A Lesson in Wealth Building…..
I remember my friend being a tenant in a leased building, next to a convenience store. There were 15 other businesses in the strip mall. My friend made pretty good money from his business, about $350,000 per year. He had the nice car, the nice vacations, the nice clothes, the big watch, wife had all the same etc etc. The convenience store owner worked around the clock, had the same old car as he did when he started and didn’t dress the best. My friend and the convenience store owner talked often and worked next to each other for 15 years. On the 16th year, the convenience store owner bought the strip mall for $6 million dollars…..much to the shock of everyone in the mall. See, it’s not how much money you make, it’s what you do with it and how fast you can make that money work for you. The North American dream is often the flash, the spending, the “do dads”, the short term thinking and the show boating.
This convenience store owner wasn’t from North America. He would take his profits from the store and buy rental properties or look for other deals, where he could always turn over a quick $5,000 – $10,000 here and there. He managed to save $50,000 per year over 15 years. He took that money ($750,000) to the bank and along with the equity in his properties, he made the 20% down payment toward the purchase of the strip mall.
In the end, after he passes away….the building will be worth $8.5 million dollars and he will pass all this wealth onto his children. Today so many North American parents think they’re doing great things for their children by buying them every “do dad” on the market……but are leaving very little for their kids in the future. Lots of parents today are depending on their children for survival because money education isn’t a top priority in North American culture. Find out how money works and don’t be embarrassed to ask wealthy people “how it’s done”. Most are more than happy to give away lots of their secrets for free. Everyone suffers. People who think money is a dirty word suffer the most and often pass that suffering onto their children. Start with “Rich Dad Poor Dad” by Robert Kiosayki.