Elon Musk, Nearing $300 Billion Fortune, Is The Richest Person In History. His reply ... 25 principles we can learn from.

Cash Flow Quadrant by Robert Kiyosaki

Elon Musk, Nearing $300 Billion Fortune, Is The Richest Person In History. His reply .....

I've quoted only ONE sentence from the article that is particularly pertinent as your plan for your future:

  1. Spending Must Align With Goals (Investment or expense?)
  2. Don't Waste Money To Impress Others (Learn what you are compensating for)
  3. Have Plenty of Liquidity (Simple)
  4. Avoid Fees at All Costs (stripe, crypto payment portals, transferwise)
  5. Know What You're Paying in Investment Fees (manage your own investments)
  6. Asset Location Is as Important as Asset Allocation (property? stocks? crypto?)
  7. Choose the Right Retirement Savings Account (or create your own)
  8. Year-Round Tax Planning Is Crucial (Singapore, Dubai, Panama, Hong Kong)
  9. Donate To Charitable Causes (B1G1.com)
  10. It's Important To Hire Advisors (Advisory board for business, mentors for life)
  11. But Choose Your Advisor Carefully (Do their visions, values, character match?)
  12. Salary Isn't the Whole Story (Become unemployable)
  13. Take Advantage of Time -- Not Timing (Time is finite, value can multiply)
  14. Put It in Writing (Smart contracts, Legal agreements. Money changes people)
  15. Understand Value Over Cost
  16. Eat Out Less (or move somewhere where food is cheap)
  17. Be Your Own Boss (Even a solopreneur with distributed workforce)
  18. Use Other People's Money (leverage, leverage, leverage)
  19. Have a Saving Strategy (See barefoot investor principles)
  20. Change Your Thinking (Belief changes biology, emotion drives behavior)
  21. Invest In Yourself (The best ROI in the world)
  22. Only Take a Job if There's Potential for Growth (Get paid to learn and earn)
  23. Don't Pay With Credit Cards (Cut it up, full stop)
  24. Pursue Your Passion (If you do something you love, you'll never work a day)
  25. Buck Trends (Buy when there is blood in the streets, not in hype cycles)
Stay Lean in business and in life

"The wealthy person has three best friends: her attorney, her accountant and her advisor," said Justin J. Kumar, a senior portfolio manager at Arlington Capital Management.

Find the WHO that has the HOW. Roger James Hamilton

"The wealthy tend to use the law and tax code to their advantage when figuring out how to maximize their wealth, especially over multiple generations, and they are not afraid to spend money upfront for counsel to get these answers."

The good and the bad news. No one has really mastered it, everyone's in debt except for the 1%, like Elon.

There are 3 ways to understand that no one has really mastered this.

  1. Globally
  2. Nationally
  3. Personally

Global Debt Hits Record $296 Trillion as World Lockdowns Ease

The amount of the world's outstanding debt swelled during the three months by about $4.8 trillion to a record $296 trillion, according to a report by the Institute of International Finance.

Global Debt has 1.5x in the pandemic 

Nationally, here are the top 15 countries running in the Red.

It's sad to see. But my home country of Australia is leading the scarcity movement. Australian household debt has steadily risen over the past three decades as more of us aim to own homes and continue to rely on products such as car loans and credit cards. In fact,

the ratio of household spending to income has more than doubled between 1995 and 2015, going from 104% to 212%, according to the OECD Data released in 2015.

This means if the average person earns $80,000 net, they are spending $169,600 per year.

Aussies are spending 2x what they earn...

However, Swiss, Netherlands, and Norwegians are spending 2.5x their annual earnings.

Personally, developing countries hold less debt, because they don't have access to money that isn't theirs

A Quick Definition of Household debt

Household debt is defined as all liabilities of households (including non-profit institutions serving households) that require payments of interest or principal by households to the creditors at fixed dates in the future. Debt is calculated as the sum of the following liability categories: loans (primarily mortgage loans and consumer credit) and other accounts payable. The indicator is measured as a percentage of net household disposable income.

We are taught the difference between “good” and “bad” debt

Here is what all those finance articles tell you.

"While Australia’s total personal debt is usually reported in a negative light, it’s important to distinguish between the different types of debt that make up the $2 trillion we collectively owe. On a very basic level, these debts can be defined as either “good” or “bad” by the people selling you on buying debt.

