Understand the difference between an asset and a liability; and grow your income-generating assets' column.
“If you find you have dug yourself into a hole... stop digging.”
Wealth measures how much money your money is making and, therefore, your financial survivability.
Once a dollar goes into assets, never let it come out.
Think of it this way: Once a dollar goes into your asset column, it becomes your employee. The best thing about money is that it works 24 hours a day and can work for generations.
We all have tremendous potential, and we all are blessed. Yet the one thing that holds 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.
Financial Freedom starts with a strong financial education.
There are five main reasons why financially literate people may still not develop abundant asset columns that could produce a large cash flow.
The five reasons are:
Failure inspires winners to become winners.
We play the “What if?” game. “What if the economy crashes right after I invest?” Or we have friends or loved ones who will remind us of our shortcomings. They often say, “If it’s such a good idea, how come someone else hasn’t done it?”
These words of doubt often get loud.
Rich Dad believed that the words "I can't afford it" shutdown your brain.
"How can I afford it?" opens up possibilities, excitement and dreams
In the stock market, I often hear people say, “I don’t want to lose money.” Well, what makes them think I or anyone else likes losing money? They don’t make money because they choose to not lose money.
Instead of analyzing, they close their minds to another powerful investment vehicle, the stock market.
Be a little greedy. It’s the best cure for laziness.
When people ask me what my reason for wanting to be rich is, I tell them that it is a combination of deep emotional “wants” and “don’t wants.”
I just choose to be rich, and I make that choice every day.
Don’t listen to poor or frightened people. I have such friends, they are the Chicken Littles of life. To them, when it comes to money, especially investments, it’s always, “The sky is falling! They can always tell you why something won’t work.
But people who blindly accept doom-and-gloom information are also Chicken Littles.
One of the hardest things about wealth-building is to be true to yourself and to be willing to not go along with the crowd.
The power of self-discipline If you cannot get control of yourself, do not try to get rich. It makes no sense to invest, make money, and blow it.
1. Don’t get into large debt positions that you have to pay for. Keep your expenses low. Build up assets first. Then buy the big house or nice car. Being stuck in the Rat Race is not intelligent.
2. When you come up short, let the pressure build and don’t dip into your savings or investments. Use the pressure to inspire your financial genius to come up with new ways of making more money, and then pay your bills. You will have increased your ability to make more money as well as your financial intelligence.
When you get into financial hot water; use your brain to create more income while staunchly defending the assets in your asset column. And be like a good soldier defending the fort—Fort Assets.
The rich know that savings are only used to create more money, not to pay bills.
As a habit, I use my desire to consume to inspire and motivate my financial genius to invest.
Choose heroes: the power of myth
By having heroes, we tap into a tremendous source of raw genius.
“If they can do it, so can I.”
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, or friendship.
Often just the process of thinking of what I want, and how I could give that to someone else, breaks free a torrent of bounty.
"It is true that your world is only a mirror of you."
Profits are made in the buying, not in the selling.
Start early. Buy a book. Go to a seminar. Practice. Start small. I turned $5,000 cash into a one-million-dollar asset producing $5,000 a month cash flow in less than six years. But I started learning as a kid. I encourage you to learn, because it’s not that hard. In fact, it’s pretty easy once you get the hang of it.
The Three Incomes In the world of accounting, there are three different types of income:
When my rich dad said, “The rich don’t work for money. They have their money work for them,” he was talking about passive income and portfolio income.
Passive income, in most cases, is income derived from real estate investments. Portfolio income is income derived from paper assets such as stocks and bonds.
Portfolio income is the income that makes Bill Gates the richest man in the world, not earned income.
Rich dad used to say, “The key to becoming wealthy is the ability to convert earned income into passive income or portfolio income as quickly as possible.”
He would say, “Taxes are highest on earned income. Th e least-taxed income is passive income. That is another reason why you want your money working hard for you. Th e government taxes the income you work hard for more than the income your money works hard for.”
Pay yourself first
Don't be this person
Before success comes in any man's life, he is sure to meet with much temporary defeat, and, perhaps, some failure.
When defeat overtakes a man, the easiest and most logical thing to do is to QUIT. That is exactly what the majority of men do.
When failures come along the way, always know that you're close to success🔥
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