what you know about money $$
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this slides will help you to understand about money.TRANSCRIPT
What you Know What you Know about Money $$about Money $$$$
Presented by Ali Al-QahtaniPresented by Ali Al-Qahtani
Qahtani6 Qahtani6
• The Wealthy Teach Their Kids About Money.
• The Poor And Middle Class Don’t.
““ If
your
reaso
n f
or
If y
our
reaso
n f
or
beco
min
g r
ich is
to lo
ok
beco
min
g r
ich is
to lo
ok
rich
, yo
u w
ill n
eve
r
rich
, yo
u w
ill n
eve
r beco
me r
ich.”
beco
me r
ich.”• We’re being taught to be We’re being taught to be
“Good Employees.”“Good Employees.”I.I. Go to schoolGo to schoolII.II. Get good gradesGet good grades
III.III.Get a good Get a good “JOB”“JOB”
IV.IV.Work hardWork hardV.V.Maintain Maintain good creditgood credit VI.VI.So we can So we can consume lots of consume lots of
stuffstuff..
JOB
Financi
al
Financi
al
Inte
lligence
Inte
lligence
Making more money will not Making more money will not solve your problem if money solve your problem if money management is your problem.management is your problem.
It is not your boss’ job to make you wealthy or secure. It’s her job to give you a paycheck . . .
nothing more.
•Money is a drug
Financi
al
Financi
al
Inte
lligence
Inte
lligence
• Money pushes you Money pushes you around. around. You will obey You will obey money.money. - Employers/Bosses- Employers/Bosses- Bill collectors- Bill collectors- Tax collectors- Tax collectors- Family and friends- Family and friends
• Can you push back?Can you push back?• Are you smarter than Are you smarter than
your money? your money? Answer: Answer: Do you work for Do you work for
money, or money, or does money does money work for you?work for you?
Financi
al
Financi
al
Inte
lligence
Inte
lligence
• When money works for you, When money works for you,
Passive Income: Interest, real Passive Income: Interest, real estate income, Salary, estate income, Salary,
• Your money can work for Your money can work for you or it most certainly will you or it most certainly will work for someone else.work for someone else.
• The key is The key is “What “What investments do you own investments do you own that will bring you passive that will bring you passive income?”income?”
Financial IntelligenceFinancial IntelligenceRich Dad. Poor Dad’s Basic Rich Dad. Poor Dad’s Basic
PhilosophyPhilosophy
• Know the difference between Know the difference between an an ASSETASSET and a and a LIABILITYLIABILITY, , and and only buy assetsonly buy assets..A A True AssetTrue Asset gives a gives a positive positive cash flowcash flow each and every month. each and every month.
• Make your PASSIVE INCOME Make your PASSIVE INCOME cover your Lifestyle cover your Lifestyle Expenses Expenses forever.forever.
Financi
al
Financi
al
Educa
tion
Educa
tion • Two key Two key personal personal and and
business business financial financial statements we all must be statements we all must be able to read.able to read.- The - The Income StatementIncome Statement shows shows the amount of money coming in the amount of money coming in and going out.and going out.
- The - The Balance SheetBalance Sheet shows the shows the balance of what you own and balance of what you own and what you owe.what you owe.
