Pai Rico Pai Pobre - Robert T. Kiyosaki | AudioBook 🎧 Completo | Narração Elyson Sotti

You are about to listen to the AudioBook of the book Rich Dad Poor Dad written by Robert t kiosaki and if you are looking for a summary or a quicker review of this book, just click on the video that appears above in the card or in the description if If you are interested in tips, reviews and current affairs on topics such as creativity, marketing, visual arts, don't forget to check out the channel and if you want to receive new audiobook releases, just subscribe to the channel and activate the bell in the description of this video,

you will have access to the summary and the written review of this book on my blog as well as the download of the audiobook files if you are thinking of purchasing this book Don't forget to check out the links in the description so you get a discount and I also help the channel grow now I wish you a excellent book and a good benefit Rich Dad Poor Dad new updated and expanded edition with nine new study sessions by Robert T kosaki open quotes Rich Dad Poor Dad is a starting point for everyone who wants to

take control of their financial future close quotes uses today introduction Rich Dad Poor Dad having two parents I had the choice between contrasting points of view the vision of a rich man and that of a poor man I had two parents one rich and the other poor one was very educated and intelligent had a PhD and had completed a university course degree lasting 4 years in less than two years, he then went to Stanford University, the University of Chicago and Northwest University, always on a scholarship, my other father never finished high school, they were both

successful men in their careers and worked hard throughout their lives, both of them earned considerable income, however, one always faced financial difficulties, the other became the richest man in Hawaii, one died, leaving millions of dollars to his family, charities and his church, the other left bills to pay both were charismatic and influential strong men both offered me advice but didn't recommend the same things both firmly believed in education but didn't suggest the same type of study if I had had only one father I would have to have accepted or rejected their advice having two parents

I had The Choice between contrasting points of view the view of a rich man and that of a poor man instead of simply accepting or rejecting one of these points of view I found myself thinking more comparing them and choosing for myself the problem is that the rich man was not yet rich and the poor man was not yet poor, both were at the beginning of their careers and fought for Dino and the family but they had very different ideas about money, for example one of my parents said, quote, the love of money is the

root of all evil the other said the lack of money is the cause of all problems As a boy the influence of two parents, both strong men, created a complicated situation I wanted to be a good son and listened to them but the two parents didn't speak up same language the contrast between their ideas especially when it came to Money was so extreme that I was curious and intrigued I started to think deeply about what each of them said a lot of my time was spent reflecting asking myself questions like why does he speak this

regarding my parents' statements it would have been much simpler to say yes he is right I agree with that or simply reject a point of view saying the old man doesn't know what he is talking about but having two parents that I loved I was forced to think and choosing one of the paths for myself this process of choosing alone proved to be very valuable in the long term it was not simply about accepting or rejecting a single point of view one of the big reasons why the rich get richer the poor get poorer and

the middle class struggle with debt is that money is not a topic taught at home or at school many of us learn about money from our parents what can a poor father say about finances to his child he simply stays in school and study hard, the child may graduate with excellent grades, but he will have a financial plan and the mentality of a poor person. 20 years ago, the debt clock is quickly moving to 20 years and the North American debt is frightening, according to the press, it is close of 20 trillion that's trillion with

a capital T unfortunately dealing with money is not taught in schools they focus on academic and professional skills but not on financial ones this explains why doctors, bank managers and well-versed accountants who had great grades as students will have financial problems throughout our lives our alarming National debt is largely due to politicians and civil servants who are very educated but who make financial decisions with little or no training in this area currently I wonder what will happen when there are millions of people in need of medical and financial assistance they will become dependent on financial

support from their families or the government What will happen when medicare and Social Security run out of money how will a nation survive if teaching about money remains the job of Parents most of whom will be or are already poor as I had two parents to influence myself, I learned from both, I had to reflect on the advice of each of them and in doing so I realized the power and impact of our thoughts on our own lives, for example, one father used to say, unquote, I can't buy that, the other forbade it. use of

this word insisted that I say what I can do to buy this in one case we have a statement in the other a question one leaves you with no alternative the other forces you to reflect my father who would soon become rich explained that by saying it automatically I cannot buy this your brain Stop trying hard to ask what can I do to buy this you keep your brain working he wasn't saying he would buy everything he wanted he strongly encouraged me to train my mind the most powerful computer in the world my brain gets

more strong every day because I exercise him the stronger he gets the more money I earn he believed that repeating mechanically I can't buy this was a sign of mental laziness although both my parents worked with the five I noticed that one of them had the habit of putting his brain to sleep when the subject was money and the other had the habit of exercising it, the result was that over time one of my parents became financially stronger and the other weakened, this is not very different from what happens when a person does regular physical

exercise while another Sit on the couch and watch television adequate physical exercise increases your chances of having good health and mental exercise increases your chances of becoming rich laziness reduces both health and wealth both my parents had mental attitudes different one believed that the rich should pay more taxes to serve the less fortunate the other said taxes punish those who produce and reward those who don't one of my parents recommended studying hard to be able to work in a good company the other said dedicate yourself If I studied to be able to buy a good

company, one of my parents said I'm not rich because I have children, the other I have to be rich because of you, my children, one encouraged conversations about money and business at dinner time, the other prohibited talking on the subject during meals, one recommended with financial issues be careful don't take risks the other learn to manage risk one said our house is our biggest investment and asset the other my house is a debt and if your house is a bigger investment you will have problems both of my parents paid their bills on time but one

of them paid them first while the other left them until the last minute 20 years ago your house is not an asset the housing market crisis of 2008 was a clear message that your home is not an asset it not only takes money out of your pocket but we cannot count on it appreciating in value many properties in 2017 are worth even less than they were worth in 2007 one of them believed that the company or the Government should take care of you and your needs He was always worried about pay raises retirement plans medical

benefits vacation leave and other benefits he was impressed with two of his uncles who went into the Army and retired with various benefits after 20 years of active service he loved the idea of ​​health care and others benefits granted to retired veterans he was also excited about the lifetime cathedrals of the University system the idea of ​​job stability and labor benefits sometimes seemed more important to him than the job itself he said I often worked a lot for the government I deserve these perks my other father he believed in total financial self-sufficiency he always spoke

out against the entitlement mentality and said that it created financially weak and needy people he placed a lot of emphasis on financial competence one of my parents struggled to save a few dollars the other simply created investments one of my parents taught me how to write an impressive resume so I could find a good job the other how to make sound financial and corporate plans so I could create jobs being the result of raising two strong parents gave me the luxury of seeing impact in different ways After thinking about my own life, I noticed that

people shape their lives through their thoughts, for example, My Poor Dad always told me I'll never get rich and that ended up happening. My rich dad, on the other hand, always referred to himself as being rich, he said things like I'm a rich man and rich people don't do that even if he was totally broke after a financial setback he continued to consider himself a rich man he justified himself by saying there is a difference between being poor and being broke being broke is temporary poverty is eternal My Poor Dad said I don't care about

money or money money is not important My Rich Dad always said money is power the strength of our thoughts can never be measured or evaluated but from a young age it became obvious to me to become aware of my thoughts and the way I expressed myself, I noticed that my poor father was not poor because of the money he earned, which was a lot, but because of his thoughts and actions. As a boy, having two parents, I became aware that I had to be careful with the thoughts I decided adopt as my own whom I

would come to be my rich father or my poor father there is a difference between being poor and being broke being broke is temporary poverty is eternal although they both had enormous respect for education and learning they disagreed as to what it was important to Ender one wanted me to study hard, graduate and get a good job to work for money he wanted me to study to become a professional a lawyer or an accountant or to go to a business school to get an MBA the other me I encouraged studying to become rich to understand

how money works to learn how to make it work for me I don't work for money I used to repeat money works for me when I was 9 years old I decided to listen and learn from my rich father everything about money I chose not to give listen to My Poor Father Even if he was the one who had all the university degrees a lesson from Robert Frost Robert Frost is my favorite poet although I like many of his poems my favorite is the untrodden road almost every day I turn to his lessons the untrodden

road in a forest in the middle of autumn the road forked But as there was only one path I would take it like that for a long time I stopped there and one of them looked up to a distant slope at which, turning around, it disappeared but I took the other, equally viable and even having a special attraction because they had more branches and perhaps more grass, although in that regard the walk at the end had marked them equally. Both of them that morning were covered with leaves that no treading on would blacken the first

one, I left it for another day and intuiting that one path another path generates I doubted whether I would ever return, I will tell you later in a sigh. the difference and it was what made all the difference over the years I often thought about Robert Frost's poem when I chose not to pay attention to the advice and attitudes of my more educated father I made a painful decision but it determined the rest of my life with The decision of who to listen to began my education financial My Rich Dad gave me lessons over a

period of 30 years until I reached the age of 39. His lessons stopped when he realized that I knew and fully understood what he was trying to hammer into my sometimes quite closed mind about money. It is an even more powerful form of power. However, it is financial education, money comes and goes, but if you have been educated on how it works, you gain power over it and begin to build wealth. The reason why simple positive thinking is not effective is that Most people went to school and never learned how money works and so they

spend their lives working for it as I started when I was just 9 years old the lessons my rich dad taught me were simple and when all was said and done we found only six lessons repeated Over the course of 30 years, this book deals with these lessons expressed in the simplest way possible, the way my Rich Dad passed them on to me. These lessons are not intended to be answers, but landmark references that will help you and your children get rich no matter what. in a world of growth change and uncertainty notes medicare as

well as medde is a north american elder care program end of notes chapter 1 lesson number one the rich don't work for money the middle and lower classes work for money the rich do with let the money work for them dad how do you get rich my dad quit the newspaper Why do you want to get rich son because Jimmy's mom arrived today in a new cadlac and they were going to spend the weekend at the beach he called three little friends but the Mike and I weren't invited they said they didn't invite us because

we are poor kids they said exactly that and asked my father in disbelief they said yes I replied in a hurt tone my father shook his head in silence he adjusted his glasses and went back to reading the newspaper I waited the answer was the year 1956, I was 9 years old, by a stroke of luck, I attended the same public school where the children of the rich studied, the city lived especially due to the sugar factories, the factory managers and other influential people in the city, such as doctors, owners of commercial establishments and bank

managers, children at this school finishing primary education, in general, they went to private schools, I studied at that school simply because I lived on one side of the street, if I lived on the other, I would have gone to a different school and my classmates would have been from families more similar to mine completed elementary school these kids and I also attended high school in public schools there were no private schools for them or for me my father finally gave up the newspaper I felt like I was thinking son started slowly if you want to

get rich you have to learn how to make money and what is that like I asked Use your head son replied smiling what he actually meant was this is all I'm going to tell you or I don't know the answer so Don't disturb me a partnership is formed the next morning I told my best friend Mike what my dad had said I got the impression that Mike and I were the only poor kids at school Mike was also at that school by a stroke of luck someone had randomly drawn the dividing line of the school

districts and we ended up at the boys' school rich we weren't really poor but we felt like we were because the other kids had baseball gloves and new bikes everything new we our dad gave us the basics food roof and clothing but that was all my dad used to say if you want something work to get it -la we wanted a lot of things but there wasn't a lot of work available for 9 year old boys and so how do we make money asked Mike I don't know I answered but do you want to be

my partner he agreed and that Saturday morning Mike became my first business partner we started all morning imagining ways to make money every now and then we talked about the cool guys who were having fun at Jimmy's beach house we felt a certain hurt but it was a good hurt because it inspired us to think about how to make money finally this afternoon a spark came in our minds was an idea that Mike had taken from a science book I had read excitedly we shook hands and society now had a goal for the next few

weeks Mike and I went around the neighborhood asking neighbors to save the empty tubes of toothpaste they had delivered for us, many adults agreed smiling Some asked what we were doing, we answered, we can't tell, it's a business secret, as the weeks went by, Mom got nervous, we chose a place near the washing machine to store our raw materials in a cardboard box that contained sauce bottles. of tomatoes was accumulating and now our pile of used toothpaste tubes was finally piled up. Mom scolded me and couldn't bear to see that pile of tubes squeezed together

in such a mess What are you doing, boys, she asked and don't come to me again with excuses that it's a secret business man I'll fix this mess or throw it all away Mike and I argued we explained that we would soon have enough to start production We said we were waiting for some neighbors to finish using Their folders so we could collect the tubes Mom gave us a week of deadline We brought forward the start date of production the pressure was increasing my first company was already being threatened by an eviction notice of our

deposit made by my own mother Mike took charge of speeding up the consumption of the pastes informing that Dentists recommended more frequent brushing of teeth I started installing the production line one day my father came home with a friend to show how lined up milk cartons from the school and in the family's Japanese oven. The coal embers glowed, generating maximum heat, Dad walked carefully, the car was parked close to the street gates because the production line was in front of the garage door when He and his friend approached and saw a steel container on top

of the Embers and inside it the toothpaste tubes were melting. At that time there were no plastic toothpaste tubes, they were made of lead, so after the paint burned the tubes inside the bowl melted until it became liquid with the help of mom's pot holder we poured the melted lead through a small hole in the milk cartons that were filled with plaster the white powder from the plaster that had not yet been mixed with water was all over the partly in our haste we had dropped the bag of plaster and it looked like the whole

area had been hit by a blizzard the empty milk cartons were used to make the molds my father and his friend watched us as we dressed the melted lead and a small hole at the top of the cube of plaster Be careful my father said I nodded without looking up Finally when I finished adding the melted lead I put down the bowl and smiled at my father what are you doing he asked with a cautious smile what did you say We are becoming rich this Then Mike said, smiling and shaking his head, we're partners and

what's in those plaster molds, he asked Dad, look, I said, this is going to be a good batch, with a small hammer I hit the seal that divided the cube in two, carefully, I pulled the top part of the plaster mold and a lead coin fell out Wow, Dad said, you are minting lead coins, that's right, Mike said. We are doing what you said, making money, my father's friend turned around and burst out laughing, my father smiled and shook his head. in front of him were, beyond the Fire and the box of empty toothpaste tubes,

two boys covered in white dust, laughing from ear to ear, my father asked us to drop everything and sit with him on the front step of the house, smiling, he explained to us affectionately What did the word forgery mean? Our dreams were broken? Does that mean it's illegal? Mike asked with a sob in his voice. Let them say, my father's friend might be developing a natural talent. My father glared at him, yes, it's illegal. My father said. calmly but you showed a lot of creativity and original ideas keep going I'm proud of you disappointed Mike

and I sat for about 20 minutes before we started cleaning up the mess the business closed on opening day sweeping up the dust I looked at Mike and said I think Jimmy and his friends They were right we are poor when I said that my father was already Going out boys He said you will only be poor if you give up the most important thing is that you did something many people talk and dream of getting rich you acted I am very proud of you I repeat keep going don't give up Mike and I remained

silent they were friendly words but we still didn't know what what to do So why aren't you rich dad I asked why you decided to be a teacher teachers aren't too worried about getting rich we like teaching I wish I could help you but I don't really know how to make money Mike and I went back to tidying up and my dad said if want to learn How to get rich don't ask me talk to your father Mike my father asked Mike surprised yes your father repeated with a smile your father and I have an

account at the same bank and the manager is impressed with him he said several times that your father is brilliant when it comes to making money my dad insisted Mike in disbelief So why don't we have a nice house and a big car like the rich kids at school a big car and a nice house don't necessarily mean you're rich or that you have a lot of money my answer was father Jimmy's father works at the plant he is not very different from me he works for a company and I for the government the company

buys him the car if the plant has financial problems Jimmy's father could end up with nothing his father is different Mike He seems to be building an empire and I suspect that in a few years he will be a very rich man upon hearing this. Mike and I got excited again but willingly, we cleaned up the mess caused by our defunct business while he said goodbye, he would speak to his father in the evening to ask if he could teach us how to get rich Mike promised to call me as soon as he had an

answer even though it was late at 2030 The Phone rang Ok I said next Saturday and hung up Mike's father agreed to talk to us at 7:30 on Saturday I took the bus to poor side of town the lessons begin Mike and I met his father at 8 o'clock that morning he was busy and had been working for over an hour his construction supervisor was already getting out of the truck as I entered that simple small and tidy house Mike was waiting for me in the At the door, Dad is on the phone and said

to wait on the back porch, Mike said as he opened the door, the old wooden floor creaked when I passed the threshold of the old house, outside there was a simple doormat hiding the many years of use and the countless steps to take despite Limpo needed to be replaced When I entered the Estreita house I felt short of breath the room was furnished with pieces that today would be collector's items two women were sitting on the sofa they were a little older than my mother in front of the women There was a man in workman's

clothes, he was wearing khaki pants and a well-pressed but not starched shirt, and he was wearing well-shined work boots, he must have been about 10 years older than Dad. They smiled as Mike and I walked past towards the kitchen that overlooked the courtyard. Funds shyly returned the smile who are these people I asked Oh they work for dad the oldest runs his warehouses and the women are restaurant managers And have you seen the construction supervisor he is working on a road project about 80 km from here the other one supervisor who takes care of the

construction of the houses left before you arrived this happens all the time I asked, not always but often said Mike smiling as he pulled a chair to sit next to me I asked dad if he will teach us how to make money said Mike and the which he responded I questioned with cautious curiosity well First he looked at me with a funny expression then he said he would make us a proposal oh I responded by swinging the chair back towards the wall the chair I was in was supported by the back legs Mike did the

same Do you know what he's going to offer us? I asked no, but we're going to find out. Suddenly Mike's father went through the screen door and stepped onto the porch. Mike and I jumped and we were in standing not out of respect but because of the fright we got ready boys asked dad pulling a chair to sit close to us we nodded and moved the chairs closer to sit facing him he was a big man about 1.80 and 100 kg my father was taller, weighed more or less the same and was 5 years older

than him they were in a way similar although of ethnic origins and maybe they had similar energy Mike said you want to learn how to make money that's right Robert I quickly felt it with my head not without a small feeling of intimidation I felt a lot of power behind the words and your smile very well Here is my offer I will teach you but not like in a classroom you work for me and I teach you They don't work and I don't teach I can teach faster if they work instead of wasting my time

with you just sitting and listening like you do at school This is my offer Take it or leave it Can I ask you a question before I said it's not take it or leave it I have too much work to waste your time anyway if you can't make up your mind soon you will never learn how to make money opportunities come and you will be able to make quick decisions it's an important skill you have the opportunity you asked for classes start in 10 seconds replied the father from Mike with an encouraging smile I'm in

I replied top said Mike 20 years ago determination the world moves faster and faster shares are traded in milliseconds offers see and go on the internet in a matter of minutes more and more people compete for good deals so the more Quickly make a decision, the more chances you have of taking advantage of the opportunities before someone else o Do it well, said Mike's father, Mrs. Martin will arrive in 10 minutes after I talk to her, you can accompany her to my little shop and you can start now. I'm going to pay them 10 cents

an hour and they have to work 3 hours every Saturday but today there's a baseball game I said Mike's father lowered his voice and said calmly it's pick up when you drop it I pick it up I replied deciding to work instead of playing 30 cents Then at 9 o'clock on a beautiful Saturday morning, Mike and I were working for Mrs. Martin, she was a kind and patient woman, she always said that Mike and I remembered her two children who were already grown up and didn't live with her, although she was kind, she believed in

hard work and taught us how to do it, she was a strict boss, we spent 3 hours picking cans off the shelves and spreading them out and then putting them back in place, it was an incredibly monotonous task, Mike's father, who I call Rich Dad, owned nine These small stores with large parking lots were the first versions of 7-Eleven convenience stores small grocery stores 15 years ago where people bought items like milk, bread, butter and cigarettes. The problem is that this happened in Hawaii before air conditioners were widely used so we couldn't close the door

because of the heat on both sides of the store There were two large doors that opened onto the street and the parking lot whenever a car passed or parked the dust from the highway accumulated on the store shelves we knew that ours work is guaranteed as long as there is no air conditioning for three weeks Mike and I went to Senora Martin's store And we worked for 3 hours at noon we finished work and she put three coins in our hands but not at all At the age of 9 in the middle of the decade

in 1950 30 cents was very exciting at the time a comic book cost 10 cents so I used to spend the money on comic books and come home on Wednesday in the fourth week I was ready to give up I had agreed to work just because I wanted to learn making money with Mike's father but now he was a slave for 10 cents an hour and on top of that I hadn't seen Mike's father since that Saturday I gave up I told Mike at lunch the school lunch was horrible and the school was monotonous and

now I didn't even have my Saturdays to cheer me up but what was disturbing me was the 30 cents this time Mike smiled what are you laughing at I asked angry and frustrated dad said that this was going to happen he told you to look for him when you were ready to give up what I said indignantly He's waiting for me to get fed up with it said Mike Dad is a bit peculiar he teaches differently from your father your parents talk a lot my dad is calm and quiet Wait I'll tell him by Saturday

that you're ready, do you want saying that I was tricked, no, that's not it, but it could be, Dad will explain on Saturday, lining up on Saturday, I was ready and prepared to face him, even my real father was furious with him, my real father, the one I call Poor Dad, thought that my father rich man was violating the legislation regarding the work of minors and that he should be investigated My Poor Father who was highly educated said that I should demand what I deserved at least 25 cents an hour he also said that if

I didn't get the raise he should immediately fire me from any You don't need this damn job, said my Poor Dad, indignant at 8 am on Saturday morning, I was walking through the old door of Mike's house when Rich Dad opened it, sit down and wait in line, said Mike's father When I walked in he then turned and went to the small office that was next to a dormitory I looked around and didn't see Mike anywhere, finding everything a bit strange, I sat next to those two women, the same ones who were there three weeks

before, they smiled and gave me a 45 minutes passed and I was obsessed, the two women had already spoken to him and left half an hour later, an older man stayed 20 minutes ago and left. The house was empty and I was sitting in the old-fashioned living room. Dark on a beautiful morning. from Hawaii waiting to talk to an exploiter of minors Miser I could hear him moving around the office talking on the phone and ignoring me I wanted to get out of there but for some reason I finally stayed 15 minutes later at exactly

9 o'clock Rich Dad showed up without saying anything and told me He made a sign with his hand to enter the Modesto office, it looks like you're looking for a raise or you're going to resign, Rich Dad said, turning the swivel chair nicely. You're not keeping your end of the deal, I said almost in tears to a 9-year-old boy. years old it was truly terrifying to confront an adult You said that if I worked you would teach me I worked I did my best I left my baseball games to work and you didn't keep your

word you didn't teach me anything you are dishonest like everyone says you are greedy I just want all the money and you don't care about your employees you left me waiting and you don't respect me I'm just a boy and you deserve to be treated better from your chair I put my hands on my chin the rich dad looked at me it seemed like he was studying me and not bad you said in less than a month you already look like most of my employees what I exclaimed as I didn't understand what you were saying

I continued complaining I thought you were going to fulfill your part of the agreement and teach me instead you want me Torturing is cruel, very cruel, I'm teaching you, he said calmly, Rich Dad said nothing, what you taught, he replied angrily, he didn't even talk to me after I agreed to work for a pittance, 10 cents an hour, I should report you to the government, there are laws on child labor. You know that my father works for the government wow said rich dad now you look like most of the people who work for me that

I sent away or resigned what the Lord has to say I questioned feeling very brave for a kid he lied for me I worked, you didn't Keep your word, you didn't teach me anything And since you know I didn't teach you anything, he asked calmly Rich Dad, good, the Lord never spoke to me, I worked for three weeks and you didn't teach me anything, I said with an angry face, teaching means talking or teach a class asked Rich Dad 20 years ago, the cone of learning goes to Edgar, who is credited with making us understand

that we learn best in practice, in execution or in a simulation. This is called empiric dhe and his cone of learning shows us that reading and writing they are the least effective ways of learning, but we all know how most schools teach by reading and writing well, yes, I replied, that's how the School Teaches, he said, smiling, But that's not how life teaches, and I would say that life is the best of Masters, most of the time life doesn't talk to you, it's more like it hits you every time. blow means to say wake up

I want you to learn something narrator's notes below This text there is a photo in it has the diagram of the learning cone This photo is too complex to be described in audio it will be available on the blog and only with bblog as well as the pdf of this book for download check out the links in the description to get a better immersion into the book The text continues what this guy is talking about I asked myself life hits me and talks to me now I was sure I should quit my job I was

talking to someone who It didn't work out well if you learn life's lessons you will do well otherwise life won't spare you the pain some just let life hit them others get angry and hit back but they give their husband or wife back to the boss or the job They don't know that it's life that's knocking, I had no idea what I was talking about, life hits us all, some give up, others fight, some learn their lesson and move on, they are satisfied with the bumps in life to That means they need and they want

to learn something so they learn and continue on their way most give up and a few like you fight Rich dad stood and closed the old wooden window that needed repair if he learns this lesson he will become a wiser rich and happy young man If you don't learn, you will spend your life blaming your job, a low salary or your boss for your problems. You will spend your life waiting for a lucky break that will solve your financial problems. My Rich Dad looked at me to check if I was still listening. His eyes met

mine, communication was established between our gazes, I finally moved away when I realized that I had assimilated this last message, I knew he was right, I blamed him, but I had asked to learn, I was fighting 20 years ago, life as a master, today's generations are learning the complex facts of life jobs are hard to find robots replace workers by the millions learning in practice by making mistakes is increasingly important study proves to be of little value in the real world university education no longer guarantees a career Rich Dad continued If you're the type of

person who doesn't have determination, you'll go every time life hits you, if that's the case, you'll spend your life looking for security, doing the right things, waiting for something that will never happen, then you'll die like a boring old man, you'll have a lot of friends who They like you because you're a hard-working guy, but in reality, life leads you to submission. Deep down, you're terrified of taking risks. You actually wanted to win, but the fear of losing is greater than the pleasure of victory. Deep down, only you will know that you did n't go

after that you chose safety our eyes met again you're hitting me with life I asked some people would think so smiled Rich Dad I would say I just showed him a taste of life what a taste I asked, still angry but now curious and ready to learn you two boys were the first people in my life who asked me to teach me how to make money I have more than 150 employees and none of them asked me what I know about money they ask me for a job and a salary but I never teach them

about that money Anyway, most of them will spend the best years of their lives working for money without really understanding why they work. I listened attentively, so when Mike said you wanted to learn how to make money, I decided to plan a course that was closer to real life. I could talk for hours, but you couldn't. I wouldn't listen to anything so I let life hit you a little so you could listen to me that's why I only paid 10 cents 20 years ago change what you can I learned the truth and wisdom in Rich

Dad's words we can't control many things in life I 've learned to focus back and let out a laugh Finally when he stopped laughing he said you better change your way of thinking stop blaming me thinking I'm the problem if you think I am the problem then will have to change me if you realize that the problem is you then you can change yourself learn something and become wiser most people want everyone in the world to change except themselves but I tell you it is easier to change I understand that I understand everyone else, I

said, don't blame me for your problems, Rich Dad said, showing signs of impatience, but you only pay me in cents. So what are you learning? Rich Dad asked, with a smile, you're stingy, I replied. With a chuckle, you see, you think I'm the problem, rich dad replied, but you're fine, keep it up and you won't learn anything, think I'm the problem, so what are your choices, well, if you don't pay me more or don't respect me and teach me I leave everything very well said the father RIC that's exactly what most people do they quit

and start looking for another job a better opportunity and a higher salary thinking that this will solve the problem it's not what happens in most cases So what's the solution I asked, take that measly 10 cents an hour and nod Rich Dad smiled That's what other people do but then they wait for an increase in the illusion that more money will solve the problem most if conform and some look for a second job working more but continue to accept a meager payment I looked at the ground starting to understand the lesson that rich dad was

presenting to me I could feel that I had a taste for life finally I looked up and repeated the question so what solve the problem, that's what he said, giving me a light slap on the head, that thing that's between your ears. It was at that moment that rich dad showed me the Central point of view that separated him from his employees and my Poor Dad, and that later led him to become one of the richest men in Hawaii while my very educated but poor father struggled with financial problems his entire life it was a

singular point of view that makes all the difference over a lifetime Rich Dad repeated this point of looked exhaustively at what I call lesson one the middle and lower classes work for money the rich make money work for them on that beautiful Saturday morning I was learning a different point of view from the one my Poor Dad had taught me at 9 years ago I realized that both my parents wanted me to learn they both encouraged me to study but not the same things 20 years ago assets over income acquiring and building assets that generate

cash flow put money to work for you high paying jobs working for money means two things and paying more taxes I learned to make money work for me and to enjoy the tax benefits of non-salary income my educated father recommended that I have the same as him Son I want you to study hard and get good grades so that you can get a good secure job and a great company that will give you great benefits My Rich Dad wanted me to learn how money works so that he could put it to work for me these

lessons I learned throughout my life under his guidance and not in a classroom, my rich dad continued the first lesson, I'm glad to see that he got angry with a job for 10 cents an hour, if he hadn't gotten angry and had accepted willingly, I would have had to tell him that I couldn't teach him anything. see learning for real requires energy passion and fierce motivation Anger is a big part of this formula because passion is a combination of anger and love in the case of money most people prefer not to take risks and feel

safe they are not driven by passion But because of fear, that's why they take the low-paying job. I asked yes, Rich Dad replied. Some people say I exploit employees because I don't pay as much as the sugar factory or the government. I say people exploit themselves out of fear. It's theirs Not mine , but don't you think you should pay them more? I asked. Do you have anything to do? And besides, more money won't solve the problem. See your father, he makes a lot of money and still can't keep up with his expenses. Most people,

if they receive more money, just go into more debt then the 10 cents an hour I said laughing is part of the lesson right smiled Rich Dad you see your father Studying hard so he got a high salary but he still has financial problems because he never learned anything about money in school and on top of that he believes in working for money 20 years ago going to school despite being a staunch supporter of education all my life going to school in quotes especially college has become a financial nightmare There are 44 million Americans owing

almost 1.3 trillion in student loans again that's trillions with a capital T and you don't believe it I asked no actually I didn't say Rich Dad if you want to learn how to work for money then stay in school it's a good place for that but if you want to learn how to make money work for you I will teach you but only if you want to learn and everyone doesn't want to learn that I asked Rich Dad didn't answer simply because it's easier to learn to work for money especially if fear is the main

emotion when it comes to money I don't understand I replied frowning the eyebrows Don't worry about it for now just know that it's fear that makes most people work their jobs the fear of not paying the bills of being fired of not having enough money to start over that's the price of learning a profession or skill And so working for money most people become slaves to it and get angry at their boss learning and putting money to work is a totally different kind of matter I asked absolutely replied Rich Dad absolutely we sat in silence

contemplating the beautiful morning my friends were supposed to be starting their little league baseball game and for some reason now I was happy that I had decided to work for 10 cents an hour I felt like I was about to learn something that my classmates wouldn't learn in school ready to learn asked Rich Dad absolutely I replied with a chuckle I'm keeping my promise I've been teaching you from afar said Rich Dad At 9 years old you had a taste of working for money multiply your last month by 15 years and you'll have an idea

of ​​what many people spend their lives doing I understand I said how you felt waiting in line to talk to me once to get hired and another time to ask for a terrible raise I said when you choose to work for the money that's the life many people lead said the rich dad and how did he feel when Senora Martin put 30 cents in your hand for 3 hours of work, I thought it wasn't enough, it seemed like it wasn't worth anything, I was disappointed, I replied, that's how most employees feel when they receive their

paychecks, especially with all the tax deductions and the like for less you received 100% are you saying that most employees don't receive everything I asked in astonishment Of course I didn't say Rich Dad the government always takes your share first as I asked taxes said Rich Dad you Pay taxes when you earn you pay taxes when you spend when saves you pay taxes when you die 20 years ago taxes taxes taxes as governments grow and need money the place to get it is the middle class i.e. the workers the whole government favors professional investors and

businesspeople the salaried people pay taxes but those pay well little when they use the tax law as it should be a tool to structure the economy why people let the government do this to them I asked the rich don't let it said rich dad with a smile the poor and the middle class let it I bet I earn more than than your father And despite that he pays more taxes and how that is possible at that age it didn't make sense to me why anyone would let the government do that to him Rich Dad sat

silently in his chair Just staring at me ready to learn he asked says yes nod slowly As I said there is a lot to learn and learn how to make money work for us, it is a lifelong study, most people spend 4 years at a university and then finish their studies, I know that mine Studying Finance will continue throughout my life simply because the more I know, the more I discover that I still have to learn, people in general never study the subject, they work, they receive their salary, they check their checkbook stubs and that's

all and they are still surprised because they have money problems so they think that more money will solve the situation and they don't realize that the problems are the lack of financial education so dad has difficulty with taxes because he doesn't understand money I asked confused look Rich Dad said taxes are just a small part of learning to make money work for you today I just I wanted to find out if you still have the passion to learn about money, most people don't, they want to go to school, learn a profession, have fun at work

and earn loads of money, one day they wake up with serious financial problems and then they can't stop working that's the price of just knowing how to work for money instead of studying to know how to make money work for you so you're still passionate about learning asked Rich Dad I nodded my head well said Rich Dad now back to work this time I'm not going to pay you anything which I asked in surprise you heard nothing you'll work the same 3 hours on Saturday but this time you won't get the 10 cents an hour

you said you wanted to learn not to work for the money so I'm not going to pay you anything I couldn't believe what I was hearing I've already talked about it with Mike he's already working dusting off and arranging the cans for me you better hurry up and run there it's not fair I shouted you have to pay me something you said you wanted to learn if Not learning this now will be like those two women and the man who were sitting in my living room working for the money and hoping I don't send them

away or like your father making tons of money only to be up to his eyeballs in debt and hoping more money will do the trick. The problem is if that's what you want then go back to that 10 cents an hour or you can still do what many people end up doing complaining that the pay isn't enough quit looking for another job what do I do I asked Rich Dad patted me in my head use this he said if you use it well Soon you will be thanking me for giving you an opportunity to become

a rich man I stood there in disbelief that I was boarding that Canoe I wanted to get a raise and ended up being convinced to work for free My Father Rico patted me on the head again and said use it now get out of here back to work lesson one the rich don't work for money I didn't tell my Poor Dad that I wasn't getting paid anymore he wouldn't have understood and I didn't want to try explain something that I myself still didn't understand for three weeks Mike and I worked 3 hours every Saturday without

doing anything the work didn't worry me and the routine became easier what bothered me was missing the baseball games and not being able to buy the jbis in the third week around noon Rich Dad appeared he heard his truck arrive at the store and made a noise when the engine was turned off he entered the store and greeted Mrs. Martin with a hug after checking how the store was doing it opened the ice cream freezer got two popsicles paid and called Mike Y Aim let's go for a walk kids we crossed the street and went

to a large lawn where some adults were playing baseball sitting at a picnic table away he gave the popsicles to me and Mike as things are going Ok, Mike replied, I agreed with him, learned something, asked Rich Dad, Mike and I looked at each other, raised our shoulders and shook our heads at the same time, avoiding one of life's biggest traps, good kids need to start thinking, are you observing one of the greatest lessons in life if they learn it they will have a life of great security and financial independence if they don't learn it

they will end up like Mrs. Matin and most of the people who play baseball here in the park they work hard for a low salary clinging to the illusion of job security waiting for the three weeks of annual vacation and the reduced retirement after 45 years of work if that I'm excited I'm going to give them a raise to 25 cents an hour but these people are good workers because the Lord is making fun of them I asked Rich Dad smiled Mrs. Martin is like a mother to me I would never be so cruel I

may seem heartless because I am trying hard to show you a fact I want you to expand your points of view to see something that most people don't have the luck to perceive thanks to their limited visions Many people don't realize the trap they have fallen into Mike and I sit there without understanding totally the message he seemed cruel yet we felt that he desperately wanted us to understand something smiling rich dad continued they don't like this 25 cents an hour your heart doesn't beat a little faster I nodded no but in reality my heart

was beating faster for me 25 cents an hour represented a fortune Ok I'll pay you by the hour Rich Dad continued with a mischievous smile now my heart really accelerated my brain was screaming top top top I couldn't believe what I was hearing yet I remained silent Ok hey At that moment my little brain and heart almost exploded. After all, it was 1956 and I would have been sorry at that moment. I would have become the richest boy in the world. I couldn't imagine earning all that money. I wanted to say yes, I wanted to

close the deal and I could see the bicycle and the new baseball gloves and the adoration of my colleagues when I showed some money and on top of that Jimmy and his rich friends could never call me poor again but I managed to keep silent the ice cream was melting running down my hand Rich Dad he looked at the two boys who looked back at him, shocked, with wide eyes and an empty mind, he knew he was testing us and that part of our emotions wanted to agree to the negotiation. He knew that every human

being has a weak and needy part in their soul that could be bought and which also has a strong part that would never allow itself to be bought the question is knowing which one would prevail Ok 5 dollars an hour people's lives are eternally controlled by two emotions fear and ambition suddenly there was silence inside me something had changed The offer was too big and it had become ridiculous, not many adults earned an hourly wage in 1956, the temptation was gone and calm slowly set in. I turned to the left to look at Mike, he

owed my look to the part of my soul that was weak and needy. the part that wasn't sold was silent. I was ahead then a calm and a certainty about money invaded my brain and my soul knew that Mike had also reached this point very well said Rich Dad softly most people have a price for that cause of two human emotions fear and ambition first the fear of not having money leads them to work hard and when they receive payment the ambition or desire leads them to think about the wonderful things that can be bought

So the standard is set which standard I asked wake up go to work pay the bills wake up go to work pay the bills people's lives are eternally controlled by two emotions fear and ambition offer them more money and they will continue the cycle also increasing expenses and that's what I call the rat race and there is another way asked Mike yes rich dad said but few people discover it And what is it asked Mike that's what I hope you discover while you don't work and study with me that's why I ended all forms of

payment any tips asked Mike we're a little tired of working hard especially without being paid well First step is to tell the truth said Rich Dad we don't lie I said I didn't say they were lying I told them to tell the truth Rich Dad replied the truth about what I asked about how they are feeling replied Dad Rich You don't need to talk to anyone else, just to yourselves, you're saying that the people who are in the park, the people who work for you, Mrs. Martin, don't do that, I asked, I doubt it, said

