The red line self rat trap

Most people stay poor because they are rat trapping themselves. 

They simply make sure to spend all their income to buy non assets so they need more income all over again. As an example, when your car or house is paid, you buy a new/bigger one which means you need a salary increase. More a rat is rich (earning salary), more liabilities he will collect and poorer he will be. Basically rates are trapping themselves in the rat race (always need more cash and are on the red line...they can't loose their job). 

Here is the the red line rat exit strategy or the pig strategy (turn left;). 

Here is another way to compare rats (poor) & pigs (rich) way of handling their cashflow:

Btw, a house is not an asset, it doesn't generate cashflow for you, its your banker asset. "an asset is something that puts money in your pocket" (wikipedia), your house is taking money out of your pocket even when it is paid (town & school taxes etc.). A house is a real asset only when you sell it and make a capital gain but capital gain a risky game (jouer à la bourse veut tout dire).
  

RSP isn't an asset either, it is mostly use to save money and with chances make capital gain which is simply gambling against people that are controlling the game and are getting rewards for generating financial crashes. 

Most government are playing the red line self rat trap game but unfortunately the rat pocket is yours. In order to rat trapping you even further, they give you taxes breaks to put your retirement saving in stock and never get real assets. Even better, they reduce the value of your savings by asking banks to print more money they will borrow (increase government liability).


Are you a rat?