Income Statement
BalanceSheet
Income
Expenses (Payments)
Assets (Own) Liabilities (Debts)
Financial Financial EducationEducation
Income Statement
BalanceSheet
Income
Expenses (Payments)
Assets (Own) Liabilities (Debts)
Paycheck, dividends, interest,rents, royalties, profits, advances
Financial EducationFinancial Education
Income Statement
BalanceSheet
Income
Expenses (Payments)
Assets (Own) Liabilities (Debts)
Taxes, mortgage/rent, cards, car, food, fun, rent, clothes, child care, insurance, medical
Paycheck, dividends, interest,rents, royalties, profits, advances
Financial LiteracyFinancial Literacy (continued) (continued)
Income Statement
BalanceSheet
Income
Expenses (Payments)
Assets (Own) Liabilities (Debts)
Taxes, mortgage/rent, cards, car, food, fun, rent, clothes, child care, insurance, medical
Paycheck, dividends, interest,rents, royalties, profits, advances
Mortgage, car loan, credit cards, school loans
Financial EducationFinancial Education
Income Statement
BalanceSheet
Income
Expenses (Payments)
Assets (Own) Liabilities (Debt)
Taxes, mortgage/rent, cards, car, food, fun, rent, clothes, child care, insurance, medical
Paycheck, dividends, interest,rents, royalties, profits, advances
Mortgage, car loan, credit cards, school loans
Stocks, bonds, notes,real estate, business, intellectual property
Financial EducationFinancial Education
Income Statement
BalanceSheet
Income
Expenses
Assets = Zero Liabilities = Zero
How The Poor LiveHow The Poor Live They only have small incomes and small They only have small incomes and small
expensesexpenses
Income Statement
BalanceSheet
Income
Expenses
Assets = Zero Liabilities = Zero
How The Poor LiveHow The Poor Live They only have small incomes and small They only have small incomes and small
expensesexpenses
$The
Wealthy
Income Statement
BalanceSheet
Income
Expenses
Assets
Liabilities
How The Middle Class LiveHow The Middle Class LiveThey buy expenses and liabilities they think are They buy expenses and liabilities they think are
assetsassets
Assets
Income Statement
BalanceSheet
Income
Expenses
Assets
Liabilities
How The Middle Class LiveHow The Middle Class Live They buy expenses and liabilities they think They buy expenses and liabilities they think
are assetsare assets
Assets
$The
Wealthy
Income Statement
BalanceSheet
Income
Expenses
Assets
How The Wealthy LiveHow The Wealthy Live They take the income of the poor and They take the income of the poor and
middle class, and buy assets that produce middle class, and buy assets that produce more incomemore income
Liabilities
Income Statement
BalanceSheet
Income
Expenses
Assets
How The Wealthy LiveHow The Wealthy LiveThey take the income of the poor and middle They take the income of the poor and middle
class, and buy assets that produce more class, and buy assets that produce more incomeincome
Liabilities
$ Poor and middle class
income
Rich Dad’s Rich Dad’s Cash Flow QuadrantCash Flow Quadrant
Rich Dad’s Rich Dad’s Cash Flow Quadrant Cash Flow Quadrant (modified)(modified)
You have a job.Someone else is the boss.Security before money.
Rich Dad’s Rich Dad’s Cash Flow Quadrant Cash Flow Quadrant (modified)(modified)
You have a job.Someone else is the boss.Security before money.
You own a job. Loner/”boss.” Perfectionists. Small bus. owners: Drs. Restaurateurs.Independence before money.
Rich Dad’s Rich Dad’s Cash Flow Quadrant Cash Flow Quadrant (modified)(modified)
You have a job.Someone else is the boss.Security before money.
You own a job. Loner/”boss.” Perfectionists. Small bus. owners: Drs. Restaurateurs.Independence before money.
You own a system that others operate.Coordinator. Delegator. Franchiser.Use other people's time and money.
Rich Dad’s Rich Dad’s Cash Flow Quadrant Cash Flow Quadrant
You have a job.Someone else is the boss.Security before money.
You own a job. Loner/”boss.” Perfectionists. Small bus. Owners: Drs., restaurateurs.Independence before money.
You own a system that others operate.Coordinator. Delegator. Franchiser.Use other people's time and money.
Your money works for you.Make money with money.Other’s liabilities are your assets.
Rich Dad’s Rich Dad’s Cash Flow Quadrant Cash Flow Quadrant (modified)(modified)
Job Security
Financial Security
Financial Freedom
Ultimate Financial Freedom
WealthSide
RatRaceSide
Sample Paths To Financial Sample Paths To Financial FreedomFreedom
WealthSide
RatRaceSide
Start
EndorStart
Sample Paths To Financial Sample Paths To Financial FreedomFreedom
WealthSide
RatRaceSide
Start
End
Some Final Thoughts