Rich Dad. They're afraid of running out of money instead. to face fear they resist instead of thinking they react emotionally and don't use their minds said Rich Dad hitting us on the head Then she comes with a few dollars in hand and again the emotions of joy of desire and ambition take over them and again they react and do not think it is their emotions that think for them said Mike exactly said Rich Dad 20 years ago the main fear as the world's population ages and more and more people are retiring the main fear according

to reports is associated with Finance almost 50% of those interviewed fear that they will outlive their money running out of it at the best age instead of telling the truth about how they feel react to their feelings without reflecting, they feel fear, they go to work hoping that it will alleviate this fear, but that is not what happens, this old fear haunts them and they return to work, hoping again that money will calm their fear, but again nothing, fear takes them to this trap of working to earn money working to earn money and hoping the

fear will go away but every day they wake up and the old fear wakes up with them for millions of people that old fear keeps them awake at night disturbing them with anxiety and worry so that they they get up and go to work hoping that the paycheck will kill this fear that laughs in their souls money drives their lives and they refuse to accept this truth it controls their emotions and their souls Rich Dad sat quietly letting it but in reality it doesn't we understood what he said I just knew that I often thought

about putting adults rushed to work realizing that we had absorbed what was possible from his words Rich Dad said and I want you kids to avoid that trap that's what I want to teach you not just to be rich because being rich doesn't solve the problem it doesn't solve ask surprised it doesn't solve let me talk about this other emotion which is desire some call it greed But I prefer desire it's perfectly normal to want better things, more beautiful, more fun or exciting therefore people also work for money because of desire they desire money for

the joy they believe it can buy but the joy that money brings is often short lived and it takes more money to acquire more joy more satisfaction more comfort more security like this, you keep working thinking that money will one day calm your souls troubled by fear and Desire but money can't do that even for rich people asked Mike including the rich replied Rich Dad in fact the reason why many people are rich it is not the desire but the fear They think that money can eliminate the fear of running out of money of being

poor so that they accumulate fortunes only to discover that this fear only gets worse now they are afraid of losing it they have a friend who Continues working even when they already have a lot I know of people who have millions and are more scared than when they were poor so they are terrified of the possibility of losing all their money the fears that led them to become rich become greater this weak and needy part of their souls actually screams even louder they don't want to lose their mansions their cars the luxurious life that money

can buy they worry about what their friends will say if they lose all their money many are emotionally desperate and neurotic even though they seem rich and have great fortunes then the poor man is happier I asked, no, I don't think so, Rich Dad replied, avoiding money is as neurotic as being attached to it As if that had been a cue, the city's beggar passed by our table and stopped by the basket of trash and started looking through it, the three of us watched with great interest, perhaps before it had been ignored. Rich Dad took

a dollar bill out of his wallet and gestured to the old man when he saw the money. good luck he is not very different from most of my employees said Rich Dad Many people say Oh money doesn't matter but they work 8 hours a day This is a denial of the Truth if they are not interested in money why do they work this type of thinking is possibly more neurotic than me than a person who saves money Many people say Oh, money doesn't matter but they work 8 hours a day as I sat there listening

to my Rich Dad my mind recalled the countless times my own father said I'm not interested in the money he said this often he also justified himself by saying work because I like what I do so what do we have to ask me don't work for money until you lose all traces of fear and greed no that would be a waste of time emotions are what make us human they make us real the word emotion represents the energy in Action be honest about your emotions and use your mind and your emotions to your advantage, not

against you, wow exclaimed Mike Don't worry about what I just said in a few years you will understand better Observe your emotions don't react to them most people don't realize they are thinking with their emotions Emotions They are your emotions but you need to learn to think for yourself, could you explain an example to me? I asked, Logically, Rich Dad replied, when a person says they need to look for a job, the most likely thing is that they are thinking with emotion, the fear of not having money. is what generates this thought but people need

money if they have bills to pay I said without a doubt All I'm saying is that most of the time it's emotions that control the thought I don't understand said Mike For example If there was a fear of not having enough money instead of rushing out to look for a job in order to acquire it people might wonder what the job would be in the long term The best solution to this fear in my opinion the answer is no the job is actually a solution short term for an ongoing problem but my father always says

Go to school get good grades so you can get a good and secure job I said a little confused yes I understand what he says said Rich Dad smiling most people advise this and usually consider it a good idea but in general it is fear that leads people to give this advice, do you mean to say that my father says this because he is afraid 20 years ago dominating money with the advent of derivatives and an increasingly complex economy dominate money is essential to survive in the world economy with low interest rates and a fluctuating

Stock Market the old adages about long-term savings and investment don't make sense yes, replied Rich Dad Your father is terrified that you won't be capable of earning money and fitting into society, don't get me wrong he loves you and wants the best for you and I think your fear is justified education and employment are important things but they don't solve the issue of Fear, see it's the same fear that makes him get up every morning to earn a few dollars and what makes him worry so much that he goes to school and you advise what

I asked I want to teach him how to master the power of money not to be afraid of it and that doesn't It's taught at school if you don't learn it you will become slaves to money it was finally starting to make sense he wanted to open our horizons to show us what people like Senora Martin didn't see he used examples that seemed cruel at the time but I never forgot them that day my vision broadened and I began to glimpse the trap that awaited so many people, see in the end we are all employees,

we just work at different levels, said Rich Dad, I just want you to have the chance to escape the trap, the trap created by these two emotions, fear and desire, use them to your advantage, no Against this is what I want to teach I'm not interested in teaching just how to make lots of money This won't take care of fear and Desire If you don't first master these emotions and get rich you'll just be well paid slaves and how to escape the trap I asked the main cause of poverty or financial difficulties is in fear

and ignorance not in the economy in the government or in the rich it is the fear we install in ourselves and the ignorance that keeps people trapped in traps so you boys go to school and graduate I will teach you how not to fall into the trap the pieces of the puzzle were starting to fit together my educated father had a great education and career but school never told him how to deal with money or with your fears it became clear that I could learn different and important things from both parents you are talking about

the fear of not having money how the desire for money affects our thinking Mike asked how he felt when I provoked him with an increase in pay noticed that the desire was growing we shook our heads affirmatively by not giving in to your emotions you were able to postpone your reactions and think this is the most important thing we will always feel emotions of fear and ambition from now on the most important thing will be to use your emotions in your favor and in the long term and not just let them lead you and control

your thoughts most people use fear and ambition against themselves this is the beginning of ignorance most people spend their lives chasing paychecks salary increases and job security job because of these emotions of desire and fear without really questioning where these emotionally driven thoughts are taking them and like the story of the donkey moving the cart while its owner dangles a carrot in front of his nose, the donkey's owner goes where do you want to go but the donkey runs after an illusion tomorrow there will only be another carrot for the donkey, do you mean to

say that at the moment I imagined the new baseball glove, the sweets and the toys, that was like the carrot for the donkey, Mike asked that same and when he grows up toys will be more expensive a new car a speedboat and a big house to impress his friends said the rich dad with a smile fear pushes him out the door and desire attracts him This is the trap and what is the answer asked Mike what increases fear and desire is ignorance that's why rich people with a lot of money a lot Sometimes they are

more afraid as they get richer money is the carrot the illusion if the donkey could understand the whole context he would think twice times before running after the carrot My Rich Dad went on to explain that human life is a struggle between ignorance and enlightenment, he explained that when we stop seeking information and knowledge about ourselves, ignorance sets in, the struggle is a decision made moment to moment to learn and open or close your own mind See school is very important you go to school to learn a skill or a profession and to become a

useful member of society every culture needs teachers doctors artists cooks businessmen police officers firefighters soldiers the school trains them so that our culture can flourish unfortunately for many people school is an end and not the beginning there was a long silence rich dad smiled I didn't understand everything he said that day but what happens with most of the great Masters their words are timeless teachings today I showed myself a little Cruel said Rich Dad Cruel for a reason I wanted you to remember this conversation I want you to always think about Mrs. Martin always think

about the donkey never forget because your emotions fear and desire can lead you into the biggest trap in life if you are not aware that you are controlling your thoughts to go through life in fear without ever exploring your dreams it is cruel to work hard for money thinking that you will buy what will bring you happiness it is also cruel to wake up in the middle of the night terrified of paying bills it's a horrible way of life living a life determined by the size of your paycheck isn't really living thinking that your job

will make you feel safe is lying to yourself it's cruel and it's the trap I want avoid it if possible see how money rules people's lives don't let this happen to you don't let money rule your lives a baseball rolled onto our table Rich Dad picked it up and threw it back what ignorance It has to do with ambition and fear, I asked, is it ignorance about money that causes so much ambition and so much fear? I'll give some examples: a doctor wanting more money to better support his family increases the price of his consultations,

increases the hours, makes the care with healthcare more expensive for everyone, this mainly harms the poorest and makes them less healthy than those who have money, as doctors make their consultations more expensive, lawyers they also increase their fees, as lawyers' hours have increased, teachers want a raise, which causes taxes to rise and so on, soon the disparity between rich and poor will be so great that chaos will ensue and the other civilization will collapse . great civilizations collapsed because the distance between the privileged and the underprivileged was too great, unfortunately the United States is following

the same path, proving once again that history repeats itself because we don't learn from it, we just mechanically memorize dates and names and not the lesson 20 year ​ ​educated society with good government prices should actually fall naturally this is sometimes only true in theory prices rise due to fear and ambition generated by ignorance if schools taught people about finance there would be more money and lower prices but Schools are concerned with teaching people to work for money and not control their power, but there is no business school, asked Mike. Are you encouraging me to

do my master's degree at a business school? Yes, rich dad said, but mostly Sometimes business schools train employees who are sophisticated professionals, heaven forbid an accountant to run a company, all they do is look at the numbers, fire people and destroy the business, I know this because I hire accountants, all they think about is cutting costs and increase prices which causes more problems accounting is important I would like more people to know about it but at the same time it doesn't show everything added Angry Rich Dad exists so an answer questioned Mike yes learn to

use your emotions to think and not to think with them when you boys mastered Your Emotions by agreeing to work for me for free I knew there was Hope when you again resisted your emotions when I provoked you with more money you were again learning to think instead of giving in to emotions This is the first step why is this First step so important I asked you this you will have to find out I want you to learn I will take you along the path of Thorns in a place that almost everyone avoids I will

lead you to this place that most people are afraid of If you go with me you will abandon the idea of ​​working for money and you will learn how to make money work for you and what we get if we go with you What will happen if we agree to learn the same thing that the rabbit's brother got said Rich Dad referring -if to the classic children's story there is a path of thorns I asked yes the path of thorns represents our fear and ambition confronting fears weaknesses and shortcomings selecting our thoughts and the way

out selecting our thoughts asked Mike intrigued yes choosing what to think instead of react to our emotions instead of getting out of bed and going to work to solve problems because you are haunted by the fear of not having money to pay the bills ask yourself working harder would be the best solution to this problem most people You're too scared to rationalize things and end up running out the door for a job you hate Pit's doll is in control That's what I mean when I talk about choosing your thoughts and how we do it asked

Mike That's what I'm going to teach you you, I'm going to teach you how to choose your thoughts instead of reacting terrified eating breakfast, rushing out the door 20 years ago emotions and intelligence I constantly work to control my thoughts and Emotions I saw this game repeat itself in my life when the emotion is intense intelligence leaves the scene remember what I said before employment is just a short term solution to a long term problem most people only have one problem in mind and it is short term it is the bills at the end of

the month the doll of tar money starts to lead their lives or better said the fear and ignorance in relation to Money following in the footsteps of their Parents they wake up every morning and go to work for money they don't have time to ask themselves another way Their Emotions are in control of your thoughts not reason can you distinguish between thinking with your emotions and your head asked Mike yes I hear that all the time I hear things like well everyone should work the rich are dishonest I'm going to look for another job I

deserve this raise they won't I like this job because it's safe no one wonders what I'm missing here which would interrupt emotional thinking and give me time to think clearly as we walked back to the store Rich Dad explained that rich people actually made money they didn't work by him and went on to explain that when Mike and I were minting C cent coins with the lead thinking we were making money we thought almost Like the rich. The problem is that we were doing an illegal act it was legal when the government and banks did

it but not when we did he explained that there were legal and illegal ways of Making Money Rich Dad continued explaining that the rich knew that money was an illusion like the carrot to the donkey it is because of fear and ambition that millions of people accept the illusion of that money is real, it is not a fiction, only the illusion of trust and the ignorance of the masses allow the house of cards to stand he spoke of the gold standard that prevailed in the United States and that in fact each dollar bill was a

silver certificate what he was looking for what worried him is that one day the country could abandon the gold standard and dollars would no longer be certified by something tangible what would happen boys it would be a big mess the poor the middle class and the ignorant would have their lives ruined simply because they would continue to believe that the money is real and that the company they work for or the government would take care of them. That day we didn't understand what he was talking about but over the years it started to make more

and more sense seeing what the others don't see it as they get into their truck in the parking lot of the little convenience store they said keep working boys but the sooner you forget that you need a paycheck the easier your adult life will become keep using your brain work for free and soon your mind will show you ways to make more money than I could ever pay you You will see what other people never notice opportunities that are right in front of their nose most never see these opportunities because they seek money and security

and that is what they get in the the moment you glimpse an opportunity you will recognize it for the rest of your lives when you get this I will teach you something else learn this lesson and you will avoid one of life's biggest traps Mike and I picked up our things from the store and said goodbye to Senora Martin We went back to park on the same bench in the picnic area and we spent several hours thinking and talking we spent the next week at school thinking and talking for another two weeks we thought we

talked and worked for free at the end of the second Saturday I was once again saying goodbye to Senora Martin and launching a dreamy look at the comic book shelf the problem with not even earning 30 cents on Saturdays was that I didn't have money to buy comic books suddenly while Senora Martin was saying goodbye to Mike and me I saw that I was doing something I never Aira to do before, Senora Martin was tearing off the top half of the comic book cover, she was waiting for that half and throwing the rest of the

comic into a cardboard box when I asked what she was doing she said I'm throwing it away, return the top part of the cover to the magazine distributor who gives me credit when he brings the new jbis and he'll be here in an hour Mike and I waited an hour when he arrived I asked if we could keep the old jbis He said you can stay if you work at this store and don't resell them remember our old partnership well Mike and I resurrected it using an empty room in Mike's basement we began piling hundreds

of comic books there in a short time Our comic book library was open to the public we hired Mike's youngest sister Who loved studying to be a librarian she charged each child a 10 cent ticket and the library it would remain open After classes from 2:30 to 4:30 every day the regulars and the neighborhood children could read as many comic books as they could in those two hours it was a Bargain each comic book cost 10 cents and it was possible to read five or six in those two hours 20 years ago the power of

creativity in the age of information and the internet millions of people under 30 get rich by using their imaginations to create world-changing apps from Facebook and Uber to Snapchat and more creatives thrive while others look for jobs a space that will soon be occupied by robots and technology Mike's sister monitored the children's exit to make sure no one was borrowing a magazine she also monitored the books she recorded how many children attended each day Who they were and the comments they made Mike and We received an average of $950 a week over a period of

three months, we paid her sister about a week and let her read as many comics as she wanted for free, which she rarely did because she was always studying. Mike and I kept the agreement to work every Saturday at store and collect the discarded comics, we kept our agreement with the distributor as they didn't resell any comics when they were too torn, we tried to open a branch but we never found someone as dedicated and trustworthy as Mike's sister to take care of him. At this early age we discovered what it was like difficult to

get good employees TRS months after the library opened there was a fight in the room some kids from another neighborhood broke into it and the chaos started Mike's father suggested that we close the business Our library ceased to exist And we stopped working on Saturdays at the store convenience anyway Rich Dad was excited and wanted to teach us but he was happy because we were successful in the first lesson we learned how to make money work for us as we had not received payment for the work in the store we strained our imagination we identified

an opportunity to make money by starting our own business the comic book library we were in control of our own finances and were not dependent on an employer The best part is that our business made money for us even though we were not physically present our money worked for us instead of being paid money by the Father Rico had given us a lot more study session Chapter 1 lesson one the rich don't work for money summary when he was 9 years old Robert Kosaki and his childhood friend were not invited to the beach by their

classmates because they were poor kids in a school wealthy after his poor father who was a teacher and built a comfortable life but always struggled to pay his bills tells him that he simply must make money he and his friend Mike did the following they collected empty tubes of toothpaste which at the time were made of lead they melted them and used plaster molds to make fake coins. They were quickly reprimanded by Robert's father who told them that they should talk to Mike's father who despite never finishing high school ran several successful businesses the Mike's

father The Rich Dad of this book's title agreed to teach them but on his terms he put them to work for 3 hours every Saturday morning at a convenience store dusting packaged foods and cleaning up for him 10 cents per hour that Robert usually spent on comic books quickly Robert became frustrated with the tedious work and low pay when he said he intended to quit Mike told him that his father already saw this coming or that Robert needed to find him and that Robert I needed to find him, Robert's father was a literate university professor,

but Mike's father was a man of few words who taught in a very different way What Robert was about to find out the following Saturday morning Robert went to meet Mike's father but was left waiting for an hour in a dark, dusty room. He was bored and irritated when Mike's father arrived and accused him of being arrogant and disrespectful when Robert told him he hadn't learned anything Mike's father calmly disagreed his rich dad explained that life doesn't teach with words but by hitting you some people just get carried away others take it out on their

boss or loved ones But some people they learn a lesson from it and take life's blows well because they represent a learning experience. Those who don't understand the lesson waste their lives blaming others and waiting for the pot of gold at the end of the rainbow or decide to make it safe and never take big risks. or victories Rich Dad told Robert that he and Mike were the first people they asked to teach him how to make money, he had more than 150 employees who, although he had already asked him for a job, they never

asked for the guidance that Robert and Mike wanted, so Rich Dad decided to create a course inspired by the real world to simulate life's bumps for boys Robert questioned what lesson he had learned Besides that Mike's father was petty and exploited his employees Rich Dad challenged him saying that most people blame others when in fact his attitudes were the problem how to solve the current problem Mike's father told him he wanted Robert to learn how money works to make him work for him he was still happy that Robert was angry because anger combined with love

creates passion a key component of learning money doesn't solve people's problems, he continued, many people who have a well-paying job struggle with financial problems like Robert's Poor Dad because they don't know how to make money work for them. emotions that Robert felt when working for 10 cents an hour, frustration and impotence would accompany him throughout his life if he did not learn those lessons soon, he introduced Robert to the concept of taxes, showing that the middle and lower classes allow the government to tax them, but the rich, no he asked if Robert still had a

passion for learning when he replied yes his rich father said he would stop paying him for his work at the store he told Robert to reflect and try to understand Robert and Mike worked for free for three weeks Mike's father appeared and called them for a talk asking if they hadn't learned anything yet they hadn't Rich Dad told them that if they didn't learn their lesson they would be like most people who work hard for very little money all their lives they offered him 25 cents an hour but they hesitated he went up to 1

cent an hour and then to 0 an hour but Robert remained silent the final offer of 5 an hour a huge amount for the time confirmed for Robert that he was not buyable Rich Dad said that it was good that they didn't have a price most people T because their lives are controlled by fear and greed fear makes them work hard for a paycheck but once they receive that money greed makes them think about everything that it is possible to buy what makes them need more money and spend more and more this is what Rich

Dad calls the Rat Race he told the boys that the first step was to admit how they felt people often acted with emotion instead of thinking logically they were afraid to admit that money led their lives and therefore controlled them it's not just the poor who face this fear the rich eventually operate from fear he wanted to teach the boys how to not just be rich because money doesn't solve the problem school is important I told them for most people it is the end and not the beginning and the secret for the boys was to

learn to use their emotions to think and not think with their emotions they should learn to select their thoughts he told them to keep an eye out for ways to make money saying the moment they identify opportunities they will always recognize them for the rest of their lives the boys agreed and soon saw an opportunity to create a library where children could pay a flat fee and read as many comic books as they could in two hours, unsold comic books that would otherwise have been thrown out of that convenience store, they made a good profit

and the business was very successful for 3S months until a fight in the library ended it all but they learned their first lesson about making money work for them even if they weren't physically present they were ready to learn more and Mike's father was ready to teach it. left hemisphere moment despite having a well-paying job, people like Poor Dad Robert struggle to survive right hemisphere moment looking in a different and creative way at discarded comics led to a business opportunity subconscious moment people allow emotions like fear and greed dictate the rules over your lives What

does Robert mean now is the time to reflect Ask yourself What does Robert mean in this creation and why does he say it in this session you don't have to agree or disagree with him the goal is to understand what Robert is saying remember this study session is designed to be supportive and supportive two heads are better than one if you don't understand what Robert is saying don't give up on the lesson ask for help Take the time to discuss each quote until you understand it quotes open quotes the middle and lower classes work for

money the rich make money work for them life hits us all some give up others fight some learn their lesson and move on they are satisfied the Knocks of life Stop blaming me thinking that I am the problem if you think that I am the problem then you will have to transform me if you realize that the problem is you then you can change yourself learn something and become wiser in the case of din a most people prefer not to take risks and feel safe they are not driven by passion but by fear most people

if they receive more money they just go into debt more just know that the fear that makes most people work at a job is the fear of not pay the bills of being sent away of not having enough money of starting over that's the price of learning a profession or skill And then working for the money most people become slaves to it and and get angry with the boss everything I'm saying is that most of the time it is emotions that control thinking a job is just a short term solution to a long term problem

it is like the story of the donkey that moves the cart while its owner dangles a carrot in front of his nose the owner of the Donkey Goes where he wants to go but the donkey chases an illusion tomorrow there will only be another carrot for the donkey additional questions now is the time to use the story in this Chapter to understand what Robert is saying AND apply them to you and your life ask yourself the questions below and discuss them with your study partners Be honest with yourself and your partner if you don't like

the answers you give ask yourself if you are willing to change and accept the challenge of transforming your thoughts and mindset question number one how common is Robert's Poor Dad's approach to money question number two Robert's Rich Dad said that true learning requires energy passion and fierce motivation what examples from his life have proven this to be true of what lessons have you never forgotten And why third Would the rate of 10 cents an hour and then no pay instigate you the same reaction that Robert had fourth fear is what motivates most people to work

there are other factors at play fifth the temptation to think that more money would alleviate this fear is strong because this is such a common option . the poor are more susceptible to being controlled by emotions of fear and greed Why do you think this eight Do you think most people realize they are stuck in the Rat race yes or no why notes uncle RS 1981 by Joy C Harris is an American children's story set in the southern United States, based on it, Disney released the film Song of the South in 1946, the highly sticky

tar doll is used by the fox as bait to capture and get rid of your enemy the rabbit end of notes Chapter 2 lesson two why enabling financial proficiency is not how much money you make but how much you keep in 1990 Mike took over his father's empire and is actually doing a better job than that his we meet once or twice a year on the golf course he and his wife are much richer than you can imagine Rich Dad's empire is in excellent hands Mike is now preparing his son to take his place such

as your father prepared us in 1994 I retired I was 47 years old and my wife Kim was 37 years old retirement does not mean stopping working for my wife and for me it means that if there were no cataclysmic changes work or not and our wealth will continue to increase automatically staying well ahead of inflation I think this represents freedom our assets are big enough to grow on their own it's like planting a tree you plant it for years and then one day it doesn't need it anymore its roots are deep enough so the

tree provides you with shade at his pleasure Mike chooses to run his empire and I choose to retire whenever I give talks people ask what I advise them or what they should do how to start Is there any good book that can recommend what I should do to prepare my children What is the secret of Success how I make millions every time I hear these questions I remember the following story the richest businessman in 1923 a group of our greatest and richest leaders in the business world attended a meeting at the Ed Water hotel in

Chicago among them were Charles Schwab, President of the largest independent steel company, Enu, President of the largest electric power company, Howard Hobson, President of the largest gas supplier, Ivar Krueger, President of International Math, CEO, one of the largest companies at the time, Leon Frazer, President of the Abis International Settlements Bank. Richard Whitney president of the New York Stock Exchange Arthur Cotton and Jess livermore two of the biggest stock speculators and Albert f a member of President Hardin's cabinet and 25 years later nine of them ended up like this shab died penniless after living 5 years

on loans inu died broke in a foreign country Kruger and Cotton also died broke hobson went crazy Whitney and Albert Fall had just gotten out of jail and frazer and livermore committed suicide I doubt anyone can say what really happened to these men if looking at the date of the 1923 meeting, it was before the 1929 stock market crisis and the great depression, which I suspect must have had a great impact on these men and their lives. Interestingly, today we live in times of greater and more accelerated changes than these men have experienced I suspect

that in the coming years there will be more booms and busts like the ones they faced I am very very concerned about the fact that people worry too much about money and not about their greatest wealth education if people are prepared to be flexible people keep their minds open and learn they will become richer and richer during these changes if they think that money will solve their problems I'm afraid they will have difficult days intelligence solves problems and generates money money without financial intelligence disappears in a hurry most people don't realize that In life, it

doesn't matter how much money you make, but how much you keep. We've all heard stories of lottery winners who were poor, suddenly got rich and became poor again, won millions and then went back to square one or stories of professional athletes who at the age of 24 won millions of dollars. Dollars a year and at 34 just 10 years later they are sleeping under the bridge I remember the story of a young basketball player who a year ago made millions today at just 29 years old he says his lawyer and accountant friends took his money

and went forced to work washing cars for minimum wage, he was fired from the car wash because he refused to take off his championship ring while washing cars, his story became national news with him appealing against his termination, citing difficulties and discrimination, arguing that the ring it was all he had and if he was forced to take it away he would feel Shattered I know many people who have become millionaires instantly and although I am happy to see people getting rich I can only warn you that in the long run it doesn't really matter how

much you earn but what how much it has preserved and for how many generations it can be kept so when people ask how should I start or tell me how quickly they are often very disappointed with my answer I simply tell them what my rich dad told me when I was a kid if you want to stay rich you need to become financially proficient The idea was drummed into my head every time we met As I said, my educated father highlighted the importance of reading books while my Rich Dad highlighted the need to be financially

proficient if you want to build an Empire State Building The first thing to do is dig deep into the ground and build solid foundations. If you are going to build a house on the outskirts, all you have to do is place it on a 15 cm concrete slab. Most people, in their desire to get rich, try to build an Empire. State Building on a 15 cm slab, our school system, because it was created in the agricultural era, still believes in houses without foundations, dirt floors are still in fashion, so kids leave school without any financial

consequences, one day insomnia and in debt suburbs living the American dream decide that the answer to their financial problems is to find a way to get rich quickly they start construction of the skyscraper it goes up quickly but soon instead of an Empire State Building we have the leaning tower of the suburbs back to the insane nights In my case and Mike's as adults, our choices were possible because we were taught to build solids when we were just children, accounting. It is possibly one of the most confusing and boring subjects in the world, but if

you want to be rich in the long term, it can be crucial. for Rich Dad The question is how to take a tedious and chaotic issue and teach it to children the solution is to teach it in a simple way through images The Rich acquire assets the middle and lower classes acquire liabilities thinking they are assets My Dad Rico built a solid financial foundation for Mike and I since we were just kids He created a very simple way of teaching for years he just drew pictures and used words Mike and I understood the simple pictures

the jargon the movement of money and then years more Later, Rich Dad started to include the numbers today Mike has mastered a much more complex and sophisticated accounting analysis because he needs to control his empire I'm not that sophisticated because my Empire is smaller however we both start from the same basic foundation in the following pages I present the same simple pictures that Mike's father created for us although simple this drawing helped guide two boys in building great wealth based on a solid and profound function rule one you need to understand the difference between an

asset and a liability and buy assets if you want to be rich that 's all you need to know it's the main rule it's the only rule this may seem absurdly simple because you have no idea how complex it is most people have financial difficulties because they don't know the difference between an asset and a liabilities the rich acquire assets the middle and lower classes acquire liabilities thinking they are assets said Rich Dad when Rich Dad explained this to Mike and me we thought he was joking there we were almost teenagers waiting for the secret

to getting rich And that was the answer was so simple that we need to stop for a long time to think about it what an asset is asked Mike Don't worry now said Rich Dad let the idea mature if you can understand simplicity your life will have a direction and it will be easy from a financial point of view It's simple that's why who don't usually pay attention, do you mean to say that all we need to know are assets, buy them then we'll get rich I asked Rich Dad He shook his head yes, it's

that simple if it's that simple why everyone doesn't get rich I asked My Rich Dad smiled at that people don't know how to distinguish an asset from a liability I remember asking how adults can be so ignorant it's so simple so important why doesn't everyone try to find out the difference Rich Dad only took a few minutes to explain what assets were and liabilities as an adult I had difficulty explaining this to other adults the simplicity of the idea escapes adults because they were educated differently They were taught by other educated professionals such as bankers

accountants Real Estate Agents financial planners and so on the difficulty is in taking the adults to unlearn or turn them back into children an intelligent adult often feels diminished by paying attention to simplistic definitions what causes conflict or how something so simple Can seem so convoluted why someone would buy an asset that was actually a liability the answer is based on basic instruction an asset puts money in my pocket a liability takes it away What defines whether something is an asset or a liability are not the actual words if you want to get really confused

look up the words asset and liability in the dictionary I know an accountant can find the definition good But for an average person it doesn't make sense and we adults are often too proud to admit that something doesn't make sense when we were kids Rich Dad said what defines an asset is not words but numbers and if you can't understand them you can't tell an asset from a hole in the ground in accounting Rich Dad said it's not the numbers that matter but what they tell Just like words don't matter but the stories they tell

us 20 years ago learn unlearn relearn This quote from the visionary Alvin Toffler reflects what his father told me two decades ago the illiterate people of the 21st century will not be those who cannot read or write but those who cannot learn, unlearn and relearn if you want to get rich you have to read and understand numbers I heard my Rich Dad repeat this a thousand times and I also learned the rich acquire assets and the poor and middle class liabilities Here is the way to distinguish assets from liabilities most accountants and finance professionals do

not agree on the definitions but these simple drawings were the only one with a solid financial base for two boys This is the standard cash flow of an asset narrator's notes just below this text there is a figure this figure will be available on the blog ot.com bblog check the links in the description Just like the figures of the book the pdf of this reading will also be available the figure shows two squares the top square has the caption financial statement inside the square it is divided into two parts horizontally the top part income the

bottom part expenses in the bottom square of the page the legend says balance sheet This page is also divided into two halves, on the left, assets, on the right, liabilities, with an arrow connecting assets to income, in the narrator's interpretation, assets are what they represent in the balance sheet What is income in the financial statement and liabilities are what they represent demonstrate expenses in the financial statement end of notes the text continues the top box is a financial statement often called a profit and loss statement it measures income and expenses the money that comes in

and goes out the bottom diagram is a balance sheet it is like this called because it represents the balance between assets and liabilities, many newcomers to Finance do not know the relationship between the financial statement and the balance sheet and understanding this relationship is vital, as I said previously, My Rich Dad told the two boys that assets put money in your practical pocket simple and functional This is the pattern flow of a passive narrator's notes below This text there is another figure very similar to the previous figure being a page divided into two squares the

first financial statement the income and expenses the second with a separate balance sheet into assets and liabilities in this image there is a dot and an arrow indicating that the liabilities are in the expenses end of the notes the text continues now time that assets and liabilities were defined in diagrams it can be easier to understand of the words an asset puts money in my pocket regardless of whether I work or not a liability takes it away that's what you really need to know if you want to be rich simply spend your life buying assets

if you want to be poor or belong to the middle class acquire liabilities to unprofitable of financial difficulties If people have problems with finances there is data that they cannot read, whether words or numbers, the rich are rich because they have a higher level of proficiency than people with financial difficulties if you want to get rich and keep your fortune it is important to be proficient from a financial point of view, both in words and in numbers, the arrows in the diagrams represent the movement of money or cash flow, numbers say little, words are also

the story that tells in the financial statements, reading the numbers is the search for the plot by the Plot story of where the money is going in 80% of families the financial trajectory is a journey of hard work in an attempt to get ahead not because they don't make money but because they spend their lives buying liabilities instead of assets This is the standard cash flow of a poor person narrator's notes just below This text there is another figure similar to the two previous figures where in the first square is the financial statement the second

just below balance sheet however in this image there is no marking in balance sheet the only existing marking is in financial statement outside this scheme is the employment within the salary section at another point and within the Another point section and an arrow that runs through all of them in the expenses the captions taxes rent food transport and clothing in the interpretation of the speaker who tells you the The author exemplifies that poor people in their financial statement withdraw their salary from employment and enter the income classification and this salary goes towards tax expenses, rent,

food, transport and clothing. This image, as well as all the others, will be available on the blog, check out the links in the description end of notes text continues This is the standard cash flow of a middle-class person narrator's notes below this text Another image with the same layout as the previous three images in the financial statement there is a point in employment, another in salary, another in liabilities and another in expenses in the speaker's interpretation the author demonstrates that middle class people derive their income from their jobs they put the money in liabilities which

are financing car loans credit card expenses child financing debt then it goes to expenses such as taxes financing payment car payment credit card payment and student loan payment end of notes the text continues This is the standard cash flow of a rich person narrator's notes just below this t there is another figure similar to the previous ones in the balance sheet there are the following assets Real estate shares promissory notes intellectual property in liabilities financing consumer loan and credit card in expenses taxes and financing in income rental income dividends jury royals there is an arrow

that goes from assets to income in the speaker's interpretation author insinuates that people own assets such as real estate shares promissory notes and intellectual properties and receive from these assets their income ranging from rental income to their real estate dividends from their shares interest from their bonds and promissory notes and royals from their intellectual properties end of notes the text continues these diagrams are obviously simplified everyone has living expenses food needs housing and clothing the diagrams show cash flow in the lives of poor, middle class and rich people cash flow tells the story of how

a person handles money reason why I started with the history of men richest people in the United States is illustrating the failure when one believes that money will solve all problems which is why I cringe every time I hear people ask me how to get rich faster or where they should start I often hear I'm in debt so I need earning more money but more money does not always solve the problem, in fact it can even increase it, money often exposes our human flaws, it is like a spotlight on what we do not know, which

is why very often a person who has a sudden gain of money an inheritance, a salary increase or a Lottery prize, you quickly return to the same financial chaos or even worse that you were in before you received the amount, money only accentuates the cash flow pattern that is in your mind if your pattern is to spend everything you earns, the most likely thing is that an increase in income will only result in more expenses, as the popular saying is, a fool and his money throw a big party, I have repeated countless times that we

go to school to acquire academic and professional skills, both of which are very important, we learn how to make money with them in the 1960s when I attended high school if someone was academically successful it was almost immediately imagined that this brilliant student would become a doctor because it was a profession that promised the greatest financial reward Today doctors face financial difficulties that I do not I would wish my worst enemies insurance companies control business administrative health care government intervention and essos due to medical malpractice Nowadays children want to be famous athletes movie and rock

stars misses and ceos because fame, money and recognition are in these careers Here's why because it is so difficult to motivate kids at school they know that professional success no longer depends solely on academic success as in other times, as students leave school without financial skills, millions of educated people achieve success in their professions but then encounter difficulties financial professionals work hard but do not progress what is lacking in their education is not knowing how to earn money but how to spend it what to do with it after earning it is what is called financial

aptitude what do you do with the money after the earn how to stop people from taking your money how long you keep it and how much of it works for you most people don't discover the reason for their financial difficulties because they don't understand cash flow a person can be very educated successful professionally and be unprofitable to work for them how the achievement of a financial dream becomes a great nightmare the cinematic vision of working people has a defined pattern young newlyweds highly happy people move into one of their small rented apartments they immediately realize

that they are saving money because two can live with almost the same expense as one The problem is that the apartment is cramped so they decide to save to buy the house of their dreams and have children They have two incomes and focus on their careers their incomes begin to increase as your income increases your expenses also notes from the narrator below This text there is a figure the figure is similar to the previous ones in income there is an upward arrow as well as in expenses end of notes the text continues the main expense

for the majority are taxes many people think This is about Income Taxes, but for most North Americans what matters most is social security for the employee, it seems that the contribution to Social Security combined with the medc is around 7.5, but in reality it is of 15% because the employer must match the same amount essentially. This is money that the employer cannot pay you, plus you still pay income taxes on the amount deducted from your salary for Social Security income that you never received because it was transferred at source 20 years ago tax and duty

programs taxes around the world are increasingly higher as social demands require higher taxes on property income and value-added sales higher sales still create an escalation of tax without a real increase as rates become progressively steeper to pay for social services or rights today the government faces serious challenges with assistance programs such as Social Security and medicare going into insolvency, returning to the case of the young couple as a result of the increase in their income, they decide to buy the house of their dreams once acquired through financing. They pay a new tax, called property tax,

so they buy a new car, new furniture and new appliances to set up the new home and suddenly they wake up and the liabilities column is full of debts in the real estate financing and the credit dog their liabilities have grown not donor log below This text There is a similar fig previous figs ag the income there is one for top Aces there is also an up arrow and the noan Patoni the liabilities an up arrow end of notes the text continues 20 years ago credit card debt based on 2016 statistics today credit card debt

is higher than ever in the United States 779 billion are all bad debts or good ones, you know the difference now they are trapped in the Rat Race soon the first child arrives and they work even harder the process repeats itself more money and more taxes The so-called school of alicota with no real increase a credit card arrives in the mail they use it until the limit is reached a finance company calls and says that your biggest asset your house has increased in value the company offers a Real Estate refinement to pay off the debts

because your record is so good and they say that The smartest thing to do is to eliminate high consumer interest rates by paying off your credit card debt and, on top of that, the interest paid on real estate financing can be deducted from your Income Tax. They accept and eliminate your credit card debts. Burdened by high interest rates, the consumer breathes a sigh of relief, the credit card debt is closed, now their consumer debts are added to the financing of their own home, the monthly payments are reduced because they extended the financing to 30 years,

the best thing to do is the neighbor invites them to go shopping, the Memorial Day sale, the explanation of which is at the end of this section, is starting. They promise themselves that they will only look in the windows, but they take the credit card just to relieve their conscience. meeting This young couple, their names change all the time but their financial dilemma is the same they go to my lectures to hear what I have to say they ask me can you tell us how to make more money they don't even know that the problem

is in the way they chose to spend the money that they are harmed by their printing and because they don't understand the difference between an asset and a liability, people's financial problems are not solved with more money but with intelligence, a friend of mine often repeats a phrase to people in debt If you discover that you have buried yourself in a hole, stop digging as a child My Poor Father often said that the Japanese knew Three Powers that of the sword that of jewels and that of the mirror the sword symbolizes The Power of Weapons

the United States has spent trillions of dollars on weapons and is therefore the supreme military presence in the world jewelry represents the power of money there is a certain truth in the saying remember the golden rule whoever has the gold makes the rules the mirror means the power of self-knowledge this power according to Japanese legend was the most appreciated of the three with Too often, the powers that be and the middle class allow the power of money to control them by simply waking up and working harder and failing to ask themselves if it makes sense,

they shoot themselves in the foot when they leave the house every day for not fully understanding it most people allow the enormous power of money to exercise control over them a person can be highly educated and successful in their career but financially they conform instead of questioning they often repeat without thinking what they it has been said diversify your home is an asset your home is your biggest investment you will have a reduction in taxes getting into debt if you get a secure job don't take risks it is said that for many people the fear

of speaking in public is greater than that of death, according to psychiatrists it is caused by the fear of racism appearing, criticism, ridicule and becoming an outcast the fear of being different prevents many people from seeking new ways to solve their problems that is why my educated father said that the Japanese placed greater value on the power of the mirror because only when we as human beings look in the mirror do we find the truth is the main reason why people say seek security is fear this applies to everything sports relationships career or money it

is this same fear of ostracism that leads people to conform and not question accepted opinions or generalized trends your home is an asset take out a loan consolidating your debts and get rid of them Work harder it's a promotion someday I'll become vice president PP when I get a raise I'll buy a bigger house Mutual funds are safe many of the big financial problems are caused by Desire of keeping up with the majority and not wanting to fall behind our neighbors occasionally we all need to look in the mirror and follow our inner wisdom and

not our fears 20 years ago who is on your team Rich Dad surrounded himself with qualified men and women lawyers accountants Brokers and bankers and who and I did the same today our team of accountants is one of our greatest assets what is more important than money a team of entrepreneurs who are in yours when Mike and I were around 16 we started having problems At school we weren't bad kids we just started to distance ourselves from the majority we worked for Mike's dad After school and on the weekends Mike and I would often spend

hours after work sitting with his dad while he met with bank directors lawyers accountants brokers investors managers and employees he was a man who had left school at the age of 13 and now led, instructed, commanded, questioned people with a high level of education, they flocked to his call and worried when he didn't approve of them, this was a man who didn't have accompanied by the crowd who thought for themselves and hated words we have to do it this way because everyone does it this way he also hated listening it is not possible if you

wanted to convince him to do something All you had to do was say I don't think you can do it Mike and I learned attending these meetings more than in years of traditional education including college Mike's father had no formal education but was financially knowledgeable and as a result was successful he used to repeat to us a smart person hires people smarter than them therefore Mike and I had the privilege of spending hours listening and in the process learning from intelligent people but because of this Mike and I could not fit into the standard Dogma

that our teachers preached and this created problems whenever a teacher spoke if they did not have good grades you won't do well in the real world Mike and I frowned when they told us to follow the rules and not deviate from the rules we saw why this teaching process actually discourages creativity we began to understand why rich dad told us that schools were intended to produce good employees rather than good employers from time to time Mike and I asked our teachers how what we were studying applied in practice or why we didn't study money and

how it works this last question was often answered with the statement that money was not important that if we had an Impeccable education the money would follow the more we knew about the power of money the more we distanced ourselves from it than my parents I knew how to keep accounting books I listened to experts in taxation lawyers specialized in business matters bank managers, real estate agents and investors my father was talking to teachers one day my father said that our house was his biggest investment a somewhat unpleasant discussion began when I showed him why

