How to become rich? 2

     One more time to the terms just to be very clear before we continue, cash flow is money you make. Expenses that is money you spend, assets pays you and liabilities costs you. Now let's take a look how broke people spend their money. When I say broke people I do not refereeing to the destitute. I am speaking about that large portion of our society that lives from paycheck to paycheck and never seen they have any money. And I am sure many of you relating that group. Broke people buy stuff they buy inexpensive stuff that they do not need to survive.

     You go to someone house and you cannot find any table tops, or count stuff in the whole house. The problem is that their cash flow do not produce more cash flow. Now lets go to the middle class, they are a group in the society mistakenly think they are rich but they are not. They have enough cash flow to become rich but they spend money most on liabilities that make them in the middle class group. Liabilities are items like, car, boat, houses, airplane, credit card. Let's see just how this happens have it check let's suppose 10000 per month. They spend expenses with half, 5000, and the remains for liabilities, paying on a new car. And for insurance the car new cost 11000 new dollars for every single month. The expenses increasing while the cash flow stay the same.

 

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