"What business am I in?" Ray asked, once the...
"What business am I in?" Ray asked, once the group had all their beers in hand
"Everyone laughed," said Keith"Most of the MBA students thought Ray was just fooling around
No one answered, so Ray asked the question again"What business do you think I'm in?"
The students laughed again, and finally one brave soul yelled out, "Ray, who in the world does not know that you're in the hamburger business"That is what I thought you would say He paused and then quickly said, 'ladies and gentlemen, I'm not in the hamburger businessMy business is real estate
Keith said that Ray spent a good amount of time explaining his viewpoint In their business plan, Ray knew that the primary business focus was to sell hamburger franchises, but what he never lost sight of was the location of each franchiseHe knew that the real estate and its location was the most significant factor in the gucci new bag success of each franchiseBasically, the person that bought the franchise was also paying for, buying, the land under the franchise for Ray Kroc's organization
McDonald's today is the largest single owner of real estate in the world, owning even more than the Catholic ChurchToday, McDonald's owns some of the most valuable intersections and street corners in America, as well as in other parts of the world
Keith said it was one of the most important lessons in his lifeToday, Keith owns car washes, but his business is the real estate under those car washes
The previous chapter ended with the diagrams illustrating that most people work for everyone else but themselvesThey work first for the owners of the company, then for the government through taxes, and finally for the bank that owns their mortgage
As a young boy, we did not have a McDonald's nearbyYet, my rich dad was omega fake watches responsible for teaching Mike and me the same lesson that Ray Kroc talked about at the University of Texas
The secret is: "Mind your own business/' Financial struggle is often directly the result of people working all their life for someone elseMany people will have nothing at the end of their working days
Again, a picture is worth a thousand words Here is a diagram of the income statement and balance sheet that best describes Ray Kroc's advice:

Most people

Your Profession -> Your Income

The Rich


Your Assets -> Your Income

Our current educational system focuses on preparing today's youth to get good jobs by developing scholastic skillsTheir lives will revolve around their wages, or as described earlier, their income columnAnd after developing scholastic skills, they go on to higher levels of schooling to enhance their professional abilitiesThey study to become j12 chanel watch engineers, scientists, cooks, police officers, artists, writers and so onThese professional skills allow them to enter the workforce and work for money
There is a big difference between your profession and your businessOften 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
In that instance, they have confused their profession with their businessTheir profession may be a banker, but they still need their own business Ray Kroc was clear on the difference between his profession and his businessHis profession was always the sameAt one time he sold mixers for milkshakes, and soon thereafter he was selling hamburger franchises- But while his profession was selling hamburger franchises, his business was the accumulation of income-producing real estate
A problem with school is that you often tiffany jewelry canada become what you study So if you study, say, cooking, you become a chef If you study the law, you become an attorney, and a study of auto mechanics makes you a mechanicThe mistake in becoming what you study is that too many people forget to mind their own businessThey spend their lives minding someone else's business and making that person rich
To become financially secure, a person needs to mind their own business Your business revolves around your asset column, as opposed to your income columnAs stated earlier, the No1 rule is to know the difference between an asset and a liability, and to buy assetsThe rich focus on their asset columns while everyone else focuses on their income statements
That is why we hear so often: "I need a raise "If only I had a promotion "I am going to go back to school to get more training so I can get a better job "I am going to work gucci knockoff handbags overtime