@@@@@If you can truly begin to understand the
@@@@@If you can truly begin to understand the power of cash flow, you will soon realize what is wrong with the picture on the next page, or why 90 percent of most people work hard all their lives and need government support like Social Security when they are no longer able to work
Do you see it? The diagram above reflects the actions of an individual who chooses to pay himself firstEach month, they allocate money to their asset column before they pay their monthly expensesAlthough millions of people have read Classen's book and understand the words "pay yourself first," in reality they pay themselves last
Now I can hear the howls from those of you who sincerely believe in paying your bills firstAnd I can hear all the "responsible" people who pay their bills on timeI am not saying be irresponsible and not pay your billsAll I am saying is do what the book says, which is "pay yourself first And the diagram above is the correct accounting picture of that actionNot the one that follows
My wife and I have had many bookkeepers and accountants and bankers who have had a major problem with this way of looking at "pay yourself first The reason is that these financial professionals actually do what the masses do, which is pay themselves lastThey pay everyone else first
There have been months in my life, when for whatever reason, cash flow was far less than my billsI still paid myself firstMy accountant and bookkeeper screamed in panic "They're going to come after youThe IRS is going to put you in jail "You're going to ruin your credit rating "They'll cut off the electricity I still paid myself firstBecause that's what the story The Richest Man In Babylon was all aboutThe power of self-discipline and the power of internal fortitude "Guts," in less elegant termsAs my rich dad taught me the first month I worked for him, most people allow the world to push them aroun