- Stop doing what you're doing.
- Look for new ideas.
- Find someone who has done what you want to do. Take them to lunch.
- Take classes and buy tapes.
- Make lots of offers. Someone might say "yes."
- Jog, walk or drive a certain area once a month for ten minutes. I have found some of my best real estate investments while jogging.
- Peter Lynch's book Beating the Street for his formula for selecting stocks that grow in value.
- Why consumers will always be poor.
- Look in the right places.
- I look for people who want to buy first, then I look for someone who wants to sell.
- Learn from history. All the big companies on the stock exchange started out as small companies.
- Action always beats inaction.
Thursday, December 27, 2007
Still Want More? Here are Some To Do's
- For those who want "to dos" on how to get started, I will share with you some of the things I do, in abbreviated form:
Getting Started
- Each of us has a financial genius within us. The problem is, our financial genius lies asleep, waiting to be called upon. It lies asleep because our culture has educated us into believing that the love of money is the root of all evil.
- I offer you the following ten steps as a process to develop your God-given powers:
- I offer you the following ten steps as a process to develop your God-given powers:
- I NEED A REASON GREATER THAN REALITY: The power of spirit. IF YOU DO NOT HAVE A STRONG REASON, THERE IS NO SENSE READING FURTHER. IT WILL SOUND LIKE TOO MUCH WORK.
- I CHOOSE DAILY: The power of choice. choice we all make daily, the choice of what we do with our time, our money and what we put in our heads. That is the power of choice. All of us have choice. I just choose to be rich, and I make that choice every day.
- INVEST FIRST IN EDUCATION: In reality, the only real asset you have is your mind, the most powerful tool we have dominion over.
- CHOOSE FRIENDS CAREFULLY: The power of association.
- MASTER A FORMULA AND THEN LEARN A NEW ONE: The power of learning quickly. In today's fast-changing world, it's not so much what you know anymore that counts, because often what you know is old. It is how fast you learn. That skill is priceless.
- PAY YOURSELF FIRST: The power of self-discipline. If you cannot get control of yourself, do not try to get rich. the lack of personal self-discipline that is the No. 1 delineating factor between the rich, the poor and the middle class.
- PAY YOUR BROKERS WELL: The power of good advice. The more money they make, the more money I make.
- BE AN "INDIAN GIVER": This is the power of getting something for nothing. The sophisticated investor's first question is, "How fast do I get my money back?".
- ASSETS BUY LUXURIES: The power of focus. Too often today, we focus to borrowing money to get the things we want instead of focusing on creating money.
- THE NEED FOR HEROES: The power of myth. Copying or emulating heroes is true power learning.heroes do more than simply inspire us. Heroes make things look easy. It's the making it look easy that convinces us to want to be just like them. "If they can do it, so can I."
- TEACH AND YOU SHALL RECEIVE: The power of giving. 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. "Poor people are more greedy than rich people." He would explain that if a person was rich, that person was providing something that other people wanted.
Overcoming Obstacles
- There are five main reasons why financially literate people may still not develop abundant asset columns:
- If you have any desire of being rich, you must focus. Put a lot of your eggs in a few baskets. Do not do what poor and middle class people do: put their few eggs in many baskets.
If you hate losing, play it safe. If losing makes you weak, play it safe. Go with balanced investments. If you're over 25 years old and are terrified of taking risks, don't change. Play it safe, but start early. Start accumulating your nest egg early because it will take time.
- Reason No. 2. Overcoming cynicism.
- Doubt is expensive. My point is that it's those doubts and cynicism that keep most people? poor and playing it safe. The real world is simply waiting for you to get rich. Only a person's doubts keep them poor. As I said, getting out of the rat race is technically easy.
- Cynics criticize, and winners analyze.
- Reason No. 3. Laziness.
- Busy people are often the most lazy. They stay busy as a way of avoiding something they do not want to face.
- The most common form of laziness. Laziness by staying busy.
- So what is the cure for laziness? The answer is a little greed.
- WII-FM: "What's In It-For Me?" A person needs to sit down and ask, "What's in it for me if I'm healthy, sexy and good looking?" Or "What would my life be like if I never had to work again?" Or "What would I do if I had all the money I needed?" Without that little greed, the desire to have something better, progress is not made.
- Reason No. 4. Habits. Our lives are a reflection of our habits more than our education.
- "I firmly believe in paying my bills on time. I just pay myself first. Before I pay even the government."
"But what happens if you don't have enough money?" I asked. "What do you do then?"
"The same," said rich dad. "I still pay myself first. Even if I'm short of money. My asset column is far more important to me than the government."
- The pressure to pay becomes my motivation, makes me work harder, forces me to think, and all in all makes me smarter and more active when it comes to money. If I had paid myself last, I would have felt no pressure, but I'd be broke.
- Reason No. 5. Arrogance. Arrogance is ego plus ignorance.
