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Mind Your Own Business

Mind Your Own Business

 

 

The Secret of Mcdonald’s

Mind Your Own Business – In 1974, Ray Kroc, the founder of Mcdonald’s, was asked to speak to the MBA class at the University of Texas at Austin. After a powerful and inspiring talk on mind your own business, the class adjourned and the students asked Ray if he would join them at their favourite hangout to have a few beers. Ray graciously accepted. “What business am I in?” Ray asked once the group had all their beers in hand. “Everyone laughed,” my friend said. “Most of the MBA students thought Ray was just fooling around thought  (mind your own business).” No one answered, so Ray asked again, “What business do you think I’m in?” The students laughed again, and finally, one brave soul yelled out, “Ray, who in the world doesn’t know that you’re in the hamburger business?”

 

Business of Macdonald's

Ray chuckled. “That’s what I thought you would say.” He paused and then quickly added, “Ladies and gentlemen, I’m not in the hamburger business. My business is real estate.”,Ray spent a good amount of time explaining his viewpoint. In his business plan, Ray knew that the primary business focus was to sell hamburger franchises, but what he never lost sight of was the location of each franchise. He knew that the land and its location were the most significant factors in the success of each franchise. Basically, the person who bought the franchise was also buying the real estate under the franchise for Ray Kroc’s organization.

Today, McDonald’s is the largest single owner of real estate in the world, even more than the catholic church. McDonald’s owns some of the valuable intersections and street corners in America and around the globe.

A student considers this as one of the most important lessons in his life. Today he owns cars washes, but his business is the real estate under those car washes.

My previous article was presented diagrams illustrating that most people work for everyone but themselves. They work first for the owners of the company, then for the government through taxes, and finally for the bank owns their mortgage.

Education System

Our current educational system focuses on preparing today’s youth to get good jobs by developing scholastic skills. Their lives will revolve around their wages or as described earlier, their income column. Many will study further to become engineers, scientists, cooks, police officers, artists, writers, and so on. These professional skills allow them to enter the workforce and work for money.

Indian education system didn't refine the talent of a child

 

But there is a big difference between your profession and your business. Often I ask people, “What is your business?” And they will say, “Oh, I’m a banker.” Then I ask them if they own the bank. And they usually respond, “No, I work there.” In that instance, they have confused their profession with their business. Their profession may be a banker, but they still need their own business.

A problem with school is that you often become what you study. So if you study cooking, you become a chief. If you study the law, you become an attorney, and a study of auto mechanics makes you a mechanic. The mistake in becoming what you study is that too each student or even people forget to mind your own business. They spend their lives minding someone else’s business and making that person rich.Indian education system only imposes the study inot the chid not tach it.To become financially secure, each person needs to mind your own business. Your business revolves around your asset column, not your income column. As stated earlier, the number-one rule is to know the difference between an asset and a liability and to buy assets. The rich focus on their fill asset columns, while everyone else focuses on their income statements.

That is why we hear so often: “I need a raise.” “If only an I had a promotion.” “I am going back to school to get more train so I can get a better job.” ” I am going back to work overtime.” ” Maybe I can get a second job.”

Financial struggle is often the result of people working all their lives for someone else.

In some circles, these are sensible ideas. But you are still not minding your own business. These ideas all still focus on the income column and will only help a person become more financially secure if the additional money is used to purchase income-generating assets.

 

Why People Are Poor?

The primary reason the majority of the poor and middle class are fiscally conservative-which means, “I can’t afford to take risks”-is that they have no financial foundation and doesn’t understand the difference the mindset of Rich vs Poor  they have to cling to their jobs and play it safe and they do not mind your own business.

Mind your own business

 

 

When downsizing became the “in” thing to do, millions of workers found out their largest so-called asset, their home, was eating them alive. Their “asset” was costing them money every month. Their car, another “asset,” was eating them alive. The golf clubs in the garage that cost $1,000 were not worth $1,000 anymore. Without job security, they had nothing to fall back on. What they thought were assets could not help them survive in a time of financial crisis.

If you assume most of us have filled out a credit application to buy a house or a car. It’s always interesting to look at the ”net-worth” section because of what accepted banking and accounting practices allow a person to count as assets.

If you cringe every time you hear someone say to you that their net worth is a million dollars or $100,000 dollars or whatever. One of the main reasons net worth is not accurate is simply because, the moment you begin selling your assets, you are taxed for any gains.

So many people have put themselves in deep financial trouble when they run short of income. To raise cash, they sell their assets. But their personal assets can generally be sold for only a fraction of the value that is listed on their personal balance sheet. Or if there is again on the sale of the assets, they are taxed on the gain. So again, the government takes its share, thus reducing the amount available to help them out of debt. That is why I say someone’s net worth is often “worthless” than they think.

Start minding your own business. Keep your daytime job, but start buying real assets, not liabilities or personal effects that have no real value once you get them home. A new car loses nearly 25 per cent of the price you pay for it the moment you drive it off the lot. It is not a true asset even if your banker lets you list it as one.

 

Mind Your Own Business

Keep expenses low, reduce liabilities, and diligently build a base of solid assets. For young people who have not yet left home, it is important for parents to teach them the difference between an asset and a liability. Get them to start building a solid asset column before they leave home, get married, buy a house, have kids, and get stuck in a risky financial position, clinging to a job, and buying everything on credit. I see so many young couples who get married and trap themselves into a lifestyle that will not let them get out of debt for most of their working years.

For many people, just as the last child leaves home, the parents realize they have not adequately prepared for retirement and they begin to scramble to put some money away. Then their own parents become ill and they find themselves with new responsibilities.

Start minding your own business. Keep your daytime job, but start buying real assets, not liabilities.

When I say mind your own business, I mean to build and keep your asset column strong. Once a dollar goes into it, never let it come out. Think of it this way: Once a dollar goes into your asset column, never becomes your employee. The best thing about money is that it works 24 hours a day and can work for generations. Keep your day job, be a great hardworking employee, but keep building that asset column. LIBERTY FINANCIALAs your cash flow grows, you can indulge in some luxuries. An important distinction is that rich people buy luxuries last, while the poor and middle class tend to buy luxuries first. The poor and the middle class often buy luxury items like big houses, diamonds, furs, jewellery, or boats because they want to look rich. They look rich, but in reality, they just get deeper in debt on credit. The old-money people, the long-term rich, build their asset column first. Then the income generated from the asset column buys their luxuries. The poor and middle class buy luxuries with their own sweat, blood, and children’s inheritance.

True luxury is a reward for investing in and developing a real asset. For example, when a person had extra money coming from his tenants, he went out and bought his Mercedes. It didn’t take any extra work or risk on her part because the tenants bought the car. He did, however, have to wait four years while the real estate investment portfolio grew and began.

Generating enough extra cash flow to pay for the car. But the luxury, the Mercedes, was a true reward because he proved he knew how to grow his asset column. That car now means a lot more to his than simply another pretty car. It means he used her financial intelligence to afford it.

Instead, most people impulsively go out and buy a new car, or some other luxury, on credit. They may feel bored and just want a new toy. Buying a luxury on credit often causes a person to eventually resent that luxury because the debt becomes a financial burden.

After you’ve taken the time and invested in and built your own business, you are now ready to learn the biggest secret of the rich-the secret that puts the rich way ahead of the pack.

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