Review of What the Wealthy Buy on Payday

Published: 21st October 2008
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Tim Sales' video "What the Wealthy Buy on Payday" illustrates the difference between the poor, middle class and wealthy in terms of what they typically purchase on payday.

He begins the discussion with a definition of the terminology used in the video.



Income--money brought in



Expenses--money that is spent



Assets--something that pays you (differing from the accounting terminology)



Liabilities--something that costs you



He goes on to discuss that a home could be either an asset or a liability. It is a liability if if costs you each month as in a mortgage or renting as a tenant. It is an asset if you own the house and you are the landlord and collect rent.



The social class discussion begins with the Poor. Sales says the poor buy "stuff" on payday. "Stuff" is inexpensive things people buy that they don't need to survive. Their income on payday goes out to the expense column to buy the "stuff". They justify this expense by saying it costs so little which is true but it also doesn't pay you either.



Sales continues the discussion with the Middle Class. He says that society considers the middle class rich and that they make six figures annually. The middle class buys liabilities on payday. These liabilities become expenses. They include cars, boats, planes and credit card debt.



He uses the example of a couple bringing in a monthly paycheck of $15000. They spend one half of their check on expenses and the other half $7000 as a down payment on a new car. Next month, that new car becomes more expense. The car payment, insurance, gas, wear and tear all contribute to expenses. Eventually the expenses become the same as the income. The money in goes right back out again.



Sales says that the middle class enters a stressful, vicious circle. Their income is dependent on their own effort. If they are not working they are not earning. They exchange their knowledge and expertise for someone else's money.



The Wealthy buy assets on payday. Those assets earn more income. Assets include: Investments: Stocks, Bonds, Real Estate; Education: Pays in added skills and abilities; and Businesses: Particularly businesses that allow you to create passive income.



Sales uses the example of Warren Buffett. One of his first businesses was putting pinball machines in Barber Shops. He saved the profits from that first pinball machine to buy another pinball machine that he put in another barber shop. He invested his profits in something else that would provide a profit.



Direct selling, network marketing and multi-level marketing are all businesses that have an option to pay you with passive income. There are many choices available. You do have to be open to hearing about these businesses. And, you should do your research so that you are sure of your decision.



Tim Sales concludes his video with the formula for wealth. The wealthy buy assets that earn income and they use that income to buy more assets that earn income.



This video is an excellent illustration for anyone considering a network marketing, direct selling, or multi-level marketing business. It provides a clear and concise plan for anyone from any social class to achieve wealth.



Tim Sales is the man behind Brilliant Exchange. The website is brilliantexchange.com.







Video Source: Youtube


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