- What I know makes me money. What I don't know loses me money. Every time I have been arrogant, I have lost money. Because when I'm arrogant, I truly believe that what I don't know is not important.
- Fear.
- Cynicism.
- Laziness.
- Bad habits.
- Arrogance.
- If you have any desire of being rich, you must focus. Put a lot of your eggs in a few baskets. Do not do what poor and middle class people do: put their few eggs in many baskets.
If you hate losing, play it safe. If losing makes you weak, play it safe. Go with balanced investments. If you're over 25 years old and are terrified of taking risks, don't change. Play it safe, but start early. Start accumulating your nest egg early because it will take time.
- Reason No. 2. Overcoming cynicism.
- Doubt is expensive. My point is that it's those doubts and cynicism that keep most people? poor and playing it safe. The real world is simply waiting for you to get rich. Only a person's doubts keep them poor. As I said, getting out of the rat race is technically easy.
- Cynics criticize, and winners analyze.
- Reason No. 3. Laziness.
- Busy people are often the most lazy. They stay busy as a way of avoiding something they do not want to face.
- The most common form of laziness. Laziness by staying busy.
- So what is the cure for laziness? The answer is a little greed.
- WII-FM: "What's In It-For Me?" A person needs to sit down and ask, "What's in it for me if I'm healthy, sexy and good looking?" Or "What would my life be like if I never had to work again?" Or "What would I do if I had all the money I needed?" Without that little greed, the desire to have something better, progress is not made.
- Reason No. 4. Habits. Our lives are a reflection of our habits more than our education.
- "I firmly believe in paying my bills on time. I just pay myself first. Before I pay even the government."
"But what happens if you don't have enough money?" I asked. "What do you do then?"
"The same," said rich dad. "I still pay myself first. Even if I'm short of money. My asset column is far more important to me than the government."
- The pressure to pay becomes my motivation, makes me work harder, forces me to think, and all in all makes me smarter and more active when it comes to money. If I had paid myself last, I would have felt no pressure, but I'd be broke.
- Reason No. 5. Arrogance. Arrogance is ego plus ignorance.
- What I know makes me money. What I don't know loses me money. Every time I have been arrogant, I have lost money. Because when I'm arrogant, I truly believe that what I don't know is not important.
Lesson Six: Work to Learn - Don't Work for Money
- Most people need only to learn and master one more skill and their income would jump exponentially. I have mentioned before that financial intelligence is a synergy of accounting, investing, marketing and law. Combine those four technical skills and making money with money is easier. When it comes to money, the only skill most people know is to work hard.
- The value of learning to lead men into dangerous situations. "Leadership is what you need to learn next," he said. "If you're not a good leader, you'll get shot in the back, just like they do in business."
- I wonder, are workers looking into the future or just until their next paycheck, never questioning where they are headed?
- The world is filled with talented poor people. All too often, they're poor or struggle financially or earn less than they are capable of, not f because of what they know but because of what they do not know. They focus on perfecting their skills at building a better hamburger rather than the skills of selling and delivering the hamburger.
- The main management skills needed for success are:
- The value of learning to lead men into dangerous situations. "Leadership is what you need to learn next," he said. "If you're not a good leader, you'll get shot in the back, just like they do in business."
- I wonder, are workers looking into the future or just until their next paycheck, never questioning where they are headed?
- The world is filled with talented poor people. All too often, they're poor or struggle financially or earn less than they are capable of, not f because of what they know but because of what they do not know. They focus on perfecting their skills at building a better hamburger rather than the skills of selling and delivering the hamburger.
- The main management skills needed for success are:
- The management of cash flow
- The management of systems (including yourself and time with family).
- The management of people.
Lesson Five: The Rich Invent Money
- We all have tremendous potential, and we all are blessed with gifts. Yet, the one thing that holds all of us back is some degree of self-doubt. It is not so much the lack of technical information that holds us back, but more the lack of self-confidence. Some are more affected than others.
- It was excessive fear and self-doubt that were the greatest detractors of personal genius. Often in the real world, it's not the smart that get ahead but the bold.
- Your financial genius requires both technical knowledge as well as courage. If fear is too strong, the genius is suppressed.
- Land was wealth 300 years ago. Today, it is information. And the person who has the most timely information owns the wealth. The problem is, information flies all around the world at the speed of light.
- So why bother developing your financial IQ? No one can answer that but you. Yet, I can tell you why I myself do it. I do it because it is the most exciting time to be alive. I'd rather be welcoming change than dreading change. I'd rather be excited about making millions than worrying about not getting a raise.
- It was excessive fear and self-doubt that were the greatest detractors of personal genius. Often in the real world, it's not the smart that get ahead but the bold.
- Your financial genius requires both technical knowledge as well as courage. If fear is too strong, the genius is suppressed.
