Robert Kiyosaki!

How can I get rich

“Remember, to create wealth,

you can’t just score once,

you must be able to repeat it.”– Grant Cardone

To answer the question:

“How can I get started?”

I usually give a way of thinking

that I have experienced for a long time.

It’s really easy to find great deals.

I swear.

It’s like learning to ride a bike.

It’s like eating cake at first,

but when it comes to money,

the decision to get through this wobbly phase

is a personal matter.

To find a multimillion-dollar “deal of a lifetime,”

we must appeal to our innate financial ability.

I believe that each of us has a natural financial ability.

The problem is that it is still sleeping

and waiting to be awakened.

It sleeps because our culture has taught us

that the love of money is the source of all ills.

It encourages us to learn a profession

so that we can work for money,

but it does not teach us how to make money work for us.

It tells us not to worry about financial problems in the future,

because the company

or the government will take care

of us when we retire.

Ultimately, however,

our own children,

educated in the same school system,

will have to pay for it.

What is passed on is to work hard,

earn and use money,

when in need,

you can always borrow.

Unfortunately,

most people believe in these dogmas,

simply because it’s always so much easier

to find work and make money.

If you’re not one of these people,

here are 10 steps to awakening your financial genius.

Here are 10 steps that I personally have taken

and found to be very effective.

If you want to follow some of these, great.

Otherwise, rely on your natural financial ability

to develop a list of your own.

When I was in Peru with someone

who had been a gold miner for 45 years,

I asked him why he was so confident in finding gold.

He replied:

“Gold is everywhere.

But most people aren’t trained to see it.”

And that’s the truth.

As for real estate,

I could go out and come back with four

or five big deals in a day,

whereas the average person would go and find nothing,

even if we both went to the same area.

The reason is that they have not taken the time

to develop their natural financial abilities.

10 Steps to Developing Your Natural Finances,

this is the process of developing a God-given power

that will truly be a power only if you can control it.

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1. I need reasons between facts:

Strength of spirit.

If you asked people if they would like to be rich

and financially free, they would answer “yes.”

But the road seems too long

and involves climbing too many hills while just working.

It’s a lot easier to make money

and give the balance to the broker.

I once met a young girl who dreamed

of being on the US Olympic swimming team.

In fact, the girl had to get up at 4 a.m. every day

to practice swimming for 3 hours before going to school.

She doesn’t have enough time to party

with friends on Saturday nights.

But she still had to study

and try to get good grades like everyone else.

When I asked her what motivated her

to make such a sublime sacrifice,

she said simply:

“I do it for myself and for those I love.

It is love that helps.

I overcome obstacles and make sacrifices.”

A reason or a purpose is a combination of “want”

and “don’t want”.

When people ask me what makes me want to be rich,

I usually answer:

it’s a combination of deep feelings of “want” and “don’t want”.

I will list a few examples.

The first is the “don’t want”,

because it creates the “want”.

I don’t want to have to work head-to-head

for the rest of my life.

I don’t like being an employee for life.

I didn’t like my father always having

to work hard all his life

and having most of what he worked

for was taken away to death.

Rich people are not like that.

They work hard and pass everything on

to their children and grandchildren.

Now comes the wants.

I want to be free to travel around the world

and live according to my liking.

I wanted to be able to do that

when I was young.

I simply want to be free.

I want to manage my own time and life.

I want money to work for me.

Those are the deep causes that have helped me get up,

move on after losing and falling.

What about your desires?

If they aren’t strong enough,

the tough reality of the road ahead can discourage you.

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2. I have choices every day,

invest in my self daily first

The power of choice.

This is the main reason people want to live in a free country.

We want to have a choice.

When I was a kid,

I loved playing billionaire chess and as an adult

I still love playing this game.

I also had a rich dad who showed me

difference between assets and liabilities.

From a young age,

I was determined to become rich,

and I knew all I had to do was learn how to make assets,

real assets.

My best friend, Mike,

already has a column of assets in his hand,

but he still chooses to learn to keep and grow it.

Many wealthy families lose wealth in later generations,

simply because the later generations were not trained

to be good asset managers.

For 90% of the population,

being rich will bring “a lot of trouble”.

