accumulating assets over reducing expenses,am I right here?
Personally,I go for option two. Why live below my means when I can expand it? That's what I ask myself. Why would I want to follow the popular opinion of living below my income,when I can actually,in the same time and space,increase my income exponentially.
Maybe it's just me,but reading Robert Kiyosaki and Donald Trump for most parts of the day has a way of making one think big financially.
Great write-up man. One of the best I've seen with the KISS principle.@dana-edwards,you seem to prefer the second option of
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You would be wrong. My expenses are quite low compared to most. Some liabilities such as college loans and tax must be paid. But I do not go and create new liabilities for no reason.
It all depends really. If you have enough assets generating enough income then you can support a more expensive lifestyle. So when I say "low" I guess it would be low compared to a lot of other people but not quite where I want to be. So I would say if you can for example not have a credit card, not have a mortgage, not have a car, not waste money on over priced clothes, then yes you're reducing expenses. But the amount of expenses you have to take on depends on what it takes to make you happy individually. So low for me could be high for another and high for me could be low for another.
I guess I do understand your POV now. Since we all are different,then,we can not follow the same investment plan. With different expenses,lifestyle and desires,different plans would fall into place.
As to the people you cite, I personally am not going to name any names in particular but on a totally unrelated, totally not talking about them note I will go ahead and say that you should be very, very skeptical of anyone who claims to make loads of money with a system that you can buy courses in or books in. When they're making more off of these other products that are based on the appearance or image of someone being successful you should wonder why they aren't spending more time doing what they claim they're so good at.
The general rule of thumb with business is that if you have room to expand and markets are doing well, then expand as fast as you can, but make sure that your liabilities do not overextend your leverage position and debt ratios or you won't be able to move fast enough to cut down on those expenses before markets go south. And if you are a behemoth and have dominated the market you occupy, then you can worry about cutting costs if the roi of capturing more customers is too high, or you do not control the demand for your product in the first place.
So, say like previous era in the US where rates are low it's profitable to borrow as much money as you can to grow, but in a coming era of fiscal tightening and higher rates your business would implode if you had loans extended 5+ years that you could only pay off when business was growing.
Self help books exist to provide motivation and moral support to what you've already decided you want to do. The best books to learn how to do things vary of course. The problem with going from books is that often the best information is outdated by the time it gets into book format. Look at the blockchain space for example and see for yourself that by the time it gets into a book it's already a few years old. The best way to get knowledge is not to just read books but to observe people and do what you see working.
If someone else is doing something and you can see them getting a lot of money doing it then you can do the same in a lot of cases. Of course you never want to copy someone exactly but once the formula for success is discovered you can run with it and add your own uniqueness.