THE MONETARY LIFE CYCLE

OWNING THE LABOR TREE is just a way of saying you can't make money in the back yard with a printer or mint coins. It's illegal, and in most towns, morally unacceptable. The thought process you want to develop, is how you look at wealth. People with wealth have a completely different "MINDSET" than other people. With that being said, there is also a huge difference between people of "WEALTH" and people of "HIGH INCOME". People of  "WEALTH" look at "assets" and "liabilities" in what is referred to as a "LIFE CYCLE", as opposed to normal people that look at "up front costs". You can read more about this in the book "The Millionaire Mind" written by Thomas J. Stanley. This is a must read if you ever want to become 

wealthy.   

An example of Life cycle cost and up front cost is as simple as buying silverware, a wealthy person might by silverware for a setting of 12 for $1949.00. Expensive right, but this set of silverware was bought by someones great grandparents, for $79 way back when,  That set has fed family members thousands of times, has been in every holiday and family "get together" for decades. So today, to use that silverware costs little to nothing per use. Most people would have went to a big box store and spent $39.95 on a set and about every 4 years replace it with "new". Also never getting the use of a quality flatware set in the mean time. You know about bending spoons back and crooked prongs on a fork, and my favorite, breaking a knife while trying to cut something. This cheaper set was easier to acquire, but it costs 5 cents per use, before it is discarded, the more expensive set cost less than a penny per use. So now, which one is really more expensive? I know, who cares about a nickel, well if you apply this "mindset" to 75 other purchases in your life, year after year, you will begin to grow wealth. Of course that doesn't mean go buy a $2000.00 SILVERWARE SET on a credit card and pretend to be wealthy. Start apply this "mindset" to things your actually going to purchase this year. For example, when you go to buy that next shovel for your tool collection, look at the one for $35 dollars instead of the one for $7.95, consider that the more expensive shovel will last considerably longer and replaced less often. the other, less expensive shovel might not make it through the first hole to dig. if you have to replace the $8 shovel every other time you dig a hole and the $35 shovel digs 200 holes, the cost per hole is cheaper.  When you begin to apply this mindset to multiple issues, problems or purchases in your life, step by step, you begin to build WELLTH.