable.
This 5% controls all of 95% of all the wealth globally! The other 95% haggle over the remaining 5% that is left over!
It is no wonder many households in the middle classes are driving around in cars they can't have repaired and some can't even turn on their hot water heaters and air conditioners!
You will see how this ties in to the good/bad debt scenario. It is a major contributing factor on what makes lives the way they are and how folks believe.
More Disturbing Findings...
One day I was going through the membership at EZA. I found, that on average, about 95% of that entire membership has not written any more than 20 articles!
Only about 1% wrote more than 60 articles! I find it is really isn't hard to get into the 1% of this and just about any other article directory!
I find it about the same statistics for just about anything! Look at the New Year's Resolution thing!
How many folks work themselves up to starting whatever project or resolution to do something in life they need to be doing...only to reach that day and perhaps make half-hearted attempts?
By mid February, most folks have reverted back to their old habits and promptly given up on them!
About 5% of these folks actually follow through and own the improvements.
What about here at WA? Though the activity rate tends to be higher than the average, those that actually put forth the work is very small! I hate to step on toes, but this is unfortunately true. If you are reading this and are not active as you should be, I encourage you to do so.
Why the Statistics? This Isn't About Debt
Why I brought this up is because there are mindsets involved here. These are the producing ones and the consuming ones. They are the producers and the consumers. These are the two cities and their economies. Which City are YOU in?
One is very aware of "good" debt and the other is painfully aware of "bad" debt.
I see the answer as very simple. Learn the skills here at WA--learn to sell (I don't care what any one says -to make big money you have to know how to sell) Don't be lazy go to work and learn your trade. Make a boat load of money and once the money starts coming in --do it again and again.
I know for a fact from my clients say that Kiosaki's realstate education doesn't work as it is sold in his books. "YOU NEED MONEY TO MAKE IT WORK" I service clients who own hundreds of homes and apartments and they laugh at the advice given.
Put all your efforts here make a ton of money and the rest will fall into place.
IT'S ABOUT REASONS AND RESULTS AND THE FIRTS ONE DOESN'T COUNT"
STAY FOCUSED!
I am involved with The Palm Beach Letter's Wealth Builder's Club and they have a program about infinite banking which was written about by R Nelson Nash. His book "Becoming Your Own Banker" is a great read on this. I've also read "Financial Independence in the 21st Century" by Dwayne and Suzanne Burnell.
It's based on Whole Life Insurance. I know, I know, Life Insurance?? That is why it is so amazing. You set up the policy to minimize the death benefit and maximize the savings benefit. As your money builds you loan it to yourself and pay yourself interest. Soon you have enough to invest in income properties, new businesses, or other things to build the account even higher. When you get to retirement you can continue to borrow from the policy to fund your life tax-free (it is a loan and the government doesn't yet tax loans). It's a total win-win way to live.
And it is a way to create generational wealth since you can set up accounts on your children, pass ownership to them when you are older, and teach them how to do it also so they can pass it to their children. Also you can set up policies on your grandchildren as soon as you have some.
I'm just getting things set up but this is one of the things I plan to write about.
Tim
This was a long read but way too true. There is really only one thing I can add and that is to become your own banker. If you borrow money from yourself then you pay the interest to yourself. However you need to pay yourself the same rate you get from traditional banks. It takes awhile to set up but it is worth it. It's something that I am working on now.
Tim