Ignoring for a moment that this video comes from an MLM guy and that I hate MLMs with a passion, the following video is a must-watch in my book.
Edit: the video was taken down. -_-
Anyway, here’s the gist of things:
- Poor people waste their money on inexpensive but useless stuff. In the Philippine context, that might be cigarettes or cellphone load.
- The middle class are worse off: they spend money on stuff that drains them of money. Houses, cars, spending on credit but just paying the minimum per month, etc. Most of them only appear to be rich, but in reality they don’t have any accumulated wealth.
- The wealthy spend money on stuff that gives them money: investing on stocks, building businesses, etc. They actually avoid buying what the things the so-called “rich” people buy because they know it can jeopardize their financial independence.
It’s nothing new if you’ve read a couple of good financial management books. The good part about the video is it’s short enough to share to “busy” friends.