That’s why they come up with sayings like:

“I don’t care about money”,

“I’ll never get rich”,

“I don’t have to worry,

I’m young”,

“When will I get rich?” money,

then I will think about the future”

or “My husband and wife are:

the one who takes care of the finances”.

The problem with these statements is

that they rob people who choose

to think like this two things:

one is your time,

your most valuable asset,

and the other is learning.

You don’t have money,

that’s no excuse for not studying.

But that’s what we choose every day,

and doing with all our time and money

and trying to put them in our heads is the power of choice.

We are all chosen.

I have chosen to be rich,

and I make that choice every day.

 Invest in your learning first:

In fact, the only real asset column is your mind,

the most powerful tool you can control.

When I talk about the power of choice,

each of us is choosing what to remember

when we are old enough.

You can watch MTV all day,

read golf magazines,

learn pottery,

or take a financial planning class.

Most people just spend money

to buy investments rather than having

to invest in learning how to invest first.

Recently a friend of mine,

a wealthy woman,

was recently robbed.

The thief stole a TV,

VCR and didn’t touch a single book.

Similarly, 90% of the population buys television sets

and only about 10% buys business

or investment books to study.

I love going to seminars.

In 1973,

I was watching TV and saw an advertisement

for a three-day symposium on how to buy real estate

without paying cash.

I spent 385$ to attend

and this course has brought me many millions of dollars.

But more importantly,

it gave me life.

I don’t have to work for the rest of my life thanks

to this one course.

Every year I attend at least 2 such courses.

I like tapes

because I can quickly go back to the beginning.

I’ve listened to Peter Lynch’s tape,

there are things he says

that I completely disagree with.

Instead of being arrogant and critical of him,

I hit a “rewind” button

and listened to his five-minute tape at least 20 times or more.

And all of a sudden,

by opening up my mind,

I understood why he said that.

It’s like a magic spell.

I felt

as if I had just opened a door into the mind

of one of the greatest investors of our time.

I was able to deeply understand his vast academic

resources and experience.

The actual result is tha

t I keep my old way of thinking,

but have Peter’s perspective on the same problem or situation.

I have two ways of thinking

instead of just one.

It is invaluable to have another way of analyzing the problem.

Today I often ask myself:

“How is Peter Lynch going to do this?

Or Donald Trump, Warren Buffett,

George Soros,

how will they handle it?”

The only way to tap into their enormous mental capacity

is to humbly take the time to read

or listen to what they have to say.

Arrogant or critical people are often people

with low self-esteem

and fear of taking risks.

You see, when you learn something new,

you need to make mistakes

in order to fully understand what you’re learning.

If you’ve read this far,

arrogance probably doesn’t matter to you anymore.

Arrogant people rarely read books or buy tapes.

Why buy?

They are the center of the universe.

A lot of “smart” people argue

or get defensive

when another opinion contradicts their way of thinking.

In that case,

the so-called intelligence,

combined with arrogance,

becomes “ignorance.”

We all believe that highly educated people are wise,

but their balance sheets often paint a different picture.

A truly intelligent person welcomes new ideas,

as they can add to the already accumulated mix of ideas.

Listening is more important than speaking.

If that weren’t true,

God wouldn’t have given us two ears and only one mouth.

A lot of people think with their mouths,

instead of listening to absorb new ideas and perspectives.

They argued without asking a single question.

I don’t have the “Get rich quick” spirit

as is common among most lottery players

or casino players gambling in the casino.

I may have capital and then run out of it,

but I got, a considerable amount of training.

If you want to fly a plane,

I recommend you go to school first.

I am always amazed at people

who buy stocks or real estate

without ever investing in their biggest asset,

their brains.

Buying a house or two won’t make you a real estate professional.

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3. Choose your communication carefully:

What you deposit in mind, you can with draw it.

The power of communication.

Above all, I did not choose you

because of their financial situation.

I have friends who are really loyal to poverty

as well as friends

who can earn millions of dong a year.

The point is that

I learn from all my friends

and realize that I am trying to learn from them.

Here is a difference that I would like to clarify.

I’ve noticed that people with money like to talk about money.

And the friends

I know who are struggling financially don’t like

to talk about money,

business,

or investments.

They think it is rude or unintellectual.

I learn from everyone and learn what not to do…

I have a few friends who can grow

to over a billion dollars in a single message period.