- Land was wealth 300 years ago. Today, it is information. And the person who has the most timely information owns the wealth. The problem is, information flies all around the world at the speed of light.
- So why bother developing your financial IQ? No one can answer that but you. Yet, I can tell you why I myself do it. I do it because it is the most exciting time to be alive. I'd rather be welcoming change than dreading change. I'd rather be excited about making millions than worrying about not getting a raise.
Lesson Four:The History of and The Power of Corporation
- The reason the middle class is so heavily taxed is because of the Robin Hood ideal. The real reality is that the rich are not taxed. It's the middle class who pays for the poor, especially the educated upper-income middle class.
- Idea of taxes was made popular, and accepted by the majority, by telling the poor and the middle class that taxes were created only to punish the rich. This is how the masses voted for the law, and it became constitutionally legal. Although it was intended to punish the rich, in reality it wound up punishing the very people who voted for it, the poor and middle class.
"Once government got a taste of money, the appetite grew".
- The problem is, the people who lose are the uninformed. The ones who get up every day and diligently go to work and pay taxes. If they only understood the way the rich play the game, they could play it too. Then, they would be on their way to their own financial independence. This is why I cringe every time I hear a parent advise their children to go to school, so they can find a safe, secure job. An employee with a safe, secure job, without financial aptitude, has no escape.
- You need to know the law and how the system works. If you're ignorant, it is easy to be bullied. If you know what you're talking about, you have a fighting chance. That is why he paid so much for smart tax accountants and attorneys. It was less expensive to pay them than pay the government.
- Financial IQ is made up of knowledge from four broad areas of expertise:
- Idea of taxes was made popular, and accepted by the majority, by telling the poor and the middle class that taxes were created only to punish the rich. This is how the masses voted for the law, and it became constitutionally legal. Although it was intended to punish the rich, in reality it wound up punishing the very people who voted for it, the poor and middle class.
"Once government got a taste of money, the appetite grew".
- The problem is, the people who lose are the uninformed. The ones who get up every day and diligently go to work and pay taxes. If they only understood the way the rich play the game, they could play it too. Then, they would be on their way to their own financial independence. This is why I cringe every time I hear a parent advise their children to go to school, so they can find a safe, secure job. An employee with a safe, secure job, without financial aptitude, has no escape.
- You need to know the law and how the system works. If you're ignorant, it is easy to be bullied. If you know what you're talking about, you have a fighting chance. That is why he paid so much for smart tax accountants and attorneys. It was less expensive to pay them than pay the government.
- Financial IQ is made up of knowledge from four broad areas of expertise:
- Accounting
- Anvesting
- Understanding markets
- The law: tax advantages and protection from lawsuits.
Lesson Three: Mind Your Own Business
- Most people work for everyone else but themselves. They work first for the owners of the company, then for the government through taxes, and finally for the bank that owns their mortgage.
- A problem with school is that you often become what you study. So if you study, say, cooking, you become a chef. If you study the law, you become an attorney, and a study of auto mechanics makes you a mechanic. The mistake in becoming what you study is that too many people forget to mind their own business. They spend their lives minding someone else's business and making that person rich.
- To become financially secure, a person needs to mind their own business. Your business revolves around your asset column, as opposed to your income column.
- In my world, real assets fall into several different categories:
success: Nine out of 10 companies fail in five years. So only if you really have the desire to own your own company do I recommend it. Otherwise, keep your daytime job and mind your own business.
- An important distinction is that rich people buy luxuries last, while the poor and middle class tend to buy luxuries first. The poor and the middle class often buy luxury items such as big houses, diamonds, furs, jewelry or boats because they want to look rich.
- The old-money people, the long-term rich, built their asset column first. Then, the income generated from the asset column bought their luxuries.
- A problem with school is that you often become what you study. So if you study, say, cooking, you become a chef. If you study the law, you become an attorney, and a study of auto mechanics makes you a mechanic. The mistake in becoming what you study is that too many people forget to mind their own business. They spend their lives minding someone else's business and making that person rich.
- To become financially secure, a person needs to mind their own business. Your business revolves around your asset column, as opposed to your income column.
- In my world, real assets fall into several different categories:
- Businesses that do not require my presence.
- Stocks.
- Bonds.
- Mutual funds.
- Income-generating real estate.
- Notes (lOUs).
- Royalties from intellectual property such as music, scripts, patents
- And anything else that has value, produces income or appreciates and has a ready market.
success: Nine out of 10 companies fail in five years. So only if you really have the desire to own your own company do I recommend it. Otherwise, keep your daytime job and mind your own business.
- An important distinction is that rich people buy luxuries last, while the poor and middle class tend to buy luxuries first. The poor and the middle class often buy luxury items such as big houses, diamonds, furs, jewelry or boats because they want to look rich.
- The old-money people, the long-term rich, built their asset column first. Then, the income generated from the asset column bought their luxuries.
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