Red Line

The maximum speed your car can go is up to the red line on your speedometer. If you go faster than that your engine may blow up.

Many people, including the rich, operate their finances constantly at the red line. They spend money as fast as it comes in.

Earn $800, take a bus
Earn $1,000, get a small car
Earn $1,500, get a medium-sized car
Earn $2,000, buy a condominium
Earn $2,500, change into a bigger car
Earn $3,000, get married
Earn $3,500, have kids
Earn $4,000, change the house
Earn $4,500, spend more credit card
Earn $5,000, time to change car again
Earn $5,500, buy a more decent house
Earn $6,000, buy a golf membership

Not enough money? Do overtime, get a second job, do network marketing.

When they reach retirement age they still don't have any assets.

Doctors say the problem today is stress caused by working too hard and not having enough money. One doctor says that the biggest cause of health disorders is "cancer of the wallet". When people feel financial anxiety what do they do? They hurry off to work and work hard. Or, they shop for house or car to buy or go play golf.

More money will not solve the problem, if cashflow management is the problem.

You will have no money left to buy assets if you live constantly on the red line.