I find it unnerving how complicated the financial services industry as a whole try to make things out to be. Granted I understand each person has gifts or likes about things. I hear all the time, from my wife as well, “I don’t understand… fill in the blanks of some financial idea or concept”.
As an avid reader I have found that many of the ideas and concepts of finances have been written about in some book or article. The disconnect may be what to do with the information you just read. How do you implement some or all the ideas and concepts just read about?
Here are a few books I use in my education process.
The first would be Rich Dad Poor Dad by Robert Kyosaki. It is a good book talking about the different few of money not that one is better than the other but there is a difference.
The second book of his is Cashflow Quadrant, which breaks down the difference between the different ways income can be earned but more importantly the positives but also the limitation of some quadrants compared to others depending on what you desired goal is. I have a video on this, click here.
The third book is called The Richest Man in Babylon by George S. Clason. It talks about the seven rules that can lead you to be rich. The funny thing about this book, you have heard of these rules at some point in your life. I have a video on this, click here.
I could go on and on breaking down each of the books I have read but the question still hangs out there, how to I implement these ideas and concepts in my life?
You see the basics of all this is really about money, income, cash flow. I could go on and on about this but the next step should be to take a step back and look at all this from a child’s eyes and viewpoint.
I’m going to ask a few questions and I’d like you to answer these. You are welcome to write down the questions and answers for future reflection and reference.
- Question: What does the IRS tax?
- Question: What creates or generates income?
- Question: What kind of income do you want taxable or tax free?
- Question: What kind of assets create taxable or tax free income?
The first two questions tell you that the IRS views you as an asset. You create income and they tax it. Therefore you are an asset. What kind of income do you think the IRS wants to be generated taxable or tax free? Does this answer line up with your answers?
I left the last two questions open for your answers. Think about this and based on your answers you need to start researching how to accomplish your answer.