How much is your one cent worth?

shockinginsights
Quote Adam khoo’s blog:

Recently, someone came up to me on a plane to KL and looked rather shocked. He asked, ‘How come a millionaire like you is travelling economy?’ My reply was, ‘That’s why I am a millionaire.’ He still looked pretty confused. This again confirms that greatest lie ever told about wealth (which I wrote about in my latest book ‘Secrets of Self Made Millionaires’). Many people have been brainwashed to think that millionaires have to wear Gucci, Hugo Boss, Rolex etc… (I shop at G2000 by the way) and sit on first class in air travel. This is why so many people never become rich because the moment that earn more money, they think that it is only natural that they spend more, putting them back to square one.

The truth is that most self-made millionaires (not those lucky bast**ds who inherited money) are frugal and only spend on what is necessary and of value. That is why they are able to accumulate and multiply their wealth so much faster.

I have a grandmother, who came to Singapore without a single cent, and before she died, she had 2X terrace houses, 1X coffee shop, 1X condominium, 1X 2 storey terrace house.
What was it that she had?

She had nothing, only the will to save. And save. She always said,
Without one cent how can there be a dollar, without a dollar how can there be hundreds or millions?
She could, walk from race course road to jalan besar just to deliver a can of kaya, and walk back to save the few cents of bus fare.

I wish she was still alive, for I believe it would be wonderful to learn from such a powerful figure. She died when I was one years old.

What Adam khoo said I believe in totally. Let me put it in a form of a picture.

Why is it that the poor gets poorer?
Income- what you get in terms of how many hours you work, once you fall sick, you stop earning.
Expense- what you spend, irregardless of if it is spent by yourself or can’t be controlled
Assets- things that put money in your pocket
Liabilities- things that take money out of your pocket, contributing to expense.


the rat race.. the poor always have this problem. His cashflow would be out of his picture, thus he has to work harder to sustain this cashflow.

The rich invest in assets, which he saves up money for by being scrimpt and these assets generate passive income to the owner.


I think the picture has done quite a good job of putting it into words. If you don’t understand, just keep seeing, you’ll understand.