Investor Vs Trader

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The investment had to make sense today, not tomorrow. I say this because too many people have the buy, hold, and pray strategy. Rich dad always said, “Your profit is made when you buy, not when you sell.” Every property we bought had to have a positive cash flow on the day we bought it, and it had to have a positive cash flow even in a bad economy. 

Know the difference between being an investor and a trader. We were investors when we were willing to buy and hold the properties for their cash flow. We were traders when we knew our entry as week as our exit strategy. In other words, an investor buy to hold. A trader buy to sell. It you want to retire rich, you need to know how they are different and how to be both.

If you can understand this principle of investing, you will understand what the velocity of money means. It means you want your money back as quickly as possible so it can be reinvested to acquire other assets.

Robert T. Kiyosaki

Overcoming Fear

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I have never met anyone who really likes losing money. And in all my years, I have never met a rich person who has never lost money. But I have met a lot of poor people who have never lost a dime -investing, that is.

The fear of losing money is real. Everyone has it. Even the rich. But it’s not having fear that is the problem. It’s how you handle fear. It’s how you handle losing. It’s how you handle failure that makes the difference in one’s life. The primary difference between a rich person and a poor person is how they manage the fear.

Failure inspires winners. And failure defeats losers. It is the biggest secret of winners. It’s the secret that losers do not know. The greatest secret of winners is that failure inspires winning; thus, they are not afraid of losing.

Robert  T. Kiyosaki

President of Yourself

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The highest paid sales professionals in every field accept 100 percent responsibility for their lives and for everything that happens to them. They see themselves as the presidents of their own professional sales corporations. They view themselves as self-employed.

They refuse to make excuses or to blame anyone else for anything in their lives that they are not happy about. If they don’t like something, they know that it is up to them to get busy and change it. They accept complete responsibility and they refuse to complain or criticize.

As the president of your own professional sales corporation, you are paid for results, not activities. If you want more money, make more sales. In the long run, you determine your own income by what you do and by what you neglect to do.

Brian Tracy

Today

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Many people do not realize their financial goals because they use such words as someday, maybe, or in the future. Rid dad always said, ” Your future is created by what you do today, not tomorrow.” When you look at the above figures, the question you may want to ask yourself is this: “Is what I am doing today going to get me to the financial goal I want tomorrow?”

If you are truthful and want to change your plans, the first thing to do is to change your reality by changing your plans, your words, and your daily actions. Your future is what you do today, regardless of your dreams.

Robert T. Kiyosaki

Asset and Liability

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The most important rule is to know the difference between an asset and a liability. Once you understand the difference, concentrate your efforts on buying income-generating assets. That’s the best way to get started on a path to becoming rich. keep doing that, and your asset column will grow. Keep liabilities and expenses down so more money is available to continue pouring into the assets column.

My next goal would be to have excess cash flow from my assets reinvested into the asset column. The more money that goes into my asset column, the more my asset column grows. The more my assets grow, the more my cash flow grows. And as long as I keep my expenses less that the cash flow from these assets, I grow richer with more and more income from sources other than my physical labor.

Robert T. Kiyosaki

Tools of Leverage

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The good news is that more and more leveraged tools are being created today, such as computers, the Internet, and whatever else is created in the future. The humans who can adapt to use these tools of leverage are the humans who are getting ahead. The people who are not learning to use more and more tools of leverage are falling behind financially or working harder and harder just to keep up.

Never in the history of the world have so many tools of leverage been invented in such a short period of time. The people who use these tools get ahead. The people who do not use these tools fall behind just as animals did.

Our mind is our most powerful tool of leverage. Whatever we think is real becomes reality.

In order to retire young and to retire rich, one of the most important things that you can learn to do is to take control of your own reality.

Robert T. Kiyosaki 

Be Prepared for Changes

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In times of great economic change, there are always great transfers of wealth. Even if you don’t have much money, it’s important to invest in your education because, when the changes come, you’ll be better prepared to handle them. Don’t be caught unaware and afraid. As I said, no one can predict what will happen, so it’s best to be prepared for whatever happens. And that means getting educated now.

A big secret is that true investors make more money in bad markets. They make more money because the non-investors are panicking and selling when they should be buying. I’m not afraid of the possible coming economic changes, because change means wealth if being transferred.

Robert T. Kiyosaki