How to Manage Your Money like the Rich

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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