I didn't think a house was a good investment narrator's notes below This text there is a figure very similar to the previous figures where there is a square at the top with the following top caption balance sheet this square is separated into two assets and liabilities on the left side there is the phrase Rich Dad and in the middle there is a picture of a house that is located in the liabilities area, just below there is another square in the balance sheet area Poor Dad says that the house is in the ACTIV area end of

notes the text continues the diagram above illustrates the difference in perception between Rich Dad and Poor Dad when it comes to their own house, one thought that his house was an asset, the other a liability, I remember that I drew the diagram and went on to show my father the direction of cash flows I also showed you the expenses that came with owning your house a bigger house represented bigger expenses and the cash flow comes out through the expenses column narrator's notes in the next figure below this text in the financial statements there is a

square divided horizontally at the top income at the bottom expenses in expenses payment of financing property tax Insurance maintenance public services below and separated from this square to the balance sheet where are assets and liabilities also divided into two columns in liabilities there is financing there is an arrow going to financing until expenses end of notes the text continues currently I still hear challenges to the idea that a house is not an asset and I know that for most people it is not only their biggest investment but also their dream and owning their own house

is better than nothing I simply offer an Alternative way of looking at this Popular Dogma If my wife and I bought a bigger, flashier house we would view it not as an asset but as a liability since it would take money out of our pockets so here is the argument that I actually don't expect most people to agree with him because his home involves an emotional factor and when it comes to money high emotions tend to lower financial intelligence I know from experience that money has the power to make all decisions passionate first topic in

relation to the house I highlight that in general people spend their lives paying for a house that will never be theirs in other words they buy a new house every few years incurring each time a new 30 year loan on the house previous second, despite being able to deduct the interest on the financing for Income Tax purposes, people pay all other expenses with the money left over after paying the tax, even after paying off the financing. Third, my wife's parents were shocked when the taxes on the property relating to their residence increased to 000 per

month They were already retired so the increase put pressure on their budget fourth the value of properties does not always increase I have friends who owe 1 million dollars for houses that today would sell for much less fifth the largest Losses are those of opportunities that were not taken advantage of. If all your money is committed to the property you live in, you may be forced to work more because all your money continues to go towards expenses instead of increasing the flow of assets. standard middle class cash flow if a young couple allocated a larger

sum to acquire assets later they would have greater facilities their assets would have increased and would be available to cover expenses make the decision to acquire the very expensive property instead of forming a portfolio of assets affects an individual in at least three ways, each of the following, loss of time because other assets could have increased in value, loss of additional capital because it could have been invested instead of going towards high property maintenance expenses, educational losses too often couples consider their savings and retirement plan as the total of their asset column because they don't

have money to invest. They simply don't do it, it costs them the investment experience, they almost never manage to become what the world of investing calls a sophisticated investor and the best investments are generally offered first to these investors who in turn sell them to people looking for security 20 years ago your performance indicator without a financial statement you don't know exactly where you are in the financial game of life whether you like the money or not reveals your game score in quotes and a statement is your performance indicator banks want financial statements income statement

and balance sheet to know how well you are scoring in the financial game of life I'm not saying you shouldn't buy a property o What I'm saying is that you should understand the difference between an asset and a liability when you want a bigger house first I buy assets that will generate profit and cash flow to pay for the property narrator's notes Just below this text there is a figure where the Poor Dad's financial statement has income and expenses, income is as large as expenses, his assets are smaller than his liabilities, whereas in Rich Dad's

financial statement, income is greater than expenses and his assets are much larger than his liabilities end of notes the text continues my educated father's financial statement is the best possible for someone who is in the Rat race his expenses always followed his income so he never invested in assets as a result his liabilities were greater than his assets the following diagram refers to my poor dad's financial statement compared to my rich dad's he is worth more than 1 words reveals that his income and expenses are equal while his liabilities are greater than his assets his

personal financial statement Rich Dad on the right reflects the results of a life dedicated to investing and minimizing liabilities Why the Rich Get Rich A review of my Rich Dad's financial statement shows that the rich get richer the assets column generates more than enough income to cover expenses a balance reinvested in the assets column the assets column continues to grow and therefore the income generated also increases, the result is that the rich become richer narrator's notes just below this text there is a figure the figure is titled demonstration Financial in the first square there is

an upward arrow Where it says income and in the second square just below there is a downward arrow Where it says expenses the square of income is bigger than that of expenses below there is the title balance sheet where there are also two squares one larger with assets and an upward arrow and a smaller one with liabilities with a downward arrow in the interpretation of the narrator who tells you in the financial statement income is greater than expenses and in the balance sheet assets are less than liabilities end of notes the text continues 20 years

ago retirement plans since aon or aon 3 It has become clear that retirement plans are in trouble, not even public government plans like those in Greece, Italy and California can pay what is owed to retirees, so these plans are no longer the once-guarantee of security for the velice when the Stock Market crashed in 2009 Those who were about to retire had problems even if they had saved in one of these plans because the middle class is fighting a battle the middle class is in a state of constant financial difficulties their main income is generated by

salaries when their payment increases taxes also their expenses tend to grow in the same proportion as their salaries hence the expression Rat Race they consider their Residential property as Their main asset instead of investing in generating assets of income narrator's notes below the text aá another figure in the title financial statement the income and expense blocks have the arrow upwards and the same size in the speaker's interpretation this signals that income and expenses are equal and in the balance sheet there are no assets but there is an upward arrow indicating that there are many liabilities

end of notes the text continues the standard pattern of considering residential property as an investment and the philosophy that a salary increase represents being able to acquire a bigger house or spend more are the basis of the current debt of the society this process of increasing expenditure causes families to become more individualized and have more financial instability even when they progress in employment and receive regular salary increases This is a very risky life resulting from the precarious financial construction The recent massive loss of jobs has brought to light the financial fragility of the middle class

suddenly corporate retirement plans have been replaced by 401k plans Social Security is obviously in trouble and cannot be considered a retirement alternative panic has set in among the middle class today Mutual Funds are popular because they represent security average pension fund investors are too busy working to pay taxes and real estate loans and have difficulty saving for their children's college and paying off credit card debt, they don't have time to learn how to invest so they rely on the experience of mutual fund manager as the fund also includes many different types of investments one has

a sense of security because it is diversified unquote This educated middle class group accepts the Dogma espoused by mutual fund brokers and Financial Advisors unquote look for security Avoid risk unquote the real catastrophe however it is the lack of early financial literacy responsible for the risk faced by the average middle class person the reason is that they need to seek security because a financial situation is precarious at best their balance sheets are not of balanced fact , instead they are full of liabilities without real assets to generate income, generally their only source of income is

the paycheck, their way of life depends completely on the employer, so when the real business of their life, in quotation marks, appears, these same people do not can take advantage of the opportunity Because they are working hard paying maximum taxes and overwhelmed by the session the most important rule is to know the difference between an asset and a liability once you can understand it focus on the efforts of exclusively purchasing income-generating assets This It's the best way to take the first step towards becoming rich, keep doing it, your asset column will grow, focus on reducing

liabilities and expenses to increase the money available to increase the asset column, soon the asset base will be so consistent that you will be able to allow yourself to look at more speculative investments that can have returns ranging from 100% to infinity investments in which 000 can quickly turn into 1 million dollars or more in investments that the middle class considers in quotes too risky the investment is not risky if there is financial proficiency if you do what the masses do you will be in the following situation narrator's notes below this text another image in

the quadrant that says income is work for a private company salary and expenses work for the government taxes on the balance sheet equity the assets quadrant There is nothing and in liabilities work for the bank financing end of notes the text continues as an employee and home owner your efforts at work in general result in the following first you work for a private company salaried employees work so that the owners of the company and their shareholders get rich not themselves your efforts and success will guarantee the success and retirement of these people according to you

work for the government the government takes a part of your pay before you even see the money when you work harder you it simply increases the amount of taxes that the government collects most people work from January to May only for the government third party you work for the bank after taxes your biggest expenses are generally the mortgage and credit card bill the problem The result of simply working harder is that each of these three installments takes with it a greater portion of your effort. You need to learn how to make your greatest efforts directly

benefit you and your family once you have decided to run your own business to focus your efforts on acquiring assets rather than on higher salary how to set your goals most people should keep their job and use their salary to finance asset acquisition as assets grow how to measure the extent of your success what makes someone know that they are rich that they have achieved prosperity the way I have my definitions of assets and liabilities I also have my own definition for wealth in fact I borrowed it from someone called Buck meister Fuller some consider

him a charlatan and others a living legend years ago he created a among architects by applying for a patent for something called a geodesic dome but in doing so he also said something about wealth it seemed at first very confusing but after rereading it a few times it began to make sense wealth is a person's ability to survive for the days to come or if I stop working today how long can I survive unlike net worth the difference between assets and liabilities which is often full of expensive nonsense and what people think it has value

this definition creates the possibility of developing a truly accurate measurement so I could measure and know where I was in terms of the goal to become financially independent although net worth often includes assets that do not generate money such as objects purchased and then abandoned in a corner of the garage wealth measures how much income your money is generating and therefore reveals your financial survival wealth is the measure of the cash flow generated by the assets column in comparison to the expenses column let's look at an example Let's say the cash flow of my assets

column generates 000 per month and that I have monthly expenses of 2$ 2,000 What was my wealth 20 years ago wealth and financial reserves today few people have enough money to support themselves even for a month most of the Americans for example have less than 00 in savings surprising statistics from a 2016 goob Banking rates survey report that 34% of Americans have no savings few people could survive for a long time without a salary or government assistance We will return to the definition of buckmaster foer according to his concept of wealth for how many days

can I survive considering a 30 day month have enough cash flow for half a month when I have achieved a cash flow generated by my assets of 000 then I will be wealthy I'm not rich yet but I'm covered now I have an income generated by assets each month that fully covers my monthly expenses. If I want to increase these expenses, I must first increase the cash flow generated by my assets to maintain this pattern of wealth. Note that at this point I no longer depend on my salary, I I focused and was successful in

building an asset column that made me financially Independent if I quit my job today I will be able to cover my monthly expenses with the cash flow generated by my assets my next goal could be to use the surplus of my cash flow to reinvest into more assets the more money is allocated to the assets column the more it will grow as my assets increase the more my cash flow grows and as long as I keep my expenses lower than my cash flow generated by these assets I will become richer with more and more sources

of income besides my physical work as long as this reinvestment process continues I will be on the path to enrichment lse from these simple observations the rich acquire assets the poor only T expenses the middle class acquire liabilities thinking that they are assets and how do I take care of mine business What is the answer Read what the founder of McDonald's has to say in the next chapter chapter 2 study session lesson 2 why enable financial proficiency summary we revisit Robert and Mike TRS decades and a half later Mike took over his father's company and

is doing an even better job than Rich Dad already Robert retired in 1994 at the age of 47 his and his wife's wealth grew automatically like a well-established tree CDA on the ground he shares the story of a meeting in 1923 of some of the top and richest leaders of the business world who owned the world's largest steel and gas company, managed the stock exchange or who made up the cabinet of President Harding and 25 years later, the lives of most of them ended in tragedy, with them bankrupt, exiled or imprisoned, the stock market crisis

of 1929 and the Great Depression played a relevant role in their destinies, but today we live in a more chaotic and fleeting reality than theirs, more important than that money to survive is our education and ability to learn what matters is not how much you earn but how much you keep and for how many generations so when people ask Robert how to start getting rich he gives them the same answer that Rich Dad gave him If you want to get rich, you need to become financially proficient Robert compares the way many people act to building

skyscrapers on a slab made by a small house, how children leave school with poor financial education, enter adulthood chasing the American dream, but ends up sinking into debt the only way out is a strategy to get rich but without a good foundation coming from financial proficiency your efforts are like building a skyscraper on a weak foundation and instead of creating the Empire State Building you end up with the leaning tower of the suburbs Robert and his childhood friend Mike have meanwhile built a strong foundation worthy of a skyscraper thanks to Rich Dad's teaching that accounting

is a tedious and confusing subject and absolutely crucial to financial success so make it accessible to children Rich Dad used images to teach it to the two boys only later did he add the numbers to guide the boys through their key concepts Robert said is that you must know the difference between an asset and a liability and only acquire assets that is all you need to know but despite It's so simple, it's something that many people don't understand. When Rich Dad explained this to the two teenagers, they thought he was joking, how could adults not

understand? Everyone shouldn't be rich. Notes from the narrator below. This text contains a photo where, again, there are two financial statement blocks and two balance sheet blocks now there is an arrow going from balance sheet assets to income in statement Fin fin end of notes text continues the problem is that people have been educated in different ways by bankers Financial advisors and others so they need to unlearn What they think they know some find it humiliating to return to such basic principles the real definitions of inverted commas assets and liabilities do not reside in words

but in numbers Robert Us images to help readers in the same way your rich dad did This is the standard cash flow of an asset the top part of the diagram is the financial statement often called the profit and loss statement it organizes income and expenses money coming in and going out the bottom part is the balance sheet it is so called because it is supposedly the balance between assets and liabilities the assets increase your income they put money in your pocket narrator's notes below This text Another image also divided into two blocks financial statement

and balance sheet now there is an arrow that goes from liabilities to expenses end of notes text continues This is the standard cash flow of a liability a liability takes money out of your pocket you want to be rich buy assets this seems simple but many people get confused and buy liabilities if you want to make and maintain wealth you must work to understand this it's not just the numbers but how they tell the story follow the arrows in each of these diagrams to see the path Where the money flows i.e. the cash flow they

will tell you the story the plot of the financial situation This is the standard cash flow of a poor person narrator's notes below this text Another image representing the cash flow of a poor person is also divided into two blocks financial statement and balance sheet in balance sheet where there are assets and liabilities nothing is marked only markings in financial statement there is an employment arrow passing through salary and going to expenses in expenses there are the following captions taxes rent food transport and clothing in the interpretation of the narrator who speaks to you this

representation is that a poor person receives his income from his employment in the form of salary which goes into income And then these resources go to expenses such as taxes rent food transport and clothing end of notes text continues This is the standard cash flow of a middle class person narrator's notes below the demonstration of the cash flow of the middle class in the narrator's interpretation, the middle class obtains its resources from its employment in the form of a salary that goes into its income, unlike the poor class, this does not go directly to expenses

but to the balance sheet Nothing appears in assets but rather liabilities your income comes from your salary which goes to liabilities such as car financing credit card expenses student loan debt and only then does it go to expenses such as taxes financing payment car installment credit card payment student loan payment In my interpretation, the difference between a middle class person and a poor person is that the poor person uses their entire salary to effectively pay their important expenses, whereas a middle class person uses their salary, which is their main and only income to pay long-term

liabilities such as credit cards and student or university loan debts and only then pay your main expenses end of notes the text continues through these simplified diagrams the cash flow account to story of how each person deals with money, many times those who have debts think that the answer is to make more money, but more money not only does not solve problems, but can make them worse, which is why many people who have a stroke of luck like a lottery win or an inheritance, for example, is quickly lost, an increase in money only generates bigger

expenses What many people lack is financial education, which is why they achieve success in their careers but remain on the warpath with money, they can having learned to make money but not manage it people can be very intelligent and still unprofitable but not make it work hard for them Robert tells the story of a young couple who got married and began to build a life together their income began to grow, but equally their expenses, the couple was hit by the main expense, taxes and for many people, it is not Income Tax that is responsible for

the biggest tax discount, but Social Security is equivalent to almost 15%, Social Security contributions combined, of medicare all made by the employer who now cannot pay them for the worker and the employee is charged income tax on this amount also the young couple is faced with these taxes and when they acquire a property with the property tax and after the new house comes a new car new furniture and utilities suddenly their liabilities increase endorsed by mortgage and credit card debt the couple got caught in the rat race trap add a baby to this mix and

they will work even harder income more highs that will lead to higher taxes he continues to accumulate debt eventually because of a loan to cover the financing bad habits will not change so the credit card debt remains not to mention they extended that Real Estate loan to this couple and many others the problem The real problem is not knowing how to manage money, the cause is the lack of financial proficiency and of differentiating assets and liabilities correctly. Many people do not take the time to question whether their attitudes make sense and simply follow the crowd,

eventually repeating without thinking what they it was said diversify in quotes your house is an asset the more debt the greater the tax exemption get a secure job Don't make mistakes don't assume risks as Robert and Mike spent their time sitting in Encounters with Rich Dad who built knowledge through the intelligence of the people around him, they also learned and began to question the standardized dogmas taught at their school ISO caused a problem and left them increasingly distant from his teachers Robert also began to disagree with his poor father in financial terms, especially with his

view that property is someone's biggest investment. On the other hand, Rich Dad said that your house is a liability, many people still believe that your house is an asset but Robert teaches that it is a liability because it takes money out of your pocket not only with taxes and expenses but because it depreciates and you lose opportunities if your money is all tied up in property financing and this causes you to lose the learning from the experience of investing this does not mean that you should not buy a good house but make sure you first

buy assets that will provide cash flow to pay for the property when there are enough assets to generate more income than necessary to cover the expenses this balance must be reinvested in assets which increases the asset column on a balance sheet and produces more income The result is that the rich who understand the difference between assets and liabilities become even richer the middle class gets stuck in the Rat race because you treat your home as an asset instead of investing in real income-generating assets this also happens because your salary is your primary source of income

and therefore when it increases taxes also go up, many invest in Mutual Funds paying a manager to manage their accounts because they don't have the time or experience to do it they think that Mutual Funds are guaranteed and they want this security because their balance sheets are unbalanced they can't take advantage of the opportunities because they are sunk in debt and only have their salary bringing in the money they want to get rich concentrate your efforts in purchasing Income generating assets when you really understand what an asset is reduce liabilities and expenses you will improve

your asset column So how do you know you are rich Robert uses the bookmaster definition foer wealth is the ability to person survive for the days to come or if I stop working today how long can I survive another way to state This is in quotes wealth is measured by the cash flow generated by the assets column compared to the expenses column when your assets generate enough income to cover your expenses you are wealthy even if you are not yet rich at the moment in the left hemisphere look at the numbers and learn to read

the story they tell assets put money in your pocket if something takes it away it is not an asset it is a liability at the moment in the hemisphere right the balance sheet design helps to show the flow of money according to the lifestyle of different people subconscious moment the ostracism model leads people to conform and not accept opinions arising from common sense or popular trends even if this harms them in financial terms What does Robert mean now it's time to reflect ask yourself What does Robert mean in this quote And why does he say

this in this session you don't need to agree or disagree with him the goal is to understand what Robert is saying remember- if this study session is designed to be supportive and supporting two heads are better than one if you don't understand what Robert is saying don't give up on this lesson ask for help Take the time to discuss each section until you understand it unquote no It doesn't matter how much money you make, but how much you keep your intelligence, you solve problems and generate money, money without financial intelligence disappears quickly, if you want

to build an Empire State Building, the first thing to do is dig deeply into the ground and build solid foundations, if you're going to build a house on the outskirts, everything what you have to do is sit on a 15 cm concrete slab, most people in their desire to get rich try to build the Empire State Building on a 15 cm slab, the rich acquire assets at middle and lower classes acquire liabilities thinking that they are assets if their pad is to spend everything they earn the most likely is that an increase in income will

only result in more expenses in 80% of families the financial trajectory is a journey of hard work in an attempt to get ahead not because they don't make money but because they spend their lives buying liabilities instead of assets because they don't fully understand them most people allow the enormous power of money to exercise control over them additional questions now is the time to use the story of this Chapter to understand what Robert was saying AND apply them to yourself and your life ask yourself the following questions and discuss them with your study partner Be

honest with yourself and your partner if you don't like the answers you give ask yourself whether you are willing to change and accept the challenge of transforming your thoughts and mindset question number one when did your financial education begin from this book or another source two how did you react when you first read Robert's definition of assets and liabilities three what was your reaction when he stated that your house is not an asset you thought so after his argument you changed your mind four which cash flow most represents the standard of your life five in

addition to your house there is something that you thought was an active and later revealed to be a passive six about the following statement what is missing in people's education is not learning how to make money but managing it do you agree or disagree seven Rich Dad told the boys that it's not the numbers that matter in accounting but what do they say what the numbers reveal about your life eight At what point in your life was there a seemingly positive achievement such as a promotion or a raise but that did not give your balance

sheet the expected result nine would you have enough money to survive for how many days if you stopped working today this number surprises or scares you Chapter 3 lesson number 3 take care of your business the rich focus on the assets column while everyone else focuses on their statements finance in 1974 Ray Croc founder of McDonald's was invited to give a talk to the MBA class at the University of Texas at Austin, a very dear friend of mine, Kate Cigan, was a student in this class, after a strong and inspiring presentation, the students asked Ray

if he would like to join them at a bar they frequented for have a beer Ray kindly accepted What 's my business asked Ray when everyone had their glass of beer everyone laughed Kate says most of the class thought Ray was joking no one answered and Ray repeated the question what business do you think about that I act the students laughed and finally a brave soul shouted Ray is there anyone in the world who doesn't know you're in the burger business Ray laughed I thought you were going to answer that's right he paused and quickly

added ladies and gentlemen no I work in the hamburger business my business is Real Estate Kate says that Ray spent a lot of time explaining his point of view in his business plan Ray knew that the main focus was selling hamburger franchises but he never lost sight of the location of one of them he knew that real estate and its location was the main factor in the success of franchises basically the person who buys the franchise Pays for the property in which it is situated for Ray Croc's organization 20 years ago fast forward 2017 McDonald's

7-11 and KFC become remains in the ranking as the top three franchises in the United States in total in 2016 the 200 largest franchise brands increased their sales by 2.2 per or 12.5 Billion Dollars currently McDonald's is the largest individual land owner in the world surpassing even the Catholic church, McDonald's owns some of the most valuable intersections and corners not only in the United States but also in other parts of the world Kate says that this was one of the most important lessons she received in her life today Kate owns car washes but their business

is the land beneath them the previous chapter ended with diagrams illustrating that most people work for everyone but themselves they work first for the owners of the companies then for the government when paying taxes and finally for the bank where they got their real estate financing When I was a kid there weren't any McDonald's around close however My Rich Dad taught Mike and me the same lesson that Ray Croc taught at the University of Texas lesson number three of the rich the secret is take care of your business financial problems often result in a lifetime's

work done for other people many people will arrive with nothing at the end of a lifetime of work our current education system focuses on preparing youth for jobs through developing academic skills their lives will generate around their salaries or as previously shown in the income column After developing academic skills, students move on to the highest level of education in order to develop their professional skills. They study to become Engineers, Scientists, Cooks, Policemen, Artists, Writers, etc. Their professional skills will allow them to enter the workforce and work for money. but there is a big difference between

your profession and your business, I often ask people what their business is and they say I'm a banker so I ask them if they are bank owners in general retruc No, I work for the bank in that case you're getting confused profession with business their profession may be banking but they are not yet Owners of the company One of the problems with school is that you often become what you study if you study let's say cooking you become a chef if you study law you become a lawyer and if you study car mechanics you become

a mechanic the mistake of becoming what you study is that many people forget to take care of their own business they spend their lives taking care of other people's businesses and making them rich To have financial security a person needs to take care of your business it revolves around your asset column as opposed to your income column As previously stated Rule number one is to know the difference between an asset and a liability and buy assets the rich focus on the asset column while all others focus on their financial statements the financial problems generated result

in a lifetime's work done for other people that's why we hear it so often in quotes I need a raise if I could at least get a promotion I'll go back to school to get a better job I'm going to work overtime, maybe I'll get another job I'll quit in two weeks I found a job with better pay in some circles These are sensible ideas however if you pay attention to Ray you'll see that he's still not taking care of his business all these ideas still focus the income column and will only help a person

become more financially secure if the additional money is used to acquire income-generating assets the main reason why the poor and middle class are financially conservative What it means ca n't I take risks because they don't have a financial basis they just cling to their jobs they do What is safe 20 years ago unemployment Donald trump's 2016 presidential campaign focused on jobs jobs jobs unemployment reaches record levels even though the reports portray formulas and statistics different the International Labor Organization predicts that in 2017 Global unemployment will reach 200 million people another grim possibility The Rise of

the Robots when downsizing became the trend in quotation marks millions of workers Discovered that Their Calling greatest asset their home was them eating alive their asset called house was still costing them money every month their car another asset in quotes was eating them up the golf clubs stored in the garage that had cost 000 they were no longer worth that without job security they had nothing to fall back on what they thought that were assets, not them Could help survive in a time of financial crisis I imagine that we have all filled out a registration

form to request a real estate or car loan It is very interesting to look at the net worth item in quotation marks because that is what banks and accounting practices accept As a person's asset one day my financial position did not seem very good for obtaining credit so I included my golf clubs my art collection books electronic devices Armani suits wristwatch shoes and other personal objects in order to increase the amount in the assets column the loan was however declined because I had a lot of money invested in real estate those responsible for granting loans

they don't like the fact that I get such a large part of my income from rented apartments they wanted to know why I didn't have a formal job with a salary they didn't question the Armani suits the golf clubs or the art collection life is sometimes difficult for those who don't fit the standard profile I get goosebumps every time I hear someone saying that their net worth is 1 million dollars or 100,000 or any other amount one of the reasons why net worth is not an accurate indicator is simply because in the moment you start

selling your assets your gains are taxed many people get into financial difficulties when their income is reduced they pay off loans they sell their assets but their assets can generally only be sold for a fraction of the value stated on their balance sheet or if If there is a gain on its sale it will be taxed so I repeat the government takes a portion of the gains thus reducing the amount available to help them get out of debt so however to say that someone's net worth is often quote unquote worth less than if think start

taking care of your business Keep your job but start buying real assets and not liabilities or personal objects that lose their real value as soon as they arrive at your home a new car loses around 25% of the price you pay at the time when it leaves the dealership it is not a true asset even if your bank allows you to List it among your assets my new titanium club that cost 00 became worth 50 the moment I stepped on the golf course reduce expenses and liabilities and diligently form a solid asset base for young

people who have not yet left home It is important for your parents to teach you the difference between assets and liabilities Have your children start building a sub-asset base before they leave home Get married buy a property, have children and find themselves in a difficult financial situation, clinging to a job and buying everything on credit, I see many young people getting married and finding themselves trapped in a lifestyle that does not allow them to get out of the grip of debt for most of their working life for many people when the last child leaves home

the parents realize that they have not adequately prepared for retirement and start trying to save some money then their own parents become ill and they are faced with new difficulties What type of asset is that I suggest that you or your children acquire in my world real assets are grouped into several different categories first businesses that do not require my presence I own them but they are managed by other people if I have to work on them it is not a business business becomes if a profession, second, actions, third, titles, fourth, Properties that generate income,

fifth, promissory notes, sixth, royals of intellectual properties such as music, literature and patents, and sixth, everything that has value generates income or is valued and has a liquid market, when as a boy, my educated father encouraged me to look a secure job, my rich dad, on the other hand, encouraged me to invest in whatever I liked, if you don't like your assets, you won't take care of them. I started acquiring real estate simply because I love buildings and land, I like buying them, I could spend the day analyzing properties when they come up. problems are

not so serious that they change my appreciation for Real Estate people who hate Real Estate shouldn't buy it start taking care of your business Keep your job but start with buying real assets and not liabilities I love Small Business shares especially those who are starting their activities, the reason is that I am the entrepreneur not a big business man when I was young I worked in big organizations like Standard Oil in California the United States Navy and Shero Corporation I enjoyed the time I spent there and had good memories But I knew deep down that

I was not a man of organizations I like starting companies not managing them So I generally buy shares in Small Companies and sometimes I even start the company and then take it to the market you can make fortunes by issuing new shares and I like this game Many people are afraid of Small Companies and consider them risky and in fact they are, but the risk is always lower if you like what you are investing in, understand and understand the game with small companies, my strategies are to invest and get rid of the shares within a

period of time. year on the other hand My strategy for properties is to start with little then exchange them for larger properties and therefore postpone the payment of taxes on the gains this allows their value to increase sharply I tend to keep the properties for a maximum of 7 years during years even when I was in the Navy or Xerox I did what my Rich Dad advised I stayed in my job but still took care of my business I paid attention to my assets column I traded in real estate and stocks Rich Dad always highlighted

the importance of financial proficiency the more I understood accounting and money management better I could analyze investments and ultimately build my own company I would not encourage anyone to start a new company unless they really want to know what I know about running a business I would not recommend the task to anyone in certain cases When the person doesn't get the job starting a company can be a solution, the chances, however , are diverse If you want to have your own company, go ahead, if this is not the case, stay in your job and take

care of your business. When I say take care of your business, I am referring to the formation and maintenance of a solid column of assets. money enters it, never let it leave, think this way, after entering your asset column, the money becomes your employee and should never leave there, the best thing about this is that money works without complaining 24 hours a day and you can do it for generations Keep your job be a great employee but build your asset column as your cash flow grows you can buy some luxury items an important distinction is

that the rich buy luxury items for last while the poor and middle class tend to do so earlier in the United States these people often buy luxury items such as large houses diamonds fur jewelry or boats because they want to appear rich they appear rich but are actually deep in debt people who Already with money, the rich in the long term first build their columns of assets, then with the income generated by this column they buy superfluous things, the poor and the middle class buy frivolities with their own sweat and with their children's inheritance, a

true luxury is a reward for having invested and developed an asset column For example when my wife and I earned her a higher income from our apartments she bought her Mercedes she did not do any extra work or risk her share because the properties bought the car however she had to wait for 4 years while the property portfolio grew and finally started to generate enough extra income to pay for the car but the superfluous Mercedes was a real reward because she proved she knew how to increase her asset column this car means so much more

to What a lot of people do is compulsively buy a car or other luxury good on credit, they may be feeling bored and just want a toy new buying something superfluous on credit sooner or later leads someone to resent it because the debt becomes a financial burden After dedicating your time and investing in your business you will be ready to learn the biggest secret of the rich which puts them way ahead of the crowd study session Chapter 3 lesson 3 mind your business summary in [Music] 1974 a friend of Robert attends a talk by Ray

Croc about the fame of McDonald's at the University of Texas at Austin after which Ray agreed to join the listeners at his favorite place for a beer he asked the students what business sector he was in. First they laughed and then They responded that their business was hamburgers Of course, but Ray said they were wrong, his business was real estate, he knew that the land and location of each franchise were the main factors for success, currently McDonald's is the largest property owner of the world, dominating some of the most valuable corners and intersections around the

globe, Robert's friend took the lion seriously and today he owns a car wash, but his business is the property in which they are located, many people work for others, their employers, the government, like taxes and the bank their financing Ray Croc and Rich Dad knew it was lesson three of the rich take care of your business don't waste your whole life working for other people there is a big difference between your profession and your business Robert often asked What is your business ? need their own business many people spend their lives taking care of other

people's business and letting them rich take care of their business It doesn't mean starting a company as many people think In fact your business involves the assets column not the income column promotion or A better job will only help your financial stability. If you use the extra money to acquire income-generating assets, the main reason why the middle and lower classes are conservative from a financial point of view is that they do not have good knowledge in the area they need. clinging to their jobs and the idea of ​​security they are unable to take risks and

when difficult times arise what many people realize is that their assets will not help them survive a financial crisis the car has depreciated in value those golf clubs too with Too often what the bank allows a person to consider as an asset on a financial statement is not a legitimate asset normal but They accepted that Robert lists his suits an art collection and other personal assets as if they were assets net worth is not measured as people think many assets considered assets with which people measure their wealth are not as valuable as they think or

if they acquire value will trigger Taxes on them when sold so Robert tells people to start taking care of their own business keep their formal job But start buying legitimate assets not liabilities or personal property that loses value after acquisition reduce expenses and liabilities and build diligently a consistent asset base parents need to educate young people before they leave home so they will understand what a legitimate asset is and avoid the debt traps Robert says that legitimate assets are found in the following categories businesses that do not require my presence I own them but they

are managed by other people if I have to work on them it is not a business it becomes a profession shares securities Real estate that generates income promissory notes intellectual property royals such as music Literature and Patents and everything that has value Generate income or Value yourself and have market liquidity acquire assets you love Robert is passionate about Real Estate So he spends a lot of his time analyzing and buying if you don't like real estate don't Invest in it Robert Also Loves shares and Small Businesses because he is an entrepreneur some are afraid of

risk of start-up companies but he sees them as places to produce wealth his strategy is to exit the Stock Market after a year His Real Estate strategy on the other hand is to start at the bottom and continue trading until he reaches the Large Properties and defer Taxes on the gains by keeping the property for a maximum of 7 years, even when he worked for the Navy and Xerox Robert was already taking care of his business, he maintained his formal work but moved his ATIV column, negotiating real estate and small shares, the more he understood

accounting and financial management, the better he analyzed investments and eventually take care of your company he does not recommend that people start a business unless they really want to on the other hand advises keeping formal work while building your company build and maintain a substantial asset column as cash flow grows people can If you surrender to certain frivolities but only your cash flow can afford them, consolidate the asset column and let the income-generating assets pay for your luxuries . them right hemisphere moment think critically about what your business is it is not your profession subconscious

moment acquire assets that you are passionate about because that way you will take better care of them and have fun learning about them What Robert means now it's time to reflect ask yourself What does Robert mean in this quote And why does he say it in this session you don't have to agree or disagree with him the goal is to understand what Robert is saying remember this session is a study session it is designed to be supporting and supporting two heads are better than one if you don't understand what Robert is saying don't give up

on the lesson ask for help Take the time to discuss each lesson and quote until you understand them unquote To have financial security a person needs to take care of their business the rich focus on the assets column while everyone else focuses on their financial statements financial problems often result in a lifetime of work done for other people many people will arrive with nothing at the end of a lifetime of work one of the reasons why net worth it is not an accurate indicator it is simply because the moment you start selling your assets your

gains are taxed if money enters it never let it leave think this way after entering your asset column the money becomes yours employed and should never leave the place the best of all is that money works without complaint 24 hours a day and can do so for generations an important distinction is that the rich buy luxury items last while the poor and the middle class tend to do so before the poor and middle class buy frivolities with their own sweat and with their children's inheritance unquote additional questions now is the time to use the stories

in this Chapter to understand what Robert was saying AND apply them yourself and your life ask yourself the questions below and discuss them with your study partner Be honest with yourself and your partner if you don't like the answers you give ask yourself if you are willing to change and accept the challenge of transform your thoughts and mentality question number one What is your profession and business how do they differ two what do you list in your net worth before reading this Chapter how do you see it now three the assets you acquire are the

type that most If not, how can you change that four Have you ever purchased something superfluous that your cash flow cannot afford and you purchased it after you were able to compare how you felt in both situations both at the time of purchase and afterwards fifth a people in your family who spend their entire lives working for others only to end up with nothing as you would advise them if you could Chapter 4ro lesson 4ro the history of taxes and the power of corporations My Rich Dad was just smarter and used corporations anonymous the biggest

secret of the rich I remember hearing the story of Robin Hood at school My teacher thought it was a wonderful story about a romantic hero like Kevin Costner who stole from the rich and gave to the poor. My rich dad didn't see Robin Hood as a hero, he called him a trickster. Robin Hood may have disappeared a long time ago, but his followers endured How many times do I hear people say why the rich don't pay for this or the rich should pay more taxes to serve the poor? This idea of ​​Robin Hood or taking

from the Rich to give to the poor is what causes the greatest suffering for the poor and for society. middle class the reason why the middle class pays such heavy taxes is in the Robin Hood ideal in fact the rich are not taxed it is the middle class that pays for the poor especially the educated upper middle class again to understand well how everything happens we need to adopt a historical perspective We have to know the history of taxes my very educated father was an expert in the history of education already My Rich Dad became

an expert in the history of taxes Rich Dad explained to Mike and me that Originally in England and the United States there were no taxes were levied from time to time, occasional taxes were levied to finance the wars, the king or the president announced what had happened and called on everyone to split the expenses, in quotation marks, taxes were levied in Great Britain to finance the fights against Napoleon from 1799 to 1816 and in the United States to finance the civil war between 1861 and 1865 in 1874 England instituted a permanent income tax for its

citizens in 1913 the income tax became permanent in the United States with the adoption of the 16th amendment to the constitution for a certain time the North- Americans were against taxes, it was the excessive tax on tea that led to the famous tea party in Boston Harbor, an incident that helped trigger the revolutionary war, which took about 50 years in both England and the United States to consolidate the idea of ​​a routine income tax what this historical data does not reveal is that In both cases the taxes were initially levied on the rich this is

what Rich Dad wanted Mike and I to understand he explained that the idea of ​​taxes became popular and was accepted by the majority, passing on to the poor and middle class the idea that they were created to punish the Rich, that's how the masses voted in favor of the Law and it became constitutionally valid, although it was designed to punish the rich, in reality it ended punishing those people who voted in his favor This is the poor and the middle class when the government got a taste of money their appetite increased said my Rich Dad

your father and I are diametrically opposed he is a government bureaucrat I am a capitalist as the more he spends and the more people he hires the bigger his organization will be in the government the bigger his organization the more it will be respected on the other hand within my organization the fewer people I hire and the less I spend the more respect I will get from my investors that's why I don't like government people they have different goals than most business people as the government grows bigger and more tax dollars will be needed to

support it my educated father sincerely believed that the Government should help people I liked John Kennedy especially the idea of ​​the Peace Corps He liked this idea so much that he and Mom worked for the Peace Corps training volunteers for Malaysia, Thailand and the Philippines, he was always fighting for additional donations and an increase in the budget so that he could hire more people both in his position in the education department and in the Peace Corps My Rich Dad didn't see Robin Hood as a hero he called him a crook since I was 10 years

old I heard my Rich Dad say that government officials were a bunch of lazy thieves and My Poor Dad he said that the rich were criminals both sides had valid arguments it was difficult to work for one of the biggest capitalists in the city and to get home where his father was a prominent government leader it was not easy to know who to believe 20 years ago the rich are not taxed the rich will never be taxed every We increasingly see governments using tax laws to incentivize entrepreneurs and investors to create jobs and housing. These

incentives reduce taxes on the rich, so the middle class is the only place where the government can boost tax revenue. taxes appears an interesting perspective As I already said, the approval of taxes was only possible because the masses believed in the Robin Hood theory of economics which was to take from the Rich and distribute it to others. The problem is that the government's appetite for money was so great that soon the taxes needed to be levied on the middle class and from then on it also started to affect the poor, the rich, on the other

hand, saw this as an opportunity . the rich created it as a vehicle to limit the risk of assets on each trip the rich put their money into a joint stock company to finance the trip the joint stock company then hired a crew to go to the new world in search of treasure if the vessel got lost crew lost their lives but the loss for the rich was limited only to the money invested in each trip the following diagram shows how the structure of the corporation is outside of its personal income statement and its balance

sheet narrator's notes below This text there is another figure the personal financial statement and the personal balance sheet There are two quadrants one for income and the other for expenses in the personal balance sheet an arrow leaves assets and goes to income in the Business financial statement and then goes through expenses and then goes to income again in the personal financial statement there is an arrow from expenses to expenses in the Business financial statement you were unable to understand this image you can access the link in the description where you will be taken to the

