Just 16, he naturally wanted his own carThe...
Just 16, he naturally wanted his own carThe excuse, "All his friends' parents gave their kids cars The child wanted to go into|
his savings and use it for a down paymentThat was when his father called me"Do you think I should let him do it, or should I just do as other parents do and just buy him a car?"
To which I answered "It might relieve the pressure in the short term, but what have you taught him in the long term? Can you use this desire to own a car and inspire your son to learn something?" Suddenly the lights went on, and he hurried home
Two months later I ran into my friend again "Does your son have his new car?" I askedBut I went and handed him $3,000 for the carI told him to use my money instead of his college money "Well, that's generous omega deville watch of you," I saidThe money came with a hitch I took your advice of using his strong desire to buy a car and use that energy so he could learn something
"So what was the hitch?" I asked
"Well, first we broke out your game again, CASHFLOWWe played it and had a long discussion about the wise use of money I then gave him a subscription to the Wall Street Journal, and a few books on the stock market
"Then what?" I asked "What was the catch?"
"I told him the $3,000 was his, but he could not directly buy a car with itHe could use it to buy and sell stocks, find his own stockbroker, and once he had made $6,000 with the $3,000, the money would be his for the car, and the $3,000 would go into his college fund
"And what are the results?" I asked
"Well, he got prada borse lucky early in his trading, but lost all he gained a few days laterThen, he really got interestedToday, I would say he is down $2,000, but his interest is upHe has read all the books I bought him and he's gone to the library to get moreHe reads the Wall Street Journal voraciously, watching for indicators, and he watches CNBC instead of MTVHe's got only $1,000 left, but his interest and learning are sky highHe knows that if he loses that money, he walks for two more yearsBut he does not seem to careHe even seems uninterested in getting a car because he's found a game that is more fun
"What happens if he loses all the money?" I asked
"We'll cross that bridge when we get to itI'd rather have him lose everything now rather than wait till he's our age to second hand chanel risk losing everythingAnd besides, that is the best $3,000 I've ever spent on his educationWhat he is learning will serve him for life, and he seems to have gained a new respect for the power of moneyI think he's stopped the burning of holes in his pockets
As I said in the section "Pay Yourself First," if a person cannot master the power of self-discipline, it is best not to try to get richFor while the process of developing cash flow from an asset column in theory is easy, it is the mental fortitude of directing money that is hardDue to external temptations, it is much easier in today's consumer world to simply blow it out the expense columnBecause of weak mental fortitude, that money flows into the paths of least resistanceThat is the cause of quilted chanel bag poverty and financial struggle
I gave this numerical example of financial intelligence, in this case the ability to direct money to make more money
If we gave 100 people $10,000 at the start of the year, I gave my opinion that at the end of the year:
80 would have nothing leftIn fact, many would have created I greater debt by making a down payment on a new car, refrigerator, TV, VCR or a holiday16 would have increased that $10,000 by 5 percent to 10 percent4 would have increased it to $20,000 or into the millions
We go to school to learn a profession so we can work for moneyIt is my opinion that it is also important to learn how to have money work for you
I love my luxuries as much as anyone elseThe difference is, some people buy their luxuries on logo dolce & gabbana credi