Robert Kiyosaki's Rich Dad Poor Dad (financial literacy condensed, recommended for collection) (3)

Lesson 8 Getting Started

I have two mindsets and it is rare to be able to use more than one to analyse an issue or trend. Today I often ask myself, "What would Warren Buffett do about this? Or what would Peter Lynch have done?" The only way I could get into their deep thinking was to humbly read or listen to what they had to say. People who are proud and arrogant or fussy are often those who lack the confidence to take risks. The reason for this is that if you want to learn something new, then you have to make some mistakes in order to fully understand what you are learning.

Note: Don't listen to poor or timid people. I have friends like this, and I like them very much, but they live like "chicks". When it comes to money, especially investments, "the sky is falling" and they will always tell you why something is not working. The problem is that if you listen to them and blindly accept this worrying information, you will end up being a "chicken" too. It's like the old proverb that says, "Birds of a feather flock together."

When you watch some financial programme on TV, you usually see a bunch of so-called "experts". One expert says the market is going into recession, another claims it is booming. If you are savvy, you need to listen to both sides. Keep an open mind, as there are valid points to both claims. Unfortunately, most poor people only listen to the "chick" view.

People are always rushing to catch a wave that has passed, and often get knocked out of the market by a new wave. Smart investors don't complain about bad market timing; if they miss the "wave", they look for the next one and find their place in it.

The real purpose of this book is to show you that you can get rich by having the guts to not follow the crowd. You may not be weak, but when it comes to money, you tend to be timid.

To get better at "paying yourself first", remember the following two things: 1. Don't be overburdened with debt. Keep your spending low. Increase your assets first, then use the cash flow from them to buy a big house or a luxury car. It is not wise to get stuck in the rat race. 2. When you are short of money, let the pressure work, rather than using your savings or capital. Use this pressure to stimulate your financial talents and come up with new ways to earn more money before you pay the bills. By doing this, not only will you earn money, but you will also improve your financial intelligence.

Poor people have some bad habits, and one of the common bad habits is the casual use of savings. Rich people know that savings should only be used to generate more income, not to pay bills.

The real skill is being able to manage people who are smarter than you in certain technical areas and offering them a generous deal.

So the wise investor sees not only the return on investment but also, once the investment is recovered, the additional assets that will be available. This is also financial intelligence.

When it comes to investing, many people always talk about how difficult it is, instead of looking for heroes who can "help" them.

"God does not need to get, but man needs to give".

There are people in this world who are smarter than us and you may be able to succeed with your own efforts, but with the help of these people, your path to success may be smoother. Here's what you should do: be generous.

Discuss the learning sessions

Gold mines are everywhere, but most people don't have the appropriate training to discover them. Without a strong reason and a goal, anything becomes very difficult. In financial terms, for every dollar we earn, we get a chance to choose whether we will be rich, poor or middle class. 90% of people will buy a television set and only about 10% will buy books on business and investing. We know of many highly educated people, or people who think they are smart, whose balance sheets are in shambles. I would pay attention to how my rich friends talked about money (and I don't mean their rhetoric) and they were interested in the subject. So, I learn from them and they learn from me. If you're bored with what you're doing or you're not making enough money, then it's simple, change your earning patterns. Those who are not resilient enough tend to be the losers of those who have a lot of self-discipline. Sometimes I lose money, but I invest in projects that are within the range of losses I can afford to take. The easy road tends to get tougher and the tough road tends to get easier.

Want more? Here are some things to do

There are many people who are willing to do rather than think, and many who are willing to think rather than act. And I am willing to both think and act. I like new ideas and I'm happy to act on them.

Stop what you're doing.

Look for new ideas.

Find people who have done what you want to do.

Keep in mind that profits are bought, not sold.

●I look for people who want to buy first, before I go for people who want to sell.

● Those who take action will always beat those who don't.

Conclusion

The key to achieving financial freedom and acquiring great wealth depends on one's ability to convert labour income into passive income or portfolio income.