Blog ot.com bblog There you will find the pdf of this book for download as well as all the images in the correct time of this audio so that you can understand and have a better immersion in the book end of notes the text continues is the recognition of the Power of the legal structure of the corporation that gives the rich a great advantage over the poor and the middle class having two parents teaching me one socialist and one capitalist I quickly realized that the philosophy of the capitalists made more sense to me in financial terms

I had the impression that the socialists ultimately punished themselves as a result of their lack of education It didn't matter what the rich tire class invented, they always found a way to beat it and in this way taxes ended and the middle class, the rich managed to beat the intellectuals only because they understood the power of money, a topic not addressed by the School How the rich took after the intellectuals when the Tax Take from the Rich was implemented the money started flowing into the government coffers initially people were happy the money was passed on

to the government employees and for the rich it went to the employees of the for the form of jobs and pensions went to the rich when companies received government contracts the government became a great source of money but the problem was the fiscal administration of these resources the government's policy was to avoid having excess money if it could not spend the received money you risked losing it in the next budget there would certainly be no recognition for you if you were efficient businessmen on the other hand are rewarded for the money left over and recognized

for their efficiency as this cycle of increasing public expenditure continued to demand for money increased and the idea of ​​taking away from the rich now adjusted to include lower income levels reaching those who had voted in favor of taxes, the poor and middle class, true capitalists applied their financial knowledge to simply find a way to escape They turned to the protection of their corporation, but what many people don't know is that a corporation is not something concrete, it is simply a folder of files with some legal documents kept in a lawyer's office and registered with

a public body it is not a building with the name of a company it is not a factory or a group of people a corporation is simply a legal document that creates a legal body without a soul, the fortunes of the rich were once again protected, joint-stock companies became popular because the income tax rate on them was lower than that applicable to natural persons. Furthermore, certain expenses could be deducted from the taxable income in the joint-stock company, this war between the privileged and the devald have been going on for hundreds of years the battle is

fought every time laws are discussed and will always continue the problem is that the people who lose don't have information if they understood the way the rich play they could also play then they would be on their way of their financial independence, that's why I get goosebumps every time I hear a father advise his son to study in order to get a good, secure job. The employee in these conditions has no escape. Today, the average North American works for months for the government. before you have earned enough to pay your taxes In my opinion that

is too long the harder you work the more you pay to the government that is why I believe that the idea of ​​taking away from the rich ended up being a shot at Catra for those who voted for it all Since people tend to punish the rich, they not only do not obey, they react, they have the money, the power and the intention to change things, they do not sit around voluntarily paying more taxes, on the contrary, they look for ways to minimize their tax burden, they hire competent lawyers and accountants and convince politicians to

change laws or create legal devices they have the resources to make changes The United States Tax Code also offers other ways to reduce taxes many of these instruments are available to anyone but it is generally the rich who take advantage of them because they take care of their business for example 131 is jargon for session 1031 of the Internal Revenue Code which allows a seller to defer the payment of Taxes on the Capital gain resulting from the sale of a property if it is exchanged for a more expensive property, if you continue to increase your

wealth by exchanging properties, your gains will not be taxed until the transaction is settled. People who do not benefit from this legally permitted tax savings are missing a great opportunity to expand their column of assets 20 years ago the lion the lion will take everything you allow ultimately the tax system is fair as it levels everyone in the same situation if you are willing to invest the laws tax laws will work in your favor if you want just spending money and buying liabilities they won't cut you any slack and you're likely to pay as much

tax as possible the poor and middle class don't have the same resources they sit back and let the government stick the needles that drain the money into their arms. your blood today has been shocked by the number of people who pay more taxes or take fewer deductions simply because they are afraid of the government and I know how terrifying and intimidating a government tax agent can be I have friends whose businesses were closed and destroyed only to find out later that it was a government error, I am aware of all this , but the price

of working from January to mid-May is too high for this intimidation. My poor father never rebelled, nor did my rich father, he was just smarter and used the limited companies to biggest secret of the rich if you work for money you give the power to your employer if the money works for you the power and control are yours you will remember the first lesson I learned from my rich dad I was a 9 year old boy who had to sitting waiting until he decided to talk to me I sat in his office waiting for him

to answer me he ignored me on purpose he wanted me to recognize his power and wish I had it one day during all the years I studied and worked with him he always reminded me that knowledge is power and with the With money comes more power which requires the right knowledge to maintain it and make it multiply without that knowledge the world beats you down Rich Dad always reminded Mike and me that the biggest tyrant was not the boss or supervisor but the Leo if you let the tax man SEME will take more from you

the first lesson regarding making money work for me instead of working for money is actually all about power if you work for money you give the power to your employer if money works for you the power and control is yours the moment we gain this knowledge of the Power of money working for us Rich dad wanted us to become financially smart and not let tyrants intimidate us you need to know the laws the way how the system works if you are Ignorant it is easy to be intimidated if you know what you are talking about

you have a chance of Winning that is why he paid so much to lawyers and accountants specializing in taxation it was less expensive to pay them than the government the best lesson that gave me and which I have used for most of my life is Be intelligent and you will not be oppressed he knew the law because he was a citizen who respected it if you know you are right you will not be afraid to defend yourself even if you are facing Robin Hood and his gang every dollar in my asset column was a great

employee trying hard to multiply himself and buy his boss a new Porsche my educated father always encouraged me to get a good job and in a big company he talked about the advantages of climbing the corporate ladder he didn't I understood that depending only on the salary of a boss I would be cattle heading meekly towards slaughter When I told my Rich Dad about My Poor Dad's advice he chuckled Why not being the boss of the hierarchy was all I said I was a boy and I didn't understand what my rich dad meant by making

me the owner of my company, it was an idea that seemed impossible and scary, although the idea excited me. My youth didn't allow me to envision the possibility that adults would one day work for a company I owned. I would be the owner, the important thing is that if it weren't for my Rich Dad, I would have probably followed my educated father's advice, it was just the occasional memory of my Rich Dad who kept the idea of ​​having my own company alive, which made me follow a path different when I was already 15 or 16

years old I knew I couldn't continue the path that my educated father recommended I had no idea how to do it but I was willing not to go in the direction in which most of my peers were heading this decision changed my life 20 years ago the master of the pecking order today as technology changes the way we work and do business I talk to more and more people who wonder how I can become an owner of the pecking order capitalism is thriving and the free market system means that entrepreneurs who offer a better product

at a more affordable price have a good chance of success in my early 20s, my Rich Dad's advice started to make sense, I had left the Navy and was working at Sharx, I was earning very well, but each Every time I looked at my paycheck I felt disappointed the deductions were huge and the more I worked they got bigger as I became successful my bosses talked about promotions and raises it was flattering but I could hear rich dad whispering in my ear who are you working who are you making rich in 1974 I was still

at sharx I created my first limited company and started taking care of my business there were already some assets in my assets column but now I was determined to focus on a bigger market these paychecks full of deductions justified all the advice my rich dad had given me over the years I saw the future that awaited me if I followed my educated father's advice Many employers are wary of advising their employees to mind their own business I'm sure this may be true for certain people but in my case the attention given to my business to

increase assets made me a better employee now I had a goal I arrived early and worked diligently gathering all the possible money to be able to start acquiring Real Estate Hawaii was starting to grow and there were fortunes to be made the more I realized the early stages of expansion the more Xerox machines I sold the more I sold the more money I made and naturally the more deductions appeared on my paycheck it was inspiring it was so eager to escape the trap that I worked more not less around 1978 I used to occupy one

of the top five places among salespeople Sometimes the first one was dying to get out of the Rat race in less than 3 years I made more in my small business a Queen's real estate company at sharx and the money I made in my assets column my company was money that worked for me it wasn't me knocking on doors to sell copiers my Rich Dad's advice made more sense right away the cash flow of my properties allowed my company to buy my first Porsche my fellow salespeople at Xerox thought I was wasting my commissions I

wasn't I was investing them in assets my money was working hard to make more money every dollar of my asset settlement was a great employee trying hard to multiply himself and buy his boss a new Porsche to be deducted from taxable income I started working more for sharx the plan was working and my Porsche was the proof by applying my rich dad's lessons I was able at such a young age get out of the proverbial rat race of being employed and this was possible given the solid financial knowledge gained from these lessons without this knowledge

which I call financial IQ my path to financial independence would have been much more difficult now I share it with others through From seminars everything I learned I remind listeners that financial IQ is made up of four major areas of knowledge first accounting is what I call Financial proficiency or the ability to read numbers a Vital skill if you want to build the empire let alone money it is your responsibility but caution is required or the house falls apart it is the left side of the brain in action or attention to detail financial proficiency is

the ability to read and understand financial statements which allows you to identify the strengths and weaknesses of any business two investment what I call the science of quote-unquote money that makes money involves strategies and formulas that use the right side of the brain or the creative side three market understanding the science of supply and demand the need to know the technical aspects of market what is related to emotion s beyond the fundamental and economic aspects of investment the investment is justified or not based on competing market conditions four the law a corporation has the technical

accounting devices and the investment and markets can allow a explosive growth a person with knowledge of the tax advantages and protection offered by a corporation can become rich much more quickly than someone who is simply an employee or sole owner of a business is like the difference between someone who walks and a person who can fly the difference is very profound when it comes to long term wealth tax advantages a corporation can do many things that an individual cannot how to pay expenses before taxes this is a very exciting area of ​​specialization employees earn and

the tax is deducted at source , so they have to try to survive with what is left over. their own investments are expensive, they generate a good cash flow, for example, if you are the owner of a limited company, your holidays can be board meetings in Hawaii, car payments, insurance and repairs are company expenses, the gym membership fee is also Most restaurant meals can be considered an expense and so on But do it legally before paying tax protection against lawsuits We live in a litigious society everyone wants a part of your money the rich hide

a large part of their fortune through limited liability companies and trust funds to protect their assets from creditors when someone sues a rich person they come across often with layers of legal protection and finally discover that the rich person actually owns nothing the rich control everything but own nothing the poor and middle class try to own everything but lose to the government or citizens who like to sue the rich they learned from the story of Robin Hood take from the rich give to the poor it is not the purpose of this book to go into

the details of the ownership of a corporation but if you own any type of legitimate asset I would suggest you think as soon as possible to find out more about the protection and benefits offered by a limited liability company There are many books on the subject that will even show you the steps necessary to form it garet suton's books narrator's notes the name garet suton is complex to say and I don't have the certainty of its originality therefore I will sol letter garrett space stton end of notes the text continues Garret suon's books on joint

stock companies provide a wonderful insight into their power financial IQ is actually the synergy of various skills and talents but I would say which is a combination of four technical skills mentioned previously and which constitute basic financial intelligence if you aspire to a great fortune it is the combination of these skills that will increase your financial intelligence summary business owners of the limited liability company one earn two spend three pay taxes limited liability company workers one earn two pay taxes three spend as part of your overall financial strategy I strongly recommend that you pool your

assets under the umbrella of a limited liability company est session Chapter 4 lesson 4 the history of taxes and the power of limited liability companies summary many people see Robin Hood like a hero taking from the Rich and giving to the poor Rich Dad does not share this opinion he calls Robin Hood a cheat although the Popular feeling is that the rich should pay more taxes and give to the poor in reality the middle class who are highly taxed especially the educated and high-income portion to understand how this happens Robert explains A Brief History of

taxes in England and the United States Originally there were no taxes, only occasional temporary contributions to cover situations such as the war in 1974, England made income taxes permanent for their citizens in the United States, the land where the tea tax led to the Boston Tea Party and helped spark the Revolutionary War, the adoption of the 16th Amendment in 1913 decreed the permanence of the Income Tax, these countries achieved majority support regarding the taxes Because initially they were levied only on the rich, however, although the income tax was designed to punish the rich, it ended

up punishing those who voted for it, the middle and lower classes, Rich Dad explained that he and Poor Dad were once diam metrically opposed Poor Dad, as a government employee, was rewarded if he spent money and hired people to expand his company, but for Rich Dad, the fewer people he hired and the less money he spent, the more respected he was for his investments. And as the government expands, the amount increases. AD needed money from taxes to support him Poor Dad truly believes that the Government should help people He and Robert's mother worked for the

Peace Corps training volunteers to go to Malaysia Thailand and the Philippines they were always looking for more subsidies and bigger budgets to hire more people for Robert it was a challenge to work for one of the biggest capitalists in the city and going to the home of a prominent government leader it was not easy to decide which father to believe over time as Robert studied the history of taxes he observed an interesting prospect as the government's financial appetite grew over the taxes needed to be imputed to the middle class and from there they trickled down

until they reached the poor, but the rich saw an opportunity there because they don't play under the same rules . legal structure of joint stock companies has given people a sweeping advantage and allowed them to be smarter than intellectuals the government's aim is to avoid excess money if you don't spend your allocated Funds you run the risk of losing them in the next budget businesspeople for on the other hand are rewarded for excess money and applauded for efficiency and as the government maintains its objectives of spending more and more money more taxes now only on

the middle class and eventually on the poor have become necessary a joint stock company is just a document that creates a legal institution is not something material a factory or a group of people but it allows for a lower Income Tax rate than individuals would have and certain expenses can be paid by the Corporation with a pre- tax profit if those who get up to work at their jobs and pay taxes would only understand how the rich act In this game they would too The problem is that the harder you work at a job the

more you will pay the government taxes punish the same people who voted for it attempts to tax the Rich rarely work because they find ways to minimize their Tax Burden, one of which is section 131 of the internal revenue code, which allows a seller to pay taxes on a property sold if is subsequently exchanged for a more valuable property as this trade appreciates in value You will not be taxed on the gains until you liquidate them Those who do not take advantage of this savings miss the chance to build their asset column during all the

years Rich Dad mentored Robert tried to teach you that knowledge is power and with money comes the main power that requires the exact dexterity to manage and multiply it without this wisdom the world beats you down the lion is a bully who will have more and more if you admit not allow this by making your money work for you Astute consultants and lawyers are worth the cost they are cheaper than paying the government not knowing the law is expensive in his early 20s when he was in the Marines and working at Robert was disappointed with

how much was debited from his paycheck this motivated him to build his first limited company in 1974 and work harder in his formal job to accumulate as much money as possible to invest in real estate he became one of sharx's top salespeople And in less than 3 years he generated more income in his real estate company than in Sherrock his business bought him his first Porche proof that the plan was working the lessons he learned from Rich Dad helped him get out of the proverbial rat race at an early age and he wants to help

others achieve the same financial or financial intelligence is what makes this possible It is made up of four skills accounting which is Financial proficiency or the ability to read numbers and evaluate the strengths and weaknesses of a business investment which is the science and strategies about money money that makes money market understanding which is the science of supply and demand and market conditions and finally the law which is incentives and tax exemptions understanding these Legal advantages are crucial when thinking about long-term wealth, for example, a corporation can pay its expenses before paying taxes, but the

employee does the opposite by paying the expenses with what remains, meetings in Hawaii for installments and car insurance and associations. of Leisure clubs can be paid for pre-tax by a limited company they also provide legal protection against lawsuits when someone sues a wealthy individual often comes across many layers of legal protection and thinks that this individual does not actually own you are welcome they control everything but own nothing Robert calls on those with legitimate assets to find out more about the benefits of exemptions from limited liability companies Garret suton's books are among the many options

that can help summary limited liability company entrepreneurs earn, spend and pay taxes Workers in public limited companies earn, pay taxes and only spend time there. Left Hemisphere accounting is proficiency Financial or the ability to read numbers is the Vital skill if you want to build the empire when there is a lot of money under your responsibility more dexterity is needed or the house falls right hemisphere moment investment is the science of in quotes money that makes money involves strategies and formulas that use the creative side of the brain subconscious moment market understanding is the science

of supply and demand you need to know the technical aspects of markets that are driven by emotions beyond the fundamental economic characteristics of an investment What does Robert mean now it's time to reflect ask yourself What does Robert mean in this quote And why does he say this in this session you don't have to agree or disagree with him the goal is to understand what Robert is saying remember this study session is designed to be supportive and supportive two heads are better than one if you don't understand what Robert is saying don't give up on

the lesson ask for help Take the time to discuss each quote until you understand them my rich dad was just smarter and used corporations the biggest secret of the rich actually the rich are not taxed it is the middle class that pays for the poor especially the educated upper middle class every time people they try to punish the rich they not only don't obey but they react they have the money the power and the intention to change things they don't sit around voluntarily paying more taxes if you work for money you give power to your

employer if the money works for you the power and control is yours a person with knowledge of the tax advantages and protection offered by a corporation can get rich much more quickly than someone who is simply an employee or the sole owner of a company is like the difference between someone who walks and a person What can fly , employees earn and taxes are deducted at source, so they have to try to survive with what's left over. A limited liability company spends everything it can and pays taxes on what's left. worth additional questions now is

the time to use the stories in this Chapter to understand what Robert is saying And apply them to yourself and your life ask yourself the questions below and discuss them with your study partner Be honest with yourself and with your partner if you don't like the answers you give ask yourself if you are willing to change and accept the challenge of transforming your thoughts and mindset question number one do you agree with Rich Dad's opinion that Robin Hood was a trickster if yes or no why Two taxes have increased the problem of government expenses three

do you think members of the middle and lower classes realize that the burden of taxes falls on them what are the effects of this four their philosophies tend more towards capitalism or capitalism socialism What are the pros and cons of each of these systems C the rich are right to use the advantages of corporations to avoid paying taxes do you think more people could join this scheme if they understood it better six In what specific ways would you You could benefit from using a limited liability company for your assets So, creative, how is your creativity

in good times and bad, if you've made it this far it's because you're in the middle of the book and I want to know what your experience has been like Don't forget to give your opinion here in the comments about the book and the audiobook and if you, like me, like to smell the new pages of a book, here in the description there is a link where you can buy a copy on Amazon and the message channel also helps Let's go back to reading Chapter 5 lesson number 5 the rich invent money many times in

the world It's not really the smart ones who take the lead, but the bold ones. Last night I took a break from writing and went to watch a television program about the story of a young man called Alexander Grell, as soon as Bell patented the telephone, he found himself in Ades growing in function of the great demand for his new invention, needing to expand his activities, he approached the Giant of the time, Western Union, to ask if there was interest in purchasing his patent and his small company, he wanted $1,000 for the entire package, the

president of Western Union mocked him and refused the offer stating that the price was ridiculous the rest is history A multi-billion dollar industry emerged and at&t was born when Alexander granbell's story ended the nightly news came among the news was the cost reduction of another local company the workers were furious and complained that the company owners were being unfair, a fired manager aged around 45 was at the factory with his wife and two children asking the guards to let him in to speak to the owners to ask them to reconsider his dismissal he had just

bought a house and I was afraid of losing her the camera focused on her complaints so the whole world could see I don't need to say that this caught my attention I have been teaching professionally since 1984 it has been a very rewarding experience and also a disturbing activity as I have been teaching to thousands of people and I see something in common in all of us we all have tremendous potential and we have been blessed with gifts however the only thing that holds us back is insecurity it is not so much the lack of

information but rather the lack of self-confidence Some are more affected than others When we leave school, most of us know that what counts is not so much the title we get or the grades we get in the real world outside of academia, something more is needed than simply good grades courage cunning Boldness tenacity and vivacity this factor Whatever name we give it is ultimately more decisive for our future than the grades obtained throughout our studies within each of us there are some of these characteristics there is also the reverse of The same people who, if

necessary, knelt down in supplication, after spending a year in Vietnam as a Navy pilot, I came to know these two aspects intimately within myself, none of them are better than the other, however, as a teacher, I recognize that they are excessive fear and lack of self-confidence. the great great obstacles to the manifestation of personal genius, it broke my heart to see students who knew the answers and yet did not have the courage to put them into practice, often in the real world it is not the smart ones who take the lead but the bold ones

in my personal experience financial genius requires both technical knowledge and boldness if the fear is too intense the genius is extinguished in classes intivo Students learn to take risks to be bold and to let their genius convert fear into power and brilliance works for some and it scares others I ended up realizing that most people when it comes to money prefer security I had to answer questions like why take risks why bother developing my financial IQ why become financially proficient and the answer is to have more options there are big changes ahead of us I

started with the story of the young inventor Alexander Grambell in the coming years there will be more people like him there will be hundreds of people like Bill Gates and extremely successful companies like Microsoft being created every year around the world and also there will be a lot more bankruptcies, layoffs and cost reductions So why worry about developing your finances? No one can answer that but you, but I can tell you why I do it, I do it, because this is the most exciting time to be alive, I prefer to welcome the change that fearing

it I prefer to be excited about the possibility of earning millions than worry about not getting a pay rise the period we find ourselves in is breathtaking it is unprecedented in world history future generations will look back on this time and see what an exciting period an we live will have been the death of the old and the birth of the new will have been tumultuous and exciting 20 years ago opportunity the list of successful business stories continues to grow and names like Jobs zucken Berg bezos and bran are recognized around the world startups like

Uber are in vogue in the Land of Opportunities in a globalized economy So why worry about developing financial IQ Because if you do you can prosper a lot and if you don't this will be a terrifying period it will be a time when people move boldly forward while others cling to decadent ways of life 300 years ago wealth was the land so that whoever possessed it possessed wealth then factories and production appeared and the United States gained dominance industrialists were the owners of wealth Today it is information and the person who has the information at

the right time will have the wealth The problem is that information flies around the world at the speed of light the new wealth is not restricted by limits and borders as happened with factories the changes will be more accelerated and dramatic there will be a impressive increase in new billionaires and there will also be those who are left behind I see many people with difficulty working harder simply because they cling to the old ideas they want everything to be as it was before they resist change I know people who are losing their jobs and their

homes and who they blame technology, the economy or their boss, unfortunately they didn't understand and don't realize that they themselves could be the problem. obsolete ideas are their biggest liability because people simply can't realize that that idea or way of doing something was an asset today and today it no longer makes sense one afternoon I was teaching how to invest using a board game, Cash Flow, which I invented with a teaching tool, a friend had taken an acquaintance with him to attend the class, this acquaintance had recently gotten divorced, being greatly harmed by the deal

made and now she was looking for answers her friend thought the class could help her you can play classic Cash Flow online at www.richdad.com and learn how money works narrator's notes I believe this website is important for you therefore I'll spell it www.ri dad.com end of notes text continues The game was created in order to help people understand how money works by playing they learn the interaction between the financial statement and the balance sheet they learn how money flows between the two and how the path to wealth Depends on increasing the amount generated monthly by

the asset column to the point that it exceeds our monthly expenses once you reach this point you Leave the Rat Race and enter the fast track As some people said hate the game others love it and some don't understand it this woman lost a valuable opportunity to learn right at the beginning of the game she took out a card with a boat at the beginning she was happy oh I got a boat so when her friend tried to explain to her how the accounts of her financial statement and her balance sheet she became frustrated because

she had never liked mathematics the rest of the players at her table waited while her friend explained to her the relationship between financial statement balance sheet and monthly cash flow she suddenly realized how the numbers matched and that the speedboat was eating her alive In the course of the game she was also hit by cost cutting and had a son for her it was a terrible game after school her friend approached me and said that she was upset out to the class thought Pando about learning to invest and didn't like the time spent playing a

silly game. His friend tried to get him to analyze whether the game didn't reflect in some way his way of acting, like this suggestion, the woman asked for the money back, saying that the mere the idea that the game could have anything to do with her was ridiculous her money was quickly returned and she left since 1984 she made millions simply by doing what the education system doesn't do at school most teachers do lectures I hated this method When I was a student, I got bored and my mind started to slow down in 1984 I

started teaching through games and Simulation, I always encouraged adult students to think of games as a reflection on what they already know and what they still need to learn, more importantly, games reflect behavior, they are systems of Instant feedback instead of a teacher giving an exposition to the student, the game gives him back a personalized, tailor-made exposition, games reflect behavior are instant feedback systems, the friend of the woman who left called me later telling me what was happening He She said that her friend was fine and had calmed down but calmly, she began to see

some connections between the game and her life, although she and her husband didn't own a boat, they had everything you could imagine, she was furious after the divorce because he had left her for a younger woman and for the fact that in 20 years of marriage they had accumulated few assets there was almost nothing to share the 20 years of marriage had been a lot of fun but all they had accumulated was a lot of junk She realized when doing the accounts, the financial statement and the balance sheet that her anger stemmed from the fact

that she did not understand them, she believed that finances were a man's business, she took care of the house and social life and her ex-husband took care of the finances, now she was sure that that in the last 5 years of marriage he had hidden money from her he was furious with himself for not having seen where the money went and for not having discovered the existence of his lover in the same way as a board game the world is always giving us instant feedback We would learn a lot if one day not long ago

I complained to my wife that the laundry must have shrunk my pants. She smiled kindly and poked my stomach to show me that the pants hadn't shrunk. Something had expanded. Cash Flow game was designed to offer each player personal feedback its objective is to present options if you draw a card that puts you in debt the question is what can I do now how many different financial options can you imagine This is the aim of the game to teach players to think and create new and varied financial options thousands of people in the world play

this game those who get out of the Rat race faster are those who have a good knowledge of numbers and A creative mind from a financial point of view recognize the different financial options The rich are often creative and take calculated risks. The people who take the longest are those who are unfamiliar with numbers and who often do not understand the power of investment. Play Classic Cashflow online at www.richdad.com which will make you know your true behavior there are a lot of people who earn loads of money in the game Cash Flow but don't know

what to do with it, most of these people are also not successful in finance in real life, everyone seems to get ahead of them. There are many who, despite the amount of money, who have do not progress financially limiting their actions is the same as clinging to outdated ideas I have a friend from high school who works three jobs 20 years ago I was the richest in my class when the local sugar factory closed down in that he worked for broke down with it in his head he only had one option and it was the

traditional one to work hard the problem was that he couldn't find a job that recognized his experience in the bankrupt company as a result he has a higher qualification than what is required for the current job and his salary is therefore lower so he works three jobs to survive I have observed people who play Cash Flow complain that the cards do not offer them the right opportunities and so they become stagnant I know those who do this in real life wait for the right opportunity I have observed people who had the right card but don't

have enough money Then they complain that they could have gotten out of the Rat Race if they had more money and so they are stuck in real life to anyone who does the same All the big Big Businesses come but they don't have the money and I've seen people draw a card with a great opportunity, read it out loud and have no idea what it was about, they have the money and the letter, the time is opportune but the chance that's in front of them doesn't come, they can't see how that fits into your financial

plan to get out of the Rat Race and yet the ones that look like all of these types combined most have a unique opportunity right in front of them and can't see it a year later they find out that everyone else has gotten rich financial intelligence is simply have more options if opportunities don't appear in front of you what else can you do to improve your financial position if an opportunity falls from the sky you don't have money and the bank doesn't pay attention to you what else could you do to make this opportunity work?

in your favor if your guess was wrong it's not exactly what happens but how many different financial solutions can you imagine to turn lemons into millions it's your creativity at the service of solving financial problems most people only know one solution work hard save and take out loans So why do you want to increase your financial intelligence Why do you want to be the kind of person who makes your own luck you take whatever comes your way and the improvement lives few people realize that luck is created in the same way as money and if

you want to have more luck and create money instead of working hard your financial intelligence is important now if you are the type of person who waits for the right things to happen Maybe waiting for a long time is like waiting for all the traffic lights to turn green 5 km before we started the trip when we were kids and I heard my rich dad say that money is not real in quotes Rich Dad Every now and then he would remind us that how close we got to the secret of money that first day we

started doing it with plaster the poor and the middle class work for money it said the rich make money the more real you think money is the harder you will work for it if you realize that money is not something tangible you will get rich quickly so what is it was the question which Mike and I would repeat, if it's not real, the most powerful asset we have is our mind, if well trained, it creates unprecedented wealth, what we agree to is, was everything that Rich Dad said, the most powerful asset we have is ours.

A well-trained mind creates unprecedented wealth in what seems like an instant. An untrained mind can also create extreme poverty that will destroy families for generations. In the information age, money grows exponentially . and agreements if you ask many people who survive trading stocks or other investments will say this happens all the time often millions can be made instantly out of nothing and by saying nothing they mean there is no money being exchanged everything is done by an agreement a signal trading manual an indication on the screen of a broker in Lisbon originated by one in

Toronto and who returns to Lisbon a phone call to my broker to buy and another immediately afterwards to sell the money does not change hands the agreements yes so why develop your financial genius only you can answer this I can only say that I have been developing This area in my intelligence I do it because I want to make money quickly not because I need it but because I want it is a learning process Fantastic I develop my financial IQ because I want to participate the greatest game in the world and in my simple way

I would like to be part of this unprecedented evolution of humanity The era in which human beings do not work with their bodies but only with their minds In fact the action and that's what's happening is fantastic It's scary and it's fun that's why I invest in my financial intelligence by developing the most powerful asset I have. I want to be among the people who boldly take the lead in life. I don't want to be among those who are left behind 20 years ago because savers are losers in the decade of 1970 we could, in

quotation marks, guarantee Our entry into retirement, savings accounts had double-digit returns, which could really increase our wealth, these days interest rates have already been added to negative rates or Below Zero Today, many banks charge savers to save their money and those who save actually I'm going to give you a simple example of money creation in the early 1990s. Fenix's economy was in a deplorable situation. I was watching a television program when a financial advisor started predicting days of doom and darkness. His advice was to save yours. money set aside $1 per month he said in

40 years you will be a multimillionaire well making a monthly savings is a valid guideline It is an option that most people embrace the problem is this it blinds us to what happens around us we lose it if there are great opportunities for a greater gain, the world passes away from those who choose this path, as I said, the economy was in a deplorable situation at that time for investors. This is the perfect market condition, part of my money was invested in shares and Real Estate, there was little money in my hands when everyone was

getting rid of their things I was buying I didn't save I invested my wife Ken and I had more than 1 million dollars working in a market that was growing quickly it was the best opportunity to invest the economy was in a bad situation I couldn't let those small deals pass by houses worth $1,000 were now being offered for 75,000 But instead of buying at the local real estate agency I started buying at the bankruptcy lawyer's office or in front of the courthouse in those places a 75,000 house could be purchased for 0.000 or less

with 2000 that a friend lent me for 90 days and charges of 200 gave the lawyer a check as a down payment while the acquisition was being processed I placed an ad in the newspaper offering a house worth 7$75,000 for 6,000 with no down payment phone calls poured in after checking the registration of potential buyers and the house was passed into my name, interested parties were able to see it, it was crazy in a few minutes the house was sold, I asked the buyer for $500 as a processing fee, which was paid immediately and then

the transaction went into my hands from the finance company I returned the 2,000 to my friend with an additional 200 he was happy the buyer of the house was happy the lawyer was happy and I was happy I sold a house for 0,000 that cost me 0,000 the 40,000 were created with the money that was in my assets column in the form of a buyer's IOU total working time 5 hours so now that you are financially proficient and can read numbers I will show you Why this is an example of money being invented 0.000 appears

in the asset column money is created no taxation with 10% interest 4,000 per year in cash flow not additional to income narrator's notes just below this text there is a photo with the financial statement in two tables and the balance sheet also in two tables the financial statement there is the table of income and expenses in the expense table the captions taxes and financing in the balance sheet table in assets at 40,000 in promissory notes and liabilities 0.000 of financing there is a basket that takes the table of assets 0.000 in promissory notes to the

income table in the financial statement end of notes text continues in this phase of the bear market Kim and I made six of these simple transactions in our spare time while the bulk of our money was invested in larger properties and stocks we were able to create over $10,000 in promissory assets at 10% interest from of these six transactions, in quotation marks, buying, creating and selling, this represents an annual income of approximately 9,000 dollars, much of which is sheltered under the umbrella of Our limited liability company, the majority of these 19,000 dollars per year were

mainly intended to pay for our company's cars, gasoline, travel, insurance dinners with clients and the like when the government taxes this income has already been spent on legally deductible expenses what would your income be if the government took 50% in taxes narrator's notes there is another image right after this text in the financial statement there is an arrow that goes from employment until income with the caption income salary goes to expenses in taxes and the arrow ends in balance sheet in the asset table as savings end of notes the text continues how long would it

take to earn 4,000 This was a simple example of how money is invented created and protected using financial intelligence ask yourself how long it would take to save 0.000 the bank would pay you 10% interest on that money and the promissory note is for 30 years I hope they never pay me the $10,000 I would have to pay taxes if they paid me the main part And in addition 19,000 paid over 30 years generate an income of just over 500,000 I've seen people ask What would happen if the buyer didn't pay this happens and it's

also good that 0.000 house would have been repossessed and resold for 0.000 plus another 2,500 as processing expenses it would still be a good deal for a new buyer and the process would continue if you remember the first time you sold this house you must have seen the 2,2,000 Technically I didn't put any money into the transaction my return on investment o Hoy it is infinite This is an example of a lot of money being made from nothing in the second transaction when I resold it I would have spent 2,2000 from my pocket and renewed

the loan for 30 years what would have been Roy if I received money to make money I I don't know, but without a doubt it is much more than what would be obtained by saving $1 every month, which in fact ends up being equivalent to $50 because it is an income already deducted from taxes for 40 years and again the investment is taxed, it's not something very smart may be safe but it is not smart 20 years ago crises there were three major crises in the last 30 years the first was from 1989 to 1990

when real estate depreciated more than ever before the second was from 2001 to 2002 when the bubble.com burst and the third in 2008 and 2009 the turn of the real estate markets each of them created an opportunity to create money a few years later as the real estate market in Fênix strengthened those houses that we sold from 0,000 turned into 11 110,000 the execution opportunities of real estate financing were still available but they had become rare, going out to look for them would cost a valuable asset my time thousands of buyers were looking for the

few deals still available the market had changed it was time to move on and find other opportunities to invest in asset column you can do this here it's against the law you're lying I hear these comments much more often than you can show me how to do it the math is simple you don't need algebra or calculus finance takes care of the legal side of the transaction and from payment control, I don't need to fix roofs or plumbing because the owners take care of that. It's their house. Every now and then someone doesn't pay and

that's a good thing because there are fines. Or they move and the property is sold again. the judiciary takes care of this it may not even work in your region market conditions may be different but an example illustrates how a simple financial process creates hundreds of thousands of dollars with little money and low risk is an example of money being just a contract anyone with secondary education can do this however many do not follow the standard advice work hard and save money with about 30 hours of work approximately 0.000 were created in the assets column

without paying taxes which seems more complicated to you work hard pay 50% in taxes save What remains your savings yield 5% which are also taxed or dedicate yourself to developing your financial intelligence master the power of your brain and asset column if you choose the first option calculate how much time it will take to save 0.000 time is one of the your greatest assets now you can understand why I silently shake my head when I hear parents say in quotes my son is doing very well in school and is getting a good education It may

be good but it is adequate 20 years ago gone were the days of earning 5 % in savings those were the days a lot has changed over 20 years and today much of what used to be a good advice has become obsolete like milk that has been kept for too long money saving advice has gone sour I know this investment strategy is simple it was used to show how small can turn into something big again my success reflects the importance of a substantial financial supply What starts with good financial literacy I've said before but it's

worth repeating financial intelligence is made up of these four technical skills first accounting accounting is financial proficiency or the ability to read numbers This is a vital skill if you want to build a business or investing second investment investment is the science of money that makes money third understanding of the market the science of supply and demand Alexander grell gave the market what it wanted Bill Gates did the same a house worth 7 75,000 offered for 0.000 and which cost 20,000 was also the result of noticing an opportunity created by the market someone was buying

and someone was selling four the law knowledge of state and national law and regulations regarding accounting and business I recommend playing within the rules are the basic fundamentals or the combination of these skills that what you need to be successful in the pursuit of wealth whether by buying and selling small properties apartment buildings companies stocks bonds funds precious metals baseball cards or things like that a few years later the real estate market had recovered and everyone was getting into it the real estate market Stocks were on the rise and the same thing was happening, the

US economy was back on its feet I started selling, I traveled to Peru, Norway, Malaysia and the Philippines, investments had changed, we were out of the real estate market, I just watched the value of the asset column increasing and probably I would start selling I suspect that some of these small Real Estate Businesses will start to be sold and converted into cash I need to consult my accountants and prepare to liquidate them and look for ways to protect the money what I want to emphasize here is that investments come and markets go if economies go

down, they improve and go into crisis, the world is always presenting you with unique opportunities every day of your life, however most of the time we are unable to perceive them. But they are there and the more the world changes and technology progresses, the greater opportunities will exist to allow you and your family to be Secure for generations to come So why develop your financial intelligence I repeat only you can answer that I know because I continue to learn and develop because I know that changes are on the way I prefer to welcome the change

of I want to cling to the past, I know that there will be market expansions and crises, I want to continually develop my financial intelligence because with each transformation some people will be on their knees begging for their jobs, others will take the lemons that life gives them and it gives them to all of us. occasionally and they will turn them into Millions This is financial intelligence I am often asked about the Lemons that I turned into Millions but I succeed in using more examples of personal investments because I am afraid that it will look

like bravado or self-affirmation that is not my intention I use the examples only as a numerical and chronological illustration of cases Concrete and simple I use my examples because I want you to know that it is easy it becomes easier as you become familiar with the four pillars of Financial Intelligence I personally employ two main vehicles for achieving financial growth Real Estate and Small Business shares , real estate is the basis of my day, my real estate generates cash flow and every now and then its value increases, shares are used to achieve rapid growth, I

don't recommend anything I do, the examples are just examples if the opportunity is very complex and I don't understand the investment I don't do everything you need to achieve financial success it's simple math and common sense there are five reasons to use examples first inspire people to learn more second explain that everything is easy If the basis is consistent third show that anyone can achieve great wealth fourth teach that there are millions of ways to achieve your goals fifth show that it is not as complicated as it may seem in 1989 I used to run

in a beautiful area of ​​Portland Oregon a Suburb with beautiful houses they looked like dolls, they were small and beautiful, I almost expected to find Little Red Riding Hood on the sidewalk on her way to grandma's house, the log market was in crisis, the Stock Market had just collapsed and the economy was in recession on a street I noticed a poster that seemed to have been up for longer than the others, advertising the sale of a colored house there. One day I met the owner of the house who looked worried about how much he wanted

for the house. I asked him, the owner turned around and gave a dejected smile make an offer he said it's been for sale for a year and no one else seems to see it I'll look I said and half an hour later I bought the house for 20,000 less than the asking price Originally the problem with investments in quotes Insurance is that They are often airtight, i.e. so safe that profits are reduced. It was a beautiful little two-bedroom house with wooden decorations on all the windows. It was blue with gray details and was built in

