But here’s number one first of all you
got to have the right philosophy philosophy is our ability to gather
knowledge and sort through it and decide what’s valuable to develop a philosophy
about life a philosophy about our health a philosophy about our family
relationships a philosophy about economics and if you develop the right
philosophy that’s what helps to set this sail so that in six years it takes you
where you want to go instead of winding up like I did that first six years of my
economics broke no money empty bank account the right philosophy now let me
give you a couple of philosophies to consider here’s the first one it’s
called the philosophy of the poor and here it is poor people usually spend
their money and invest what’s left that’s the philosophy of the poor now
here’s the philosophy of the rich rich people invest their money and spend
what’s left and here’s the startling answer it
really doesn’t matter what the amount is what’s most important is not the amount
what’s really important is the philosophy so I would ask you to adopt
this philosophy of spending after you have invested invest first then spend
and I’ve got a little formula that I’m going to share with you now what should
a child do with the dollar I mean there’s a lot of debate going on I’m
sure across the country on what a child should do with the dollar here’s one
opinion it’s only a child and it’s only a dollar what difference does it make
well in my opinion it makes all the difference in the world
a person’s economic future starts with a child of the dollar somebody says all no
you’re only young once let him spend it all well when would you hope that would
stop somebody says well wait at least 50 and broke like me and you know and then
you’ll learn well no we don’t want to wait that long if I would have known her
earlier than age 25 I would have changed in high school if I if they would have
had classes called wealth one wealth two I’d have taken both classes I would not
have waited until age 25 so the earlier the better so what should a child do
with a dollar here is the simple premise to begin with don’t spend it all and if
a child wants to spend the whole dollar you got to say hey don’t spend at all
you know don’t spend it all they’ll say why not it’s my dollar I earned it you
say I know you earned it but don’t spend it all they’ll still say why not say let
me show you why not so you put him in your car taken to the other side of town
and show them where people live but spend the whole lot just drive them
around kids learn best by visual just drive around and say would you like to
live here kids says no would you like to live like these people live kid says
No then you can’t spend the whole day so kids will get the message so you know
take him to other side of town show them around unless you already live there and
then just show them around anyway don’t spend the whole dollar now let me give
you my best view of what to do with the dollar and I promise you if you started
at age 15 now if you’re over 15 right you still got plenty of time you still
got 20 years you know if you’re 30 you’re still got 20 years and then you
know you still got plenty of time to start what I’m about to share with you
what to do with a dollar here’s my first bit of advice never spend more than 70
cents never spend more than 70 cents now you got to pick some number and the
number you pick is going to be determined by your philosophy it’s gonna
be determined by what you’ve been taught or your experience teaching you saw when
I first met my teacher mr. show I was at about a hundred and ten percent of each
dollar you know I’m down at budget finance Hawking my furniture in my car
one more time and then I learned a whole better formula for financial
independence Noble on don’t spend more than 70 cents now kids say to me well
okay what do I do with the other 30 cents and here’s what I teach them ten
cents or charity charity of church helping people that
can’t help themselves ten cents to support worthy projects
projects that you feel good about 10 cents out of every dollar
it’s called being generous with part of what you’ve taken out of society now in
my opinion nothing teaches us character better than generosity no class no
teacher no book teaches generosity choose character better than generosity
and the best time to start is when the amounts are small and I know if kids
learn these lessons well they’ll give a dime out of a dollar not people that
can’t help themselves support worthy projects or if you belong to a church
they teach tithe peace out that’s very important now because when
the amounts get larger sometimes it’s a little more difficult you know giving a
hundred thousand out of a million someone says oh if I had a million I’d
give a hundred thousand I’m not sure that’s a lot of money so the time to
start is when the amounts are small tensions out of the dog okay
next ten cents I call active capital active capital means do something to
make a profit active capital set aside a portion of your income wages are okay
but I’m telling you wages will make you a living profits will make you a fortune
so set aside part of your income as capital called active capital any kind
