Lesson 5: The Rich Invent Money
Self-confidence coupled with high financial IQ can certainly earn more for you than merely saving a little bit every month. Make good use of your time and find the best deals. An example: In the early 90's the Phoenix economy was bad. Homes once valued at $100,000 sold for $75,000. Kiyosaki shopped at bankruptcy courts and bought the same houses at only $20,000. He resold these properties for $60,000 making a cool $40,000 profit. After six more transactions of the same manner he made a total $190,000 in profit and it only took 30 hours of work time.
Rich Dad explains there are Two Types of Investors:
1. Buyers of Packaged Investments.
This is when you call a retail outlet, real estate company, stockbroker or financial planner and put your money in ready-made investments. It's a simple, clean way of investing.
2. The Professional Investor
Design your own investment. Assemble a deal and put together different components of an opportunity. Rich dad encourages this type.
You need to develop three main skills to be this type of investor, namely how to:
* Identify an opportunity everyone else has missed.
* Raise capital
* Organize smart people
Identify an opportunity everyone else has missed. Learn to identify hidden Freebies in business deals. For example: The real business of McDonald's isn't hamburgers. It's the free real estate underneath each franchise, on every important intersection, in cities all over the world that is the real wealth of its owners. THERE IS ALWAYS RISK. You need to learn how to manage risk and not avoid it.
Lesson 6: Work to Learn, Don't Work for Money
The Author's Odyssey After college graduation Robert Kiyosaki joined the Marine Corps. He learned to fly for the love of it. He also learned to lead troops, an important part of management training. His next move was to join Xerox where he learned to overcome his fear of rejection. The thought of knocking on doors and selling copiers terrified him. Soon he was among the top 5 salespeople at the company. For a couple of years he was No.1. Having achieved his objective, overcoming his shyness and fear, he quit and began minding his own business. Learn skills like PR, marketing, and advertising.
Take a second job if it means learning more. A Difference in Education Schools train professionals. Professionals become so specialized they cannot apply themselves in other fields and need to form unions to protect their jobs. Remember you can have a profession, say, learn to be a pilot if you want to learn how to fly, but at the same time mind your own business. The rich "groom" the next generation by training the heir in all aspects of running the business. They move him from department to department so he learns how each one relates to the other. Specialization is not the key here, but picking up important lessons from each area and seeing the business as a whole.
Rich Dad groomed Kiyosaki and Mike in the same manner. Mike would later take over Rich Dad's empire, which included restaurants, convenience stores, and a construction company. Kiyosaki created his own empire with real estate, new products and educational materials.
Five Obstacles to Financial Independence
1. Fear.
Don't play it safe and cling to what you think is secure. If you don't go for it and think big you won't be able to earn big.
2. Cynicism.
Don't listen to advice of others who are not doing what you intend to do. Listen to your self and those who are doing what you aim to do.
3. Laziness.
Greed is good and fights laziness. Think about the freedom and money you'll have and you will put in those extra work hours. Change your thinking. Instead of saying "I can't afford it." Ask yourself "How can I afford it?" Challenge your mind to create solutions.
4. Bad Habits.
Spending habits should turn into saving and investing habits.
5. Arrogance.
Don't think you know everything there is to know about money. Listen to others. Enroll in useful seminars.
Related posts:
1. School Makes You Good Employees, But Financial Literacy Makes You Good Employers
2. Keep Your Day Job But Start Minding Your Own Business
3. The Secrets About Money You Don't Learn In School
4. Ten Steps To Awaken Your Financial Genius
Self-confidence coupled with high financial IQ can certainly earn more for you than merely saving a little bit every month. Make good use of your time and find the best deals. An example: In the early 90's the Phoenix economy was bad. Homes once valued at $100,000 sold for $75,000. Kiyosaki shopped at bankruptcy courts and bought the same houses at only $20,000. He resold these properties for $60,000 making a cool $40,000 profit. After six more transactions of the same manner he made a total $190,000 in profit and it only took 30 hours of work time.
Rich Dad explains there are Two Types of Investors:
1. Buyers of Packaged Investments.
This is when you call a retail outlet, real estate company, stockbroker or financial planner and put your money in ready-made investments. It's a simple, clean way of investing.
2. The Professional Investor
Design your own investment. Assemble a deal and put together different components of an opportunity. Rich dad encourages this type.
You need to develop three main skills to be this type of investor, namely how to:
* Identify an opportunity everyone else has missed.
* Raise capital
* Organize smart people
Identify an opportunity everyone else has missed. Learn to identify hidden Freebies in business deals. For example: The real business of McDonald's isn't hamburgers. It's the free real estate underneath each franchise, on every important intersection, in cities all over the world that is the real wealth of its owners. THERE IS ALWAYS RISK. You need to learn how to manage risk and not avoid it.
Lesson 6: Work to Learn, Don't Work for Money
The Author's Odyssey After college graduation Robert Kiyosaki joined the Marine Corps. He learned to fly for the love of it. He also learned to lead troops, an important part of management training. His next move was to join Xerox where he learned to overcome his fear of rejection. The thought of knocking on doors and selling copiers terrified him. Soon he was among the top 5 salespeople at the company. For a couple of years he was No.1. Having achieved his objective, overcoming his shyness and fear, he quit and began minding his own business. Learn skills like PR, marketing, and advertising.
Take a second job if it means learning more. A Difference in Education Schools train professionals. Professionals become so specialized they cannot apply themselves in other fields and need to form unions to protect their jobs. Remember you can have a profession, say, learn to be a pilot if you want to learn how to fly, but at the same time mind your own business. The rich "groom" the next generation by training the heir in all aspects of running the business. They move him from department to department so he learns how each one relates to the other. Specialization is not the key here, but picking up important lessons from each area and seeing the business as a whole.
Rich Dad groomed Kiyosaki and Mike in the same manner. Mike would later take over Rich Dad's empire, which included restaurants, convenience stores, and a construction company. Kiyosaki created his own empire with real estate, new products and educational materials.
Five Obstacles to Financial Independence
1. Fear.
Don't play it safe and cling to what you think is secure. If you don't go for it and think big you won't be able to earn big.
2. Cynicism.
Don't listen to advice of others who are not doing what you intend to do. Listen to your self and those who are doing what you aim to do.
3. Laziness.
Greed is good and fights laziness. Think about the freedom and money you'll have and you will put in those extra work hours. Change your thinking. Instead of saying "I can't afford it." Ask yourself "How can I afford it?" Challenge your mind to create solutions.
4. Bad Habits.
Spending habits should turn into saving and investing habits.
5. Arrogance.
Don't think you know everything there is to know about money. Listen to others. Enroll in useful seminars.
Related posts:
1. School Makes You Good Employees, But Financial Literacy Makes You Good Employers
2. Keep Your Day Job But Start Minding Your Own Business
3. The Secrets About Money You Don't Learn In School
4. Ten Steps To Awaken Your Financial Genius