1930. Inside, a stone fireplace. A perfect house. to rent it I made a down payment of 000 for a house worth 45,000 but it was really worth 65,000 although no one wanted to buy it the owner vacated it within a week, happy to get rid of it and soon my tenant arrived, a teacher from the local school after pay the mortgage and miscellaneous expenses, I was left with $4 at the end of each month, nothing very exciting, a year later, the depressed Oregon real estate market began to recover, California investors were flush with cash from

their still booming real estate markets, they moved to the north and bought properties in Oregon and in Washington I sold a house for 95,000 to a Californian couple who thought they were in for a bargain. My capital gain of around 0.000 was used in an application supported by session one 1031 which refers to tax deferral under capital gains and started looking for a place to invest in a month I found a building with 12 apartments near the Intel factory in Beaverton Oregon its owners lived in Germany and had no idea how much the place was

worth and again only they wanted to get rid of the property I offered 275,000 for a building that was worth 400 50,000 we closed at 300,000 I bought it and kept it for 2 years using the same property exchange process with deferred taxation my wife and I sold the building for 495,000 and bought another with 30 apartments in Phoenix Arizona Kim and I moved to Phoenix to get out of a crisis and we would have to sell it anyway the price of the 30 apartment building was 875,000 with a down payment of 225,000 the cash

flow resulting from renting the 30 apartments was just over 5,000 a month, the real estate market in Arizona began to rise and a few years later an investment from Colorado offered us 1,200 thousand for the property, this example shows how it is possible to transform a small sum of money into a much larger one, I repeat, it is a the issue of understanding financial statements, investment strategies, feeling the market and knowing the laws, if people are not versed in these topics, they will tend to follow the standard Dogma which is to seek safety, diversify and

only invest in Safe investments, the problem with Safe investments is that many Sometimes they are airtight or so safe that profits are reduced most brokers will not touch a speculative trade to protect themselves and their clients and that is a wise policy the really hot deals are not offered to newbies usually the best deals that make the rich even richer are reserved for those who understand the game it is technically illegal to offer someone who is not considered sophisticated these speculative deals but naturally it happens the more sophisticated I become the more opportunities come my

way another argument for developing your financial intelligence by throughout your life is simply that the more opportunities are presented to you and the greater your financial intelligence the easier it is to recognize a good business the more I learn and there is a lot to learn the more money I earn simply because over the years I accumulate experience and wisdom I have friends who trap themselves in security by working hard in their professions and are unable to acquire financial wisdom that takes time to develop in general my Philosophy is to plant seeds in my assets

column this is my formula we start with little and we plant seeds , some develop, others do n't . have benefited from a rapidly rising market and higher taxes we have traded several times over the years we also have a portfolio of stocks housed in a company that my wife and I call our personal mutual fund we have friends who do business especially with investors so that every month we have extra money to invest, we buy shares of speculative high-risk privately held companies that are close to being listed on the United States or Canadian stock

exchange. An example of how it is possible to make quick gains is 100,000 shares purchased to 25 cents just before the company went public if months later the company was listed on the stock exchange and the 100,000 shares are now worth two dollars each if the company is well managed the value will continue to rise and the price per share may reach 0 or more there was occasions when our 25,000 turned into 1 million in less than a year if you know what you are doing you are not playing the game is when you put

money into a business and pray that it works out the important thing is to use technical knowledge, wisdom and love of gambling to minimize risks naturally there is always some risk it is financial intelligence that increases the chances so what is very risky for one person is less risky for another this is the main reason why I always encourage people to invest more in their financial instructions than in shares Real estate or other markets the smarter you are the more likely you are to reduce risks if you know what you are doing You may not

be playing a game it is when you put money into a business and Pray for the shares in which I invest to be successful they are extremely risky for most people and I in no way advise them to do so I have been in this game since 1979 I have made mistakes and learned from them but if you learn Because such investments are a high risk for most people you will be able to organize your life differently so that the ability to Take 2 5,000 and turn them into 1 million in a year is low

risk for you as I said previously nothing I wrote is a recommendation they are examples of what is simple and possible what I do It's small in the scheme of things, but for an average individual, an income of $1,000 a year without putting in much effort is nice and not too difficult to obtain, depending on the market and your financial independence, it can be achieved in a period of 5 to 10 years if you maintain your current expenses At a modest level $1,000 as additional income is good no matter if you work formally you can

work if you want or take long vacations and use the tax system to your advantage and not against you my personal basis are I love real estate because it is stable and changes slowly, I maintain this solid base, the cash flow is constant and if it is managed properly there is a good chance of valuing itself. The beauty of a strong base in real estate is that it allows me to take a little more risk with the speculative shares that I buy if I have large profits in the Stock Market, I pay tax on capital

gains and sell what is left in real estate, thus guaranteeing the foundation of my assets, a last word about real estate, I have traveled all over the world teaching how to invest in In every city I hear people say that there are no cheap properties, that's not my experience, even in New York or Tokyo or even on the outskirts of the Bargain cities that most people despise in Singapore, which is currently seeing a rise in property prices yet It is possible to find bargains in places not too far away, so whenever I hear someone tell

me you can't do that here, I respond that perhaps the appropriate statement is I don't know how to do that here, yet the great opportunities are not seen with your eyes, but with your mind, a lot People will never get rich simply because they don't have the financial training to recognize opportunities that are right in front of them. I often get asked how I start. Great opportunities are not seen with your eyes but with your mind. In the last chapter I show 10 steps to follow along the way. for my financial independence but I always

remember that it needs to be fun it's just a game sometimes you win sometimes you learn but have fun most people never win because they are afraid of losing that's why school is so foolish in At school we learn that mistakes are bad and we are punished for making them however if you pay attention to the way human beings learn you will see that we learn by making mistakes we learn to walk by falling if we never fall We walk the same valley to ride a bike I still have scars on my knees but today

I ride my bike automatically the same goes for getting rich unfortunately the main reason why most people are not rich is because of their fear of losing Winners are not afraid of losing but losers are failures are part of process of Success people who avoid failures also avoid successes think about money in a similar way to my game of tennis I make a lot of mistakes I correct mistakes but I correct them again and improve my game if I lose I go to the net and shake hands with my opponent I smile and say until

Saturday there are two types of investor the first and most common are people who buy a hermetic investment they look for a Retailer be it a real estate agency a broker or a financial consultant and buy something it could be a mutual fund a Real Estate investment fund shares or bonds is a very clear and simple way of investing it can be compared to people who go to the store and buy a computer straight off the shelf two the second world are investors who create investments this investor in general organizes the business in a similar

way to people who buy the components and show their computer is something bespoke I don't know how to put together computer components but I know how to put together opportunities or I know someone who does it's this second type that is more likely to become a professional investor sometimes they are necessary so that put all the pieces together and sometimes you never achieve that, my rich dad encouraged me to be this type of investor, it is important to learn how to put the pieces together because that is where the big gains are and if the

tide is adverse, the big losses if you want to be the second type of investor needs to develop three main skills find the opportunity that others miss you see with yours what others see with their eyes for example a friend bought a house falling apart it was scary to look at it everyone wondered about him he had bought what he saw and what we had not seen was that the purchase of the house included four more lots of empty land, he checked this with the registry office after buying the house, he demolished it and sold

the five lots to a Builder for three times what he had paid he earned 75,000 in 2 months of work it's not a lot of money but without a doubt it's much more than a minimum wage and there aren't many technical difficulties raise money ordinary people just go to the bank this second type of investor needs to know where to raise funds and There are many ways to do it without going to the bank. To begin with, I learned how to buy properties without needing the bank, not so much for the properties but for learning

how to get money, which is priceless, very often I hear people say the bank won't give me one loan or I don't have money to buy it if you want To become an investor of the second type you will need to learn to do what hinders many people, in other words most people let the lack of money prevent them from closing a deal, if they can avoid this obstacle they will be years ahead of those who have not learned these skills, many times purchasing a house shares or a residential building without having a penny in

the bank once I bought a building for 1.2 million what I did is called tying the transaction with a written contract between buyer and seller so I got what I needed to pay the deposit $1,000 which allowed me 90 days to raise the rest of the money because I did this I simply knew the building was worth 2 million dollars I didn't withdraw the money instead the person who deposited $1,000 gave me 50,000 for finding the building took over my position and left the business total working time TRS Days I repeat What you know counts

more than what you buy investing is not buying it is more a case of getting to know gather smart people smart people are those who work with or hire someone else knowledgeable than they are when they need guidance make sure you choose your Advisor wisely there is a lot to learn but the rewards can be astronomical if you don't want to learn these skills then It is advisable to be a first class investor your greatest wealth is what you know your biggest risk is what you don't know there is always risk so learn to manage

it instead of avoiding it study session Chapter 5 lesson C the rich invent money summary Robert presents two contrasting examples first the story of Alexander granbell overwhelmed by the demand for his invention and trying to sell his company to West Union for $1,000, Western Union didn't see the opportunity and turned it down and a multi-billion dollar industry emerged the second example is the television report on the cost reduction of a local company and a cocky manager begging on camera to get his job back he had just bought a house and was terrified of losing it

fear and insecurity are in all of us Robert has been teaching professionally since 1984 how to understand this in thousands of individuals including himself We all have tremendous potential and we all have insecurities boldness can make a difference in leading a successful life Robert says that as a teacher it breaks his heart to see students who know the answers but have the fear of making them real developing financial genius requires technical knowledge as well as courage take risks be fearless let your genius convert fear into power and vivacity advice that will frighten some because many

seek security when it comes to their money There are many transformations to come in our world and developing your financial IQ allows you to perceive this future of changes with the eyes of enthusiasm not fear you will see the opportunities and take advantage of them in contrast to those who let their fears hold them back The Margins watching those who advance fear fears wealth 300 years ago was the land later wealth was in factories and production lines today information is the treasure but information flies around the world at the speed of light and transformations will

be faster and more drastic there will be an exponential increase in number of multimillionaires there will also be those left behind some cling to obsolete ideas when they find themselves in conflict they blame technology or the economy what they fail to see is that old concepts are their biggest liabilities an idea or way of acting that was an asset yesterday is no longer today Robert shows the example of a woman who went to one of his classes and taught with the board game that created Cash Flow, the game teaches people how money works and the

interaction between financial statement and balance sheet some people love the game others hate it and those who don't understand it the woman in your example had trouble understanding that things she normally saw as an asset like a boat negatively affected her cash flow she pulled some challenging cards and made a horrible game at the end was ada and wanted a refund refusing to see how the game reflected her games are a powerful way to teach as they reflect behavior and are instant feedback systems later Robert talked to the woman who was upset she calmed down

and began to realize the tenuous relationship between the game and her life in which she did not pay attention to her finances and those of her ex-husband and had problems with this. The purpose of the Cash Flow game is to teach players how to think and create new and varied financial possibilities some do it easily others have difficulties those with a creative financial mindset escape the rat race faster some of the players wait some get a card with a good opportunity but don't have the money to put it into practice and others have money as

a good card but do not see the possibilities that this gives all these behaviors happen in the real world also financial intelligence comes down to simply having more options discovering ways to create opportunities or transform situations to make them favorable Luck is produce it for what is really happening and makes it miss more relevant growth opportunities at the beginning of 1990, the economy in Fenix ​​was catastrophic Robert and his wife King took advantage of this by investing in real estate, he gave an example of a house that it was worth 75,000 bought for 0,000 using

2,000 as payment for a loan a friend had given him with charges of 200 a month while the purchase was being processed He published an ad for the house worth 75,000 for 60,000 with no down payment as soon as the house became legally his he took it sold in minutes everyone was happy 4,000 were created from the money in Robert's asset column in the form of a promissory note from the buyer at 10% interest 4,000 per year in cash flow were added to income total working time 5 hours and if eventually the buyer can't pay

They simply take the house back and resell it the math still beats the savings made with the money left over each month this is legal the Escrow company generates the payments and Robert and King don't have to deal with fixing roofs or bathrooms because the owner of the house is the buyer years later the Fenix ​​market strengthened and it wasn't worth just spending your time to discover offers so they moved on maybe the market conditions are different in your location then the strategy may not work for you but the example shows how a simple financial

scheme can create hundreds of thousands of dollars with little money and minimal risk is a sample of how money can be just a deal you prefer to work hard pay taxes and save what is left with any increase in income being taxed or spending time to develop your financial intelligence the markets have high lows and the same happens with investments the world is always handing you opportunities throughout your life you just need to be able to see them Robert shares another example of buying a house for $45,000 in the failed market in Portland, Oregon, renting

it out for a small profit, but a year later the market warmed up and he sold it for $95,000, reinvesting the capital gain in a residential condominium for $ 45,000. 12 apartments in Beaverton in Oregon also two years later he sold it and the proceeds were put into a 30 apartment building of 875,000 in Fenix ​​years later an investor offered 1.2 Million Dollars for the property is an example of how a small amount of money can become much larger the more you develop your financial intelligence What takes time the more opportunities will appear for you

Robert's philosophy is to plant the seed in the asset column start small and plant seeds some grow others not many break down into Millions of small investments Robert and kin also T a portfolio of shares in which they buy self-risk speculative private companies that are about to go public is risky but the greater your financial intelligence the lower the risks become the smarter the better are the chances of taking advantage of opportunities some may argue that there are no real estate bargains Where are they but Robert says that prime opportunities are everywhere being overlooked Many

people are not financially trained to recognize the possibilities right in front of them as they develop the your finances and put this into practice remember to have fun Sometimes you win Sometimes you lose but always have fun Don't be afraid of losing because failing is part of a successful process there are two types of investors the first ones are those who acquire airtight investments from a point of sale as a financial planner and according to those who create them also known as professional investors if you want to be the second type of investor you must

develop three skills the first of finding opportunities that others miss the second of raising money and the third manage people and hire those who are smarter than you there is always risk So you must learn to manage them instead of avoiding them left hemisphere moment small amounts of money can grow with smart investments made at the right time right Robert always encourages adult students to see games as something that shows what they already know and what they need to learn more importantly games reflect behavior they are instant feedback systems instead of the teacher teaching reading

games give an interpretation of text personalized tailor-made for you subconscious moment We all have gigantic potential and we have all been blessed with gifts but something that prevents us from using them is insecurity it is not a gap in technical information that does this but a lack of self-confidence What Robert I mean now it's time to reflect ask yourself what Rob means in this quote And why does he say this in this session you don't need to agree or disagree with him the goal is to understand what Robert is saying remember this study session is

designed to be supportive and supporting two heads are better than one if you don't understand what Robert is saying don't give up on the lesson ask for help Take the time to discuss each quote until you understand them unquote often in the real world they are not the smart ones who take the lead but the bold ones as a teacher, I recognize that excessive fear and lack of self-confidence are the biggest obstacles to the manifestation of personal genius. It broke my heart to see students who knew the answers and yet did not have the courage

to put putting them into practice obsolete ideas are their biggest liability because people simply cannot realize that that idea or way of doing something was an asset yesterday and today it no longer makes sense the rich are commonly creative and take risks calculate So why you want to increase your financial intelligence Why do you want to be the kind of person who makes your own luck the most powerful asset we have is our mind if well trained creates unprecedented wealth in what seems like an instant An untrained mind can also create extreme poverty that will

destroy families for generations if the opportunity is too complex and I don't understand the investment I don't do everything you need to achieve financial success it's a simple theme and common sense the problem with investments in quotes Insurance is that often they are airtight, in other words, they are so safe that the gains are reduced if you know what you are doing you are not playing a game it is when you put money into a business and pray that it works out the great opportunities are not seen with your eyes but with your mind your

greatest wealth is what you know your greatest risk is what you don't know unquote additional questions now is the time to use the stories in this Chapter to understand what Robert was saying And apply it to yourself and your life make yourself the questions below and discuss them with your study partner Be honest with yourself and your partner if you don't like the answers you give ask yourself if you are willing to change and accept the challenge of transforming your thoughts and mindset first question Robert says that it's not a gap in technical information that

holds us back but a lack of self-confidence At what point in your life or someone else's life did insecurity stop you from taking advantage of a great opportunity question number two some people have a lot of money but don't progress financially why does this happen three how developing your financial intelligence helps you understand if a trade is good four Robert's philosophy is to plant the seed in the asset column by starting small and selling big how are you planting seeds in your asset column now if you are not like could train yourself to start five

Robert lists two types of investors: those who buy hermetic investments and those who create them. What type are you? This is the type you want to be ? opportunities what you can do to overcome this fear in the future Chapter 6 lesson work to learn not for money job security was everything for my educated father for my Rich Dad it was learning years ago I gave an interview to a Singapore newspaper young reporter arrived on time and immediately began the interview we sat at the reception of a luxurious hotel we had coffee and talked about

the objective of my visit to the city I was supposed to share the stage with Zig ziglar he would talk about motivation and I would talk about the in quotes Secrets of the rich I would like one day to be a bestselling author like you said, I had already read some of your articles in the newspaper and I was impressed, you had a strong style and of course your articles attracted the reader's interest, you have a great style, I replied, what stops you from achieving your dream seems like I can't go any further, she replied

calmly, everyone says my novels are great but nothing happens so I stay in the newspaper At least it's enough to pay the bills, would you have any suggestions, yes, I replied excitedly, a friend of mine has it here in Singapore a course that teaches people how to sell he gives sales training courses to the main companies in that city and if you attended one of them your career could benefit a lot she was surprised you are saying that I should learn to selling I shook my head yes, you're serious I nodded again what's wrong with

that now I was backing off she was offended by what I said I would rather not have said anything in my attempt to be helpful I started to defend myself suggestion the reporter said to me I have a master's degree in English Literature Why would I attend a sales course I am a professional I went to university so I wouldn't be a saleswoman I hate salespeople they only think about money tell me why am I going to study sales she started to arrange her things the interview had ended on the table in front of the

sofa was a copy of a best seller that I had published, I took the book and some notes that she had made on a pad, see this, I said, pointing to her notes, she looked at the pad, what did she say confused again I pointed to your notes on the pad I wrote Robert Kosaki author of Best Sellers here he says bestselling author doesn't say best writer I said calmly his eyes immediately widened I'm a terrible writer you're a great writer I attended sales courses you have a master's degree put the two things together and

you will have a bestselling author and a good writer, her gaze was furious, I will never stoop so low as to learn how to sell people like you, sir, there is no point in writing, I was professionally trained to write and you, to sell, no That's fair, he was exasperated, he put away the rest of his notes and bolted through the wide glass doors into the damp Singapore morning, at least the next morning, his reporting was balanced and favorable, the world is full of smart, talented, educated and qualified people, we met with them all days

are all around us a few days ago my car was having problems I went into a workshop and the young mechanic fixed it in a few minutes he knew what was wrong just by the sound of the engine I was amazed I am always shocked to realize how little talented people earn I heard the other day that less than 5% of North Americans earn more than 100,000 a year, I have already met very educated, brilliant people who earn less than 20,20,000 a year, a commercial consultant specializing in the health sector told me that many doctors

dentists and chiropractors have financial difficulties until then I thought that when they graduated the dollars rained it was this consultant who told me that they lack one skill for them to achieve greatness what this means is that many people just need to learn and master one more skill to your income will increase exponentially have I already mentioned that financial intelligence is a synergy between accounting, investment, marketing and law, combine these four technical skills and making money with money will be easier when talking about money, the only skill that most people know is working harder classic

example of this synergy was the young journalist if she actively learned sales and marketing skills her income could increase dramatically if I were her I would take some advertising writing courses in addition to sales So instead of working at the newspaper I would look for a job at a advertising agency even if her salary was reduced she would learn to communicate synthetically as is done so successfully in advertising she would also learn public relations an important skill she would learn how to get millions in free advertising Then at night and on the weekends she would

write her great novel when had finished she would have been better able to sell her book and so in a short time she could have become a bestselling author 20 years ago why education fails many teachers They have no practical experience they have not actually lived what they teach they have made mistakes they have learned from them or applied this experience as they practiced and improved schools teach us to read and memorize I believe that studying in quotes is the key to implementing what we learn Kim and I met with our counselors several times a

year and chose books to read and study together as the learning cone in chapter one shows discussing and interacting are great ways to learn when I published my first book if you want to be rich and happy don't go to school if you want to be rich and happy don't go to school an editor suggested that I change the title to the economics of education I said that with a title like this I would only be able to sell two copies one to my family and one to my best friend the problem is that they

would expect to win it the aggressive title if you want to be rich and Happy don't go to school was chosen because I knew that way I would get tons of Advertising I am in favor of education and I believe in Educational reform otherwise Why would I continue to insist on changes to our outdated education system so I chose a title that would allow me to go on more television and radio shows simply because of the controversy many people thought I was crazy but the book sold very well you must know a little about everything

it was Rich Dad's suggestion when I graduated from the academy in the United States merchant marine in 1969 my educated father was happy Standard Oil of California had hired me into their Fleet of tankers I was a third mate and the pay was low compared to my colleagues but it was a good job for a new My starting salary was around 4,42,000 a year including overtime and I only worked for 7 months I had 5 months of vacation If I wanted I could have gone to Vietnam with a subsidiary shipping company and I could have

easily doubled my salary instead of resting on vacation, I had a great career ahead of me, but I resigned 6 months later and went to the United States Navy to learn to fly. My educated father was devastated. My Rich Dad congratulated me in both school and professional contexts. fashion for specialization This is to earn more or obtain a promotion it was necessary to specialize that is why doctors begin their residency immediately in a specific area such as orthopedics or pediatrics the same applies to accountants architects lawyers pilots and others my educated father believed in the

same Dogma was excited when he finally completed his doctorate he often admitted that schools rewarded people who study more and more about less and less rich dad encouraged me to do exactly what opposite You must know a little bit of everything was the suggestion that's why for years I worked in different areas of his companies for a while I worked in the accounting department although I would probably never become an accountant he wanted me to learn by OSM moose O Rich dad knew I would pick up the jargon and a sense of what's important and

what's not. I also worked as a busboy and as a construction worker as well as in sales, reservations and marketing, he was preparing Mike and I insisted that we sat down to watch his Meetings with bank directors, lawyers, accountants and competitors, he wanted us to know a little about every aspect of his empire when my high-paying job at Standard Oil, my educated father had a serious talk with me, he was perplexed, he didn't understand my decision to leaving a career that offered a high salary, great benefits, lots of time off and opportunities for promotion, when

he asked me one night why he quit, I couldn't, no matter how much I tried to explain it to him, my logic didn't fit with his, the big problem is that my logic It was my rich dad's job security was everything for my educated dad for my rich dad it was learning my educated dad thought I had gone to the course to learn how to be a nautical officer Rich dad knew I was there to studying international trade while studying, I transported cargo, sailed on large cargo ships on passenger ships through the Far East and

the South Pacific. Rich Dad encouraged me to sail around the Pacific instead of going to Europe because he knew that the emerging nations were in Asia and not on the old continent, most of my classmates, including Mike, still attended parties at their fraternities and I was already studying commerce, people, business styles and cultures in Japan, Taiwan, Thailand, Singapore, Hong Kong, Vietnam, Korea, Tahiti, Samoa and the Philippines, I also attended parties, but not in fraternities quickly my educated father couldn't understand why I had quit my job and joined the United States Navy, I told him I

wanted to learn to fly but I really wanted to learn how to command troops Rich Dad had explained to me that the hardest part of leading a a company is people management he had spent 3 years in the army my educated father had been released from military service Rich Dad told me about the value of learning to lead people in difficult situations leading is what you need to learn now he said if you are not a good Leader will be shot in the back as happens in business when I returned from Vietnam in 1973 I

left although I loved flying I got a job at Shark Corporation I went there for a reason and it wasn't the benefits I was quite shy and the idea of ​​selling seemed like the scariest thing in the world Sharx has one of the best sales training programs in the United States Rich Dad was very proud of me My educated father was embarrassed, being an intellectual, he considered salespeople to be beneath him I worked at Sherrock for 4 years until I overcame the fear of slamming doors and being rejected by permanently reaching a place among the

top five salespeople I resigned and moved on, leaving behind another great career in a great company to be employed is to be Stuck in debt in 1977 I formed my first company Rich Dad had prepared Mike and I to take over companies so now I needed to form them and get them up and running. My first product, a nylon and velcro wallet, was manufactured in the Far East and shipped to a warehouse in New York near the school that I attended my formal education was complete and it was time to test my wings if I

failed I would be bankrupt Rich Dad thought it was better to go broke before I was 30 You still have time to recover was his advice on the eve of my 30th birthday the first shipment left Korea for New York today I still do international business and as rich dad encouraged me I look for emerging countries currently my investment company covers countries in South America and Asia in addition to Norway and Russia there is a pun which defines well unquote being employed is being stuck in debt unquote Unfortunately I would say this applies to millions

of people as the school does not think that financial intelligence is intelligence most workers live within their means work and pay the bills 20 Years Ago Who Are Your Teachers One lesson from Rich Dad that has become crystal clear over the last 20 years is the importance of choosing teachers who have actually accomplished what you want the other terrible management theory that says employees work just enough to not get fired and employers pay just enough so that workers don't leave and if you look at the salary scale of most companies you will say that there

is a certain truth in this statement the practical consequence is that in general workers do not progress they do what they were taught to do to get a secure job most employees focus on salaries and benefits that pay them in the short term but are often disastrous in the long term I recommend that young people look for jobs for the learning opportunities more than that based on what they can receive, it is necessary to see what skills they want to acquire before choosing a specific profession and falling into the rat race. Once trapped in a

process of permanently paying bills, people become little hamsters running around in their cages with their little legs furry girls run agitated the wheel spins furiously But day comes day comes they are still in the same cage great job in the movie Jerry mcgear the big turn with Tom Cruz H great catchphrases Perhaps the most memorable is show me the money but the other phrase that seems more kingon Cruz appears on the scene and is leaving the company he has just been fired and asks the whole company who wants to accompany me and everyone remains silent

and petrified only one woman stands up and says I would like to but in three months I will be promoted to affirmation is probably the most true of the entire film, it's the kind of phrase people use to keep working in order to pay their bills I know my educated father waited for his annual raise and every year he was disappointed so he went back to school to become more qualified in hopes of getting another raise but again suffered disappointment 20 years ago the main fear It bears repeating the main fear of Americans as they

get older is outliving their money, many retirement plans have changed to a defined benefit plan versus a defined contribution with a maximum limit on the Total amount changing the rules of retirement planning and those of welfare programs I often ask people Where is this daily activity taking you like the little hamster I doubt people look at where your hard work is is taking what the future holds for him in his book the retirement myth in free translation Craig S carpel writes I visited the headquarters of a large national consultancy company specializing in retirement and spoke

with an administrative director who was planning exuberant plans for executives when I asked her what ordinary people could expect to receive in retirement she said with a confident smile the silver bullet what is the silver bullet I asked she shrugged her shoulders and said do baby boomers find out they don't have enough money to live on When they are older they can always shoot themselves in the head carpel continues explaining the difference between the old defined benefit plans and the new scheduled contribution plans which are riskier is not an encouraging picture for most people who

are currently working and that is only retirement when you add medical expenses and nursing homes for the elderly the picture becomes terrifying So many hospitals in countries where medicine is socialized they already face dramatic dilemmas such as who will stay alive and who will die They make these decisions Based on the budget and the age of the patients medical care is intended for the youngest patients the oldest patient remains until the end in line just as the rich can afford an education they can also stay alive while those with little fortune die 20 years ago

medical costs are rising people are living longer and healthcare is becoming more and more expensive drug manufacturers charge more and insurance companies pay less almost everyone feels the budget squeeze although the specifics and statistics vary most research finds that bankruptcies in the United States result from uncontrolled medical costs So I think are workers focused on the future or is the concern just the next paycheck without any questioning about what will come later when I talk to adults who want to earn more money I always give the same advice I suggest they think long term instead

of working simply for the money and security which I admit are important I suggest If you want to acquire sales skills, some of these companies have excellent training programs that help people move up the ladder . fear of failure and rejection which are the main reasons why people's Mai Maia are not successful education is worth more than money in the long run when I offer this suggestion I often hear Oh is this too much work or do I just want to do the What interests me about the first answer? So you prefer to spend your

life handing over 50% of what you earn to the government? As for the second observation, I say I'm not interested in going to the gym, but to feel better and live more, unfortunately, the truth in Old saying you can't teach an old dog new tricks unless the person is used to reinventing yourself It's hard to change but for those who are still on the fence about the idea of ​​working to learn something new I offer this word of encouragement living is like going to the gym the hardest part is deciding to start once you've done

it it's easy on many occasions I was annoyed having to go to the gym but getting there on the move was great after the exercises I'm glad I decided to go if you are not willing to work to learn something new and insist on specializing in your field make sure you work for a unionized company unions were designed to protect specialists my educated father after falling out of favor with the Governor became If he was president of the Hawaii teachers' union, he said it was the hardest job he had ever had in his life, my

rich dad, on the other hand, spent his entire life doing everything he could to keep his companies from being unionized, he was successful even though the unions were strong, Rich Dad was always able to fight them personally, I don't take sides because I can see the need and the benefits of both situations, if I followed the school's advice, become highly specialized, then seek the protection of the union, for example, if I had continued in a career as a commercial pilot, I would have sought to work in a company where a trade union was strong. Why?

Why would my life have been dedicated to learning a skill that only has value in one field of activity? would have value in another area a Senior pilot with 100,000 hours of flight earning 50,000 a year would have difficulty finding a job with equal pay like a teacher skills are not necessarily transferred from one field of activity to another pilots receive high salaries for having skills that would not have value, for example in the current education system, the same can be said about doctors, with all the changes that have occurred in medicine, specialists, they have

to group together in medical organizations like health plans, no doubt teachers need to unionize today in the United States, the Teachers' Union is the largest and richest of them, the National Education Association has tremendous political strength, teachers need the protection of the your union because your skills are also of scarce value outside of education so the rule of thumb is if you are highly skilled, unionize It's the smart thing to do when I ask my classes which of you makes a better hamburg than the at McDonald's almost everyone raises their hand so I ask if

most of you make a better burger than McDonald's how is it possible that McDonald's makes more money than you 20 years ago the system is like you in today's world the systems are you information technology how you use all available resources this is another reason to choose your team wisely your advisors and teachers currently the president of Rich Dad is an IT genius and has built a team that uses technology to improve our systems process and communications while keeping an eye on the future and the new tools that will be offered to us the answer

is obvious McDonald's is a great business system the reason so many talented people are poor is that they focus on making the best burger and know very little about systems business a friend of mine from Hawaii is a great artist makes a lot of money one day his mother's lawyer called and said he left her 35,000 That was what was left of his assets after the lawyer and the government took his share immediately he saw a opportunity to grow his business by using some of this money on advertising two months later his full page color

ad appeared in an expensive magazine aimed at the very rich the ad ran for 3 months he had no return and all his inheritance was gone now he wants to sue the magazine for being deceived This is a typical case of someone who can make a great hamburger but knows little about business when I asked him what he had learned his response was that advertisers are imposters so I asked him if he would like to make one sales course and another direct marketing course your answer was I don't have time and I don't want to

waste money the world is full of talented people they are often poor they have financial difficulties or earn less than they could not because of what they know but because of what they don't know focus If you focus on perfecting your skills at making a better hamburger instead of thinking about how to sell and deliver it, maybe McDonald's doesn't make the best hamburger but it is the best at distributing a basic average sandwich. Poor Dad wanted me to specialize, that's how that he believed I would earn more even after being told by the governor of

Hawaii that I could no longer work in the state government my educated father continued to encourage me to specialize Poor Dad then took up the Teachers Union cause by campaigning for more protection and greater benefits for these highly specialized and educated professionals he never understood that the more specialized you become, the more you are tied and dependent on this specialization Rich Dad advised Mike and me to prepare ourselves, many large companies do the same, they look for young graduates in colleges and begin to prepare these people to one day hold senior positions in organizations these

bright young people do not specialize in one department they move through the various departments to learn all aspects of business systems the rich often prepare their children or the children of others By doing so, young people acquire a general view of the company's operations and get to know the interrelationship between the various departments. The generation of the Second World War considered it bad to keep changing jobs. Today it is considered an intelligent attitude. Since people intend to keep changing jobs. instead of seeking greater specialization because they don't think about learning more than they earn in

the short term, you may earn less in the long term. in big dividends the key management skills needed for success are first cash flow management second systems administration third people coordination 20 years ago sales equals income Rich Dead consultant and good friend Blair Singer our slots expert has been hammering in my head for 30 years equal income sales your ability to sell communicate and highlight your strengths directly affects your success the most important specialized skills are sales and understanding marketing is the ability to sell therefore communicate with another human being whether it is a client,

employee , boss, spouse or child, the basis for personal success are communication skills such as writing, speaking and negotiating that are crucial to a successful life, these are skills that I constantly exercise by taking courses or purchasing educational materials to expand my knowledge As I have already mentioned my educated father, the more competent he became, the harder he worked, he also became more and more cornered as he specialized, his options diminished shortly after he was fired from his government job, he discovered how vulnerable he was professionally, similar to what happens with professional athletes who suddenly

suffer an injury or become too old for sport, their well-paid position is lost and they have limited skills to fall back on. I think that's why my educated father got so involved with the unions. the union could have favored him Rich Dad encouraged Mike and Minim to know a little about everything he encouraged us to work with people smarter than us and to bring smart people together to work as a team today this would be called Specialty Synergy professionals currently meet ex-teachers earning hundreds of thousands of dollars a year, they earn so much because they

have other skills in addition to the specialized ones. rejection market the better you communicate, negotiate and deal with this fear, the easier your life will be in the same way I advised that journalist who wanted to become a bestselling author, I repeat this for everyone nowadays, having a technical specialization has its pros and cons, I have friends who are geniuses but can't communicate effectively as a result their earnings are pitiful I advise them to spend a year learning to sell even if they don't earn anything their communication skills will improve and that is priceless besides

being good learners and salespeople and to understand marketing we must be both good, good teachers and excellent students to be truly rich we must be able to both donate and receive in cases of financial difficulty often what is missing is this exchange I know of many people who are poor because it is not even good student nor a good teacher, both my parents were generous men, both had giving as their first rule, education was one of their forms of giving, the more they donated, the more they received, a difference was evident in the donation of

money, my Rich Dad donated large amounts, he donated to the church to charities for his Foundation he knew that to receive money you must donate it donating money is the secret of most big rich families that is why there are institutions like the rock foundation and the ford foundation they are organizations designed to take the own wealth and increase it as well as distribute it permanently 20 years ago aries of change the winds of education transition and its systems are blowing with young blood in Washington There is a new requirement for school choice and students

are seeking and they even require teachers with practical experience I have always believed that changing things first requires me to transform myself today many people choose change and defend it in an outdated, obsolete system the real winners will be the children who can finally learn about money in school my educated father used to always say when I have some money left I will donate it The problem is that there was never any extra he always worked harder to get more money instead of focusing on the main law of money D so you will receive instead

he believed in receive so you can donate concluding I have become my two parents one part of me is a staunch capitalist who loves the game of money making money the other is the socially responsible master who is deeply concerned about the growing and act that separates the privileged from the underprivileged Aleci I believe that the main responsible for this Abyss is the obsolete education system study session Chapter 6 lesson 6 work to learn not for Money summary Robert was interviewed a few years ago in Singapore by a journalist who during the conversation revealed that

she wanted to be the author of bestsellers like him but her novels that everyone said they were excellent, they never got anywhere Robert suggested sales training to her, which offended the journalist who said she had a master's degree in English Literature and didn't understand how learning to sell would help her, in fact she hated salespeople when Robert pointed out that he was a author of Best Sellers and not an excellent author, she replied that she would never lower herself as low as a salesperson and ended the interview, there are talented people, like all of us,

who fight financial battles, just like That journalist, in the words of a Business consultant, lacks a skill for them to achieve greatness This means that many of us specialize if we learn and master just one more skill our income will multiply exponentially when it comes to money the only skill most people know is working hard if that reporter took any Marketing courses and sales and then get a job at an advertising agency he would learn how to make millions with free advertising a skill he could use to turn his novel into a bestseller when Robert

released his first book if you want to be rich and Happy don't go to school if you want to be rich and happy , don't go to school media and It worked when he graduated from the United States Merchant Marine Academy in 1969, he was hired as a Nautical Officer by a Standard Oil Tanker Fleet, the pay was reasonable, he had 5 months of annual vacation, it could have been a good career, but after 6 months, Roberts left to join the Marine Corps and learn to fly instead of specializing as many do, including Poor Dad.

