RICH DAD, POOR DAD Learning Updates
♥
Tuesday, February 15, 2011
5:26 PM
Back to my reading of "RICH DAD, POOR DAD" book recently.
by Robert T. Kiyosaki
Here are some of my sharings:
LESSON 3: Mind Your Own Business
Financial Intelligence is made up of 4 main technical skills:
1. Financial Literacy. The ability to read numbers.
2. Investment strategies. The science of making money.
3. The market. Supply and demand.
(Alexander Graham Bell gave the market what is wanted. So did Bill Gates. A $75 000 house offered for $60 000 the cost $20 000 was also the result of seizing an opportunity created by the market. Somebody was buying and someone was selling.)
4. The Law. The awareness of accounting, corporate, state and national rules and regulations. Always play within the rules.
Categories of REAL ASSETS:
1. 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.
2. Stocks.
3. Bonds.
4. Mutual Funds.
5. Income-generating real estate.
6. Notes (IOUs).
7. Royalties from intellectual property such as music, scripts, patents.
8. Anything else that has value, produces income or appreciates and has a ready market.
"Workers work hard enough to not be fired, and owners pay just enough so that workers won't quit."
how true.
LESSON 4: The Power of Corporations
The RICH with Corporations (Own your own corporation wrapped around your assets)
1. Earn
2. Spend
3. Pay Taxes
People who work for Corporations
1. Earn
2. Pay Taxes
3. Spend
An Individual with Tax Advantages will know...
1. Tax Advantages: A corporation can do so many things an individual cannot. Like paying expenses before it pays it taxes. Corporation earns, spend everything it can, and is taxed on anything that is left. It's one of the biggest legal tax loopholes the rich use.
2. Protection from Lawsuits: We live in litigious society. Everyone wants a piece of your action. The rich hide much of their wealth using vehicles such as CORPORATIONS and TRUSTS to protect their assets from creditors. When someone sues a wealthy individual they often met with layers of legal protections, and often find that the wealthy person actually owns nothing. They control everything, but own nothing.
Main idea to remember, "Take from the rich, help the poor" mentality backfired on the very people (Middle Class & Low Class) who voted in it.
LESSON 5: The Rich Invent Money
Don't listen to the standard advice of " Work hard and save money."
Because...
1. Work hard, pay high taxes to government income tax, save what is left. Your savings earn 5% in bank, which is also taxed.
or
2. Take the time to develop your financial intelligence and harness the power of your brain and the asset column. Add to that how much time it takes you, time being one of your greatest asset other than the mind, to save $190 000 if you used option 1?
Which one sounds harder to you?
LESSON 6: Work to Learn- Don't Work for Money
* Be the second type of investor who create investments. This investor usually assembles a deal, by putting pieces of opportunities together, or know people who do. It is where huge wins are, and sometimes huge losses if the tide goes against you.
==> Addition skills needed to be the second type of investor:
1. How to find an opportunity that everyone else has missed, You see with your mind what others miss with their eyes.
2. How to raise money. The average person only goes to the bank. The second type of investor needs to know how to raise capital, and there are many ways that don't require a bank. Learn the skill of raising money that is priceless. For example, buy a house/apartment using "Tying it up", with a written contract between a seller and the buyer. It's what you know more than what you buy. Investing is not buying. It's more a case of knowing.
3. How to organise smart people. Intelligent people are those who work with or hire a person who is more intelligent than they are. When you need advice, make sure you choose your advisor wisely. (A.K.A Synergy of professional specialities). " Know a little about a lot."*
There is a lot to learn, but the rewards can be astronomical.
There is always risk, so learn to manage risk instead of avoiding it.
The better you are at communicating, negotiating and handling your fear of rejection, the easier life is.
Spend time learning SALES and UNDERSTANDING MARKETING for the ability to sell. Even if you earn nothing, your communication skills will improve. And that is priceless.
The MAIN MANAGEMENT SKILLS NEEDED FOR SUCCESS are:
1. The management of cash flow.
2.The management of systems ( Including yourself and time with family)
3. The management of people.
To be truly rich, we need to be able to GIVE as well as to RECEIVE. The more you give, the more you receive. To know that to receive money, you have to give money. Giving money is the secret to most great wealthy families. Most important law of money: " Give and you shall receive."
WORK to learn. Don't work for money.
LESSON 7: Overcoming Obstacles
"Winning means being unafraid to lose"
Fran Tarkenton~
&
Texans have a saying "If you're going to go broke, go big. You don't want to admit you went broke over a duplex."
It's the Texans' Attitudes that should be appreciated ♥
For most people, the reason they don't win financially is because "The pain of losing money is far greater than the joy of being rich."
"If you want to learn the attitude of how to handle risk, losing, and failure, go to San Antonio and visit the Alamo."
The Alamo is a great story of brave people who chose to fight, knowing there was no hope of success against overwhelming odds. They chose to die instead of surrendering.
So how do Texans handle failure? They will shout, "Remember the Alamo!"
***"Texans don't bury their failures. They get inspired by them. They take their failures and turn them into rallying cries. Failure inspires Texans to become winners. But that formula is not just the formula for Texans. It is the formula for all winners." ♥♥
Labels: "turn LEMONS into MILLIONS", a goal to be FORESEEN