of projects you can possibly think that you can possibly come up with I’m gonna
write a new book I think the kids I think the title is going to be of course
kids should pay taxes it’s kind of an interesting title in California kids do
pay taxes when a child walks into 7-eleven buy something that costs a
dollar the proprietor says give me seven more pennies and the child says hey
what’s these seven pennies for the proprietor says that’s the taxes it’s
this way I’m only eight years old proprietor says congratulations you’re
my youngest taxpayer give me the money so in California where I live kids do
pay taxes big question is should they and my book will answer that question of
course kitchen pay taxes nothing is for free if you want to write your bicycle
on the sidewalk instead of in the mud you gotta pay the seven things nothing
is free so we all have to pay so ten cents out of your living out of the
money you earn set aside for capital capital to try your best to show a
profit and in my books gonna be all kinds of ways to make money right two
bicycles one to ride one the rent and you know it doesn’t take long to figure
out some enterprise that’ll start making the profit then you must doubt this down
if you’re taking notes profits are better than wait one you can’t usually
stock wages until you’re about sixteen fifteen sixteen but you can make a
profit long before you’re eligible to start earning wages and then there’s no
limit to profits and they can make and double and triple and quadruple you know
there’s no limit it’s incredible how fast profits can grow
so profits are better than wages wages make you a living profits make you a
fortune now the third chin sentence is vitally
important I call it policy capital capital you let somebody else use a
financial institution stocks and bonds mutual funds whatever let someone else
use it you furnish the money they use it to make a profit but they pay you for
the use of it called interest and here’s one of the things that will make you
financially independent fairly quickly and that’s called compound interest and
this is how you get it letting someone else use a portion of doable honey your
substance they show the profit they pay you interest and this passive capital
and telling you over a sustained period of time if you’ll develop this little 10
10 10 and seventy especially starting at age 15 I’m telling you by the time
you’re 35 you will be financially independent you’ll have the ability to
live from the income of your own resources and then one more point on
passive capital there’s a Bible philosophy and the day that you’re on
the Bible but there’s a Bible kalasa fee that teaches the borrower is servant to
the lender and if you want to be in a powerful position as you grow older
finally when you become mature or maybe have your own business things have
worked out for you for the future the position you always want to be in is the
power position and that’s called the lender the lender is the power position
so kids learn early enough and then you ask them what they’d like to be when
they grow up I’m telling you it once they understand they’ll say well one of
the things I want to be is one of those lenders that’s the power position not to
spend it no you’ll be pitied the rest of your life if you just become a spender
you got to become a lender and I think this is what formulas to follow 10 cents
out of every dollar let someone else use it be the lender power position then try
to show a profit can’t we teach our children how to take a dollar
search the neighborhood find a broken wagon pay a dollar for it
bring it home you know clean it up sand it until it’s clean paint it red till it
shines straighten up the wheels till they’re true take it back to the
neighborhood sell it for $5 anybody can do that now does the child deserve $4
profit and answers yes society now has a mended wagon and that’s what America is
all about finding something touching it making it
better making a profit taking part of your resources helping people who can’t
help themselves let someone else use it to make a profit
some projects require more capital than one person has exciting and then let
them pay you for the use of it America’s had this philosophy now all these years
communism has taught all these years capital belongs in the hands of the
state not in the hands of the people we’ve been teaching all these years
capital belongs in the hands of the people not in the hands of the state and
we turned out to be right capital in the hands of the kids capital in the hands
of the people enterprises that make a profit enterprises that grow it’s the
hope of our future so that little simple formula I hope will help you now one
more key on financial independence and that is attitude attitude here’s number
one I used to say I hate to pay my bills my teacher straightened me out on that
he said let’s see mr. Owen what you hate to do is pay a hundred dollars on an
account and reduce your liabilities and increase your assets I said well no not
if you look at it that way he said well it all depends on how you look at it so
wouldn’t you love to pay your bills reduce your liabilities increase your
assets you’ve got to have that kind of attitude