Robert was looking for new skills. Rich Dad encouraged him. Telling him to learn a little bit of everything, that's why Robert and his friend Mike worked in different areas in his youth to have diverse experiences Poor Dad didn't understand the decision to leave his job at Standard Oil he thought Robert had gone to school to become a naval officer But what Rich Dad knew was that Robt was going to he went to school to learn about international negotiations and joined the Marines to learn how to lead troops that leadership skill would help him in any

business that came his way in 1973 Robert left the Navy and got the job as a salesman at Sherrock Corporation despite being a shy person in fact because he was shy he accepted the job Sherrock had one of the best sales training programs in the country and there Robert was able to overcome his fear of knocking on doors and being rejected when he became one of the most productive salespeople he left Robert set up his first company in 1977 selling wallets made in the Far East that were sent to a warehouse in New York it

was time to test his wings today he still does international deals many people work hard to get a secure job focusing on pay and the short term benefits what you should do is look for a job that teaches you the skills you need people are Looking at the horizon or just the next paycheck in his book The retirement Meet by crace S carpel writes about the many challenges that await people in retirement and the frightening picture that will be the reality for many people Robert recommends taking a long-range view rather than simply working for money

and security, getting a second job to acquire a second skill many resist this idea because they are not prepared for changes but it is like going to the gym you may have to force yourself to start but you will feel accomplished for having done it after the training is over if you are not willing work to learn something new instead insist on becoming highly specialized in your field make sure the company you work for is unionized your specialization may be useless in other fields Robert Asks his students a few of them make a better burger

than McDonald's many raise their hands but the reason why McDonald's makes millions is because it is an Impeccable business system the world is full of poor people who are talented to be successful they need to spend their time acquiring more skills like Mcdonalds commercial system Poor Dad wanted Robert to specialize even though it wasn't applicable to his life, he never understood that the more specialized you become, the more you become trapped and dependent on that Restricted Area, Rich Dad, on the other hand, encouraged Mike and Robert to preparing and learning about different areas of business

for the second world war generation it was considered bad to keep changing jobs today this is something Sagacious makes you Learn More and generates dividends in the long term the main management skills necessary for success are first cash flow management second systems administration and third people coordination and the most important specific skills are sales and marketing communication skills such as writing speaking and negotiating are crucial for a successful life are just skills that Robert constantly improves by taking courses or acquiring educational materials to expand your knowledge sales and marketing skills are difficult for most people

mainly due to the Fear of rejection the better you know how to communicate negotiate and deal with the Fear of rejection the easier your life will become having technical specialization has its pros and cons people who fall into this case must expand their communication skills we must all learn to be both good teachers and students to be truly wealthy We need to be able to give and receive teaching was one of the ways both of my parents gave to others but rich dad also donated money to his church charity institution and his Foundation he knew

that in order to receive money he also needed to donate it poor dad always said he would donate money if there was any left but there was never any left instead of then he will receive he believed in receive in order to give Robert became his two fathers both the radical capitalist who loves the game of money that makes money and the professor with social responsibility deeply concerned about the gap looming between the privileged and the underprivileged he considers the obsoleteness of educational system is responsible for this Abyss moment of the left hemisphere relegating a

promising job It may not have an immediate mathematical logic but the skills you acquire will speak louder than the numbers in the long term moment of the right hemisphere learning skills that you think are not yours area will benefit you subconscious moment the skill you need to learn and conquer is the one you fear most and even if you have to force yourself to do it like going to the gym you will feel satisfied for having done it what Robert wants to say now it's time to reflect ask yourself What does Robert mean in this

quote and why does he say it in this session you do not need to agree or disagree with him the goal is to understand what Robert is saying remember this study session is designed to be supporting and support two heads are better than one if you don't understand what Robert is saying don't give up on the lesson ask help Take the time to discuss each quote until you understand them job security was everything to my father instruction to my father RIC was to always learn I am shocked to realize how little ex umine well employed

is preaching I Miles that they look for a job for the opportunities to learn more than for what they can earn living is like going to the gym the hardest part is deciding to start once you do it becomes easy the world is full of talented people are often poor T have financial difficulties or earn less than that they could not because of what they know but because of what they don't know having a technical specialization has its pros and cons donating money is the secret of most large rich families additional questions now is the

time to use the stories in this Chapter to understand what Robert was saying And apply them to yourself and your life ask yourself the questions below and discuss them with your study partner Be honest with yourself and your partner if you don't like the answers you give ask yourself if you are willing to change and accept the challenge of transforming your thoughts and mindset firstly do you know highly talented people who earn little money What could you do differently secondly how did you look for additional skills Besides your specialization what was the result thirdly have

you ever been torn between a job stable and try out a position that could give you greater long-term earnings what you based your decision on fourth if someone asked you for advice on the most important professional skills what would you say fifth giving your all plays a crucial role in your life you you sees this as an important part of its success sixth how could it act differently from the current party after the second world war Europe, especially Great Britain and France, the United States, Canada and Australia had a sudden increase in birth rates that

became known as baby boom hence people born in these countries between 1946 and 1964 are called Baby boomers Chapter 7 overcome obstacles the main difference between the rich and the poor is the way they manage fear even if people have studied and become financially proficient yet may face obstacles in achieving financial independence the five main reasons why financially proficient people do not develop a significant asset column that could yield large amounts of cash flow these reasons are first fear second skepticism third laziness the fourth bad habits and the fifth arrogance overcome fear I have never

met anyone who really enjoyed losing money and in my entire life I have never met a rich person who had never lost money but I have seen a lot of Poor People who have never lost a penny I I mean never lost investing the fear of losing money is real everyone has it themselves the rich But the problem is not in fear it's in the way of dealing with losses it's the way of dealing with failure that makes the difference in people's lives the main difference between the rich and the poor is the way they

manage fear there is nothing wrong with being afraid it is acceptable to be a coward when it comes to money you can still be rich we are all heroes in some circumstances and cowards in others a friend My wife is an emergency room nurse when she sees blood she takes action when I talk about investing she runs away when I see blood I don't run away I faint My Rich Dad understood the phobias related to Money some people are terrified of snakes others are terrified of losing money both TM phobias he said his solution to

the phobia of losing money was a short verse if you hate risk and worry start early If you start young it will be easy to be rich I won't go into more detail about this but there is a big difference between people who start those who start saving at age 20 and those who start at 30 the acquisition of Manhattan Island is considered one of the greatest bargains of all time New York was purchased for 4 in trinkets and Glass Beads however if that $4 had been invested at 88% interest per year these would be

worth more than 28 trillion dollars in 1995 Manhattan it could be repurchased and there would still be money left over to buy a good part of Los Angeles But if you don't have much time left or if you want to retire early how do you deal with the fear of losing money my Poor Dad didn't do anything he simply avoided the subject by refusing -if we discussed it, rich dad, on the other hand, recommended that I think like a Texan, I like Texas and Texans, he said about Texas, everything is bigger when Texans win they

win a lot and when they lose it's spectacular they like to lose I asked no I'm saying this no one likes to lose show me a happy loser and I'll show you a loser replied rich dad it's the attitude of the Texans in the face of risk reward and defeat what I'm talking about is how they approach life they live grandly no like most of the people here who live like cockroaches when it comes to money, cockroaches afraid of someone throwing a beam of light at them, people who whine when the grocery store employee misses

the change by 20 cents, Rich Dad continues to explain what What I like most is the attitude of the Texans they take pride in winning and they brag when they lose the Texans have a saying if you're going to go broke go broke in style you won't want to admit that you went broke for a pittance he talked constantly to Mike and me that the main thing reason for financial misfortune was that most people sought too much security people are so afraid of losing that they lose he used to say Frank Telton who was a

great American football defender said otherwise winning means not being afraid of losing 20 Years Ago the art of winning the concept and our desire to win in all areas of life were themes of the 2016 United States presidential election is a mindset a goal that everyone can aspire to And that motivates us to open up our mistakes learn with them and project Victory throughout life I observed that gains generally follow losses before I learned to ride a bike I took many falls I never met a golfer who hadn't once lost a ball I never met

someone passionate who never He had a broken heart and never saw a rich person who hadn't lost money Many people don't succeed financially because the pain of losing money outweighs the joy of being rich Many people don't succeed financially because the pain of losing money outweighs the joy of being rich another saying In Texas everyone wants to go to heaven but no one wants to die they all dream of being rich but they're terrified of losing money so they'll never get to heaven Rich Dad used to tell Mike and me stories of his trips to

Texas if you really want to learn dealing with the risk of losses and failures Go to Sant Antônio and visit the Álamo the Álamo represents a great story of courageous people who chose to fight knowing that there was no hope of success against the superiority of the enemy they preferred to die rather than escape delivering is an inspiring story that deserves to be studied However it is still a sad military defeat they failed they lost So how do Texans deal with failure they still scream remember the Alamo failures inspire The Winners and frustrate the losers

Mike and I heard this story many times, Rich Dad always repeated it when he was getting into a big business and he got nervous after he had studied everything and it was either take it or leave it, he told us the story every time he was afraid of making a mistake or losing money. He narrated it to us, it gave him strength, it reminded him that it is always possible to turn a financial loss into a gain, Rich Dad knew that this failure would make him stronger and smarter, it's not that he wanted to lose,

he just knew that it was how he would accept the loss he would turn loss into Victory that's what made him a Winner and other losers history gave him the courage to move forward when others retreated that's why I like the Texans so much they took big failures and turned them into a big tourist attraction that gave them makes millions probably the words that mean the most to me these days are these Texans don't hide their weaknesses fros are inspired by they take their defeats and turn them into battle cries failure inspires Texans to become

winners But this isn't just a formula for Texans it's a formula for all winners it's like riding a bike falls were part I remember from my learning that they increased my determination to learn, they didn't decrease it. I also said that I never met a golfer who had never lost a ball. Losing a ball or a tournament serves as an inspiration for golf players to be better, practice and study more. that's what perfects them for The Winners failures are an inspiration to the losers it's a defeat I like the quote by John D Rockefeller that

says I always tried to turn every failure into an opportunity being Japanese American I can say the following Many people say that pe Harbor It was an American mistake I say it was a Japanese mistake in the film Tora Tora Tora a Dark Japanese Admiral tells his subordinates I'm afraid we have awakened a sleeping giant remember p Harbor became a war cry transformed one of the America 's biggest defeats in a reason to win The biggest trick of winners is that failure inspires Victory, that's why they're not afraid of losing, repeating Fran Telton, winning means

not being afraid of losing. People like Tton don't have that fear because they know who they are, they hate losing, so they know that failure is just will encourage them to become better There is a big difference between hating and fearing losing most people They are so afraid of losing money that they end up losing it they go bankrupt for a pittance financially they want too much security and have a Narrow Horizon they buy houses and big cars but they don't relevant investments the main reason that 90% of Americans have financial problems is that they

play not to lose, they do not play to win They look for their Financial Consultants, accountants or Brokers and acquire a balanced portfolio, many invest large sums in certificates of deposit in securities low return on Mutual Funds and in a share portfolio is a safe and intelligent portfolio but it is not a winning portfolio it is the portfolio of those who don't want to lose don't get me wrong it is probably a better portfolio than that of 70% of the population but this It's terrifying, it's a great portfolio for anyone who loves security, but seeking

security and balance in your investment portfolio is not the way successful investors play. If you have little money and want to get rich, you must be focused, not balanced, when observing any successful person will see that at the beginning they were not balanced balanced people don't go anywhere they stagnate to progress it is necessary at least at the beginning of some imbalance Just see how you get far just by walking Thomas Edson was not balanced he was focused Bill Gates it was not balanced it was focused Donald trump is focused George soros is focused George

panton did not distribute his tanks over a wide area he focused them and destroyed the weak points of the German lines the French spread themselves across the maginot line and you know what happened to them If you want to be rich you must focus on not doing what the poor and the middle class do, they bet all their chips Bet little by little and think about Focus encourage success by creating opportunities if you hate losing look for security if you lose or weaken look for security find balanced investments if you are over 25 and are

scared of taking risks don't change look for security but start early start building your savings early because it will take time but if you have dreams of independence the first thing to ask yourself is what it is my reaction to failure if failure inspires you to win maybe you should move on but only maybe if failure weakens you or leads you to despair like the spoiled kids who run to the lawyer to sue someone every time things don't go your way, then look for security, stay with your job or buy bonds or mutual funds, but

remember that these financial instruments also have risks, even though they are safer, I say all of this, citing the Texans and Fran telcon because increasing the assets column is easy, it's really a game that doesn't require great attitudes, it doesn't require a lot of basic math instruction, it solves it, but increasing the assets column is a game of attitude, it requires courage, patience and resistance in the face of failure, the cowards the they avoid it but failure turns losers into winners remember the Álamo overcome skepticism the sky is falling we all know the story of

Chicken Little who ran around the yard announcing the end of the world We all know people like that but we all also have a Chicken I read within us As I have said on other occasions, the skeptic is truly a pessimistic chicken we all look like the pessimistic chicken when fear and doubt cloud our thoughts 20 years ago mistakes are learning opportunities school conditions us to avoid mistakes and punishes students who make them in the real world I learned that mistakes, if recognized, evaluated and used as a tool to make better decisions in the future,

are invaluable, a little fear is healthy, but you shouldn't live in fear of making mistakes, mistakes are good things if we find the lesson in every failure We all have doubts I'm not smart I'm not that good So and so is better than me our doubts often paralyze us we play the game of what if what if the economy collapses right after I make the investment And if I get out of control and can't pay my debts and if things don't work out as planned or we have friends or loved ones who always remind us

of our failures by saying often what makes you think you can do this if it's such a good idea then since no one has thought of this before this will never work you don't know what you're talking about these words of doubt often silence us so deeply that we stop acting a horrible feeling tightens our stomach sometimes we can't sleep we don't move forward so that we stay with security and abandon opportunities we watch life pass us by while we sit immobilized we have all been there in our lives some more than others Peter Lynch

from Fidelity magellan a well-known mute background called noise the warnings about the end of the world that we all we hear this noise can be created inside our head hear from Outside often from friends family co-workers or the media Lens reminds us of the time in the 1950s when the threat of nuclear war was so common in the news that people began to building anti-nuclear shelters and stockpiling food and water if they invested that money wisely in the market instead of building the shelters they would probably have achieved financial independence these days when violence explodes

around a city gun sales increase throughout the world country a person died after eating an undercooked hamburger in the state of Washington and the Arizona health department ordered restaurants to prepare only well-done meat a pharmaceutical company released a national television advertisement in February showing people with the flu flu cases increased as well as sales of the advertised medicine most people are poor because when it comes to investing the world is full of Chicken LS who run around screaming the sky is falling the sky is falling and the Chicken LS achieve their goals because we are

all a bit pessimistic It often takes courage not to let rumors and announcements of disasters affect our doubts and fears, but the experienced investor knows that what seems like the worst of times is actually the best time to make money when the rest of the world is too afraid to act. they are the ones who pull the trigger and are rewarded Some time ago a friend named Richard went from Boston to Phoenix to visit me and he was impressed with what we had done through Stocks and Real Estate property prices inf Fenix ​​were falling, we

spent two days showing you what we considered excellent opportunities for generating cash flow and capital appreciation. In fact, Kem and I are not real estate agents, we are just investors after identifying a unit. in a condominium We called the broker who sold it to Richard that same afternoon the price was only 4$42,000 for a two bedroom house similar units were selling for 6$65,000 my friend thought it was a Bargain closed the deal and went back to Boston two weeks later the broker called saying that my friend had backed out I immediately called him to find

out what had happened all he said was that he spoke to a neighbor and he told him it was a bad deal the price was high Furthermore, I asked Richard if the neighbor was an investor. Richard said no. When I asked him why I listened to him, my friend went on the defensive and simply said that he preferred to look a little more. The Fênix real estate market recovered and around 1994 That small unit was being rented for 000 monthly 2.5000 in the winter months its value reached in 1995 95,000 all Richard would have needed

was to make a down payment of 5,000 and he would have already taken the first step out of the Rat race to this day he didn't do anything Richard's refusal didn't surprise me it's called buyer's remorse and it affects everyone pessimism won and a chance for release was lost another example a small part of my assets are invested in property tax debt bonds instead of being certificates of deposits, so my money yields 16% per year, which is undoubtedly better than the 5% that the bank offers, these certificates are guaranteed by Real Estate and established by

state law, which is also better than what is offered by Most banks, the formula they are based on makes them safe, they just don't have liquidity, so I consider them certificates of deposit with a term of 2 to 7 years whenever I mention them to someone, especially those who invest in certificates of deposit, which I also apply that way I hear that it is a risky option they say that I shouldn't invest in these securities when I ask how they obtained this information they mention a friend in a business magazine they never invested in it

and they tell those who do it that it is a mistake to do so the income The lowest I'm looking for is 16%, but people full of doubts settle for 5%, doubt is expensive. I want to emphasize that it is these doubts and this skepticism that keep many people in poverty chasing security, the real world is there waiting for you to get rich just doubts keep people in poverty and As I said, getting out of the rat race is technically easy, it doesn't require much education , but doubts are an obstacle for many people, skeptics

never win, Rich Dad said, unclarified doubt and fear create the skeptic skeptics criticize and The Winners analyze was another of his favorite phrases Rich Dad explained that criticism blinded while analysis opened the eyes Analysis allowed The Winners to see what the critics could not and to perceive opportunities that everyone else did not see and finding what others miss is the key to success 20 years ago using debt and tax laws today many people give financial advice some advise people to cut up their credit cards others to get out of debt today Kim and I continue

to follow Rich Dad's lessons on using debt and taxes to increase our wealth financial education understanding the differences between good and bad debt and the use of tax laws How the rich do it are part of our formula real estate Is a powerful tool for investment for those seeking financial independence is a unique instrument however whenever I mention Real Estate as a means of investment or someone says I don't want to fix toilets This is what Peter calls noise this is what Rich Dad called skeptical talk someone who criticizes and don't Analyze someone who lets

their debts and fears close their mind instead of opening their eyes when someone speaks I don't want to fix toilets I feel like retorting and what makes you think that I want them? They 're saying that a toilet is more important than your desires. I talk about Liberation from the Rat Race and they think about toilets. That's the standard of thought that keeps many people in poverty they criticize instead of analyzing the key to their success is in us I don't want it said Rich Dad I don't feel like fixing toilets either I always look

for a good property manager who does it and I'll find one who take good care of the properties my cash flow increases more importantly a good manager allows me to buy even more properties as I don't have to worry about repairing the toilets it is the secret to success with properties it is more important than the property itself He often knows about good deals before the brokers do, which makes them even more valuable. That's what my Rich Dad meant when he said the key to his success is I don't want to fix vases, I discovered

a way to buy a Real Estate and hasten my exit from the Rat Race people who keep saying I don't want to fix toilets often deprive themselves of this powerful investment instrument toilets are more important than your financial independence in the Stock Market I hear a lot of people declare no I want to lose good money which leads them to think that I or anyone else likes to lose money they don't make money because they choose not to lose instead of analyzing they close their minds to another powerful means of investment a Stock Market I

was going through with a friend at the neighborhood gas station He looked and saw that the price of gasoline was increasing my friend is a crazy guy a Chicken Little for him the sky is always about to fall and it usually falls on his head when we arrive at my house He explained to me all the statistics that showed why the price of oil should increase in the coming years, statistics that I had never seen before, even though I already owned a large number of shares in an oil company, with this information in hand I

started looking and found a new oil company not yet very valued that it was about to discover some oil deposits my broker was excited about this new company and I bought 15,000 shares for 65 cents every 3S months later this friend and I passed the same gas station and in fact the price of fuel had risen by about 15% again Chicken Leo got worried and complained I smiled because a month before That small company had managed to get into oil and the price of those 15,000 shares had risen to 3 since he gave me the

tip and the price of gasoline should continue to rise if what my friend says is true if most people understood how a stop order works in stock investments there would be more people investing to win than not to lose the stop order is simply a computer command that automatically sells your shares if the price starts to fall helping you minimize losses and maximize some gains is a great tool for those who are terrified of losing so whenever I hear people worrying about what they don't want instead of thinking about what They want to know that

the noise in their heads must be big, the ticken lieiro has incorporated into them and screams the sky is falling and the toilets are leaking so they avoid their I don't want it but they pay a high price they will never get what they want in life instead of analyze allow your inner Chicken Leo to close their minds Rich Dad showed me a way to look at Chicken Liro do what Colonel Sanders did at the age of 66 he lost his business and started living on Social Security retirement it wasn't enough it started traveling around

the country trying to sell his fried chicken recipe the proposal was turned down 100 times before anyone said yes and he ended up becoming a multi-millionaire at an age when most people are giving up he was a brave and tenacious man said the Rich dad about harland sanders so when in doubt at a certain point do what colonel sanders did with his pessimistic chicken he fried it overcome laziness busy people are often the laziest we all know stories of businessmen who work hard to make money he strives to be a good provider for his family

he spends long hours at the office and he takes work home on weekends one day when he gets home he finds it empty his wife left with the children he knew he was having problems with his wife But instead of making an effort to strengthen the relationship he devoted himself to work disillusioned his performance at work declines and he is fired nowadays you often find people too busy to take care of their wealth and people too busy to take care of their own health the reason is the same they are busy and remain busy as

a way of avoiding something they don't want to face no one needs to tell you that in your heart they know in fact when someone tries to talk to them about it these people often respond with anger or irritation if they are not busy with work or with the children they are often busy watching television Playing Golf or shopping but deep down they know they are running away from something important This is the most common form of idleness the laziness of acting transformed into a constant occupation and what is the cure for laziness the answer

is a little ambition many of us were brought up thinking that ambition or greed is bad greedy people are bad my mother said however We all have the desire to have beautiful new or exciting things to keep this emotion of desire under control Parents often find ways to satisfy this feeling with guilt You just think about yourself don't you know you have brothers and sisters was one of my mother's favorite phrases or do you want me to buy what for you my father repeated my father thinks we make money that money grows on trees you

know we are not rich weren't they both the words and the feeling of guilt that accompanied them, which made me possessed, Rich Dad believed that words, I can't afford it, close your brain, how can I do it, create possibilities, obstinacy and dreams, the reverse of creating this feeling of guilt I would sacrifice my life to buy you this I'm buying it for you because I never had things like this as a child There's a neighbor who is totally broke but he can't put his car in his garage The garage is full of the children's toys

These spoiled kids have everything who dream I don't want them to know What it's like to be in need says the father He doesn't have a penny saved to send his children to university or to retire himself but his children have all the toys possible he recently received a new credit card in the mail and took his children to see Las Vegas, I do this for the kids, he says with an air of deep selflessness. Rich Dad forbade me if I said, I can't buy from my family's house, I actually heard this all the time,

Rich Dad wanted his children to say how can I buy this Rich Dad believed that the words I can't afford this close your brain, how can I do it creates possibilities, obstinacy and dreams forced you to think and look for alternatives, but more important than that he considered that I can't buy this a lie and our soul knows it the human spirit is powerful very powerful he said when your lazy mind Repeat I can't buy a war settles inside you your spirit rages and your lazy mind must defend the lie dictates the spirit screams let's

go let's go the gym to exercise and the lazy mind responds I'm tired I worked a lot today or the spirit says I'm tired of being poor let's leave here and get rich and the mind rich people are greedy Besides it's a lot of work it's not safe I can lose money I already work too much I have to do too much at my job see what I have to do tonight the boss wants me to deliver it in the morning I can't afford it it also brings sadness a feeling of helplessness which leads to

discouragement and often depression apathy is another word that applies how can I afford it it opens up opportunities, excitement and dreams Rich Dad wasn't so worried about what we wanted to buy as long as we understood that How can I buy it strengthens the mind and energizes the Spirit so he rarely gave anything to Mike or me instead he asked how do you can afford it and this included the University's mentality that we had to pay with our money, what it tried to convey to us was not the desired objective but the process of achieving

it. The problem is that today I feel that a thousand people feel guilty of their ambition is a conditioning that comes from childhood they want to have the best conditions that life can offer the majority was conditioned However the subconscious saying you can't have that or you will never be able to buy that when I decided to leave the Rat race there was a question simple how can I manage to never have to work again and my mind started to shoot answers and solutions the hardest part was breaking with my family's dogmas we really can't

buy that stop thinking only about yourself Or why don't you think about others and other similar expressions that were intended to create guilt and suppress my ambition as well as combat laziness the answer is to have a little greed It's like that radio station says ifm What's in there for me one needs to sit down and think about what it would be like my life if I never had to go back to work what would become of me if I had all the money I need without that little bit of ambition there is no desire

to have something better to progress We go to school and study hard because we want something better so always If you find yourself avoiding something that you know you would like to do, the only thing you can do is ask yourself what's in it for me. Be a little ambitious. It's the best cure for quarrels. However, too much ambition, like all exaggeration, is not good, but remember that Michael Douglas spoke in the film Wall Street, power and greed, ambition is good Rich Dad spoke differently, guilt is worse than ambition Because guilt steals our soul and

for me the one who said it best was Eleonor Roosevelt, do what yours heart thinks it's right either way you will be criticized whether you do it or not you will be lost overcome bad habits our lives are more a reflection of our habit than of our education after seeing the film Conan the Barbarian starring Arnold schweger a friend of mine said I wanted to have the body of a Schweger most of the guys agree I heard that before he was skinny and weak added another friend I also heard that reinforced another They say he

works out every day at the gym I bet so, what exclaimed the mocking man in the group I bet that it's like this by birth Let's change the subject and have a few beers This is an example of behavior controlled by habits I remember asking Rich Dad questions about the abilities of the rich instead of giving a direct answer he tried to teach by example like he used to do When does your father pay his bills, asked Rich Dad at the beginning of the month, I answered And there's something left over, Rich Dad continued, I

said little, that's why he has difficulties, Rich Dad said, he has bad habits, his father pays everyone else first, he he pays last but only if there is something left over, which in general doesn't happen I said but he has to pay the bills, doesn't he? You're saying he shouldn't pay them Of course I didn't say the father, I firmly believe in paying mine bills on time but I pay myself first even before paying the government but what happens if the money is not enough I replied what do you do then the same thing continued

Rich Dad first I pay myself even if I have little money, my assets column is much more important to me than the government but I continued they won't go after you, yes if I don't pay, said Rich Dad Look, I'm not saying not to pay, I just pay myself first, even when I have little money but how can I do that? I replied. The question is not how, the question is why. Rich Dad replied. Ok, so why? Whoever complains more if I don't pay me or my creditors? Without a doubt, the creditors will shout louder.

I replied. the obvious question, you wouldn't do anything if you didn't pay yourself, you see, after paying myself, the pressure to pay my taxes and other creditors is so great that it forces me to look for other forms of income, the pressure to pay myself It becomes a motivation, I've had extra jobs, I've started other ventures, I've traded anything on the stock market to make sure these guys don't shout at me, this pressure has made me work more, it's forced me to think and all of this has made me smarter and more active than anyone

else. to money if I left it to pay myself in the end I wouldn't have felt the pressure and I would be broke it means that the fear of the government or other people to whom he owes money that motivates him that's right said Rich Dad you see the government people are strong the other creditors also the majority of people surrender to these tyrants they pay them but never themselves Do you know the story of the weakling who gets thrown in the face if I pay myself first I become stronger financially, mentally and physically I

nodded my head affirmatively I've seen this ad for bodybuilding classes in dibis many times, most people let the strong throw sand in their faces, I decided to use the fear of the tyrant to make me stronger, others become weaker by forcing me to think about how to have more money I get a workout equivalent to that of a gym The more I work the muscles of my mind the stronger I become now I'm not afraid of these people I liked what Rich Dad was saying so if I pay myself first I become stronger financially, mentally

and physically Rich dad agreed And if I pay last or fail to do so, I'll become weaker, bosses, administrators, creditors and landlords, they'll be bothering me all my life just because I don't have good money habits, he nodded again, just like the weakling in the ad, get over your arrogance what I know makes me money what I don't know I lose it every time I was arrogant I lost money because when I'm arrogant I really believe that what I don't know isn't important I often repeated Rich Dad I discovered that a lot of people use

arrogance to try to hide ignorance itself this usually happens when I discuss financial statements with accountants or even with other investors they try to win the argument using arrogance to me it is clear that they don't know what they are talking about they are not lying but they are also not telling the truth there are a lot of people in the world of money from Finance and investment who have no idea what they are talking about, most people in the sector are making empty sales pitches like a used car salesman, if you are ignorant about

the subject, start educating yourself by finding a expert or a book on the topic study session Chapter 7 lesson seven overcome obstacles summary the top five reasons why financially proficient people don't develop their cash flow They are number one fear number two skepticism three laziness four bad habits and five arrogance let's go look at each of them in detail overcome your fear no one likes to lose money the only people who have never lost money investing are those who have never done it everyone is afraid of losing money what differs is their way of dealing

with money and losses The main difference between the rich and the poor is the way they manage fear It's normal to have fears One way to overcome This is to start early and let the power of compound interest work for you There's a stark difference between people who start saving at 20 years old and one who does so at 30 But what if you don't have time left to invest or want to retire early Rich Dad recommends thinking like a Texan win big lose big style it's your attitude towards losses that matters Texans if they

are proud when they win and brag about how much they lose in Robert's life a victory is often followed by a failure he has never met anyone who hasn't lost money but they don't let fear take them out of the game the fall of the Álamo was a tragic defeat military but the Texans turned it into a battle cry remember the Alamo to motivate them to great victories just like the Texans don't hide your failures in be inspired by them for The Winners losses are inspiring for the losers frustrating John D hack Feller once said

I always tried to turn every failure into an opportunity even if Harbor was one of the main North American losses propelled the nation to the point of world power Winners know that failures inspire victories So why be afraid of failures if they can lead you to greatness understanding that you shouldn't be afraid of defeats doesn't mean you can't hate them most people play to not lose when they need to play to win and that is why many face financial difficulties they may have a safe weighted and balanced portfolio but not a winner they are playing

to not lose a balanced portfolio is not a bad thing but it doesn't help you win masterfully it's not about how successful investors play you should be a little shaky at first but stay focused Bet your chips little by little and stay focused building your asset column is not complex math but it takes courage and the right attitude towards failures overcome skepticism when it comes to our insecurities or those of other people in our lives we often allow doubt to stop us from acting we choose security and opportunities pass us by it often takes courage

to Don't let rumors, negative judgments and anxieties affect your doubts and fears, but the experienced investor knows that what seems like the worst of times can actually be the best time to make money while the rest of the world is too afraid to act. the trigger and is rewarded Robert gives the example of a friend who bought a unit in a condominium at a great price but backed out at the last minute when his neighbor who wasn't an investor told him it was a bad deal if he hadn't backed out his investment would have doubled

and he would get out of the rat race Robert holds a small amount in property tax debt bonds instead of certificates of deposit the CDB the others say he shouldn't do that but they are in a position of doubt they have never invested in these bonds They are telling those who do it that they shouldn't the lowest return Robert seeks is 16% but those who have a lot of doubt are willing to accept lower returns doubt is expensive, doubt and skepticism keeps people poor Rich Dad used to say the cynics criticize and winners analyze Winners

leave their eyes wide open and see the opportunities that everyone misses Real Estate They are a more powerful investment tool for those looking for financial independence and freedom is a unique resource but every time Robert mentions real estate as an investment vehicle you often hear I don't want to fix toilets they focus on toilets and this keeps them poor many people stay out of the Stock Market because they don't want to lose money but they keep themselves away from financial gains by closing their minds to this investment vehicle outperform laziness one of the most common

forms of laziness is staying busy enough to take care of your wealth health or relationships What is the cure a little ambition this can be hard to digest because many of us were raised to think that greed is a bad desire instead of saying I can't afford it change Your perception how to make it possible opens your mind and forces you to think of solutions I can't afford it is a lie the human spirit knows it can do anything by saying that can't do something you create a conflict between your spirit and your lazy mind

how to make it real creates a strong mind and a dynamic spirit when Robert decided to leave the Rat Race he asked himself how can I never have to work again his mind began to propose solutions but the hardest part was fighting the traditional Dogma that tried to instill guilt to suppress your ambition without this little greed the desire to do something better progress doesn't happen our world moves forward because we all want a better life new inventions happen Because we want improvements We go to school and study because we want to have more too

much ambition is bad but a little stimulates you overcome your habits to be successful you must develop successful habits Poor Dad always paid everyone Before himself and there was rarely any leftover Rich Dad he always paid himself first, even if his income was low, he knew that creditors and the government would make a big fuss if they weren't paid and this motivated him to look for other sources of income to pay them, if he paid himself last he wouldn't have this type of productive pressure forcing yourself to think about how to get additional income to

pay your creditors made you fiscally strong overcome arrogance Rich Dad said that every time he was arrogant he lost money because he thought that what he didn't know wasn't important many people use arrogance to hide their ignorance Robert noticed this in discussions with accountants and other investors who made a lot of noise in discussions and made it clear that they didn't know what they were talking about ignorance is not bad if you react to yours by educating yourself through an expert in the field in question left hemisphere moment choose to analyze instead of criticize cynics

criticize but Winners analyze and discover neglected opportunities right hemisphere moment overcome bad habits replace them with new ones how to pay yourself first subconscious moment fear of failure takes many people out of the game instead use failures to inspire you to success like the Texans with the memory of the Alamo What does Robert mean now it's time to reflect ask yourself What does Robert mean in this quote And why does he say this in this session you don't need to agree or disagree with him the goal is to understand what Robert is saying remember this

study session is designed to be supportive and supporting two heads are better than one if you don't understand what Robert is saying don't give up on the lesson ask for help Take the time to discuss each quote until you understand them the main difference between the rich and the poor is the way they manage fear I have never met a golfer who doesn't have some Once I lost a ball I never knew someone in love who never had their heart broken and I never saw a rich person who hadn't lost money Many people don't succeed

financially because the pain of losing money outweighs the joy of being rich Rich Dad knew that this failure would make him stronger and smarter it's not that he wanted to lose he just knew who he was and how he would accept the loss he would turn the loss into Victory the Texans don't hide their failures they are inspired by they take their defeats and turn them into battle cries we all stopped with the pessimistic chicken when fear and doubt cloud our thoughts getting out of the rat race is technically easy it doesn't require much instruction

but doubts are an obstacle for many people Rich Dad believed that the words I can't afford it close your brain already like I can do it creates possibilities stubbornness and dreams if I pay myself first I become stronger financially mentally and physically there are a lot of people in the money world of Finance and investing who have no idea what they are talking about additional questions now is the time to use the stories in this Chapter to understand what Robert was saying AND apply them to yourself and your life ask yourself the questions below and

discuss them with your study partner Be honest with yourself and your partner if you don't like the answers If you can, ask yourself if you are willing to change and accept the challenge of transforming your thoughts and mentality first ask how you have experienced the fear of failure in your life are you capable of mastering it as according to Rich Dad recommended a Texan attitude win big but if you lose in a catastrophic way, overcome the defeat and use it as a battle cry What is the biggest challenge for you to take on this attitude

does it motivate you or scare you third how do you deal with the skeptics in your life who try to discourage you from winning fourth you have avoided certain investment vehicles because of an I don't want attitude such as I will not invest in real estate because I do not want to fix bathrooms how I would act differently on another occasion fifth Do you agree with the statement that a little ambition is the cure for laziness whether yes or no why sixth how ambition or obstinacy guide your life seventh do you pay yourself first or

do you pay your bills last what actions can you take to change that eighth arrogance has already cost you an opportunity what have you learned from this ninth which area of ​​financial knowledge do you ignore which resources could seek to educate yourself on this topic Chapter 8 get moving gold is everywhere most people are not trained to see it I wish I could say that acquiring wealth was easy but it wasn't to answer the question how do I begin I present the mental process that I carry out daily it's really easy to find good deals

I guarantee it's like riding a bike after some hesitation it becomes a walk but when it comes to money you need determination to overcome the hesitation phase it's a personal decision to discover unique deals in the life of Million Dollars requires us to summon our financial genius I believe that in each of us resides a financial genius The problem is that it is dormant waiting to be awakened it is dormant because our culture educates us to believe that love is money is the root of all evils 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 teaches us not to worry about our financial future that the government or the company we work for will take care of when the day of retirement arrives , however, it is our children who graduated from the same education system who will end up paying for it. The message is to work hard, earn and spend the money and when it is missing, we can always take out a loan, unfortunately, 90% of the western world accepts this theory. simply

because it is easier to find the job and work for the money if you are not part of this crowd I will show you the 10 steps to awaken your financial genius These are simply the steps I followed if you want to try Some of them great if you don't create yours your financial genius is smart enough to develop his own list talking to a 45 year old prospector in peru I asked him why he was so confident in finding a gold mine he replied gold is everywhere most people are not trained to see it

and I would say this is true when it comes to Real Estate I can go out any day and find four or five potential Good Deals where the average person can't find anything even looking in the same neighborhood the reason is they don't take the time to develop their financial genius I offer you the 10 steps to follow as a process that can help you develop the gifts that God has given you that only you can in the first step Find a reason beyond reality the power of the Spirit if you ask most people if

they would like to be rich or financially regardless the answer is yes but then reality sets in the road seems too long with many mountains to climb it is easier to work for the money and put what is left in the hands of a broker I once met a young girl who dreamed of participating in the Olympic swimming team from the United States she woke up every day at 4 am to train for 3 hours before going to college she didn't go to parties with her friends on Saturday nights she had to study to get

high grades like everyone else when I asked her what led to this ambition and this superhuman sacrifice simply answered I do this for myself and for the people I love it is love that leads me to overcome obstacles and difficulties a reason or a purpose is a combination of some I want and some I don't want when the People ask me what reason made me want to be rich, I say it was the deep and emotional combination of the wants and the don'ts . parents aspire to me that was job security and a house in

an upper middle class neighborhood I don't want to be a employee hated it when my father didn't watch my football games because he was busy with his career he hated seeing my father working hard and the government taking a large part of what he had obtained when he died he couldn't even leave to his children what he was for I had worked so hard the rich don't do that they work hard and leave a legacy for their children now I want them I want to be financially independent to travel all over the world and live

the lifestyle I like I want to do this at a young age I want to be simply free I want control my time and my life I want money to work for me These are my Deep emotional reasons What are yours if they are not strong enough then the reality of the road ahead may be greater than your motivators I have lost money and had several failures but it was these emotional reasons that kept me standing and kept me going I want to be financially independent by the age of 40 but I had to wait

until I was 47 with a lot of learning experience along the way As I said I would like to say it was easy wasn't it but it also wasn't hard without a strong reason or a purpose anything in life is difficult if you don't have a strong reason continue reading it doesn't make sense it will seem like too much work second step make daily choices the power of decision This is the main reason why people want to live in a free country we want the power of decision financially with any amount of money we have

in our hands we have the power to choose our future as rich poor or middle class our spending habits reflect who we are poor people simply have bad habits one advantage I had as a child was that I enjoyed playing Monopoly constantly, no one told me that Monopoly was just for children, so I continued playing as an adult, there was also Rich Dad who showed me the difference between a asset and a liability being that way a long time ago when I was still a kid I chose to be rich and I knew that all

I had to do was acquire legitimate assets my best friend Mike had an asset column that was given to him but he had to choose to learn to keep it many rich families lose the assets in the next generation simply because there is no one trained to be a good Guardian of it many people choose not to be rich for 90% of the population being rich is too much hassle so they invent things like I'm not interested in money I will never be rich I don't need to worry I'm still young when I have some

money I will think about my future or my spouse takes care of the finances the problem with these statements is that they rob people of two things, firstly time, which is our most precious asset and the second learning Just because you don't have money is no excuse for not learning but it's a choice we make every day of what to do with our time money is what we put into our heads it's the power of decision We all have choices I chose be rich and I make this choice every day Invest first in education in

fact the only real asset you have is your mind the most important instrument we master As I said each one of us can choose what we put into our mind once we reach the age enough you can watch TV all day read golf magazines take a ceramics or financial planning course you choose most people simply buy investments instead of learning how to invest a friend a rich woman recently had her apartment robbed the thieves took your electronic devices and left all your books we all have this choice again 90% of the population buys television sets

and only about 10% business books So what I do I go to seminars I like it when they last at least two days because I like to delve deeper into a topic in 1973 I was watching television and saw an advertisement for a TRS Dias seminar on how to buy property without having to make a down payment, I spent 385 and the cost allowed me to earn at least 2 million, perhaps more, but more importantly, it gave me gave life I don't need it work through the rest of it thanks to that course I do

at least two of these seminars a year I love audiobooks the reason I can easily go back what I just heard I was listening to an investor say something I completely disagree with once instead of simply being arrogant and critical I listened to that 5-minute excerpt at least 20 times, maybe more, and suddenly, keeping my mind open, I understood what he had said, it was like magic, I felt as if a window had opened into the mind of one of the greatest investors of our time, I gained knowledge trembling over the vast resources of your

knowledge and experience practical consequence I still have my old way of thinking and also a new way of looking at the same problem or situation I have two thoughts instead of one more than one way of analyzing a problem or trend and this priceless today I often wonder how Donald Trump would do this roham buffet or George soros the only way I can access their vast Mental power is by being humble enough to read or listen to what they have to say arrogant and critical people are often people with low self-esteem who are afraid to

take risks because when we learn something new we need to make mistakes in order to fully understand what was learned if you have read this far arrogance is not one of your problems arrogant people rarely read or listen to experts Why would they do so, they are the center of the universe, there are intelligent people who argue or defend themselves when a new idea clashes with what they think, in this case their so-called intelligence combined with arrogance becomes ignorance, each of us knows someone very educated or who thinks he is smart but whose balance sheet

shows something else a truly intelligent person Welcomes new ideas because they can increase the synergy of other accumulated ideas listening is more important than talking if that weren't true God wouldn't have given us two ears and just one mouth too many people think with their mouth instead of listening to assimilate new ideas and possibilities they discuss instead of asking questions I think about my wealth in the long term I am not a supporter of the instant millionaire mentality like that of many buyers of Lottery tickets or casino goers I can buy and sell shares but

