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Sunday, October 31st, 2010
| Time |
Event |
| 10:03a |
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"I'm only going to kiss you on the cheek,
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"I'm only going to kiss you on the cheek, Edgar
Illy's watching and I don't want her to get the
wrong idea
She did so, then said, "I'm worried about you
There's a white look around your eyes that I don't
like
"Elizabeth-"
She shook her head a tiny bit"It was there last
night, even before she came to the galleryEven
when you were at your happiestI
don't know how to describe it any better than that
I only saw it once before, back in 1992, when it
782
looked for a little while like you might miss that
balloon payment and lose the business
The jet engines were whining and a hot breeze was
blowing her hair around her face, tumbling her
careful beauty-shop curls into something younger
and more natural"Can I ask you something,
Eddie?"
"Of course
"Could you paint anywhere? Or does it have to be
here?"
"Anywhere, I thinkBut it would be different
somewhere else
She was looking at me fixedly
"Just the same, a change might be goodYou need
to lose that white lookI'm not talking about
coming back to Minnesota, necessarily, just
goingWill you think about it?"
"Yes But not until I saw what was in the red
picnic basketAnd not until I'd made at least one
trip to the south end of the KeyAnd I thought I
could do thatBecause Ilse was the one who'd
gotten sick, not meAll I'd had was one of my
red-tinged flashbacks to the accidentAnd that
phantom itch
783
"Be well, E | | 12:38p |
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So as I said earlier, my rich dad simply
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So as I said earlier, my rich dad simply told two young boys that "assets put money in your pocket Nice, simple and usable
"This is Cash Flow pattern of a liability
Now that assets and liabilities have been defined through pictures, it may be easier to understand my definitions in words
An asset is something that puts money in my pocket
A liability is something that takes money out of my pocket
This is really all you need to knowIf you want to be rich, simply spend your life buying assetsIf you want to be poor or middle class, spend your life buying liabilitiesIt's not knowing the difference that causes most of the financial struggle in the real world
Illiteracy, both in words and numbers, is the foundation of financial struggleIf people are having difficulties financially, there is something that they cannot read, either in numbers or wordsSomething is misunderstoodThe rich are rich because they are more literate in different areas than people who struggle financially So if you want to be rich and maintain your wealth, it's important to be financially literate, in words as well as numbers
The arrows in the diagrams represent the flow of cash, or "cash flow Numbers alone really mean littleJust as words alone mean littleIt's the story that countsIn financial reporting, reading numbers is looking for the plot, the storyThe story of where the cash is flowingIn 80 percent of most families, the financial story is a story of working hard in an effort to get ahead Not because they don't make moneyBut because they spend their lives buying liabilities instead of assets
For instance, this is the cash flow pattern of a poor person, or a young person still at home:
Job (provides income)-> Expenses(Taxes Food Rent Clothes Fun Transportation)
Asset (none)
Liability (none)
This is the cash flow pattern of a person in the middle class:
Job (provides income)-> Expenses(Taxes Food Mortgage Clothes Fun Transportation)
Asset (none)
Liability (Mortgage Consumer loans Credit Cards)
This is the cash flow pattern of a wealthy person:
Assets(stocks bonds notes real estate intellectual property)->income (dividends interest rental income royalties)
Liabilities (none)
All of these diagrams were obviously oversimpli |
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