The three of them recounted the same phenomenon:

their poor friends never came to ask how to do it,

they just asked for one of two things or both:

1. some money owed, or 2. a job.

Warning: Don’t listen to fearful people.

They can be likable,

but when it comes to money,

especially when it comes to investing,

they’re like chicks that keep shouting,

“The sky is going to fall.”

They can always tell you why something won’t work.

The problem is that everyone listens to them,

but the people who blindly accept

this dismal information are also chicks, that’s all…

If you look at CNBC,

the goldmine of investment news,

you’ll see that they often have a list of so-called “experts”.

When one expert says the market is going to crash,

another says the market is about to explode.

If you’re wise,

listen to both of you.

Keep an open mind as both experts make very good points…

Many close friends tried

to advise me to stay away from deals.

A few years ago a friend told me

that he was excited about getting a certificate of deposit

with an interest rate of 6%.

I told him I got 16% from the government.

The next day,

he sent me an article saying that investing is very dangerous.

Now I get 16% interest every year,

and he still has only 6%.

Arguably one of the hardest things about building a fortune

is being true to yourself

and being willing to go out of your way

with the crowd.

Because in the market,

a crowd is often late and is often easily “killed”.

If there’s a big deal on the front page of a newspaper,

in most cases you’ll be late.

Find a new deal.

As surfers often say, ”

There’s always another wave.”

Those who rush to catch a late wave are often just cleaners.

Wise investors don’t try to correct the market.

If they miss a wave,

they will find the next wave and get in place in time

when it arrives.

This is difficult for most investors

because buying something unpopular is horrible.

Shy investors are like sheep in a crowd.

Or it’s greed that pulls them in

when the smart investors have won and gone.

Wise investors invest when it’s not yet popular.

They know that they make a profit

when they buy,

not when they sell.

They waited patiently.

Like I said,

they don’t regulate the market.

Just like a surfer,

they have to be ready

when the next big wave is coming.

All of these are “inside trade”.

There are illegal types of insider trade

and there are legal forms of insider trade.

But either way, they are insider trade.

The only difference is how far from “internal” you are.

Money is made of information.

Want to hear about an upcoming boom,

join or break out before the next crash?

I’m not saying do it illegally,

but the sooner you know,

the better your chances of making a profit

with minimal risk.

Those are the things that friends can help you with.

And that is financial intelligence.

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4. Look for a recipes and learn a new recipes:

The power of quick learning.

To make bread,

each bread maker must follow a recipe.

Same with making money.

That’s why money is also called “dough”.

Most of us have heard the saying:

“As you eat, so will you”.

I have a similar saying:

“As you learn,

you will be like that.”

In other words, be careful with

what you study and study,

for your mind is capable of so powerful

that you become what you put into your mind.

For example,

if you learn to cook,

you are more likely to become a chef.

If you don’t want to be a chef anymore,

you have to go to another school,

for example,

study pedagogy.

After studying teaching,

you will usually become a teacher.

And it all goes on like that.

Choose carefully what you want to learn.

When it comes to money,

most people follow a general formula they learned in school.

It’s work to make money.

One formula that I find very influential in the world

is that every day,

millions of people wake up,

go to work,

earn money,

pay bills,

balance income and expenses,

buy some public bonds,

and go back to work.

It is the basic formula or method.

If you’re tired of what you’re doing

or if you’re not making enough money,

it’s simply time to change your formula

for making money.

When I was 26 years old,

I went to a weekend class called

“How to Buy Foreclosure Real Estate”.

I learned a recipe.

The next thing is to be trained to be able to apply

what you have learned in practice.

Most people stop at this point.

During the 3 years,

while working with Xerox,

I used my free time to learn to master the art

of foreclosure real estate.

I made a few million dollars using this formula

but nowadays

it’s too slow and too many people are doing it.

So after mastering that formula,

I continued to search for other formulas.

In many classes,

even though I don’t use the information

I’ve learned directly,

I’m always looking for new information.

I take classes for veteran traders only,

classes for options traders

as well as classes for anyone who wants to learn.

I broke away from my alliance,

in a room full of people with doctorates in atomic physics

and space science.

However,

I learned many things that make my stock

and real estate investments more meaningful

and more profitable.

Most start-ups and public universities offer classes

in traditional investment and financial accounting planning.