I always acquire knowledge if I want to fly a plane I must take lessons first I am always perplexed by people who buy shares or real estate but never invest in their biggest asset their mind the fact that they bought One or two properties does not make you a real estate expert . year the important thing is that I learn from all of them now I admit that there are people I looked for because they have money but I wasn't after their money I wanted their knowledge in some cases these people with vast Possessions became

dear friends but not all of them there is a difference that I want to highlight that I noticed that my rich friends talk about money and I don't mean to say that they brag about the subject, friends who have financial difficulties don't like to talk about money, business or investments, they often think that this is inelegant or vulgar, that is, I also learn with friends who have financial problems I find out what not to do I have several friends who have obtained more than 1 billion dollars during their brief lives three of them observe the

same phenomenon their friends who don't have money never asked them how they got it But they ask for two things borrowed money and the job warning Don't listen to poor or scared people I have friends like that and I really like them but they are Chicken LS in life when it comes to money especially investments the sky is always falling they always know why things don't work The problem is that people listen to them but those who blindly accept this pessimistic information are also pessimists and as the old saying goes tell me who you hang

out with and I will tell you who you are if you watch business channels on TV you will see that they often present round tables called specialized, there is always a pair participating saying that the market is about to collapse and another that is on the rise if you are smart you will listen to both keep your mind open because they both have valid reasons unfortunately most people just listen to the Chicken litts I have some close friends who tried to get me to give up on some business or investment a few years ago A

friend told me he was excited because they discovered A certificate of deposit that yielded 6% per year then said he was earning 16% on bonds of property tax debts the next day he sent me an article that showed why my application was dangerous for years I am getting the 16% and he continues with the 6% I would say that the most difficult thing about building a fortune is being faithful to yourself and be willing to not follow the crowd at the market it is very common for this crowd that arrives late to be relegated if

a big deal is in the headlines in most cases it is Too Late Look for a new deal as the surfers say there is always another wave around People who run and catch the wave Too Late are the ones who generally get it wrong. Smart investors don't get upset if they miss a wave, they wait for the next one and get ready. This is difficult for most investors because buying something that isn't popular seems terrifying. shy investors like to follow the crowd their greed leads them to invest only when wise investors have already cut their

profits and withdrew wise investors invest when the business is not yet popular They know that their profits are generated when they buy and not when they sell, they wait patiently As I said, they don't rush like a surfer They prepare for the next wave, everything is the use of privileged information, there are ways of obtaining privileged information that are Illegal and others that are legal, but in any case it is privileged information, the only distinction is the how far you are from being in the know the reason you want to have rich friends who are

in the know is that money is made there it is fabricated information you want to know when the next rise will be get in and out before the next fall I'm not saying do it something illegal but the sooner you have access to this information the greater the chances of profit with minimal risk for that there are friends and that is financial intelligence step four master a formula and then learn a new one the power of quick learning to make bread all the time baker Follow a recipe even if it only exists in your head

the same is true about making money many of us have heard the expression you are what you eat I have a paraphrase you become what you study in other words be careful about what study and learn it because your mind is so powerful that you become what you put your mind to, for example if you study cooking you tend to be a cook if you don't want to continue being a cook you will need to study something else when it comes to money the masses have a basic formula learned in school and that is work

for the money the formula that I see prevailing in the world is that every day millions of people wake up and go to work they make money they pay bills they check their checkbooks they buy some Mutual Funds and go back to work that is the formula or the basic recipe if you are tired of what you are doing or if you don't earn enough just change the formula you use to make money when I was 26 years old I took a weekend course called how to buy properties in foreclosure I learned the formula the

next step it was having the discipline to put into action what I had learned , that's where most people stop. For 3 years while I worked at After having mastered the formula, I started looking for others. In many cases, I did not directly use the information I obtained, but I always learned something new. I have already taken courses aimed at brokers specializing in derivatives, a course on commodity options and on the theory of chaos in this I was out of my element in a room full of people with doctorates in nuclear physics and space science,

yet I learned a lot of things that made my investment in real estate and stocks more meaningful and profitable, many community higher education institutions have financial planning courses and trad investment acquisitions are excellent places to start but I always look for the quickest formula which is why I quite regularly make more in a day than many people do in their entire lives another side note in the rapidly changing world of our day the question is not so much what you know because often what you know is already outdated it's how quickly you learn it this

skill is priceless it's priceless to find formulas recipes if you prefer faster ways to make money working hard for money is a old formula born in the days of the caveman step five pay yourself first the power of self control if you can't control yourself don't try to get rich Maybe it would be good to join the Navy or some religious order to learn to control yourself is the lack It 's the lack of self-control that drives many Lottery winners into insolvency shortly after they've won millions. It's the lack of self-control that drives people who

have just gotten a raise to buy a new car or go on a cruise . but of all this is possibly the most difficult to master if it does not integrate into your personality I would venture to say that there is a lack of self-control which is the number one factor separating the rich, poor and middle class, simply put, people who have low self-esteem and little tolerance to financial pressure, they can never be rich As I said, a lesson learned from Rich Dad was that the world will beat you up, that doesn't happen because other

people are bad, but because individuals don't have self-control and discipline those who don't have the strength in the interior often becomes a victim of those who TM, in the courses for entrepreneurs where I teach, I constantly remind participants that they should not focus on their product, service or activity , but on developing management skills, the three most important management skills to start own business are first cash flow second people and third personal time I would say this management skills apply to anything not just entrepreneurs the three influence the way you live your life as an

individual as part of a family a business an organization of charity , a city or a nation , each of these skills is enhanced by the mastery of self-control. or the richest man in Babylon in free translation millions of copies have been sold but although millions of people freely repeat this powerful statement few follow the advice as said financial proficiency allows us to read the numbers and these tell the story by seeing the financial statement and the a person's balance sheet I can easily see if the person who says pay yourself first is practicing what

he preaches a picture is worth more than 1 words let's compare So the financial statements of people who pay themselves first and those who don't do study the diagrams and see if you can notice any difference I repeat it has to do with understanding the cash flow that tells the story many people look at the numbers and lose the story narrator's notes just below this text there is a photo with the title people who pay themselves first in this photo there are two blocks the first block is from the financial statement an arrow leaves the

point of employment goes to the salary in income and goes down to the second block of the balance sheet in the assets where there are savings and investments later goes up again for expenses, a point in taxes, rent and food, in the narrator's free interpretation, it is understood that the resources he sells his job are understood as a salary, firstly it goes to his assets such as his savings and his investments and only then for taxes, rent and food this image as well as all the others contained in this book and also the pdf of

this book for free will be available on the blog eso.com bblog There you will find this audiobook for download access the blog for greater immersion end of notes see the previous diagram reflects the actions of a person who chooses to pay himself first every month he allocates money to his assets column before paying fixed expenses although millions of people have read the book of clon and understand the expression pay yourself first in fact they do it last now I can hear the complaints of those who sincerely believe in paying the bills first I hear all

the responsible people who pay their bills when due I'm not saying to be irresponsible and ignore them all I say is to act as the book says pay yourself first and the previous diagram is the correct accounting chart of this action narrator's notes just below This text there is another figure similar to the previous one the title It's people who pay others first, there are two blocks, the first in the financial statement where a point comes from employment and goes to the income section and another point in salary goes down to the expenses section where

there are taxes, rent and food and follows the block of balance sheet where the assets and liabilities remain blank in the narrator's free interpretation The figure exemplifies the person who first pays others, his income comes from employment and is included in his financial statement as a salary, he pays his tax expenses, rent and food and not have no assets end of notes text continues if you can truly begin to understand the power of cash flow you will quickly realize what is wrong with the previous diagram where 90% of people work hard throughout their lives and

need support of government and Social Security when they can no longer work Kim and I have had many brokers, accountants and bank managers who had major problems with the pay yourself first guidance the reason is that these professionals in fact do the same as the masses they pay themselves last they pay everyone else first there have been times in my life when for whatever reason the cash flow was much less than my bills yet I paid myself first my broker and accountant screamed in panic They will come after you, the revenue will put you in

jail, you will destroy your ability to take credit, they will cut off the electricity, I still pay myself in the first place, why will the reader ask, this is the whole point of the story. from The richest Man in Babylon the power of self control and inner strength and how Rich Dad taught me the first month I worked for him most people let the world beat them up the collector calls and says pay or so a salesman says put it on your card your real estate agent says go ahead the government allows you to deduct

your home financing from your Income Tax that's what the book is all about having the determination to go against the tide and get rich you may not be weak but when it comes to money many people allow themselves to be influenced I'm not saying to be irresponsible I don't have debts on my credit card or from buying superfluous things because I pay myself first the reason I minimize my income is because I don't want to hand it over to the government it's because that my income originates in my asset column through a limited liability company

and Nevada if I work for money the government takes it away Pay my bills last I have enough financial astuteness not to put myself in a snowball I don't like of consumer debts In fact I have liabilities that are higher than those of 90% of the population but I don't pay for them others What do renters do the main thing so to pay yourself in the first place is to start by not getting into debt despite paying my bills lastly I organize myself so that I only have small unimportant bills that I will have to

pay when eventually I'm in a pinch I still pay them myself first I let the creditors and even the government shout like when they get mad why Because they do me a favor they inspire me to go out and create more money I keep paying myself first I invest the money and let the creditors complain in general I end up paying it off anyway Kim and I have excellent credit We just don't give in to the pressure and don't spend our savings or liquidate stocks to pay off consumer debt this isn't very financially smart to

successfully pay yourself off first. place Keep the following in mind first don't go into too much debt keep your expenses low build up your assets first then buy a bigger house or a good car getting stuck in the rat race is not smart second when you're tight with money don't rush and spend your savings or investments use pressure to inspire your financial genius to discover new ways to make more money and then pay the bills you will have increased your money making skills as well as your financial intelligence many times I have had financial problems

and used my brain to create more income while firmly defending my assets my accountant screamed and looked for cover but I looked like a good Cavalry soldier defending the fort the fort of assets poor people have a habit of the Poor a common and wrong bad habit is withdrawing money from savings the rich know that Savings are only used to create more money, not to pay bills, I know that sounds cruel, but as I said, if you don't stay strong, the world will always beat you down. If you're the type that doesn't like financial pressure,

then find a formula that works for you. you a crystallized formula is to count expenses because the money in the bank pays more than necessary in Income Tax, invests in Mutual Insurance Funds and always expects average results, but this violates the rule of paying yourself first. This Principle does not encourage selflessness or financial abstinence does not mean paying yourself first and going hungry, life was made to be enjoyed, just recruit your financial genius so you can have all the good things in life, get rich and pay bills without sacrificing yourself and that is financial intelligence

sixth pay Well, your brokers, the power of Good Advice, I often see people putting up a poster in front of their home, the owner sells it, or I see advertisements on television for discount brokers, brokerages where the investment pays a fixed brokerage regardless of the value of the business. Rich Dad taught me how to do exactly the opposite, he believed that professionals should be paid well and I adopted the same policy. Today I have my service, lawyers, accountants, real estate and stock brokers who charge a lot because if people are professionals, their services should make

money for you. and the more money they make the more I make we live in the information age information is priceless a good broker must offer you information and take the time to instruct you I have several brokers willing to do this for me some taught me when I had little or none money and to this day I work with them what I pay a broker is little compared to the money I can make as a result of the information they bring me I love it when my real estate or stock broker makes a lot

of money in general That means I made a lot of money too a good broker besides making money for me Saves me time like When I bought an empty lot for 000 and sold it immediately afterwards for 000 so that I could buy my Porsche faster brokers are your eyes and ears in the market they are all there the days and so I don't need to be I prefer to play golf People who sell their house on their own don't value their time very much, why would I stop spending a few dollars when I can

use this time to make more money or to be with those who I love what I find funny is that both poor and middle class people insist on tipping 15% to 20% in restaurants for poor service and complain about paying a broker somewhere between 3 to 7%, they like to tip people people who appear in the expense column and mistreat that are not in the assets column, this is not smart from a financial point of view Keep in mind that not all brokers are the same, unfortunately, most of them are just sellers, they sell but

have little or no property of their own. There is a big difference between a broker who sells houses and one that sells investments and the same applies to stock brokers securities Mutual funds and insurance that call themselves Financial consultants when I interview a professional I first try to find out how many properties or shares they own and what tax rate they pay and does this apply? to my tax lawyers and he is my accountant one of my accountants has her own business her profession is accounting but her business is real estate I had an accountant

who had a small accounting company but didn't have any property I changed it Because we don't like the same type of business find a broker who takes your interests seriously many will take the time to educate you and can be the best asset you will find be just fair and most of them will be fair to you if you worry about cutting these commissions So how can they be interested in working for you? It's simple logic, as I said before, one of the management skills is managing people. Many can only manage people they consider inferior

to themselves and over whom they can exercise power as subordinates in a work relationship. Many mid-level managers stay in that position and don't get promoted because they know how to work with people below them but not with those above them. True skill is managing and paying well people who are smarter than you in some technical areas. this is why big companies have boards of directors You need one too and that is financial intelligence seventh be an indigenous donor the power of return when the first white settlers arrived in the United States they were amazed by

the Cultural practices of some indigenous North Americans for example, if a Colonist was cold, the indigenous person would give him a blanket, mistakenly thinking it was a gift. The Colonist was often offended when the indigenous person asked for it back . the American expression indigenous donor originates a simple cultural misunderstanding in the world of the asset column it is vital to wealth to be an indigenous donor the main question of the sophisticated investor is how quickly will I get my money back he also wants to know what he can get from grace or what is

called profit sharing this is why the return on investment is so important the main question for the sophisticated investor is how quickly will I get my money back for example I discovered a small property a few blocks from where I live that it was being foreclosed in court the bank asked for 0.000 and I presented an offer of 50,000 which was accepted simply because it was accompanied by a cash check for 50,000 they noticed that I was serious, many investors will ask you weren't tying up a lot of money at once weren't you? Better to

get a loan the answer is no in this case my investment company rents it for the season in the winter months and gets $500 a month for 4 months when Snow Lovers look for Arizona outside of the holiday season their rent is only 000 monthly in about 3 years, I got my money back, now I own this asset that generates money for me every month, the same applies to shares, my broker often calls and suggests that I invest a considerable amount in shares of a company that, according to him, I'm about to do something that

will increase their value, like launching a new product, so for a week or a month I invest my money in these shares while their prices rise, then I withdraw that initial sum and stop worrying about market fluctuations. because I have my initial money back and now I own an asset that technically came to me for free without a doubt in many I have lost money on occasions but I only play with the money I can lose, I would say that in an average of 10 investments I score two or three goals, five or six are

not that big of a deal and I lose in two or three But I limit my losses to the money I invested in them from that moment people who hate risk put their money in the bank and in the long term any savings is better than none but it takes a long time for you to get your money back and in many cases you don't get anything for free in all my investments There needs to be something more, something free like a condominium, a small warehouse, a plot of land, a house, shares or a commercial

building and the risk must be limited or it must be a low risk idea. There are entire books that deal with this subject so I won't expand that Ray Croc of McDonald's sold hamburger franchises not because he liked the Sandwich but because he wanted the franchise land for free, so wise investors should pay more attention to the return on investment, these are the assets that you get for free after you receive the your money back This is financial intelligence eight use assets to buy super the power of focus a friend's son was developing seeing a

nasty habit of overspending at 16 naturally wished he had his own car the excuse all his friends' parents had bought a car for his children the boy wanted to take his savings and put a down payment on the car that's when his father came to me do you think I should do what he wants or should I do like other parents and give him a car mine answer was in the short term it may be good but what you will have taught there in the long term you cannot use your desire to have a car

and encourage your child to learn something suddenly a light came on and he ran home two months later I met my friend again his son already has a car I asked no but I gave him $3,000 to buy it I told him to use my money instead of his reserved for university you were very generous I replied not so much the money it came with a condition which I asked, well first we played his game Cash Flow we played and had a long discussion about the wise use of money then I subscribed to the Wall

Street Journal for him and bought some books about the Stock Market and then I questioned what was the point I said the 3,000 was his but he couldn't buy the car directly he should use the money to buy and sell shares find his own broker and when he had earned 000 he could use half of it to buy the car and put the rest in savings to pay for college and the results continued well he was lucky in his first deals then he lost everything then he started to get really interested today he still has

about 2,000 left and he is even more interested he read all the books I gave him and got others from the library he reads actively the Wall Street Journal following the directions he knows that if he loses money he will have to walk for a few more years but he is not worried anymore he doesn't even care so much about the car because he found something more fun to do and what happens if he loses all the money , I asked, let's see, I'd rather he lose everything now than have to wait until we reach

our age to risk losing it, and besides, these are the best 3000 that I spent on his education, what he's learning will serve him for the rest of his life and he seems to have acquired more respect for the power of money, as I already said in the session, pay yourself first, the power of self-control, if a person does not master this power, it is better not to try to get rich, although the process of generating cash flow from the cash column assets is easy the mental strength to direct money is difficult due to external

temptations it is more comfortable in this world of consumerism to waste money in the expense column the lack of mental motivation leads money to flow along the paths of least resistance This is the cause of poverty and financial problems the following examples illustrate the financial intelligence necessary to make money Generate more money if I give 100 people 10,000 at the beginning of the year I think that at the end of the year 80 they will have nothing left in fact they will have increase your debt by using the money to pay for a new car,

household appliances, electronic devices or a holiday trip 16 will have increased this 10,000 by around 5 to 10% four will have increased the sum to 20,000 or a few million we studied to learn a profession that will make us work for money in my opinion it is also important to learn how to make money work for us I like my surplus items as much as any other human being the difference is that some people buy their surplus items in installments it is the trap of wanting to imitate their neighbor When I wanted to buy a

Porsche the easiest way was to look for the bank manager and get financing instead of worrying about the liabilities column I decided to focus on the assets as usual I used my desire to consume to inspire and motivate me my financial genius investing constantly we worry about getting the things we want instead of focusing on creating money it's easier in the short term but harder in the long term it's a bad habit we fall into as individuals and as a nation remember the easiest path often becomes the driest and the hard path the most Pleasant

the sooner you learn to control money and teach those you love Pleasant narrator's notes the meaning of the word Pleasant is that which pleases or causes pleasant pleasure end of notes the sooner you learn to control money and teach those you love the better money is a powerful way unfortunately people use this power against themselves if your financial intelligence is low the money will flow out of your hands they will be smarter than you and if money is more cunning you will work all your life to be the master of money you need to be

more intelligent than it then money will do what you tell it to obey you instead of being a slave you will be the master This is intelligence financial ninth choice The Heroes the power of myths when I was a child I really loved Willy Waze Hank aon and Yoji Bera they were my heroes and I wanted to be like them their baseball cards were my treasure I wanted to know everything about them and I knew their statistics on their plays, how much they won and how they were promoted to professional teams as a 9-year-old boy

when he jumped to pitch or play first base or as a catcher, it wasn't me, I pretended to be a famous baseball player, simulation is one of the most powerful ways through which we learn and often lose this as adults we lose our heroes today I watch the boys playing baseball near our house on the court there is no Joãozinho they pretend to be their Idols copying or emulating heroes is a powerful learning experience 20 years ago today I would add some names to the list including David stockman and Jim Richards when I grew up

I found new Idols I had golf heroes I imitate their moves and I do my best to read everything about them I also have heroes like Donald trump raren buffett Peter lych George soros and Jim Rogers I follow their statistics As I did with my baseball heroes , I follow Warren Buffett's investments and read all about his opinions on the market. in the market or closing a deal I am acting subconsciously with trump's boldness or when analyzing a trend I try to think about how Warren Buffett would have done with heroes I tap into an

immense source of pure genius but heroes do more than simply inspire you heroes make situations seem easy by showing that it is possible they convince us to want to be like them if they did it I can too when it comes to investments we have too many people to complicate it look for heroes who make the situation seem easier 10 teach and you will receive the power of giving both my parents were Masters Rich Dad taught me a lesson that has stayed with me throughout my life the need to be charitable and to give my

educated father donated a lot in the form of time or knowledge but almost never donated money he used to say that I would donate when I had some money left but there was rarely any left Rich Dad donated both money and teachings he firmly believed in exchange if you want something first you need to donate he always said when he had little money he would simply donate money to the church or some charity if I had to just pass by a single idea for the reader would be this whenever you feel a lack or scarcity

of something, donate what you want first and it will come back to you in droves this goes for money smiles love and friendship I know that donating is often the last thing you want to do but for me it has always worked I just believe that the principle of reciprocity works and I give what I want if I want money I give money and it comes back multiplied if I want sales I help someone to sell and sales appear to me if I want contacts I help someone to get them and as if by magic

the contacts came to me many years ago there was something like this God doesn't need to receive but men need to give Rich Dad often said the poor are greedier than the rich he then explained that if a person was I was rich because I offered something that others wanted throughout my life. In all these years, whenever I felt the need for money or help, I searched deep in my heart for what I wanted and donated before doing so, what I donated always came back For me, this reminds me of the story of the guy

sitting with firewood in his arms one relaxing night, he would shout at the fireplace in front of him, when it warms me up a little, put some firewood inside you when it comes to money, love, happiness, sales and contacts, everything What we need to remember is to give as a priority often. Just the process of thinking about what you want and how you could give it to someone triggers a torrent of generosity. Whenever I feel like people aren't smiling at me, I just start smiling and greeting them and as if by a miracle suddenly there

are more people smiling around me it's true that your world is just a mirror of you that's why I say teach and you will receive I discovered that the more sincerely I teach those who are eager to learn but I learn if you want to learn about money teach someone a flood of new ideas and more subtle distinctions will emerge there have been times when I have given and nothing has returned or when what I received was not what I wanted but after reflecting and searching my soul I concluded that instead of giving for the

sake of giving I was donating to receive my Poor Dad taught teachers and became Master of Masters Rich Dad always taught young people his way of doing Business in retrospect it was their generosity with which they knew that made them better there are powers in this world much stronger than us you you can get there on your own but you will get there faster with the help of these powers all you need is to be generous with what you have and the higher powers will be generous to you study session Chapter 8 lesson eight get

moving summary Great Businesses are easy to find it's like riding a bike after some imbalances it becomes a walk but when it comes to money it takes determination to overcome the phase of imbalance you must awaken your inner financial genius to finding good deals our culture tells us that the love of money is the root of all evil that we just need to find a profession and work hard and the government will take care of us when we get old the message is still to work hard to make money and spend it and when it

is not enough we can always take out a loan and this is because for most of us our inner financial genius is dormant but we must wake up this genius in order to find the million dollar business of our lives it is much easier to find the job and work for money but this is not the path to riches if you want to go against the masses Robert shows the mental process he follows every day 10 steps you can use to awaken your financial genius Follow the ones you want or create your own your financial

genius is bets first Find a reason beyond reality the power of the Spirit many want to be rich or financially Independent but cannot because the road to reach there it seems very difficult as a future Olympic swimmer who sacrifices time and social life to go to the pool and study hard people need a goal or a reason Clear and strong for them to overcome obstacles a reason or purpose are the condition of the wants and I don't want like Robert's motivation for wanting to get rich first his I don't want motivates his desires he didn't

want to work all his life he didn't want a secure job and a house in an upper middle class neighborhood like his parents didn't want being an employee and busying himself working on a career at the expense of time with his loved ones only for the government to take most of his future work when he dies like his father did what he wants Robert wants to be financially independent to travel around the world as a young man and live life the way he loves he wants to be free and in control of his time he

wants money to work for him like Robert you must have strong enough emotional reasons behind your desire to be rich to support him during the setbacks Robert lost money many times but he continued because his purpose was strong enough he wanted to be financially independent at the age of 40 but he only achieved it at the age of 47 getting rich wasn't easy but it wasn't that difficult either but if Robert didn't had a strong reason behind your purposes it would have been incredibly difficult if you didn't have a consistent reason Robert asks you to

stop reading or it will seem like a lot of work two make daily choices the power of decision You have the power of the Daily Choice to be rich poor or middle class your spending habits reflect who you are the poor have a bad spending habit for a long time Robert chose to be rich your friend Mike after inheriting a healthy column of assets chose to learn how to conserve it which is not the standard situation when families rich people pass on their assets to the next generation, many people choose not to be rich, they

tell themselves that they are not interested in money or that they are young and don't need to worry about it yet or they come up with countless other excuses but these pretexts steal your time most precious asset and learning Every day we all have the choice of what to do with our time and money and what we put into our thoughts Robert chooses to be rich and makes this decision every day he urges people to invest first in education since our mind is our most powerful asset once we are old enough we all have the

choice of what to put into our minds But instead of choosing to invest in learning many people simply buy investments to continue their own learning Robert will at least two seminars a year in 1973 he went to a 3S Days conference on the acquisition of real estate without a down payment he spent 85 on a course And this generated at least 2 million and made it possible for him to no longer work for the rest of his life Robert also likes CDs and audiobooks that allow you to review what you've heard one time he was

listening to an investor who he disagreed with but after listening to him about 20 times he finally understood why the man said what he was able to understand why He kept his mind open even though he originally disagreed of the investor And now there are two ways to analyze problems What is priceless Robert chose to read and listen to what countless people think from Donald trump to George soros and this gives him access to their mental power when you learn something new you usually have to make mistakes to fully understand the lesson arrogant or critical

people Afraid of taking risks so they usually don't listen to experts But it's a matter of intelligence smart people can be ignorant if they combine their smarts with arrogance a really smart person on the other hand is open to new ideas they can be combined with those already accumulated and the result is great listen learn take a long-term wealth stance not a get-rich-quick mentality Invest in your biggest asset your mind before investing in stocks or real estate three select friends carefully the power of association lert learns from all his friends, both those who have money

seeking his knowledge and those who have financial problems, the last group teaches him what not to do, he says that several of his friends who have generated more than a billion dollars report the same phenomenon their friends who don't have money never ask them How they did it they just ask for a job or a loan or both Robert warns us Not to listen to poor or fearful people for them when it comes to investments the sky is always falling they will always say that no panel of experts will work, there is someone to tell

you that the market is falling or rising listen to both as they have valid considerations be true to yourself and don't go with the crowd this can be one of the hardest parts of building a wealth the crowd is often too late to a good deal instead look for a new offering a prospect that can be scary don't bide the time of the market prepare for the next wave wise investors buy investments when they are not popular they know that their profits comes from buying and not selling it is privileged information in the legal way

it is close to the source of the information have rich friends who know it or know where the money is being created find out about the next market rise get in and then get out of the market before the next crash that's what friends are for and that's what financial intelligence is for four master a formula and then learn a new one the power of learning quickly be careful how you learn it because you become what you put your mind to the masses have a basic formula go to work make money pay bills pay checks

buy Mutual Funds and go back to work if you're not making enough you need to change the formula years ago Robert went to a weekend class called how to buy foreclosed properties judicially he learned the formula and put it into practice making many millions in the process he then went in search of new formulas he did not always use the new information directly but he was constantly learning many colleges have classes on financial planning and the acquisition of traditional investments is a good way to start but Robert is always looking for the quickest formula he

says that 's why he can earn more in a day than many take in a lifetime and it's not just about faster formulas but learning them faster fifth pay yourself first the power of self-control of every step self-control is perhaps the most difficult to master if it is not part of your personality but personal discipline is the main factor that separates the rich from the poor and the middle class the world hits you and puts you against the wall and if you don't have tolerance for financial pressure you will never become rich Robert teaches students

in his entrepreneurship class that the three most important management ages for starting a business are cash flow people and personal time it applies to anyone it is not exclusive to entrepreneurs and each of these skills is improved by self-control although many repeat the statement pay yourself first few have the discipline to put it into practice compare these two diagrams narrator's notes below this text there is a photo with the two financial statements that have already been given previously they will be appearing on your screen end of the notes the text continues follow the flow of

money and see how follow the flow of money and see how these individuals pay themselves first via investments in the asset column before paying bills this doesn't mean their bills aren't paid responsibly it just represents paying themselves first you can see how paying others first leaves you with little or nothing to be invested in the assets column it happened to Robert and other people that there were times when the cash flow was not enough for them to pay their bills before days. They paid themselves first anyway it takes internal motivation when creditors are screaming but

makes asset investment a priority and leads you to wealth to successfully pay for yourself first first don't go into too much debt keep your expenses low build up your assets first then buy a bigger house or a nice car second when you're tight for money don't if FOB spend your savings or investments use pressure to inspire your financial genius to discover new ways to make money and then pay the bills you will have increased your money making abilities as well as your financial essence remember that this rule does not encourage selflessness or financial abstinence does

not mean paying yourself first and starving life is for living if you recruit your financial genius you will have all the pleasures of life you will become rich and pay your bills sixth pay your brokers well the power of Good Advice many people try save a few dollars using discount brokers or buying your house on your own, professionals not only optimize your time but also your money, information is priceless, a good broker should offer you information in the same way that makes you money Learn With them, in fact, what you pay them is little compared

to how much money can be made with the information they give you, keep in mind that not all brokers are the same, interview them and find out how many investment properties they have, find one with similar interests to yours treat good companies have a board of directors because they know the value of having smarter people around you should have your board too seventh be an indigenous donor the power of giving back the expression indigenous donor originated from a cultural misunderstanding When the first European settlers arrived in the new world, if a Colonist felt cold, an

indigenous person would give him the blanket . The Colonist mistook it for a gift and was offended when the native asked for it back. in the sense of these transactions in terms of investments the asset column it is essential to be an indigenous donor This is wanting your initial investment back and quickly an example is an apartment bought by Robert for 50,000 in cash he rented it in the high season for 00 and per 000 In the rest of the year in about 3 years the property essentially paid for itself, Robert's original 50,000 returned to

his pocket and month after month the asset continues to make money, some don't like Risk and prefer to keep their money in a savings account but there the money is stuck and they also don't have the possibility of receiving any benefit from it for each of their investments. Robert says that there must be an advantage, something free like a small shed, a small piece of land, shares and a property and there must be a limited risk eight use assets to buy frills the power of focus Robert loves frills as much as the next man but

he does not borrow money for their sake instead he concentrates on the asset column to create money and bank rather than buy it for him or let him use his savings for this his father gave him $3,000 some guidance on the Stock Market he said he couldn't use the $3,000 to directly buy the car he had to invest it and when he had 6,000 he could buy the car and the original 3,000 would go towards college savings although the son still had to produce this earnings his interest and learning were through the roof he was

learning a lesson for life expand his assets so that he can buy the things he wants to develop cash flow in asset column is easy in theory difficult is the motivation Mental to direct the money to the right use loans are easy immediately but difficult in the long run ninth choice The Heroes the power of myths one of the most powerful ways we learn as children is pretending to be our heroes Robert does the same as an adult although his heroes have changed instead of pretending to be Willy Way at bat channels trump's bravery when

closing deals or raren buffett's analytical skills when observing trends having heroes we reach their genius and how they make things look easy inspire us to try 10 teach and you will receive the power of donation Robert learned from Rich Dad that donating money is a form of learning he would say if you want something first you need to donate even if you are on a tight budget he would donate to the church or his favorite charity whenever he felt the need for something regardless of money a smile or a friendship, I give this and you

will receive it in spades, this is also seen in teaching, the more you teach, the more you learn, both of Robert's parents are proof of this, be generous with what you have and make sure you take pleasure in it and not just plant it thinking about harvesting left hemisphere momentum Use self-control to pay yourself first to prioritize growing your asset column right hemisphere momentum keep your mind open to new ideas and ways of doing things this adds synergy to your ideas already accumulated subconscious moment Take advantage of the Deep emotional reasons that make you want

to become rich make them strong they will help you overcome the obstacles to the entry to wealth What does Robert mean now it's time to reflect Ask yourself What does Robert what he means in this quote and because he says it in this session you don't need to agree or disagree with him the goal is to understand what Robert is saying remember this study session is designed to be supporting and supportive two heads are better than one you don't understand what Robert is saying don't give up on the lesson ask for help Take the time

to discuss each quote until you understand them gold is everywhere most people have not been trained to see it without a strong reason or purpose of some kind thing in life is difficult financially with any amount of money we have in our hands we have the power to choose in the future as rich poor or middle class 90% of the population buys television sets and only about 10% business books each of us knows someone who is very educated or who believes they are smart but whose balance sheet shows something else I noticed that my rich

friends talk about money and I don't mean to brag about it if you are tired of what you are doing or if you don't earn enough just change the formula who uses it to make money, those who do not have inner strength often become victims of those who do, on many occasions I have lost money but I only play with money because I can lose the easiest path often becomes the driest and the arduous path the hardest Enjoyable Additional Questions Now is the time to use the stories in this Chapter to understand what Robert was

saying And apply them to yourself and your life Ask yourself the questions below and discuss them with your study partner Be honest with yourself and with your partner if you don't like the answers you give ask yourself if you are willing to change and accept the challenge of transforming your thoughts and mentality first What are the reasons that make you want to enrich your wants and don'ts Robert would find them strong o enough second your spending habits reflect the life you want if not how to change them third what you choose to put into your

thoughts each day when was the last time you went to a seminar or read a business book In addition to this four o what you learned from your friends about Finance good or bad fifth you would say your self-control is strong or enough or needs good training sixth you have a board of directors brokers or other professionals that you pay well for your excellent information and skill of make money in your life seventh Do you understand the concept presented in Step seven otherwise discuss with your study partner eight the last time you acquired a superfluous

item how you paid for it n who is your financial hero how do you imitate this person in your actions Chapter 9 you still want more here are some possibilities many may not find my 10 steps sufficient they see them more as philosophies than actions I think understanding philosophy is as important as action there are many people who want to do rather than think and there are those who think but don't do it I would say I am both I love ideas and I love action for those who want a starting point of things to

do I will briefly share a little of what I do Stop doing what you are doing in other words stop and evaluate what is and isn't working the definition of insanity is doing the same thing and expecting a different result Stop doing what doesn't work and try to do something new look for new ideas to new investment ideas I go to bookstores and look for books on different and original subjects, I call them formulas, they are books that teach how to apply in a way I don't know, for example in a bookstore I found the

book The 16% Solution or 16% the solution of 16% in free translation by Joel mosk viix I bought and read the book and the following Thursday I did exactly what it said step by step I also did this when looking for bargains on real estate in law offices and banks many people don't act or allow themselves to be convinced for anyone to give up on the formula they are studying my neighbor told me why the 16% wouldn't work I didn't listen Because he had never tried it find someone who has accomplished what you want invite

them to lunch and ask for business tips just in case of tax debt securities above 16%, I went to the municipal tax office and looked for the employee who worked in the respective section, I discovered that she also invested in these securities, I immediately invited her to lunch, she was delighted to tell me everything she knew and how do after lunch she spent the afternoon showing me everything the next day with her help I found two great and mobile ones and since then I have been receiving 16% interest it took me a day to read

the book and another to act an hour for lunch and a day to close two good deals take part in courses Read and watch lectures I look for new and interesting courses in the newspapers Many are free or cheap I also pay expensive aries about what I want to learn I am rich and I don't need a job because of what I have learned I have friends who they didn't take these courses and they tell me that I'm losing money while they continue in the same job make a lot of offers when I want a

property I look a lot and in general I make a written offer if you don't know exactly how much to offer I don't either that's the real estate agent's job they make offers I try to work as little as possible a friend wanted me to show her how to buy apartments on a Saturday she, her broker and I visited six buildings, four were rubbish but two were interesting, I advised her to send a written proposal for each of them but offering half of what the owners asked for, she and the broker almost suffered a heart

attack, they thought it wouldn't be polite, the owners might feel offended, I really think the broker didn't want that much work because they didn't do anything and continued looking for a better deal, they didn't make offers and the person is still looking for the right deal at the price good well you won't know what the right price is until you find another party who wants to close the deal most sellers ask for too much it is rare for a seller to ask for a price lower than the value of the object moral of the story

make offers people who don't invest have no idea what it's like to try to sell something I had a property that I tried to sell for months I would have been happy with any offer I wasn't busy with how low the price they could have got me offered 10 pigs and I would have been happy not because of the offer but because someone was interested I would have made a counter offer maybe I would have accepted a bcos breeding but that's how the game works the game of buying and selling is fun don't forget that

it's fun and it's only a game makes offers can someone say yes I always make offers with reservations in real estate I make offers with the reservation that it is subject to the approval of the partner in the business I never specify who the partner in the business is most people don't know who the partner is my cat if they accept the offer and I'm not willing to close the deal I call the house and talk to the cat I make this absurd statement to illustrate how the game is incredibly easy and simple too many

people make things complicated and too serious find out a good offer the right business and investors or whatever it is like dating you need to go to the market and talk with a lot of people make a lot of offers against offers negotiate reject and accept I know singles who stay at home and wait for the phone to ring but it's better to go to the market even if it's just the supermarket looking to offer reject negotiating and accepting are part of the process of Almost Everything in Life run walk or drive through an area

for 10 minutes once a month I have found some of my best investments Real Estate by doing this I will run in a certain neighborhood over the course of a year and watch the changes for a business to be profitable, two elements are necessary: ​​Bargains and change There are lots of bargains, but it is the change that turns it into a profitable opportunity, so I move into an area in which I would like to invest. It is the repetition that allows me to observe small differences, I observe property sales notices that they have been there

a long time this means the seller will be more willing to negotiate I watch moving trucks coming and going I stop and talk to the people I talk to the postal parcel delivery people it's amazing how much information they have about an area I discover a bad area especially those that residents have been scared away by the news Sometimes I walk around for a year waiting for signs that something is changing for the better I talk to retailers especially the new ones and find out why they are moving it only takes a few minutes a

month and I do it while Me I occupy myself with another activity like running or going to a store Look for bargains in every market consumers are always poor when a supermarket runs a promotion on say toilet paper the consumer runs and stocks up when the Stock Market runs a Prom S often called of Crash or correction the consumer runs away when the supermarket increases prices the consumer buys elsewhere when the price of shares rises the same consumer starts to buy them always remember profits are made in buying not in selling go to the right

places a neighbor bought an apartment for $1,000 I bought the apartment with you and yours for 50,000 He told me he was waiting for prices to go up I showed him that profit occurs when you buy and not when you sell he bought a property from a brokerage that didn't owned real estate I bought mine from the foreclosure department of a bank I paid $00 for a course that taught me how to do this my neighbor believed that paying this amount for a course on investing in real estate was too expensive he said he didn't

have the money to that doesn't even take time so you're waiting for the price of your property to increase first find someone who wants to buy Then find someone who wants to sell a friend I was looking for land I had the money but didn't have the time I discovered a larger piece of land than my friend wanted I reserved it and I called him and he decided to keep part of the land, so I sold it to him and bought it, so the rest of the land came to me for free, moral of the

story, buy the cake and cut it into slices, many people look for what is within their budget. a limited vision they only buy a slice of the pie and end up paying more for less people who think small miss out on great opportunities if you want to get rich think big retailers like to give discounts for large quantities simply because most businessmen love people who spend a lot like that even if it's small it's always possible to think big when my company needed to buy computers I called several friends asking if they would also be

willing to buy so we went to several sellers And we ended up closing a good deal Because we were buying several units I did the same with actions small people stay small because they think small they act alone or do nothing Learn from history all the big companies listed on the stock exchange started as small businesses Colonel Sanders didn't get rich until he lost everything at the age of 60 Bill Gates was one of the men richest in the world before 30 act action always wins prostration These are just some of the things I have

done And continue to do to recognize opportunities words important are I did it in quotation marks and I also do it in quotation marks as I repeated countless times throughout the book you need to act before you can receive the financial rewards get moving study session Chapter 9 you still want more here are some possibilities for those who want a starting point starting point about what to do here is briefly some of what Robert does Stop doing what you are doing take a break to evaluate what really works look for new ideas Go to bookstores

