Be Prepared for Changes

Quote

IMG_1681

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

It’s about How Much You Keep

Quote

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

Wealth

Quote

Native home with Yapese money stones indicatin...

Native home with Yapese money stones indicating great wealth. Stones were mined on Palau and carried by outrigger canoe 300 miles. Money stones are quarried from stalactites in limestone caves (Photo credit: Wikipedia)

The definition of wealth is the number of days you can survive without physically working (or anyone else in your household physically working) and still maintain your standard of living.

For example, if your monthly expenses are $5,000 a month and you have $20,000 in savings, your wealth is approximately four month or 120 days. Wealth is measured in time, not dollars.

Ultimately, it’s not how much money you make that matters, but how much money you keep, and how long that money works for you. Every day I meet many people who make a lot of money, but all of their money goes out the expense columns.

Every time they make a little more money, they go shopping. They often buy a bigger house or a new car which result in long-term debt and more hard work. Nothing is left to go into the asset column.

Many people, rich and poor, operate constantly at the financial red line of their personal finances

The trouble with operating your car’s engine at red line is that the life expectancy of the engine is shortened. The same is true with operating your finances at the red line.

Robert T. Kiyosaki

 

Be careful about your thoughts

Quote

The power of our thoughts may never be measured or appreciated, but it became obvious to me as a young boy that it was important to be aware of my thoughts and how I expressed myself. I noticed that my poor dad was poor, not because of the amount of money he earned, which was significant, but because of his thoughts and actions. 

The other encouraged me to study to be rich, to understand how money works, and to learn how to have it work for me. “I don’t work for money!” were words he would repeat over and over. “Money works for me!

Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth.

Robert T. Kiyosaki