Those are great places to start.

So I’m always looking for a quicker recipe.

That’s why even with the same common background,

I can still make more money in a day

than many other people work for a lifetime.

There is another aspect to note.

Today’s rapidly changing world doesn’t

even consider much of what you know,

because often what you know is old.

The main thing is how fast you can learn.

This skill is priceless.

It is invaluable because if possible,

it will help you find the formulas,

methods to make money faster.

Working hard for money is just an old formula

that people devised in ancient times.

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5. Pay yourself first,

deposit at least 30%

total your incomes for your self to invest

The power of self-discipline.

If you can’t control yourself,

don’t try to get rich.

Maybe join the military

or a certain religion to be able to control yourself.

It makes no sense to invest,

make money

and then toss it out the window.

It is the lack of self-discipline

that makes most lottery winners

go bankrupt after winning millions of dollars.

It’s this lack of self-discipline that makes people

who get a raise immediately go out and buy a car

or take an excursion and then go into debt…

It’s hard to say which of these 10 steps is the most important.

But most of all, this is probably the hardest step

to take if it’s not part of your nature.

I dare say:

it is the lack of personal discipline

that is the number one differentiating factor between the rich,

the poor and the middle class.

Simply put, people with low self-esteem

and low tolerance to financial pressures will never get rich.

Like I said, I learned a lesson from rich dad

that “the world will push you away”.

The world pushes people who lack self-control

and self-discipline,

and pushes them to fall victim to those

who have their own discipline.

In the business classes I teach,

I often remind people not to focus too much

on their product or service,

but to focus on developing their management skills.

The three most important skills required

to start your own business are:

1. Cash rotation management.

2. Personnel management.

3. Personal time management.

It can be said that the above three management skills are applicable

to everything, not just businesses,

they are three issues in the life of each individual,

each family, each business,

each organization charity,

per city or per country.

Every skill is enhanced by self-discipline.

I never took my rich dad lightly:

“Pay yourself first.”

like I did financial literacy allows people to read numbers,

and numbers tell stories.

Looking at someone’s income statement and balance sheet,

I can see if someone who eloquently says “pay yourself first”

is actually doing what they preach.

A picture is worth a thousand words.

So again, compare the financial statements of those

who paid you first with those of others.

1. Finance statement

Finance statement of Rich
Incomes
Expense
Assets 1. 2. 3. 4.	Liabilities

 

Finance statement of Poor
Income
Expenses
Asset	Liabilities 1. 2. 3. 4.

2. Cash flow

Cash flow of Poor

Receive: Salary + Loan from others/ bank

Payment: Expenditures + Liabilities

 

Cash flow of Rich

Receive: Salary + Interest in bank + Return of investments + Passive incomes

Payment: Expenditures+ buy Assets

Study the diagram above and notice

if you can see the difference.

Again, you have to understand the cash flow to understand the story.

Most people just look at the numbers

without reading anything.

If you can really understand the power of the cash wheel,

you’ll quickly see what’s wrong with the next picture,

or why more than 90% of the population has to work hard

all their lives and needs help government support

such as social welfare

when no longer able to work.

Can you see?

The diagram above reflects the activities

of an individual who chooses to pay themselves first.

Each month, they put money in the asset column

before paying their monthly expenses.

Although there are millions of people

who understand the saying

“Pay yourself first”,

in reality,

they always pay themselves last.

Now I can hear boos from people

who sincerely believe in paying bills first,

and protests from those who are “responsible”

for always paying their bills on time.

I’m not saying you should act irresponsible and not pay the bill.

I say do what the book says,

“pay yourself first”.

And the diagram above is an accounting picture

that describes exactly that action, not like the following picture:

There have been many years of my life where,

for some reason,

the cash flow is much less than the bills,

but I always pay myself first.

My accountants screamed in horror,

“The IRS will put you in jail.”

“You won’t be able to use this credit card anymore!”

“They will cut off the power!”

I still pay myself first.

Why? Because it is the power of self-discipline

and the power of spirit,

or to put it more commonly, it is grit.

As rich dad taught me in the first month of working with him,

most people let the world push them away.

Have the courage to go against the current

and you will be rich.

You may not be weak,

but when it comes to money most people are shy.

Although I always pay the bill last,

I am financially wise enough not to get stuck in a predicament.