and look for books on unusual and unusual subjects the book The 16% Solution by Joey moskovitz taught Robert something new and encouraged him to take action find someone who accomplished what you want call him to lunch and ask for negotiation tips and tricks attend courses Read and watch talks Robert looks for new and interesting courses in the newspapers and on the internet make lots of offers You don't know the right price until you have something to compare it with many sellers ask for a lot it's rare for a seller to offer a price below market

value it's fun it's just a game make offers someone can accept them and make offers with reservations run walk or drive through a specific area for 10 minutes once a month Robert has found some of his best real estate investments so run a certain neighborhood over the course of a year and observe the changes for a business to be profitable it takes two elements Bargains and change there are lots of bargains but it is change that turns them into a profitable opportunity this only takes a few minutes a month and he does it while busy

with other activities like running or going to a store Look for puffy fish in all the consumers will always be poor when a supermarket runs a promotion on let's say toilet paper the consumer runs and stocks up when the Stock Market runs a promotion often called a Crash or correction the consumer runs away remember profits are made on buying not selling go to the right places a neighbor bought an apartment for $000 Robert bought the apartment T next to his for 50,000 he told him he was waiting for prices to go up Robert showed him

that profit occurs when you buy and not when you sell he bought a property from a brokerage that does not own properties Robert bought his from the judicial foreclosure department of a bank paying 00 for a course that taught him how to do this his neighbor believed that paying this amount for a course on investing in real estate was too expensive he He said he didn't have the money or time for that, so he's waiting for the price of his property to increase. First, find someone who wants to buy. Then find someone who wants to

sell. Buy the cake and cut it into slices. Many people look for what's within their budget. a limited vision they only buy a slice of the pie and end up paying more for less people who think small miss out on great opportunities if you want to get rich think big retailers like to give discounts for large quantities simply because most businessmen love people who spend a lot that is small you can get together with others to make a good deal because you want to buy several units of a specific object small people remain small because

they think small they act alone and do nothing Learn from history all large companies listed on the stock exchange began as Small Businesses Colonel Sanders didn't get rich until he lost everything at age 60 Bill Gates was one of the richest men in the world before he was 30 act action always wins act action always wins prostration you need to act before you are financially rewarded move ask yourself additional questions now is the time to use the stories in this Chapter to understand what Robert was saying AND apply them to yourself and your life ask

yourself the questions below and discuss them with your study partner Be honest with yourself and with your partner if you don't like the answers you give ask yourself if you are willing to change and accept the challenge of transforming your thoughts and mindset question one does this list of things to do inspire or intimidate you second What actions from the list presented do you is ready to take third after reading the list which items in which still had not thought of or that are highly functional stand out What steps can you take to make them

real in your life final ideas I would like to share some final ideas with you the main reason that made me write this book and also the reason why it is a bestseller since 2000 was to share insights about companies, employ, employ, okay, was to share insights about employing financial intelligence to solve many of our everyday problems, without financial training, we often resort to standardized formulas to get through life, how to work hard, save, take out loans and pay too many taxes today more than ever of Financial Intelligence instead of working hard to achieve the

same goal a friend of mine complained about how difficult it was to save to pay for his children's college he invested 00 every month in a mutual fund and had already accumulated 12,000 he had 12 years to achieve this because the eldest son was 6 years old at the time, the property market in Fenix ​​was terrible, people were getting rid of their houses, I suggested to my colleague that he buy a house with part of the money accumulated in his mutual fund, The idea intrigued him and we began to discuss the possibility. His biggest concern

was that he didn't have bank credit to buy another house since he was heavily in debt. I assured him that there were other ways to finance properties without going to the bank. For two weeks we looked for a house. that fit the criteria we set for two weeks we looked for a house that fit the criteria we set there were many to choose from so it was quite fun finally We found a three bedroom , two bathroom house in a good neighborhood the owner had been laid off from the company and needed to sell that

day because he and his family were moving to California where another job awaited him the owner wanted 122,000 but we only offered 9,000 he accepted immediately and agreed to finance with 10% down payment all my friend needed to pay was 7 $7,900 as soon as the previous owner moved out my friend He rented the house after paying all the expenses including the financing my friend received 125 per month his plan was to keep the house for 12 years accelerating the payment of the financing with those 12 125 per month We imagine that at the end

of this time, most of the financing would be paid off and he would have about 800 net monthly by the time his first child entered college. If the house appreciated in value, it would also be possible to sell it 3 years later, the property market in Fênix registered a sudden recovery and the tenant who lived in the house and liked it very much offered him 15,156,000 again my friend asked me what I thought and I advised him to sell it using the tax differentiation mechanism of session 131 suddenly he had about of 80,000 to do

something, I called another friend in Austin, Texas, who took this money and invested it in a Lim partnership of a company that I was setting up within three months, my friend started to receive about 000 monthly, which he immediately invested in the moto fund two years later the small company was sold my friend received around 330,000 for his share he reinvested them now around 3,000 monthly which were once again placed in the mute fund now he is confident that his objective will be achieved more easily just the 7900 dollars to start and a little financial

intelligence his children will be able to have the education they want and he will be able to use the remaining assets through his corporation to finance his retirement as a result of his successful investment strategy he will be able to retire more Thank you for reading this book. I hope it has given you some insights into using the Power of Money to Work for You Today We Need More Intelligence financial simply to survive the idea that you need money to make money is the thought of people without financial sophistication it doesn't mean that they are

not intelligent they simply didn't learn how to make money money is just an idea if you want more money simply change your way of thinking every self-made person started with a small idea that turned into something great, the same goes for investment, it only takes a few dollars to start growing until you achieve something bigger, I've met a lot of people who spend their lives looking for opportunity perfect or trying to accumulate money to get into a big business but that seems foolish to me I have seen many unsophisticated investors put large savings into a

business and lose almost everything quickly they may have been good workers but they were not good investors education and knowledge about money are important start early buy a book attend a seminar practice I turned 000 in cash into a 1 Million asset that generated a cash flow of 5000 monthly in less than 6 years But I started learning when I was a kid I encourage you to learn because it's not that difficult in fact it's even easy once you get the hang of it I think my message has become clear it's what's in your mind

that ends what's in your hands the money is just an idea there's a book by napoleon hill called those who think get rich the title of the book are not those who work hard get rich learn to make money work hard for you and your life will be easier and happier these days don't look for security be smart the three incomes in the world of accounting There are three different types of income the first is sore, the second is portfolio, the third is passive, when my Poor Dad told me go to school, get good grades

and find a secure job, he recommended that I work for the income, so my Rich Dad said to me that the rich don't they work for money they make money work for them so referred to passive income and portfolio income passive income in many cases derives from investments in real estate portfolio income comes from paper assets such as stocks and bonds was this type of income that made Bill Gates the richest man in the world not the wealth Rich Dad said the secret to becoming rich is the ability to convert income into and portfolio as

quickly as possible He said taxes are higher on passive income is the least taxed income this is another reason to make you want your money to work hard for you the government taxes the income you work hard for more than the income your money works hard for you In my book Financial Independence I explain the four different types of people that make up the business world, from employees to self -employed people or owners of small businesses. talks about the crucial differences between these four types and how people can change quadrants in fact most of our

products were developed for people in the quadrants I gave 20 years ago mission financial education new books in the Rich Dad series You will like business of the 21st century business school Rich Dad's prophecy in investment guide another book in the Rich Dad series details the importance of converting current income into passive or portfolio income Rich Dad said all a professional investor does is transform sore income into passive and portfolio you know what you are doing investing is not risky it is commonplace the secret to financial independence the secret to financial independence and great wealth

is the personal ability to convert sore income into passive or of portfolio my Rich Dad I have been teaching Mike and I this skill for a long time, mastering it is what made my wife Kim and I financially Independent without ever needing to work again we continue working by choice today we have a Real Estate investment company to generate income passive and participate in private placements and initial public offerings ipos of shares to generate portfolio income we also go back to work to build a financial education company so that we can continue to create and

publish books and games all of our educational products are created to teach the the same skill that rich dad taught me to convert income into passive income and portfolio, the games we create are important because they teach what books cannot, for example, you would never learn to ride a bike just by reading a book, our games qu Flow and the Cash Flow For Kids version for children were developed to teach players the basic investment skills to convert income into biva and portfolio they teach the principles of accounting and financial proficiency these games are the only

educational products in the world that teach people all these skills simultaneously you can play classic cashflow online at www.richdad.com content is in English and learn how to convert wound income into passive or portfolio narrator's notes the links are in the description end of notes Cash Flow 202 is the advanced version of cashflow 101 and requires both the previous game and your understanding before playing Cash Flow 201 and Cash Flow for kids teach investor basics Cash Flow 202 teaches the principles of technical investing technical investing involves advanced business strategies such as short selling, call and put

options and eudel a person who understands these advanced techniques is able to make money in both rising and falling markets like my Rich Dad said a real investor makes money in a rising or falling market that's why they make a lot of money one of the reasons why they make a lot of money is simply because they have more self-confidence Rich Dad said they have a lot of self-confidence because they are less afraid of losing in other words the average investor doesn't win so much money because they are afraid of losing money the average investor

does not know how to protect themselves from losses and that is what Cash Flow 202 teaches average investors think that investing is risky because they have not been formally trained to be professional investors like Warren Buffett the North American investor richest American says the risk comes from not knowing what you are doing my board games teach the basics of Fundamental investing and technical investing while entertaining people eventually I hear someone say their educational games are expensive which raises the question of return on investment Roy or the value that makes the possession pay the price I

nod my head and answer yes they can be expensive especially compared to entertainment board games but my games are not as expensive as a University education working hard for a lifetime for income the wound pay excessive taxes and then live the terror of losing all your money in the investment markets when someone murmurs hesitantly about the price I can hear my Rich Dad saying if you want to get rich you must know why type of income work hard how to maintain and protect it from losses This is the secret to great wealth Rich Dad also

said if you don't understand the difference between these three types of income and don't learn the skills on how to acquire and protect them you will probably spend your whole life earning less than you could by working harder than you needed to, my Poor Dad thought that a good education, a decent job, and years of hard work were all you needed. To be successful, my Rich Dad also thought that a consistent education was important, but for him it was equally important that Mike and I knew the differences between the three incomes in which to invest

our efforts for him this was basic financial education knowing the differences between the three incomes and learning investment skills and how to obtain them are the basic training for anyone who is dedicated to acquiring great wealth and achieving financial independence, a special kind of freedom that only a few will know, as Rich Dad stated in lesson number one, the rich they don't work for money they know how to make it work for them Rich dad said al so sore income is the money you work for while passive and portfolio income are the money working for

you to understand this small difference was crucial in my life or how Robert Frost ends his bohem and that's what made all the difference move everyone received two great gifts your mind and your time it's up to you to do what you want with both of you and only you have the power to determine the destiny of every penny that comes into your hands spend your money completely you chose to be poor spend it on liabilities and you will be part of the middle class Invest in your mind and learn to acquire assets and you

will be choosing wealth as your goal and your future the choice is yours and yours alone every day every penny you decide to be rich poor or middle class choose to share this knowledge with your children and you will be preparing them for the world that awaits them no one else will your future and that of your children will be determined for the choices you make today not tomorrow we wish you a lot of wealth and a lot of happiness with this fabulous Tom called life Robert kosaki study session final ideas summary the main reason

that made Robert write this book was to share insights into how a greater financial intelligence can be used to solve many of life's problems. He shows an example of how a friend concerned about saving enough money for his children's university education managed to transform a down payment of 900 into a house in Fênix and a project that a few years later he was generating $3,000 in monthly income He needed a little money to start and financial intelligence education and financial wisdom are important start early buy a book frequent seminars practice start small what is in

your mind determines what will be in your hands o money is just an idea in the world of accounting There are three types of income portfolio income and passive income the latter most often derives from real estate and investments portfolio income comes from paper assets such as stocks and bonds taxes are higher on injured income and lower passive income, as Rich Dad said, the government taxes income that comes from hard work more than income that comes from money that works for you. In another book by Robert, financial independence, he shows the four different types of

people that make up the world of business and of Employees a of self-employed people or small entrepreneurs d of owners of large businesses and of investors and how people can change quadrants in the investment guide Robert smi the importance of converting measured income into passive and portfolio income Robert and King's board games follow up on these teachings by teaching what the book cannot do. Cash Flow and Cash Flow For Kids games for children were developed to teach players basic investment skills and how to convert current income into passive income and portfolio they also teach the

fundamentals of accounting and financial proficiency Cash Flow 202 is the advanced version of Cash Flow 201 teaches the principles of technical investing this type of investing involves advanced short selling strategies call and put options and strudel a person who understands this advanced technique is able to make money with a rising or falling market know the differences between the three types of income and learn the investment skills to acquire them They are the basic form are the basic training for those who want great wealth and achieve financial independence a special kind of freedom that only a

few will have access to everyone has been given two great gifts your mind and your time It's up to you to do what you want with both of you and only you have the power to determine destiny of every penny that comes into your hands every day every penny you decide to be rich poor or middle class choose to share this knowledge with your children and you will be preparing them for the world that awaits them additional questions first what is the first thing you will do when you finish this guide of studies according to

what you are waiting for about the author Robert kosaki best known as the author of Rich Dad Poor Dad named as the number one personal finance book of all time Robert kosak revolutionized and changed the way tens of millions think about money of people around the world he is an entrepreneur, educator and investor who believes the world needs more entrepreneurs to create jobs with views on money and investing that often contradict conventional wisdom Robert has achieved international fame for his straightforward storytelling, irreverence and courage and became a sincere and passionate advocate for Financial Education Robert

and Kim Kosak are the founders of Rich Dad, a financial education company, and the creators of the game Cash Flow in 2014. The company took advantage of the global success of Rich Dead's games to launch a new revolutionary version of the online and mobile game Robert has been considered a visionary who has the talent for simplifying complex concepts ideas related to money investment Finance and economics and has shared his personal journey towards financial independence in a way that delights audiences of all the ages and Life Stories, its fundamental principles and message such as your home

is not an asset and Invest for cash flow and savers are losers sparked a barrage of criticism and ridicule only to invade the world of economics over the last decade in a disturbing and prophetic way his point of view is that the old advice get a good job save money get out of debt invest long term in a diversified portfolio has become obsolete in the fast-paced information age rich dad's messages and philosophies challenge the status quo his teachings encourage people to become financially proficient and take an active role to invest in their future author of

several books including the international success Rich Dad and Poor Dad frequently participates in media programs around the world from CNN BBC Fox News to jazen gbtv and PBS to Larry King Live opera people Daily Sydney morning herold the doctors Straight times Bloomberg npr usa today and hundreds of others and his books frequently top bestseller lists for over a decade he continues to teach and inspire audiences around the world bonus special session there have been many changes in the economy and financial landscape since Rich Dad Poor Dad was first published in 1997 20 years ago Robert

Kosak challenged conventional wisdom with his bold claim that his home is not an asset his controversial views on money and investing were met with outrage and criticism in 2002 father's prophecy P rich advised that we prepare for a financial market crash in 2006 Robert joined forces with Donald Trump to write we want you to stay rich, a book inspired by their concern for the acceptance of the North American middle class, Robert continues to be a passionate advocate for the importance and power of financial education today in the wake of the high-risk financing fiasco and record

real estate repossessions by banks and of the global economic collapse that still surrounds us, his words are not only prophetic but enlightening, many skeptics came to believe this in preparation for the reissue of the book financial independence Robert realized two things that his message and teachings have stood the test of time and that the investment scenario the world in which investors operate has changed dramatically these changes have and will continue to affect those in quadrant I of investors and have fueled their decisions to update an important part of the book financial dependence Chapter 5 The

Five Rings of Investors foreword What is your goal what do you want to be when you grow up This is a question that was asked to most of us we had many interests when we were children and it was easy to choose if it seemed exciting and exciting I wanted I wanted to be a biologist Marine astronaut sailor officer Nautical pilot and football player I was lucky enough to achieve three of these goals of the Marine Corps Nautical officer and pilot I knew I didn't want to become a Teacher, writer or accountant I didn't want

to be a teacher because I don't like schools I didn't want to be a writer because I failed English twice and I gave up my MBA because I couldn't stand accounting ironically now As I grew up, I became everything I never intended, even though I don't like school, today I own an Educational company, I teach around the world because I love teaching, even though I failed English twice because I didn't know how to write correctly. Today I'm best known as a writer, my book Rich Dad poor Dead was on the New York time Best Sellers

list for over 7 years and is one of the Three most read books in the United States, the only books that are ahead are the Joy of sex by Alex Confort and the rosel traveled by Scott perk adding yet another irony Rich Dad Poor Dad and my board game Cash Flow are about accounting another subject I had to struggle with but what does this have to do with the question what is your goal in life the answer is in the simplest of terms deep AF statement from a Vietnamese monk chkn Han the path is the

goal in other words the goal is to find your path is not your profession how much money makes your titles or your successes and failures finding your path means discovering your mission on earth What is the purpose of your life why was this gift called life given to you and what gift do you repay it with looking back I know that going to school was not about finding my way in life I spent 4 years in military school studying and training to be a Nautical Officer If I had built a career sailing for Standard Oil

on their Tankers I would never have found my way if I had stayed in the Marines or gone flying on commercial airlines I would never have found it either If I had stayed as a Nautical Officer or became a commercial pilot I would never have become an international bestseller been invited by the opra written a book with Donald trump or started a global education company that teaches entrepreneurship and investing around the world find your path this book financial independence is important because it's about finding your way in life, as you know, many people are programmed

from an early age in life to go to school and get a job. School Teaches you how to find a job . realize that there are people who at the beginning of their lives don't know exactly what they will do, they grow up thinking they will become doctors, lawyers, musicians , golfers or actors, all hearing about child prodigies with exceptional talents . your path my answer is I would like to know if I could wave my magic wand so that you would magically find yours I would do so as I don't have a magic wand

nor can I tell you what to do the best I can do is tell you what I did and what I did was follow my intuition, my heart and have courage, for example, in 1973, returning from the war, when my poor father suggested that I go back to school, get high grades and work for the government, my brain was paralyzed, my heart was heavy and my determination said no way when he suggested I get my old job back at Standard Oil or become a commercial pilot again my mind my heart and my determination said I

didn't know I was refusing Sailing and flying even though they are B professions and they pay very well in 1973 at the age of 26 I had grown up I had followed my parents' advice and went to school I received my diploma and I had two professions a Nautical officer's license and one to fly the problem was that those were jobs and dreams of a child at 26 years old, I was mature enough to know that education is a process, for example, when I wanted to be a Nautical Officer I went to training school and

when I wanted to learn to fly I went to flight school, a two-year process to train pilots were cautious about of my next educational process I wanted to know what I was becoming before starting it traditional schools had been good for me I had worked in the professions of my childhood dreams reaching adulthood was confusing because there was no one saying This is the way I knew what I didn't want to do but I didn't know what I wanted it would be quite simple if I wanted a new profession if I wanted to be a

doctor I would go to medical school if I wanted to be a lawyer I would go to law school but I knew there was more to life than that just going to university to get a degree I didn't realize that at the time But at 26 I was looking for my path not my profession a different education in 1973 my last year flying for the Marines when I landed close to home in Hawaii I knew I wanted to follow in my Rich Dad's footsteps while still in the Navy. I signed up for Real Estate and

weekend business courses, preparing to become an entrepreneur in the quadrants. At the same time, on the recommendation of a friend of a friend, I joined a development course. people hoping to find who I really was a personal development course did not follow a conventional pattern of education because I was not seeking credit in the subjects I did not know what I would learn as well as When I entered the real estate course all I knew was that I had reached time to take a course to meet me on my first weekend of the course the

instructor drew this simple diagram on the blackboard narrator's notes below This text there is a figure A figure where there are circles drawn resembling a target in the center of the target there is a circle with the spiritual text in the next largest circle there is a text with the emotional caption in the next circle there is the mental text and in the first circle, that is, the circle of Outside, the largest of all, to the physical text in the interpretation of the speaker who speaks to you, the representation is that the first stage is

physical the second mental the third emotional and the last and Central spiritual end of notes with complete diagram The instructor turned and said to become a whole human being we need physical mental emotional and spiritual education by listening to her explanation It was clear to me that traditional school was primarily about developing students mentally, that's why many students who do well at school don't do so in the real world, especially in the world of money, as the course progressed through the weekend, I discovered why I didn't I liked schools I realized that I loved learning

but hated the institution classical education is a great environment for students but it was not the context for me traditional education destroyed my spirit trying to motivate me with the emotion of fear of making mistakes, failing and not finding a job they programmed me to be an employee in the quadrants and or the I realized that conventional education is not a place for the person who wants to be an entrepreneur in the quadrants dei could be why many entrepreneurs never Finished school like Thomas Edson the founder of General Electrics, Henry Ford of Ford Motors Company,

Steve Jobs of Apple, Bill Gates of Microsoft, Walt Disney of Disneyland and Mark Zucken Berg of Facebook, throughout the day, as the instructor delved deeper into those four types of personal development, I realized that I spent the most of my life in very strict educational environments after 4 years at a male military academy and five as a Navy pilot I was extremely strong emotionally and spiritually as a Navy pilot I was strong mentally and physically but I had only developed my masculine side did not have a dedicated side a feminine energy After all I was

trained to be an exciting Marine officer prepared to die for my country have you ever seen the film Top Gun aces Untamed starring Tom Cruz has an idea of ​​the masculine universe and the bravado of military pilots I love that universe I would be fine in it it was an updated reality of Knights and gladiators it was not for cowards in the seminar I immersed myself in my emotions and quickly reached my spirit I cried a lot because I had a lot to cry about I had done and seen things that no one should ever

be asked to do during the seminar I hugged a man something I had never done before, not even with my father on Sunday night it was difficult to leave that personal development workshop the seminar had been a kind, welcoming and frank environment on Monday -Friday morning it was a shock to be surrounded by selfish pilots dedicated to flying, killing and dying for their country after that weekend seminar I knew it was time for change I knew that I would develop emotionally and spiritually as a kinder, gentler and more compassionate person it was the hardest thing

I could do it went against all my years of Military Academy And in flight school I never went back to traditional education again I didn't want to study to achieve certain actions good grades promotions or diplomas again from so if I attended a course or school it would be to learn and become a better person I wasn't chasing degrees grades or diplomas growing up in a family of teachers your grades high school the university you graduated from and your postgraduate degrees were all like the medals and ribbons on the chest of a Navy pilot Lotto

postgraduate courses and renowned schools were the status and the stripes that educators wore on their sleeves in their minds people who had not finished high school were dirty Lost Souls of life the Those who had a master's degree looked down on those who only had a bachelor's degree. Those with a PHD degree were revered at the age of 26. I knew I would never return to that world editor's note in 2009 Robert received an honorary PhD in prestigious entrepreneurship San Inácio de laola in Lima, Peru, the other few recipients of this award are political leaders

like the former president of Spain José Luis Rodriguez, zapateiro finding my way, I know what some of you are wondering right now. Why is he spending so much time talking about educational courses that they deviate from the standard, the reason is that this first personal development seminar revived my love for learning, but not the one preached by the School. So after the seminar, I ended up becoming addicted to seminars, going to several, discovering more about the connection between my body, my mind, my emotions and my spirit the more I study the more curious I become

about traditional education I started asking questions like why do so many kids hate school because so few like it because there are so many highly educated and unsuccessful people in the real world school prepares you for the real world because I hate schools but I love teaching because most teachers are poor because schools teach us so little about money these questions led me to become a student of education outside the sacred walls of the school system the more I studied the more I understood why I didn't like schools and because they are not useful for

the majority of your students, even those who receive good grades, my curiosity touched my spirit and I became an Educational entrepreneur. If it weren't for this curiosity, I might never have become a writer and developer of educational games. My spiritual education gave me led to my path in life it seems that our path is not found in our mind our path is in our heart Does this mean that a person cannot find their path in conventional teaching I am sure many can I am just saying that I do not I would have done it in

traditional school Why a path is important we all know people who earn a lot of money but hate their work, perhaps we know many who earn a little and also hate what they do and we even know those who only work for money a colleague military Navy academy class also realized that he did not want to spend his life at sea instead of sailing for the rest of his life he entered law school after graduation from the Military Academy spending 3 years before becoming a lawyer and becoming a self-employed quadrant a died in his early

50s he became a very successful lawyer but unhappy like me he had two professions at the age of 26 although he hated being a lawyer he pursued his career because he had a family children a mortgage and bills to pay a year before he died I met him at a class reunion in New York he was a bitter man everything I do go after rich guys like you they don't pay me anything I hate what I do and the people I work for work why don't you do something else I asked I can't stop working

my first daughter is going to college He died of a heart attack before she finished her degree he He made a lot of money from his professional training but he was emotionally irritable spiritually dead and soon the your body accompanied you I know this is an extreme example Many people don't hate what they do as much as my friend does however This shows the problem when a person is tied to a profession and can't find their way to me this is the deficiency of classical education millions of people leave school only to become prisoners of

jobs they don't like they know that something has been lost in their lives Many are also caught in the financial trap earning just enough to survive wanting to earn more but not knowing how to do it So without awareness of the other quadrants, many people go back to school and look for new professions or higher salaries from the quadrants and or ignoring the world of the I quadrants . the desire to make financial education possible I wanted to make this education accessible to anyone who wanted to learn regardless of how much money they have or

an average report card that's why Rich Dad started with the game Cash Flow this game can teach in places I never Could you go the beauty of the game is that it was developed for people to teach people you don't need a teacher or a classroom the cashflow game has already been translated into more than 16 languages ​​reaching millions of people around the world currently Rich Dad offers financial education courses as well as coaches and mentors to help people become financially proficient Our programs are especially important for anyone wishing to move from the eea to

the dei quadrants there is no guarantee that everyone will move into the dei quadrant however they will know access them If you want to change it's not easy for me to change the quadrant it wasn't easy it was mentally hard work especially from the emotional and spiritual perspectives having grown up in a family of highly educated Quadrant Employees and I carried their values ​​about education employment insurance benefits and government assistance in many ways my family's values ​​made my transition difficult I had to get rid of your advice worries and criticisms about became an entrepreneur and

investor some of the values ​​I had to get rid of were but you need a job You are taking too many risks and if you fail just go back to university and do a masters become a doctor they make a lot of money the rich are greedy Why is money so important to you money will not make you happy Always live below your means seek security no follow your dreams diet and exercise I mention emotional and spiritual developments because they are fundamental to a definitive life change for example it rarely works to tell an overweight

person to simply eat less and exercise more dieting and exercise may be mentally logical but many overweight people don't eat because they are hungry They eat to feed the emotional emptiness in their souls when a person starts an exercise and diet program they are just working their mind and body without strong emotional and spiritual development that overweight person can follow a diet for 6 months lose a lot of kilos only for them to come back in even more quantities later the same is true for changing quadrants saying to yourself I will become the entrepreneur of

the quadrant is as frivolous as a smoker saying tomorrow I will stop smoking smoking is a physical addiction caused by emotional and spiritual issues without emotional and spiritual support a smoker will remain addicted forever the same applies to alcoholism, nymphomania and oniomania, many addictions are attempts to find happiness in people's souls, that's why my company offers courses for the mind and body, but also coaches and mentors, helping emotional and spiritual transitions, some people are capable of following the journey alone but I'm not one of them without training like my rich dad and a support like

my wife Kim I would never have been able to do it. Many times I wanted to drop everything and give up if it weren't for Kim or my Rich Dad I would have resigned myself Why do students fail looking at the diagram again it is easy to see why so many students fail in the world of money narrator's notes below This text there is a figure the same as the previous one with the target where the captions body mind emotion and spirit this figure should appear on your screen or can be found on the blog

ot.com bblog together with the pdf of this audiobook access to have a better immersion in the book end of notes the text continues a person can be highly educated from a mental point of view but If you are not emotionally educated, your fear will often stop your body from doing what it should do, which is why many students are trapped in analysis paralysis, studying every little detail, but in a cast, this analysis paralysis is caused by our educational system, which punishes students who They make mistakes if you think about it. Students are just H because

they almost never make mistakes. The problem with this emotional trap is that in the real world, the people who act are the ones who make the most mistakes and learn from them how to win the game of life. Presidents Clinton and Bush Clinton did not admit his sexual relations and Bush the mistakes he made during his term To err is human but lying about your act is a crime known as perjury when criticized for making mistakes 114 times before creating the electric light bulb Thomas Edson said I didn't speak 104 times I have successfully discovered

what didn't work on 1.14 occasions in other words the reason many people fail to achieve success is that they fail to fail enough times looking at the diagram once again one of the reasons many people stick to their jobs Safe is the gap in emotional education, they let fear repress them, one of the best things about the military school and the Naval villages is that those organizations spent a lot of time developing young people spiritually, emotionally, mentally and physically, although it was a difficult education, it was complete, preparing us for an unpleasant job I created

Cash Flow because it educates the whole person the game is a better teaching tool than reading or writing simply because it involves the body, mind, emotions and Spirit of the player it was developed for players to make mistakes as much as possible with the money in the game and then learn from these mistakes for me this is the most human way to learn about money the objective is the way today there are hundreds of Cash Flow Clubs around the world these clubs are important because they are a light at the end of the tunnel a

station stop on the path of life by joining a Cash Flow club you will meet people like you committed to making changes not just talking about them unlike school a successful academic past is not required all you are asked is about the sincere desire to learn and promote transformations In the game you will make countless mistakes in different financial situations and you will learn from them using the money in the game Cash flow clubs are not for those who want to get rich quickly they help in the long term people who want to change emotional

spiritual physically and financially We all transform and evolve at different levels of speed so you are encouraged to pace yourself after playing with others a few times you will have a better idea of ​​what your next step should be and which of the four classes of business assets Paper or commodities is the best for you feel like you are not in the quadrant or on the proper path I encourage you to listen to your heart to find it you may realize it is time for a change if you are making statements like the following I

am working with apathetic people I love what I do but I would like to make more money I can't wait for the end during the week I want to do it my way, it's time to stop mine My sister is a Buddhist nun, her path is to support the Dalai Lama, a choice that does not generate wealth, but although she receives little, it does not mean that she is a poor nun, she has her own property that he rents and invests in Gold and Silver, his strength of Spirit and his financially educated mind allow him

to follow his path without a vow of poverty, in many ways it was even good that I was labeled stupid at school, although emotionally painful this pain made it possible that I found my way as a teacher and just like my sister, the nun, it's not because I'm a teacher that means I must be poor, repeating what tit Nathan said, the goal is the path, introduction, which quadrant are you in, the cashflow quadrant, a way to categorize people according to their source of income are you financially Independent if your financial life Has reached an impasse

then financial independence was written for you if you want to take control of what you do today to change your financial destiny it will help you chart the if path this is the Cash Flow quadrant the letters in each quadrant represent e from employee to self-employed person or small business owner d to owner of large companies and i to investor each of us falls into at least one of the four sectors of the Cash Flow quadrant a our position is determined by the origin of our money, many of us are salaried while others are self-employed,

employees and self-employed people are on the left side of the quadrant, the right side is for the individual whose income comes from companies or investments that have the Cash Flow quadrant is a way of categorizing people according to their source of income each sector within the quadrant is unique and the people within each of them share common characteristics the quadrants will help you discover where you are and chart a path forward in the future as you choose your own gateway to financial independence, although it can be found in all four quadrants, the skills of a

d or I will get you to your financial goal more quickly . successful to ensure your financial security during retirement what you want to be when you grow up this book about various aspects is the second part of my book Rich Dad Poor Dad for those who have not read Rich Dad Poor Dad he talks about the various lessons that my two parents taught me about money and choices in life one of them was my real father and the other my best friend's father one of them was highly educated While the other was a high

school dropout one was poor the other rich the advice of Poor Dad As I grew up my educated but poor father always advised me Go to school, get good grades and find a secure job he recommended a lifestyle that resembled this narrator's notes below This text is a figure with the four quadrants aieed at the top there is the legend school an arrow goes from school to the quadrant and and another arrow goes from school to the quadrant at the end of the grades the text continues Poor Dad advised me to become one and an

employee with a high income or a self-employed as a doctor, lawyer or accountant My Poor Dad was very concerned about a stable salary, benefits and the security of a formal job, so he was a well -paid government employee, he was Secretary of Education for the State of Hawaii, Rich Dad's advice, my father few letters but rich gave very different advice he said go to school, graduate, start your business and become a successful investor he was recommending a lifestyle that resembled this narrator's notes below This text To another figure as well with the four quadrants this

time the arrow goes from school to quadrant I end the notes the text continues this book is about the emotional and educational mental process that I experienced when following the advice of my Rich Dad for whom this book is intended this book was written for people who are willing to change quadrants especially those who are currently in the eeae categories who intend to move to d or I this book is for people who are ready to overcome the barrier of job security and start seeking financial security this is not an easy path to follow but

at the end of the road independence makes the journey worth it when I was 12 my rich dad told me a simple story that guided me to graduation and financial freedom was his way of explaining the difference between the left side of the cashflow quadrant the e and a and o quadrants right the quadrants deia history Once upon a time there was a Village an excellent place to live except for one problem it only had water when it rained to solve this problem once and for all the Elders of the Village decided to organize a

competition to contract the delivery of water in the village every day two people offered to carry out the task and the Elders gave both of them the service concession they believed that competition guaranteed low prices and the offer to supply a water reserve the first Prim of the two competitors who won the concession Ed He immediately bought two buckets of galvanized steel and started running back and forth to the lake which was 1.6 km away. He immediately started earning money as he ran from morning to night, collecting water from the lake with his two buckets,

he emptied them into a huge concrete tank that the village had built every morning he had to wake up before everyone else to make sure there would be enough water when they wanted it. The work was hard but he was happy to make money and to have won one of the two exclusive contracts for his business the second competitor The Winner Bill disappeared for a while he was not seen for months which he was happy about as there was no competition instead of buying two buckets to compete with H Bill created a business plan set

up a company found four investors with hired a president to carry out the work and returned months later with a construction team . cleaner than Ed's he knew there were complaints about dirt found in Ed's water Bill also announced that he could supply the village with water 24 hours a day, 7 days a week Ed could only deliver water on weekdays because he did not work weekends then Bill announced that he would charge for this highly specialized service and for water whose quality was more reliable 75% less than what Ed charged the village then applauded

and immediately ran to the tap at the end of the pipe built by Bill to compete Ed lowered his rate at 75% he bought two more buckets, put lids on them and started to pick up four buckets each trip to provide better services. He hired his two sons to help him on the night shift and on the weekends when his children went to college he said come back soon go home because one day this business will belong to you for some reason your two sons never came back eventually Ed had problems with employees and unions

the union asked for higher wages more benefits and wanted their employees to only pick up one bucket at a time meanwhile Bill realized that if that village needed water, others should also need it, he reformulated his business plan and set out to sell his system of rapid delivery of drinking water on a large scale and the low prices in other villages around the world he only earned a penny per bucket of water delivered but he delivered billions of buckets and all that money flowed into his bank account Bill developed an archaeduct to deliver money to

himself In the same way that water was delivered to the villages Bill lived happily for the rest of his days Ed worked worked hard the rest of my life and always had financial problems, end this story about Bill and Ed guided me for years, it helped me make decisions, I often asked myself Am I building an archaeduct or collecting a bucket of water, am I doing heavy work or using the head the answers to these questions made me financially independent and that's what the book is about what it takes to become one of one i

is aimed at people who are tired of picking up buckets and ready to build an aqueduct for the money to flow in and not out of your pockets this book is divided into three parts part one the first part talks about the fundamental differences between people in the four quadrants and why some of them gravitate towards some quadrants and often become stagnant without realizing it will help you to identify your quadrant today and which one you want to be in 5 years from now part two the second part talks about personal changes It's about who

you should be and not about how to act part three the third part defines seven steps you should take towards the next right from the Cash Flow quadrant I share some more secrets from my Rich Dad about the skills needed to be a successful D or I I will help you choose your own path to financial independence in Financial Independence I continue to emphasize the importance of Financial Intelligence if you want to act on the right side of the quadrant the sides of i you need to be smarter than if you choose to be on

the left side as in e or a to be dii you need to be able to control the direction your cash flow is taking this The book was written for people who are ready to leave behind the security of a job and start building their own archaeduct to financial independence. We are in the information age and it offers more opportunities than ever for financial fulfillment to people empowered to being dei is that they will identify and seize opportunities to be successful in the information age you need to understand the four quadrants unfortunately our schools still

have the Industrial age mentality preparing students only for the left side of the Cash Flow quadrant if it is in looking for new answers to enter the information age then this book was written for you it does not contain all the answers but in it I share personal experiences And instruct as I travel from side to side I gave my context to the six people with whom I spend the most part of my time narrator's notes just below this text there is a photo in it there are two columns one with the title name and

the second column with the title quadrant ead or I below the titles the lines with nothing written end of the notes the text continues glossary 131 is the jargon used for session 1031 of the irc internal revenue code which allows a seller to defer payment of taxes on properties sold for Capital gain through an exchange for more expensive properties 401k a North American retirement plan developed by the employee retirement incoming Security act erizes the Employee Retirement Security Act of 1974 when companies realized that they would not be able to provide medical care for retirees financial

fitness which makes the money they earn how to prevent people from throwing away you how to keep it and how to make it work hard for you asset something that puts money in your pocket with minimal work balance sheet the bottom part of the financial statement diagram so called because your assets and liabilities are assumed to be balanced share capital the capital raised by a company by distributing shares Financial statement or profit and loss measures income and expenses money in and money out a share of your income expenses assets and liabilities is your report card

in quotes after you leave school that your bank manager needs to evaluate before granting you the loan businessman entrepreneur someone who creates a system to offer products or services with the aim of making a profit businesspeople and entrepreneurs are willing to accept a level of risk when seeking opportunities and are key parts in capitalist society cash flow the money that comes in as income and goes out as expenses it is their direction that determines whether something is income expense asset or liability cash flow tells the story Mutual funds a variation of shares bonds or Insurance

grouped managed by an investment company and acquired by individual investors through shares shares have no value directly owned by companies liability something that takes money out of your pocket Social Security welfare program or Social Security generally financed by automatic payroll deductions payment to subsidize elderly or disabled people financial proficiency the ability to read and understand financial statements that allow you to identify the strengths and weaknesses of any business financial IQ financial intelligence that results from financial education people with high financial IQ learn to use the money of another of the people to get rich golden

rule whoever has the gold makes the rules income the money that is received as a result of work activities of an individual or company Roy return on investment corporation is just a document that creates an institution as a legal body without a soul is not a big Building a factory or a group of people the rich protect their wealth through them stop a word or Stop is simply a computer command that automatically sells your shares if their price starts to fall helping to minimize its losses and maximize its profits securities a debt in which the

authorized issuer is obliged to reimburse the holders of the dividends the amount plus interest at a later date called maturity the schedule of publications here on the channel works as follows we post the episodes of audiobooks here on the channel every 5 days so you can watch the content well and give yourself time to catch up and at the end, after all the episodes are posted, we publish a single and complete video of the book so you can see everything at once here on the channel or visit our blog and download the file so you

can watch it offline stay tuned to the Episodes and get ready for our closing Live subscribe to the channel and turn on notifications so you can be reminded of when our meetings will take place I'm looking forward to this one exchange of knowledge with you, thank you for listening, don't forget to leave a comment about what you thought of this episode and if you have any books on topics such as creativity, marketing and visual arts. Don't forget to ask here in the comments, thank you for listening, click to see the next episode or check out

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