"The poor and the middle class work for money." "The rich have money work for them."
`emotion' stands for energy in motion
A job is really a short-term solution to a long-term problem."
Rich dad went on to explain that a human's life is a struggle between ignorance and illumination.
we can work or not work, and our wealth grows automatically, staying way ahead of inflation. I guess it means freedom. The assets are large enough to grow by themselves. It's like planting a tree. You water it for years and then one day it doesn't need you anymore. It's roots have gone down deep enough. Then, the tree provides shade for your enjoyment.
So when people ask, "Where do I get started?" or "Tell me how to get rich quick," they often are greatly disappointed with my answer. I simply say to them what my rich dad said back to me when I was a little kid. "If you want to be rich, you need to be financially literate."
An asset is something that puts money in my pocket.
A liability is something that takes money out of my pocket.
when it comes to money, high emotions tend to lower financial intelligence.
Income = Work for Owner
Expense = Work for Government
Asset = (none)
Liability = Work for Bank
A corporation is merely a legal document that creates a legal body without a soul.
My highly educated dad always encouraged me to seek a good job with a strong corporation. He spoke of the virtues of "working your way up the corporate ladder." He didn't understand that, by relying solely on a paycheck from a corporate employer, I would be a docile cow ready for milking.
When I told my rich dad of my father's advice, he only chuckled. "Why not own the ladder?" was all he said.
Employees earn and get taxed and they try to live on what is left. A corporation earns, spends everything it can, and is taxed on anything that is left. It's one of the biggest legal tax loopholes that the rich use. They're easy to set up and are not expensive if you own investments that are producing good cash flow. For example; by owning your own corporation - vacations are board meetings in Hawaii. Car payments, insurance, repairs are company expenses. Health club membership is a company expense. Most restaurant meals are partial expenses. And on and on - but do it legally with pre-tax dollars.
Job security meant everything to my educated dad. Learning meant everything to my rich dad.
Job is an acronym for 'Just Over Broke'.
"Workers work hard enough to not be fired, and owners pay just enough so that workers won't quit."
When I speak to adults who want to earn more money, I always recommend the same thing. I suggest taking a long view of their life. Instead of simply working for the money and security, which I admit are important, I suggest they take a second job that will teach them a second skill. Often I recommend joining a network marketing company, also called multilevel marketing, if they want to learn sales skills. Some of these companies have excellent training programs that help people get over their fear of failure and rejection, which are the main reasons people are unsuccessful. Education is more valuable than money, in the long run.
Unfortunately, there is some truth to the old statement "You can't teach an old dog new tricks." Unless a person is used to changing, it's hard to change.
my educated dad worked harder and harder the more competent he became. He also became more trapped the more specialized he got. Although his salary went up, his choices diminished. Soon after he was locked out of government work, he found out how vulnerable he really was professionally. It is like professional athletes who suddenly are injured or are too old to play. Their once high-paying position is gone, and they have limited skills to fall back on. I think that is why my educated dad sided so much with unions after that. He realized how much a union would have benefited him.
"Winning means being unafraid to lose."
In my own life, I've noticed that winning usually follows losing. Before I finally learned to ride a bike, I first fell down many times. I've never met a
who controls the past controls the future, who controls the present controls the past.
golfer who has never lost a golf ball. I've never met people who have fallen in love who have never had their heart broken. And I've never met someone rich who has never lost money.
So 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. Another saying in Texas is, "Everyone wants to go to Heaven, but no one wants to die." Most people dream of being rich, but are terrified of losing money. So they never get to Heaven.
Quoting John D. Rockefeller, "I always tried to turn every disaster ' into an opportunity."
If you have little money and you want to be rich, you must first be "focused," not "balanced." If you look at anyone successful, at the start they were not balanced. Balanced people go nowhere. They stay in one spot. To make progress, you must first go unbalanced.
"Cynics never win," said rich dad. "Unchecked doubt and fear creates i a cynic. Cynics criticize, and winners analyze" was another of his favorite sayings. Rich dad explained that criticism blinded while analysis opened -< eyes. Analysis allowed winners to see that critics were blind, and to see opportunities that everyone else missed. And finding what people miss is | key to any success.
Someone who criticizes and does not
analyze. Someone who lets their doubts and fears close their mind instead of open their eyes."
Rich dad gave me a way of looking at Chicken Little. "Just do what Colonel Sanders did." At the age of 66, he lost his business and began to live on his Social Security check. It wasn't enough. He went around, the country selling his recipe for fried chicken. He was turned down 1,009 times before someone said "yes." And he went on to become a
multimillionaire at an age when most people are quitting. "He was a brave and tenacious man," rich dad said of Harlan Sanders.
So when you're in doubt and feeling a little afraid, just do what Col. Sanders did to his little chicken. He fried it.
IF YOU DO NOT HAVE A STRONG REASON, THERE IS NO SENSE READING FURTHER. IT WILL SOUND LIKE TOO MUCH WORK.
Wise investors buy an investment when it's not popular. They know their profits are made when they buy, not when they sell. They wait patiently. As I said, they do not time the market. Just like a surfer, they get in position for the next big swell.
What I find funny is that so many poor and middle class people insist on tipping restaurant help 15 to 20 percent even for bad service and complain about paying a broker 3 to 7 percent. They enjoy tipping people in the
who controls the past controls the future, who controls the present controls the past.
expense column and stiffing people in the asset column. That is not financially intelligent.
Frequently, my broker will call me and recommend I move a sizable amount of money into the stock of a company that he feels is just about to make a move that will add value to the stock, like announcing a new product. I will move my money in for a week to a month while the stock moves up. Then, I pull my initial dollar amount out, and stop worrying about the fluctuations of the market, because my initial money is back and ready to work on another asset. So my money goes in, and then it comes out, and I own an asset that was technically free.
Ray Kroc, of McDonald's fame, sold hamburger franchises, not because he loved hamburgers, but because he wanted the real estate ; under the franchise for free.
who controls the past controls the future, who controls the present controls the past.
So wise investors must look at more than ROI; it's the assets you get for free once you get your money back. That is financial intelligence.
If we gave 100 people $10,000 at the start of the year, I gave my opinion that at the end of the year:
80 would have nothing left. In fact, many would have created I greater debt by making a down payment on a new car, refrigerator, TV, VCR or a holiday. 16 would have increased that $10,000 by 5 percent to 10 percent. 4 would have increased it to $20,000 or into the millions.
"If you want something, you first need to give," he would always say. When he was short of money, he simply gave money to his church or to his favorite charity.
If I could leave one single idea with you, it is that idea. Whenever you feel "short" or in "need" of something, give what you want first and it will come back in buckets. That is true for money, a smile, love, friendship. I know it is often the last thing a person may want to do, but; it has always worked for me. I just trust that the principle of reciprocity it is true, and I give what I want. I want money, so I give money, and it comes back in multiples. I want sales, so I help someone else sell something, and sales come to me. I want contacts and I help someone else get contacts, and like magic, contacts come to me. I heard a saying years ago that went, "God does not need to receive, but humans need to give."
As for stocks, I like Peter Lynch's book Beating the Street for his formula for selecting stocks that grow in value. I have found that the principles of finding value are the same regardless if it's real estate, stocks, mutual funds, new companies, a new pet, a new home, a new spouse, or a bargain on laundry detergent. The process is always the same. You need to know what you're looking for and then go look for it!
