“If you find you have dug yourself into a hole... stop digging.”

Stop Digging

Money & Investments

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.

Your best employee is your money.

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.

Potential within us

Excellent example of flipping real estate 💎

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:<ol><li>Fear</li><li>Cynicism </li><li>Laziness </li><li>Bad habits </li><li>Arrogance</li></ol>

5 Roadblocks

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.

Doubts often paralyze us:

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.

Analyse > Criticise

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.”

Reason for wanting to be rich?

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.

WARNING: 

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.

Pay yourself first: 

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.

How to successfully pay yourself first:

The rich know that savings are only used to create more money, not to pay bills.

The Rich know:

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.”

Choose your Heroes

"It is true that your world is only a mirror of you."

Your world is your mirror:

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.

Education and wisdom about money are important:

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.

Passive and Portfolio 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.”

The key to wealth:

A person who pays everyone first:

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🔥

Failures come just a step before success:

Although we have been successful in our careers, they have not turned out quite as we expected. We both have changed positions several times-for all the right reasons-but there are no pension plans vesting on our behalf. Our retirement funds are growing only through our individual contributions. Michael and I have a wonderful marriage with three great children. As I write this, two are in college and one is just beginning high school. We have spent a fortune making sure our children have received the best education available. One day in 1996, one of my children came home disillusioned with school. He was bored and tired of studying. “Why should I put time into studying subjects I will never use in real life?” he protested. Without thinking, I responded, “Because if you don't get good grades, you won't get into college.” “Regardless of whether I go to college,” he replied, “I'm going to be rich.”

Rich Dad, Poor Dad Summary

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KEY
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Rich Dad, Poor Dad Summary

19

KEY IDEAS

KEY
IDEAS