As I've stated before, sometimes those of us with a creative inclination tend to shy away from the stiff, stale, world of business endeavors, finances, spreadsheets, Excel, and the like. Fortunately, my fiance, is my opposite in many ways. He is a scorpio, I am a Taurus, I went to school for Production Design , he went to school for Producing. He is creative though, but mostly he is creative with money. I however, treat money with holy reverence. I know it can make or break me, and so mostly I just make it the sacrifices that I know will keep it appeased, so that it doesn't smite me. Basically, I just want to have enough of it to not have to think about it.
This brings me to the topic of my post today. Last night Nick came home with 3 copies of the book "Rich Dad, Poor Dad" to give away to people and explained to me that about 90% of his thought process on money is laid bare in said book. Now, normally, the mere sight of a book like this would make me gag. But, in truth, I often envy Nick's crazy ability to seemingly create money from air. So, I swallowed my pride, got over myself, and decided to read.
The clearest point I came away with, is that the way I think about money needs to change. And, in a close second, I realized that financial education is important.
"Most people went to school to learn how to make money, and never learned how to make money work for them."
I, like many hardworking Americans, have been of a mindset my whole life that one must work really hard to deserve to the money they make. The author doesn't advise against working hard to make money, he just advises that once you make money, instead of accumulating depreciating objects, or even saving, that you put that money to work for you. That same money can essentially function as "employees" that bring you income, even when you are not phsically "on the job sight."
So instead one should accumulate assets. Assets are anything that can make you money while you sleep.
1. Businesses that do not require your presence 2. Stocks 3. Bonds 4. Incoming Generating Real-Estate 5. Notes 6. Royalities from Intellectual Property such as music, scripts, and patents. 7. Anything that appriaciates in value.
Whatever the asset, he suggests you choose things you love, because then you will take care of it.
So, why am I writing about this on a blog that clearly is representing a business that requires a lot of hands on, always present, needs ME to operate, time? Managing your money wisely is one of the smartest and easiest ways to keep your business- the one that you want to spend day in and out doing- afloat.
Starting off in any small business endeavor requires A LOT of time and money. Sometimes it is hard to come across both of those things in the beginning. But, if you are smart, and make your money work for you, instead of the other way around, you can really begin to build something great with less stress.
Anyway, read this book ( even though it looks a corny as hell.)
Until next time,