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

The Most Destructive Word

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“The most life-destroying word of all is the word tomorrow.” He said, “The poor, the unsuccessful, the unhappy, and the unhealthy are the ones who use the word tomorrow the most.” These people will often say things like, “I’ll start investing tomorrow” or “I’ll start reading tomorrow”. Rich dad said the word tomorrow is the word that destroys more lives than any other single word. He said, “The problem with the word tomorrow is that I have never seen a tomorrow. Tomorrows do not exist. Tomorrows only exist in the mind of dreamers and losers. People who put off till tomorrow find that the sins and bad habits of their past eventually catch up with them.” He finished his comment by saying. “I have never seen a tomorrow. All I have are todays. Today is the word for winners. Tomorrow is the word for losers.”

Robert T. Kiyosaki

The Information Age

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Today, wealth is in information. And the person who has the most timely information owns the wealth. The problem is that information flies around the world at the speed of light. The new wealth cannot be contained by boundaries and borders as land and factories were. The changes will be faster and more dramatic. There will be a dramatic increase in the number of new multimillionaires. There also will be those who are left behind.

In the Information Age, money is increasing exponentially. A few individuals are getting ridiculously rich from nothing, just ideas and agreements. 

Robert T. Kiyosaki

Producing for Consumption

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Business on a money-making basis is most insecure. It is a touch-and-go affair, moving irregular and rarely over a term of years amounting to much. It is the function of business to produce for consumption and not for money or speculation. Producing for consumption implies that the quality of the article produced will be high and that the price will be low – that the article be one which serves the people and not merely the producer.

The producer depends for his prosperity upon serving the people. He may get by for a while serving himself, it will be purely accidental, and when the people wake up to the fact that they are not being served, the end of that producer is in sight.

Being greedy for money is the surest way not to get it, but when one serves for the sake of service – for the satisfaction of doing that which one believes to be right – then money abundantly takes care of itself.

Henry Ford

Mind Your Business

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The mistake in becoming what you study is that too many people forget to mind their own business. They spend their lives minding someone else’s business and making that person rich.

To become financially secure, a person needs to mind their own business. Your business revolves around your asset column, not your income column. 

The rich focus on their asset columns, while everyone else focuses on their income statements.

Start minding your own business. Keep your daytime job, but start buying real assets.

Keep expenses low, reduce liabilities, and diligently build a base of solid assets.

Robert T. Kiyosaki

Expand Your Reality

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Rich dad had the ability to continually change, control, and expand his reality. And because he could continually expand his reality, he become richer and richer while working less and less.

My poor dad, on the other hand, chose to live within his reality.

If you want to retire young and retire rich, you may need to change and expand your reality and make expanding and changing your reality a habit. 

One way rich dad had his son and me expand our realities was through reading biographies of people who lived the lives we wanted to live. For example, rich dad had us read the biographies of John D. Rockfeller and Henry Ford. More recently, I have read books by or about Bill Gates, Richard Branson, Steve Jobs, and others.

Robert T. Kiyosaki