Robert poses a challenging question that makes us think deeply: Who makes the most noise when it comes to money?
When we start paying ourselves first, rather than everyone else, “the ones who complain the most are the banks and the people we owe money to.” Instead of letting their demands control us, we use that pressure to inspire us to improve our financial knowledge—and earn more money!
Curious about how your future might turn out?
Let’s look at Budget Tip 2 from Robert’s advice.
He says, “If you want to know where someone is headed in life, just take a look at how they spend their money each month.”
To make this clearer, Robert shares two examples:
Person A spends on:
1. Donations to their church
2. Savings
3. Books on investing
4. Seminars about investing
5. Gym memberships
6. Charity donations
7.A personal coach
Person B spends on:
1. Beer
2. New shoes
3. A new TV
4. Football tickets
5. More beer
6. Potato chips
7. Even more beer
Which of these two seems to be making smarter choices with their money?
As Robert’s rich dad put it: “You can predict someone’s future just by looking at how they spend their time and money.”
Think about it:
Now, let’s understand the impact of paying yourself first in the expense column.
He says, "Your assets are your responsibility. If you don’t prioritize paying yourself first, no one else will."
Budget Tip 3 also reminds us: "I use my assets to cover my debts”
We have to choose which path to take: "I can’t afford it" or "How can I afford it?"
His rich dad chose "How can I afford it?" The way he did this was by creating an asset in the asset column—an asset that paid for the liability. His financial statement looked like this:
Many people buy expensive things first and then don’t have enough money to invest in assets. It’s all about priorities.
Do we need to spend money to get rich? Let’s take a look at Budget Tip 4 to find out!