I don’t like taking on consumer debt.

Actually, I have a lot of liabilities,

but I don’t have to pay for them,

other people have to pay for my liabilities.

Those are the tenants.

So, the first rule when paying yourself first is not to go into debt.

Even though I pay the bills last,

I have to arrange that

I only have to pay small bills that are not important.

Second, when I sometimes run out of money,

I still pay myself first.

I let the creditors scream.

I like them to be firm with me.

Why? Because these people helped me.

They forced me to go out and make more money.

That’s why I always pay myself first,

keep investing my money

and keep booing my creditors.

All in all,

I usually pay them on time anyway.

My wife and I have a great reputation.

We don’t let ourselves be pressured

to use our savings

or pay off our stocks

to pay off consumer debt.

That’s not financially smart.

So the answer is:

1. Don’t get caught up in huge debts that you have to pay.

Spend less.

Build a fortune first,

then buy a big house or a nice car.

To get stuck in the Rat Race is not smart at all.

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2. When you are short of money,

let the pressures on you do the work

and don’t get too caught up in spending or investing too much

. Use pressure to force your financial genius

to think of new ways to make money and then pay the bills.

Surely then you will be able to increase your earning ability

as well as your financial intelligence.

Many times I have been caught in financial hardship

and had to find ways to generate more income,

while faithfully protecting the assets

in my wealth column.

My accountant screamed

and disappeared to find a way to pay,

but I remained like a brave soldier defending my Fort of Fortune.

Poor people have poor habits.

A common bad habit is “splurge”.

Rich people know that it’s better to save money

to make more money, not to pay bills.

I know this sounds rough,

but like I said,

if you’re not tough on yourself,

the world will push you away.

If you don’t like being under financial pressure,

find a recipe for yourself.

A good formula is to cut costs,

put money in the bank,

pay income taxes,

buy security bonds,

and keep your money average survival.

But this is against the “pay yourself first” rule.

This rule does not encourage self-sacrifice

or financial abstinence.

Life must have enjoyment.

If you call on your financial genius,

you can enjoy life’s joys,

be rich,

and pay off your bills

without sacrificing your beautiful life.

And that is financial intelligence.

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6. Please pay big salary to brokers:

The power of good advice.

I often see people hang a sign

in front of the house that says

“House for sale”.

Or I see on TV these days,

many people claim to be “discount brokers.”

Rich dad taught us to do the opposite.

He believed in paying professionals well,

and I followed that policy.

Today, I have great lawyers, accountants,

real estate brokers,

and stockbrokers.

Why? Because if these people have good expertise,

their service will bring you money.

And the more money they make,

the more money I will make.

We live in the information age.

Information is priceless.

A stockbroker can provide you with information

or take the time to guide you.

There are several stockbrokers willing to do this for me.

Some people taught me

when I had little or no money,

and I still work with them to this day.

What I pay a stockbroker is very small compared

to the amount of money

I make from the information they provide.

I like my real estate brokers

or my stockbrokers making a lot of money.

Because that usually means

I make a lot of money.

A good broker saves me time and money for example,

when I buy a vacant lot for $9,000 and sell it for $25,000,

so I can buy a Porch faster.

A broker is your market’s eyes and ears.

They are there every day for me.

And instead of going there,

I could stay at home and play golf.

Also, in my opinion, self-employed people don’t value their time.

Why should I save a few bucks

when I could use this time to earn more or spend time

with the people I love?

What I find most amusing is

that a lot of poor or middle-class people always give

a restaurant commission of 15 to 20% no matter

how bad the service is, but they complain

because they have to pay the broker from 3 to 7%.

They like to give money to those who increase their expenses,

but are harsh on those who help them grow their assets.

That’s not financially smart.

Not all brokers are equal.

Unfortunately,

most brokers are just salespeople.

It can be said that real estate agents are the worst.

They trade but they themselves own little

or no real estate.

There is a huge difference

between a home broker and an investment broker.

And that’s true of stockbrokers,

checkers,

mutual funds,

and insurance brokers

who often call themselves financial designers.

Just like in fairy tales,

you have to kiss a lot of frogs

to find a real prince.

Remember this old saying:

“Never ask a textbook seller

if you need a textbook.”

