McDonald's Isn't a Burger Business (and Your Job Isn't Your Business): Why You Need to Mind Your Own Assets
The Secret of the Golden Arches
Back in 1974, Ray Kroc gave a talk to a group of bright MBA students. He asked them, "What business am I in?" Everyone laughed, thinking he was joking. "My business is real estate," Ray Kroc revealed. He understood that while his company sold hamburgers, its true wealth came from owning the land under those restaurants – prime real estate, the most valuable intersections and street corners in America. McDonald's today is the largest single owner of real estate in the world, owning even more than the Catholic Church. They figured out a way to sell hamburgers and acquire incredibly valuable assets in the process.
Your Profession vs. Your Business
Now, what does this have to do with you? I know most of you are focused on getting a good job, climbing the corporate ladder, and earning a good salary. And that's great! But there's a big difference between your profession and your business. "Often I ask people, “What is your business?” And they will say, “Oh I’m a banker.” Then I ask them if they own the bank? And they usually respond. “No, I work there.” In that instance, they have confused their profession with their business. Their profession may be a banker, but they still need their own business.” Ray Kroc understood this difference perfectly. His profession was selling, first milkshake mixers, then hamburger franchises. But his business, the thing that made him truly wealthy, was accumulating income-producing real estate.
The Importance of the Asset Column
So, class, what’s the lesson here? It’s time to start minding your own business! But what does that even mean? It means shifting your focus from your income statement to your asset column. "The rich focus on their asset columns while everyone else focuses on their income statements." Remember, the number one rule is to know the difference between an asset and a liability, and buy assets. "An asset is something that puts money in my pocket. A liability is something that takes money out of my pocket." Simple, right? But incredibly powerful!
The Trap of Liabilities
- Many people spend their lives working hard, earning money, but then they buy liabilities that they think are assets. They buy a big house, a fancy car, and all sorts of gadgets – thinking they're getting ahead. But in reality, these things are taking money out of their pockets. "They're now trapped in the rat race."
The Freedom of Assets
Now, imagine instead that you have a steady stream of income coming from your assets. That's what financial freedom looks like! "So what kind of assets am I suggesting that you or your children acquire? In my world, real assets fall into several different categories:
- Businesses that do not require my presence. I own them, but they are managed or run by other people. If I have to work there, it's not a business. It becomes my job.
- Stocks.
- Bonds.
- Mutual funds.
- Income-generating real estate.
- Notes (IOUs).
- Royalties from intellectual property such as music, scripts, patents.
- And anything else that has value, produces income or appreciates and has a ready market.
These assets can generate income even while you sleep! Imagine waking up every morning knowing that your money is working for you, not the other way around.
Let me tell you a story. My rich dad always encouraged me to buy assets that I loved. “If you don’t love it, you won’t take care of it.” I collect real estate simply because I love buildings and land. I love shopping for them. I could look at them all day long. When problems arise, the problems are not so bad that it changes my love for real estate. For people who hate real estate, they shouldn’t buy it.” Passion is a powerful motivator, so find assets that you’re excited about.
Start Building Your Asset Column Today
The good news is that you don’t need to be rich to start building your asset column. Start small! Every dollar you save and invest is a step toward financial freedom. "Keep your daytime job, be a great hard-working employee, but keep building that asset column.” It might take time, but remember, Rome wasn’t built in a day! And your financial empire won’t be either. But with consistent effort and a clear understanding of what assets are, you can break free from the "Rat Race" and build a future where money works for you, not the other way around.
So, class, the takeaway is simple: Your job isn't your business. It’s time to start minding your own assets! Now, class dismissed – go out there and build your financial future!
17 (Comments)
Kiss Laura Product Designer
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Kristin Wastson Cloud Software and Network Engineer
I highly recommend [real estate agent's name] as a professional and knowledgeable real estate agent. They provided valuable guidance throughout the selling process, demonstrating excellent communication skills and a proactive approach to marketing my property...