A 60-minute seminar by Robert Kiyosaki, that provides personal insights into how to get rich – including the rich mindset, how to read financial statements, the importance of understanding the cash flow quadrant and learning how to invest.
Money is an Idea
Money is an idea, it is whatever you think it is.
The way you think about money and the ideas that you have about money, is one of the key reasons you have the amount of money that you have.
What your parents tell you about ‘money’, is often what leads to your long-term views about money. What are the words that you associate with when you think about money?
Be careful about whose idea’s you are listening to.
Some key concepts
- Money does not make you rich: Money is a powerful tool, that if you use well, can make you richer.
- 2 kinds of money problems: Too little money / Too much money.
- Choice: It comes down to the choice that you make – do you want to be poor, middle class or rich.
- Need to work hard for
money: No! Your money needs to work hard for you.
Importance of Financial Literacy
It is critical that you know how to read a financial statement:
- Income / Expenses
- Asset / Liability
The difference between and asset & liability
An asset puts money into your pocket, whether you work or not. A liability takes money from your pocket, whether you work or not.
An asset will create income, a liability will create expenses.
This is why your house is a liability and not an asset.
|SELF – EMPLOYED||INVESTOR|
Employees & Self-employed both work for their money.
Business owners have other people work for their money. They may not be that smart themselves, but they know how to surround themselves with smart people.
Investors have their money work hard for them. Investors want money velocity – they want to put in their money, multiply it and get it back quickly.
There are the following key differences between the left quadrants (employees / self-employed) and the right quadrants.
|EMPLOYEE / SELF-EMPLOYED||BUSINESS / INVESTOR|
|Money linked to your time.||Money not linked to your time.|
|Cannot leave and still make money.||Can leave, and still make money.|
|Money comes immediately. Do not need patience.||Need to have great patience. Need to be willing to invest upfront, and wait years for a payback.|
|Pay taxes upfront, tax laws written against them.||Delay being taxes, by taking advantage of the tax benefits available to business and investors. Tax laws are written by the rich for the rich.|
Rich Dad’s Guide to Investing
The key is to learn how to acquire assets.
It’s not how much money you make, it’s how much you keep. How much of your income, is hitting your bottom line and being invested in assets. What makes the rich, is not that they are making more money, it is that they are keeping more money.
How rich are you?
If both you and your wife stop working, what happens? If income keeps coming in despite your not working, you have assets and you are rich.
The definition of wealth is – how much time can you survive without working?
Retire Early and Rich
Debt vs Equity
Use your bank’s money to retire. There is ‘good debt’ and ‘bad debt’.
If you want to get rich, load up with ‘good debt’. When you want to become rich fast, it it important to have enough starting capital, and borrowing ‘good debt’ helps multiply the capital that you start with.
Real Estate – A banker will always lend money against Real Estate.
Never break your bank – Money that you have invested in an
Real Estate Investing
For every 1 property that I buy, I consider 100 properties. A 100:1 properties is the ratio!
Of the 100 deals that you look at, you put low-ball offers of 10, of which 3 get accepted and then I buy one property.
The reason I don’t have a job, is because it interferes with my looking for deals.
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