A Big Step Towards Financial Freedom
I made a big step towards financial freedom today.
It all started a couple of days ago when I dropped my cell phone for the last time.
My phone was already beat up and falling apart from the dozens of times I dropped it in the past.
This time my phone stopped working completely.
I was forced to buy another.
I knew my contract expired in a couple months with T-Mobile and I was determined not to have another cell phone contract.
Ironically my phone broke right before my contract expired.
When I went in the T-Mobile store I was like a kid in the candy store.
There were so many phone options to choose from.
I only had only two payment options.
Buy the phone upfront for considerably more, or receive a sizeable discount by signing up for a 2-year contract.
There was not even an option for a 1-year contract anymore.
The sales clerk recommended the $400 phone that he himself had.
He believed in the phone and gave quite a convincing argument why I should purchase that phone over the others.
I would even receive a $200 discount on the phone when I signed up for the 2-year contract.
I found myself justifying reasons in my mind why I should buy that phone.
The clerk also notified me that my contract expired in only 12 days and offered to get me on the phone with T-Mobile customer service to see if they would go ahead and give me a bigger discount to upgrade my phone with a new contract.
As I was sitting there waiting to talk on the phone I begin to think about my financial assets and liabilities.
Then I began to think about the added $30/month for my new data plan that I would be paying to T-Mobile for the next 2 years.
My my monthly cell phone payment is a residual income for T-Mobile.
My phone contract would be listed in their asset column.
My new cell phone payment would in turn increase my expenses, and immediately lower my personal monthly cash flow.
Not only that, but the new cell phone contract would also be added to my personal liability column.
T-Mobile is a rich company because they focus on building their asset column.
It started with a monthly cell phone bill...
then came insurance, data plans, wireless internet service, etc...
If you had thousands of customers who had an average monthly payment of $30 a month, how much would it boost your bottom line if you could increase their average monthly payment to $100 or even $200 per month.
Rich people buy assets, while poor and middle class people buy stuff.
I want to be rich too, so I decided to pay cash for the cheapest cell phone and did not enter into another contract.
Now I have more monthly cash flow to focus on building my asset column.
Neither how you make your money, nor how much money you make determines whether you are poor, middle class, or rich.
More importantly, it is what you do with your money.
With every decision you make with your money, you decide whether you want to be poor, middle class, or rich.
It all started a couple of days ago when I dropped my cell phone for the last time.
My phone was already beat up and falling apart from the dozens of times I dropped it in the past.
This time my phone stopped working completely.
I was forced to buy another.
I knew my contract expired in a couple months with T-Mobile and I was determined not to have another cell phone contract.
Ironically my phone broke right before my contract expired.
When I went in the T-Mobile store I was like a kid in the candy store.
There were so many phone options to choose from.
I only had only two payment options.
Buy the phone upfront for considerably more, or receive a sizeable discount by signing up for a 2-year contract.
There was not even an option for a 1-year contract anymore.
The sales clerk recommended the $400 phone that he himself had.
He believed in the phone and gave quite a convincing argument why I should purchase that phone over the others.
I would even receive a $200 discount on the phone when I signed up for the 2-year contract.
I found myself justifying reasons in my mind why I should buy that phone.
The clerk also notified me that my contract expired in only 12 days and offered to get me on the phone with T-Mobile customer service to see if they would go ahead and give me a bigger discount to upgrade my phone with a new contract.
As I was sitting there waiting to talk on the phone I begin to think about my financial assets and liabilities.
Then I began to think about the added $30/month for my new data plan that I would be paying to T-Mobile for the next 2 years.
My my monthly cell phone payment is a residual income for T-Mobile.
My phone contract would be listed in their asset column.
My new cell phone payment would in turn increase my expenses, and immediately lower my personal monthly cash flow.
Not only that, but the new cell phone contract would also be added to my personal liability column.
T-Mobile is a rich company because they focus on building their asset column.
It started with a monthly cell phone bill...
then came insurance, data plans, wireless internet service, etc...
If you had thousands of customers who had an average monthly payment of $30 a month, how much would it boost your bottom line if you could increase their average monthly payment to $100 or even $200 per month.
Rich people buy assets, while poor and middle class people buy stuff.
I want to be rich too, so I decided to pay cash for the cheapest cell phone and did not enter into another contract.
Now I have more monthly cash flow to focus on building my asset column.
Neither how you make your money, nor how much money you make determines whether you are poor, middle class, or rich.
More importantly, it is what you do with your money.
With every decision you make with your money, you decide whether you want to be poor, middle class, or rich.
Source...