Important thoughts on riches, financial freedom, and living a life of wealth.

Rich Dad, Poor Dad
The concepts
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My debt and recovery story

May of 2000.  It was a time in my life when everything was crazy.  This included my finances… only I didn’t know it then.  It was May.  I had fallen in love (and I never thought I would fall in love).  I was working for a large phone company making $14/hour, and I had decided that in the fall, I was going to go to school at the University of Northern Colorado in the morning from 9:00 AM - 2:00/3:00 PM (depending on the day), was going to go to massage school at night from 6:00-10:00 PM, and was going to be the general manager of the campus radio station during the time in-between. 

Some light should have gone off in my head, but it didn't.  Also, don't get me wrong, because I'm glad I did all that I did that semester (fall 2000), but I should have planned ahead and taken out a loan, rather than trying to live on credit cards.  But I did try to live on credit cards.  It didn't work.

So I lived the craziest semester of my life; had an AUDI, which I loved, but which cost me roughly $2000 in repairs in less than a year, celebrated my 21st birthday in a...great way, and by the end of the semester, when I took time to really look up and see what was going on, I was in trouble. 

  • I had three credit cards.

  • I had just paid one credit card off and cut it up. 

  • I had not made payments on the other two for two months each.  (One had even offered me a settlement (a piece of mail I found two months too late), and offered to split the cost of the default with me.  The credit card company was going to pay half of a defaulted $1,000.00 bill, and I didn't take it, simply because I was too busy to open an envelope from the credit card company.) 

  • I had missed two car payments and was receiving calls from the bank wondering if they were going to need to come repossess my car.

This is not to mention what the stress of managing the radio station (with money problems of its own), and trying to keep up with schoolwork (from two schools) did to my attitude towards the person I was in love with. 

It was bad. Trying to live off of credit cards, or amassing large amounts of debt on high interest rates is not a good thing.  I was fortunate in that I had two wonderful and supportive parents to fall back on, whom I had lied to, throughout the semester, in a variety of ways, in order to cover the fact that I was in a financial mess.  I'm still also repaying them, as of August, 2004.

So the moral of the story?  Don't be a dummy!  LEARN FROM ME!  I have learned the hard way about credit card debt and not making payments and what it does to your credit to make late payments consistently.

Today, I am much smarter about what I am doing.  I am still working to pay off my debt, and I probably will be for about another 9-10 months.  I hope to be completely out of debt (or at least the debt which I didn't plan for in advance), by May, 2005.

How have I been able to recover?  Two ways.

The first thing I've done is changed my philosophy.  This is opposite of what most people do.  Most people's pictures look like the one on the left.  Mine looks like the one on the right.

A.K.A. me three years ago




Me today





This is a subtle difference, but it's an important one.  See, most people see that their situation and they think, "Well, I don't like what I have and what I'm able to do (lifestyle), and I want to change this.  I will work harder (action).  I know I will be able to work harder because I can do more than I'm doing right now (attitude)."

The problem with this is that it's a band-aid for the larger problem, which is that they haven't changed their philosophies about what's possible for their life.  If you don't change the way you think (philosophy) then all the changes you make to your attitude will be temporary. 

An example of this is with the millions of people who try to quit smoking by changing their actions.  They say, "Well, I don't like being able to not breathe as deeply (lifestyle).  I will not buy another pack of cigarettes again (action).  I will succeed because I can do anything I put my mind to (attitude). Inevitably, however, they take up smoking again, possibly even 5 or 8 years later.

Today, I work on my philosophies, knowing that if I can change the way I think, I can maintain any attitude I choose to have.  Through that philosophy and the attitude, the actions I need to take will be self-evident, and small actions, repeated over time, will give me the success and the significance that I want to have.

So, how have I changed my philosophies?

Through something called the law of association.

Look around you.  Look at the five people you hang out with the most.  These five people, combined, are you. 

If the five people you hang out with the most are broke, you are (or will be) broke. 
If the five people you hang out with the most are negative, you are (or will be) negative.

So, how do you get around wealthy and positive people?  There are two ways that I will suggest to you on this site.

  • #1.  Actually be around wealthy and positive people.  You can do this a variety of ways.  The best way I've found is to build businesses with positive, wealthy, and encouraging people.  You can find out more about building businesses with rich people by visiting the Streams of income link.

  • #2.  Read positive books that encourage an attitude of abundance.  I recommend you start with the books on the Rich Dad Books, Cassettes, and reading page, and then branch out from there.  You will learn some concepts that will challenge conventional wisdom, but when put into action, these philosophies will permanently change your attitude, which will allow you to do the simple daily actions, which will change the life you live.

It is in helping others that we accomplish what we were truly sent to the planet to do - change the lives of other people.

To all of our success!


Create awesome passive income and associate with positive people by visiting the Streams of income link.
Change your philosophies by reading books on the
Books, Cassettes, and reading page.

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