Overcoming Arrogance

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“What I know makes me money. What I don’t know loses me money. Every time I have been arrogant, I have lost money. Because when I’m arrogant, I truly believe that what I don’t know is not important,” rich dad would often tell me.

I have found that many people use arrogance to try to hide their own ignorance.

When you know you are ignorant in a subject, start educating yourself by finding an expert in the field or a book on the subject.

Having no money should not be an excuse to not learn. But that is a choice we all make daily: the choice of what we do with our time, our money, and what we put in our heads. That is the power of choice. All of us have choice. 

Invest first in education. In reality, the only real asset you have is your mind, the most powerful tool we have domination over. Each of us have the choice of what we put in our brain once we’re old enough.

A truly intelligent person welcomes new ideas, for new ideas can add to the synergy of other accumulated ideas. Listening is more important than talking. 

Too many people think with their mouth instead of listening in order to absorb new ideas and possibilities. They argue instead of asking questions.

Robert T. Kiyosaki

 

 

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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

It’s about How Much You Keep

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Early paper money, China, Song Dynasty

Early paper money, China, Song Dynasty (Photo credit: Wikipedia)

Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.

Most people fail to realize that in life, it’s not how much money you make. It’s how much money you keep.

You must know the difference between an asset and a liability, and buy assets. An assets puts money in my pocket. A liability takes money out of my pocket.

If you want to be reach, simply spend your life buying assets.

Robert T. Kiyosaki