 |
And in the long run, savings are better than no...
Posted on Sunday, January 24, 2010 at 5:03 AM
And in the long run, savings are better than no savings But it takes a long time to get your money back and, in most instances, you don't get anything for free with itThey used to hand out toasters, but they rarely do that these days
On every one of my investments, there must be an upside, something for freeA condominium, a mini-storage, a piece of free land, a house, stock shares, office buildingAnd there must be limited risk, or a low-risk ideaThere are books devoted entirely to this subject that I will not get into hereRay Kroc, of McDonald's fame, sold hamburger franchises, not because he loved hamburgers, but because he wanted the real estate ; under the franchise for free
So wise investors must look at more than ROI; it's the assets you chanel quilted bag classic black get for free once you get your money backThat is financial intelligenceASSETS BUY LUXURIES: The power of focusA friend's child has been developing a nasty habit of burning a hole in his pocketJust 16, he naturally wanted his own carThe excuse, "All his friends' parents gave their kids cars The child wanted to go into|
his savings and use it for a down paymentThat was when his father called me"Do you think I should let him do it, or should I just do as other parents do and just buy him a car?"
To which I answered "It might relieve the pressure in the short term, but what have you taught him in the long term? Can you use this desire to own a car and inspire your son to learn something?" Suddenly the lights went on, and he hurried home
Two gucci handbags australia months later I ran into my friend again "Does your son have his new car?" I askedBut I went and handed him $3,000 for the carI told him to use my money instead of his college money "Well, that's generous of you," I saidThe money came with a hitch I took your advice of using his strong desire to buy a car and use that energy so he could learn something
"So what was the hitch?" I asked
"Well, first we broke out your game again, CASHFLOWWe played it and had a long discussion about the wise use of money I then gave him a subscription to the Wall Street Journal, and a few books on the stock market
"Then what?" I asked "What was the catch?"
"I told him the $3,000 was his, but he could not directly buy a car with itHe could use it to buy and sell discount louis vuitton handbags stocks, find his own stockbroker, and once he had made $6,000 with the $3,000, the money would be his for the car, and the $3,000 would go into his college fund
"And what are the results?" I asked
"Well, he got lucky early in his trading, but lost all he gained a few days laterThen, he really got interestedToday, I would say he is down $2,000, but his interest is upHe has read all the books I bought him and he's gone to the library to get moreHe reads the Wall Street Journal voraciously, watching for indicators, and he watches CNBC instead of MTVHe's got only $1,000 left, but his interest and learning are sky highHe knows that if he loses that money, he walks for two more yearsBut he does not seem to careHe even seems uninterested in getting a yacht master rolex car because he's found a game that is more fun
"What happens if he loses all the money?" I asked
"We'll cross that bridge when we get to itI'd rather have him lose everything now rather than wait till he's our age to risk losing everythingAnd besides, that is the best $3,000 I've ever spent on his educationWhat he is learning will serve him for life, and he seems to have gained a new respect for the power of moneyI think he's stopped the burning of holes in his pockets
As I said in the section "Pay Yourself First," if a person cannot master the power of self-discipline, it is best not to try to get richFor while the process of developing cash flow from an asset column in theory is easy, it is the mental fortitude of directing money that is chanel necklace har
« Last Page :: Next Page »
|
|