When interviewing a salaried professional,

I must first find out how much property

or stock they have and what percentage of tax they have to pay.

I apply that to my tax attorneys and accountants.

I have an accountant with my own business.

She works as an accountant for me,

but she’s in the real estate business.

I also had an accountant

who was a small business accountant,

but he didn’t have any real estate.

I replaced him

because we didn’t have the same favorite business.

***********************

Find a broker you really like.

Many brokers will take the time to train you,

and they will probably be the best asset you have.

Be nice to them and most of them will be nice to you.

If all you think about is cutting their commissions,

why should they come to you?

As I said before,

one of the important management skills

is human resource management.

Many people only manage people

who are less intelligent than they are

and have less power than they do.

Many managers never get promoted

because they only know how to work

with people under them,

but do not know how to work with superiors.

The real skill is managing and paying people

who are better than you in a certain technical area.

That is why companies often have a board of directors.

You should too.

And that is financial intelligence.

***********************

7. How long do you get the return of

and on you investment

When the first white people settled in the Americas,

they were amazed

by the many cultural features

of the black people

American red.

For example,

if a white man is cold,

the Indian will cover him with a blanket.

Thinking it was a gift,

when the Indian asked for the blanket back,

the white guy was usually very upset.

The Indians were also very upset when they realized

that the whites did not want to return it.

Thus, the term “Gift-giving Indians” was born,

simply a cultural misunderstanding.

In the world of property columns,

being a “gift Indian” is a very important thing to property.

The first question the discerning investor asks is:

“How soon can I get my money back?”

They also want to know what they can get,

that’s part of the job.

That’s why ROIs,

or Return of and on Investment,

are so important.

For example,

I found that several parcels of land in the area

were being foreclosed upon.

The bank asked for $60,000,

I made a bid for $50,000 and they accepted,

simply because during the auction,

I immediately gave a check for $50,000.

They know I’m serious.

Most investors will say,

“Are you a cash tycoon?”

“Is it better to get a promissory note?”

The answer in this case is no.

My investment company offers winter vacation rentals

for $2,500 a month for four winter months of the year.

During the off season,

the house is rented out for $1,000 a month.

I got my capital back in about 3 years.

Now that I own this property,

it pours money into me month after month.

Same with stocks.

Often my broker will call and advise me

to put a substantial amount of money

into the shares of a company

that he feels is about to make a move

that will skyrocket the value of the shares,

for example

such as announcing a new product.

I will move the money in in about a week to a month,

while the value of the shares is increasing.

After that,

I withdraw my initial capital

and do not have to worry about market fluctuations anymore,

because the initial capital is back

and ready to work with other assets.

So money kept going in and out,

and I owned a property that was technically free.

It’s actually a lot of times that I lose money.

But I only play with the money I can afford to lose.

It can be said that on average 10 investments

I hit the target two or three times,

five or six times I get nothing,

and I lose two or three times.

But I limit my losses to only what I have at the time.

For people who hate taking risks,

they put their money in the bank.

And in the end,

saving is better than doing nothing.

But it takes a long time to get your money back,

and in most cases,

you get nothing.

In every one of my investments,

there has to be a surface,

something that doesn’t cost money.

A small stockpile,

a vacant lot, a house, a stock of stock,

an office building.

And it should be a low-risk or risk-limited idea.

There are books written specifically on the subject,

so I don’t want to mention them here. Ray Kroc,

or the owner of the famous McDonald’s Corporation,

sells hamburgers not because he likes to eat hamburgers

but because he wants to have more

than just real estate under the company’s perks.

So wise investors must look beyond ROI (return on investment).

Once you get your money back,

you have to have other assets without losing money.

That is financial intelligence.

***********************

8. Wise spend one USD

The power of focus.

My friend’s child has a very bad habit of burning every last penny

in his pocket.

At the age of 16,

he wanted his own car for the reason:

“All my friends have been bought

by their parents for their own cars.”

The boy wants to take his savings and change it all into cash.

Then his father called me.

“In your opinion,

should I let him do that?

Or should I do like other parents

and buy the car for him?”

I replied,

“That will take the pressure off you in the near future,

but by doing so,

what will you teach him in the distant future?

Would you take this desire to have a car

and encourage your child to learn something?”

Two months later,

I met him again and asked.

“Does your son have a new car?”

“Not yet.

