How to Manage Your Money like the Rich
In this video Ken outlines five key take-aways as to how financially successful people manage their money differently. Specifically he covers:
Q1: What is biggest difference between people who are successful with money and those who are not?
KEY TAKE-AWAY #1:
* The biggest difference is mindset
* Financially successful people direct any excess money towards investments or appreciating assets
Q2: What is the difference in how financially successfully people view assets and liabilities?
KEY TAKE-AWAY #2:
* Focus on building income producing assets
* Debt is a powerful tool and can be viewed positively if used to help build income producing assets more efficiently
* Try to avoid using debt to acquire unnecessary depreciating assets such as expensive cars or clothing
Q3: What are some tax & legal strategies utilized by financial successful people?
KEY TAKE-AWAY #3:
* Use an LLC for asset protection to limit exposure to liability
* LLCs help separate business activity from personal which can have tax benefits - please consult your tax advisor
* The tax code is established to motivate specific economic activity so think of ways to utilize these incentives
* Please check out Tom Wheelwright's tax series on my site
Q4: How do financially successful people manage their money differently?
KEY TAKE-AWAY #4:
* Be active in the way money is managed and think about the investments being made
* Use personal networks to source knowledge and expertise for better opportunities and consider investing collectively with others
Q5: How do financially successful people view money, currency, and the dollar?
KEY TAKE-AWAY #5:
* Currencies throughout the world are subject to free floating exchanges between countries which are complicated to understand and are exposed to punishing circumstances
* Direct portions of earnings into investments independent of the impacts of inflation, such as bank savings, and into investments with actual economic utility such as real estate