Income statement rich vs. balance sheet rich
Success is defined differently by different people. To some it may mean a wonderful family life, to others it may be having lots of friends. For you, success may mean something entirely different and that’s O.K. But any discussion of success ultimately involves some reflection on financial embellishments and financial independence, as well it should.
In his book THE MILLIONAIRE MIND, Dr. Thomas Stanley makes a distinction between those he categorizes as the “income statement” rich and the “balance sheet” rich.
The “income statement” rich are those people who have the super-nice, big houses in upper-class neighborhoods and drive the latest model, luxury automobiles. These people definitely have a lot of stuff, but they also have the large monthly payments that go along with their stuff. In effect, they earn a high income and pay out an equally high amount of their income in order to finance their lifestyle. There is little or nothing leftover at the end of each month and because of this, their wealth is dependent on maintaining an income stream. If they are out of work for any length of time, the money (illusory wealth) dries up. Therefore, being “income statement” rich is really an illusion.
The “balance sheet” rich, on the other hand, are those people whose balance sheet shows that the value of their assets exceeds the amount of their liabilities by at least one million dollars. According to Dr. Stanley’s research, these people seldom drive the newest cars or live in the largest houses. In fact, most of these people probably don’t look or live too differently than you or I.
The point of all this is that if your definition of success includes the accumulation of riches, then you need to learn what truly rich people do in order to be rich and then emulate them. THE MILLIONAIRE MIND is an excellent, eye-opening resource for learning a little bit about how true millionaires think and how they achieved their wealth. If you don’t have the time to read this book, don’t fret. THE MILLIONAIRE MIND is available as an audio book. Do as I do and make every drive a learning experience. The results will amaze you.
Tags: no tags
Comments
Leave a Reply
-
Help fund soupornuts
I Follow CSS
U COMMENTI FOLLOW
-
Subscription Center
Email soupornuts.com to Me!
External Rotation with The Rotater
"Thanks to the rotater I was able to get back to work and not lose the use of my shoulder in this demanding profession."
- Officer D. Pesko
Internal Rotation withThe Rotater
"...The Rotater has become as much a part of my morning as my cup of coffee...Thanks for a great product!!"
Perry R. Green
Director of Instruction
The Golf Club at Wescott Plantation
Rotator Cuff Strengthening & Stabilization
"I just received the Rotater today and I am instantly convinced that every baseball player needs to have this tool in their arsenal! Not only is it simple to use, it does exactly what you expect it to do with no learning curve."
Coach Dan Huff, CSCS
www.baseballstrength.com