But I gave it $3,000 to buy the car.

I told her to use this money

instead of her college savings.”

I said,

“Ah, you are so generous!”

“No. I give it this amount with one condition.

I followed your advice,

taking advantage of his desire

to buy a car so he could learn something.”

“What condition?”

“Well, first we opened up your playset,

that ‘Cash Wheel’ game.

We played and discussed for a long time about

how to use money wisely.

Then I subscribed to the Wall Street Journal

and some stock market books for it.”

“And then?”

“I told him this $3,000 was his,

but he couldn’t directly use this money to buy a car.

It can be used to buy and sell securities, find a

He has his own stockbroker

and when he’s made $6,000 from this $3,000

he can use half of it to buy a car and half to save it for college.”

I asked, “And what was the result?”

“Ah, at first it traded very fortunately,

but a few days later it lost all its profits.

Then it’s profitable again.

Today it’s only about $2,000,

but the interest is growing.

He read all the books

I bought and he went to the library

to borrow more books.

It voraciously reads the Wall Street Journal,

looks for tutorials,

and already watches CNBC instead of MTV.

Soon it will only be 1,000 $,

but the amount of income and what it learns is a lot.

It knows that if it loses money,

it will have to walk for another 2 years.

But it doesn’t seem to care about that anymore.

He didn’t even show interest in the car

because he found another game that was much more fun!”

I asked, “What if it takes all the money?”

“If you have launched the javelin,

you must follow the javelin.

I’d rather let him lose everything now than wait

until he’s our age and then force him to take a risk.

Besides, this $3,000 is the best money

I have invested in its education.

What he has learned will last him a lifetime,

and it seems he has begun to appreciate money.

I don’t think it will burn to the last penny

in the pocket anymore.”

As I said in the “Pay Yourself First” section,

if a person does not possess the power of self-discipline,

it is best not to get rich.

In the beginning,

the process of developing cash flow

from the asset column was easy in theory,

but it was the mental stamina

when it came to money management that was difficult.

In today’s consumer world,

it’s easy for external temptations

to push our money past the liabilities column.

Because of poor mental endurance,

money flows out where resistance is weakest.

That is the cause of poverty and financial struggles.

I have given many numerical examples of financial intelligence,

but in this case

it is the ability to command money

that makes money.

If we give 100 people $10,000 each at the beginning of the year,

in my opinion,

at the end of the year things will look like this:

80 people will be left with nothing.

The truth is that many people will have

to carry large debts

because they pay cash for cars,

refrigerators,

TVs,

VCRs or a vacation.

16 people will raise this $10,000 by 5% to 10%.

4 people will be able to raise up to $20,000

or up to millions of dollars.

Like everyone else,

I also love luxuries.

The difference is that some people buy these luxuries

with credit cards.

It is a trap of “standing in this mountain

and looking at that mountain.”

For a lot of people looking to buy a Porsche,

the easiest way is to call the mortgage bank.

As for me,

instead of choosing to focus on the liabilities column,

I choose to focus on my assets column.

As a habit,

I turn the desire to spend into the inspiration

that fuels my financial genius in investing.

Nowadays, we often borrow money

to get what we want instead of focusing on making money.

This is easier in the short term

but harder in the long run.

It is a bad habit that we,

as individuals or as a country,

often get into.

The sooner you train yourself

and your loved ones to master money,

the better.

Money is a mighty power.

Unfortunately,

people often let the power of money work against them.

If you have a low financial intelligence,

you will not be able to keep the money.

It will be wiser than you.

And if money is wiser than you,

you will have to work for it all your life.

To master money,

you need to be wiser than it is.

Then the money will do what you ask.

It will obey you.

Instead of being a slave to money,

you will be its master.

That is financial intelligence.

***********************

9. Welcome money comes to you

The power of myths.

When I was a child,

I admired Willie May, Hank Aaron,

Yogi Berra.

They are heroes.

As a child, I wanted to be like them.

I want to know everything about them

because I want to be like them.

When I was a 9 – 10 year old kid,

every time I hit the ball or took a shot, I was no longer me.

I became a Yogi or Hank.

It’s one of the most powerful ways to learn

that we often lose as we grow up.

We lose our heroes.

We lose our innocence.

Today, I watched the kids play baseball near my house.