  • Good debt. This type of debt is taken on as a way to build wealth in the long term. For example, a home loan allows you to work towards owning your own home, and an investment property mortgage allows you to earn income from property you rent out or resell at a higher price.
  • Bad debt. This type of debt diminishes your wealth over time. This means it is not attached to an asset, and usually indicates you have paid for items or services you would not be able to afford based on your income. For example, relying on a credit card for non-essential items, or those that diminish in value over time would lead to bad debt."

However, I want you to think differently. Rather than buying into a negatively geared debt reduction system. What if there was a way to leverage all that you have, know, and the work you are willing to do. Putting into positively geared systems where the abundance Pie grows and expands based on the value we give to it? Or where we put our energy in general.

As an example. at the start of 2020. Imagine you had $10,000

  1. You could leave it in your bank as savings. Today it would potentially be $10,200 adding in banks' generous Interest rates - minus their fees.
  2. You could have bought $10,000 worth of Ethereum at $200 (50 Eth), which today would be worth $200,000 USD +
  3. You could have bought a car, which would have depreciated roughly 10% each year. Worth maybe ~ $7,000 today.

The point is.... It's all about choice. I hope this can simply help you look at the right things. What you do next, well that's up to you! Good luck :)

I personally believe we can all thrive above the line in abundance.

Ok.... Solution Time....

Enough about the problems. Here are 3 simple solutions to master your personal money flow.

Firstly, Hierarchy of needs

Find a way of meeting your basic human needs; food, water, shelter. Without getting a $400,000 loan.

Ask yourself a different question. How can I make 400k in 1, 5, 10 years... versus.... borrowing the money you don't have, for a house and lifestyle you probably can't afford. So that you can get locked into a path for the next 20-30 years without much breathing space.

Positively gear your life, rather than buying into negatively geared mechanisms that make the wealthy 1% richer and the everyday person poorer.

Secondly, minimize the amount you borrow.

I know the average house price is going up. But, look around, there is empty land everywhere. Perhaps we need the Tiny House movement, where future generations can buy their first home for under $100,000 and pay it off within a decade.

Or if you are super smart. Rent a property and sub-lease the spare rooms as Airbnb or short term rentals. Break-even on your living costs, (free living!)  leverage other people's assets (let them deal with rates, mortgages, etc), and use the rest for savings or investment.

Here is the difference between a 100k loan and buying a Tiny House, versus the average Aussie loan for 300k +. Have a play yourself with the mortgage repayment calculator.

Thirdly, get your own personal plumbing sorted. Make sure you make more than you spend.

There are two people that I would suggest tuning into when it comes to the 'HOW TO" of mastering your personal flow of the energy that is money.

Scott Pape the barefoot investor

  • Explore the 6 buckets here
  • Download an app like pocket smith. leverage technology to help you make better decisions on a daily and weekly basis. So that you can keep your personal balance sheet in the GREEN. It's time to break family cycles of money scarcity.

Roger James Hamilton

He has created a FREE education system  GeniusU, that will help you master your personal flow and even your entrepreneurial ideas.

It takes some work, but once you get your foundation plumbing, awareness and systems sorted at a young age. You can live free and abundantly.

Master your foundation to move out of scarcity

ALL IN ALL... final words....

Whether you like it or not. The centralized financial system is falling away to a new way of living and being.

Gen X,Y, Z is giving up the dream of owning a home in favour of nomadic lifestyles, travelling, experiencing and finding ways to create meaningful abundance in their lives. Decentralised finances, exponential tech and cryptocurrency are coming in hot, whether you like it or not. Don't be that person that was still investing in coal, when the internet, google, apple and the world wide web were disrupting the future of connection and communication.

Every now and then, I will spend some time sharing pieces like this. If any of it helps at all or do you have any other comments, insights or tools that will help others. Please drop it in the comments below. Let's help each other and move away from the idea that there is one scarcity pie to be divided by all of us... Into the idea of an abundant and expanding pie that is self-governed, autonomous, regenerative and sustainable for future generations.

Big Love and Abundance,


How can I help? I work with every day people, health professionals, coaches & enterprises that are committed to sustainable lifestyles; good health, happiness, connection & enabling environments

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