In this quick video, Real Estate Entrepreneur Michael Del Prete explains how the flow of income is different between Poor, Middle Class and the Wealthy.
Hey, Mike Del Pete here with wehearthouses.com. Today, I am going to show you how the flow of income is different between the poor, middle class and wealthy. But first I want to share a quote with you from Robert Kiyosaki’s Rich Dad Poor Dad. So here we go: “If people think money will solve problems I am afraid those people will have a rough ride. Intelligence solves problems and produces money; money without financial intelligence is money soon gone.” Okay, so let’s review the chart. Here’s the flow of income. So for a poor person, his income goes into expenses such as fun, clothing, rent, whatever and then the money is gone. You have to wait until your next check comes in. For the middle class, as the income comes in, they have liabilities, mortgage payment, car loan, credit card debt, school loans and then whatever is left goes to expenses such as fun, clothing, food, whatever and then the income is gone and they wait for their next check. The wealthy produces income and then they buy assets such as businesses and rental properties. Those businesses and rental properties produce more income and then they take that income again and put it back into the assets, okay? So now understand why you hear those stories about lottery winners or athletes going from nothing to famous and rich, whatever it is, and then they have no more money again. They just didn’t know any better. Their financial IQ was of the poor and the middle class. So I highly recommend you go out and buy Rich Dad Poor Dad by Robert Kiyosaki. Start reading books and hang out with people that you want to be like. Hand out with people that do the things you want to do and start asking them questions. So that’s what I have for you today. Thanks for watching. Have a great day.