On the football field,

they are no longer little Johnny,

they are Michael Jordan,

Sir Charles or Clyde.

Imitating or emulating your heroes is a really powerful way of learning.

And that’s why when someone like O. J. Simpson lost his honor,

many people booed vehemently.

There’s more to it than a trial.

It is the loss of a hero.

Many people grew up with them,

respected them and wanted to be like them.

But all of a sudden,

I had to shake myself off from that person.

As I got older, I got more heroes.

I have golf heroes like Peter Jacobsen,

Fred Couples and Tiger Woods.

I imitated their strokes

and tried

to read all that was said about them.

I also have heroes like Donald Trump,

Warren Buffett,

Peter Lynch,

George Soros and Jim Rogers.

A little older,

I know their lives

as much as I know the ERA

and RBI of my baseball heroes.

I follow what Warren Buffett invests in

and read everything about his view of the market.

I read Peter Lynch’s book to understand how he chooses stocks.

And I read books about Donald Trump,

trying to figure out how he negotiates and settles deals.

Just as when I don’t feel like

I’m about to hit the ball,

when I’m researching the market or negotiating a deal,

I subconsciously always act with Trumpian boldness.

Or when I analyze a trend,

I look at it as if Peter Lynch were.

When we have heroes,

we can draw a formidable resource from our own genius.

But heroes do more than just inspire us.

They make everything easy.

It’s just making things easier that convinces us to want to be like them.

“If others can do it, I can too.”

When it comes to investing,

a lot of people find it too difficult.

Instead, go find a hero who can make things seem easier.

***********************

10. Giving

The power of giving.

Both of my fathers are teachers.

Rich dad taught me a lesson

that I will carry with me

for the rest of my life,

which is the need for charity or giving.

My highly educated father gave me a lot of time

and knowledge,

but almost never gave me money.

Like I said, he said he would give it

if he had money left over.

It is very rare, of course, to have a balance.

Rich dad gave both money and education.

He firmly believed in tithing.

He always said,

“If you want something,

you have to give it first.”

If I could just jot down one idea for you,

I’d jot it down.

Every time you feel you are “poor”

or “in need” of something,

first give what you want

and it will return many times over.

That is absolutely true for money,

friendship,

love or just a smile.

I know nobody wants to do that,

but it always happens to me.

I believe in reciprocity and I give what I want.

I wanted money so I gave it,

and it came back many times over.

I want to trade so I help other people trade and I can sell.

I wanted the opportunity to meet,

so I helped others communicate,

and like magic,

the opportunities to meet again came to me.

There is an old saying:

“God does not need to receive,

but man must give.”

Rich dad used to say,

“The poor are more greedy than the rich.”

He explains that a rich person often provides something

that others need.

All through the years of my life,

whenever I felt needy,

short of money,

or in need of help,

I simply went out or thought about

what I wanted and decided to give it away.

And when I give it away,

it always comes back.

This reminds me of the story of a guy sitting in the cold night

with a pile of firewood in his hand,

shouting to the fireplace with his belly:

“When will you give me some fire

I will put my cue in .”

And when it comes to money,

love,

happiness,

business or transaction,

please remember:

first give what you want

and then it will come back.

Often the mere process of thinking about

what I want and how to give others

what I want is enough to spark a flow of generosity.

Whenever I feel like people aren’t smiling at me,

I smile at them

and say “Hello” and like a miracle,

many people smile at me.

Indeed, the world is just a mirror to reflect upon.

That’s why I say,

“Teach people and you will learn.”

I find that the more passionate

I am in teaching those who want to learn,

the more I learn.

If you want to learn about money,

teach it to others.

A new line of thought

and especially better things will come to you.

There are also times

when I give and nothing comes back

or what I get in return is not what I want.

But after closer examination and self-examination,

I found that in such cases,

I was actually giving to receive rather than giving in order to give.

My father taught teachers

and he became a top teacher.

Rich dad always taught young people his way

of doing business.

In retrospect,

it was their generosity

and what they knew that made them wiser.

In this world there are forces much stronger than we are.

You can achieve them on your own,

but with the help of these powers things will be much easier.

All you need is to be spacious with what you have,

and the powers will be generous to you.

If you don’t find a way to make money while you sleep,

you will work until you die. ― Warren Buffett