8. ASSETS BUY LUXURIES:

 The power of focus.

Gain a new respect for the power of money. Stop the burning of holes in your pockets.

If a person cannot master the power of self-discipline, it is best not to try to get rich.

 For 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 hard.

 Due to external temptations, it is much easier in today's consumer world to simply blow it out the expense column.

Because of weak mental fortitude, that money flows into the paths of least resistance. That is the cause of poverty and financial struggle.

The book uses this numerical example of financial intelligence, in this case the ability to direct money to make more money.

If 100 people are given $10,000 at the start of the year, I gave my opinion that at the end of the year:

·       80 would have nothing left. In fact, many would have created greater debt by making a down payment on a new car, refrigerator, TV, VCR or a holiday.

·       16 would have increased that $10,000 by 5 percent to 10 percent.

·        4 would have increased it to $20,000 or into the millions.

We go to school to learn a profession so we can work for money. It is my opinion that it is also important to learn how to have money work for you.

I love my luxuries as much as anyone else. The difference is, some people buy their luxuries on credit.

 It's the keep-up-with-the-Joneses trap. When you wanted to buy a Porsche, the easy road you would have is to call your banker and get a loan.

 Instead of choosing to focus in the liability column,  chose to focus in the asset column.

As a habit,  use your desire to consume to inspire and motivate your financial genius to invest.

Too often today, we focus to borrowing money to get the things we want instead of focusing on creating money.

One is easier in the short term, but harder in the long term.

 It's a bad habit that we as individuals and as a nation have gotten into.

 Remember, the easy road often becomes hard, and the hard road often becomes easy.

The earlier you can train yourself and those you love to be masters of money, the better.

 Money is a powerful force.

 Unfortunately, people use the power of money against them.

 If your financial intelligence is low, money will run all over you. It will be smarter than you.

 If money is smarter than you, you will work for it all your life.

To be the master of money, you need to be smarter than it.

Then money will do as it is told.

 It will obey you. Instead of being a slave to it, you will be the master of it. That is financial intelligence.