what you Know about Money $$

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