Hello everyone. Every Monday I would be posting motivational stories or videos from other people. I.e. not my work. This story was sent to me on WhatsApp and by my mum and I was so impressed I had to save it as I have learnt from it and I hope you do too. I’m attached to this story because I had a bad investment and saving habit. I say had because I’m gradually coming out of this as I have noticed investment and saving is key to financial freedom.
So be inspired today.
*What the Rich teach their children: Asset vs Liability*
One day, the son of a rich man, who was an undergraduate,
approached his father and the following discussion took place.
*Son:* _Dad, may I speak with you?_
*Dad:* _Go ahead._
*Son:* _Among all my classmates, I am the only one without a car. It is embarrassing._
*Dad:* _What do you want me to do?_
*Son:* _I need a car. I don’t want to feel odd._
*Dad:* _Do you have a particular car in mind?_
*Son:* _Yes dad (smiling)_
*Dad:* _How much?_
*Dad:* _I will give you the money on one condition._
*Son:* _What is the condition?_
*Dad:* _You will not use the money to buy a car but invest it. If you make enough profit from the investment, you can go ahead and buy the car._
Then, the father gave him a cheque of $300. The son cashed the cheque and invested it in obedience to the verbal agreement that he had with his father.
Some months later, the father asked the son how he was faring. The son responded that his business was improving. The father left him.
After some months again, the father asked him about his business
again and the son told him that he is making a lot of profit from the business.
When it was exactly a year after he gave him the money, the father asked him to show him how far the business has gone. The son readily agreed and the following discussion took place:
*Dad:* _From this I can see that you have made a lot of money._
*Son:* _Yes dad. _
*Dad:* _Do you still remember our agreement?_
*Dad:* _What is it?_
*Son:* _We agreed that I should invest the money and buy the car from the profit._
*Dad:* _Why have you not bought the car?_
*Son:* _I don’t need the car again. I want to invest more._
*Dad:* _Good. You have learnt the lessons that I wanted to teach you._
*- You didn’t really need the car, you just wanted to feel among. That would have placed extra financial obligations on you. It wasn’t an asset then; but a liability.*
*- Two, it is very important for you to invest in your future before living like a king.*
*Son:* _Thanks dad._
Then the father gave him the keys of the latest model of that car.
*1. Always invest first before you start living the way you want.*
*2. What you see as a need now may become a want if you can take a little time to get over your feelings.*
*3. Try to be able to distinguish between an asset and a liability so that what you see as an asset today will not become a liability to you tomorrow.*
*The difference between the rich and the poor is that the rich look for assets while the poor look for liabilities…*