When I was a teenager, I learned the saying: “it takes money to make money.” I am not sure where I heard it or who told me, but it stuck with me. Years later, I realized that my father believed it and most successful business people that I knew also believed it.
I learned as an young adult that I needed to make money so that I would have enough money to invest to earn more or to buy other items that would allow me to earn more money. The concept is quite simple.
Let’s consider a person earning minimum wage that just barely pays his or her bills at the end of each month. He will not be able to collect interest, invest in the stock market, have a retirement fund or save money to purchase a house. That person does not have enough money to make money. He may survive and even be happy, but he will never have a chance to improve his lifestyle.
Conversely, a person that earns $500 per month more than what he or she needs to pay his or her bills has options. She can save for a house, have a retirement fund, keep it in savings or have an amazing art collection. The choice it hers.
Fast forward to now…. drum roll please…. if the American government raises the taxes for ANYONE or EVERYONE, each person that is impacted will have less money to spend. Since it takes money to make money, the cash flow for the entire country will be reduced.
The fiscal cliff will become higher and higher. There will be larger and larger gaps between the upper class, the middle class and the low class. Attaining the American Dream will become more and more difficult.
It takes more to make money.
Think Sink Inc 