A Short Summary of ‘Your Financial Rules: Change Your Mind, Change Your Life’, online webinar by Robert Kiyosaki’s Rich Dad Coaching.
Successful investors posses:
A vision – the ability to see what others do not see
Courage – the ability to act despite of fear
Creativity – the ability to think outside the box
Self-confidence – the ability to withstand criticism
Self-control – the ability to delay gratification.
Industrial-Age Thinking vs. Information-Age Thinking
|Get a job and save money >>||Study hard, but also become financially literate|
|Your pension and Social Security will protect you in retirement >>
||Create assets on your own|
|Your income will go down when you retire >>||Your pension and Social Security will not support you when you retire|
|Blue chip stocks and mutual funds are safe investment >>
||Your income should increase as you age|
|Study hard and find a safe, secure job >>||Blue chip stocks and mutual funds will not protect you if there is a stock market crash|
|Put your investment in the hands of someone else >>
||Watch your investment but seek competent advisors|
Robert’s Cash Flow Quadrant:
E – Employee (driven by benefits)
S – Self-employed worker, or Small business owner (driven by self-sufficiency)
B – Business owner (driven by systems and ideas)
I – Investor (driven by absolute freedom)
On the right side of the Quadrant (B, I), you gain time and therefore freedom to make money, to give it away, and to have more time to be with your loved ones.
Assets vs. Liabilities
Assets put money in your pocket, while liabilities take money from you.
Assets are: Cash, Bank accounts, Stocks, Bonds, Mutual funds, Retirement funds, Debts owed to you, Net value of businesses you own, Net value of income-producing real estate you own.
Liabilities are: Credit cards balances due, Mortgage, Car loan, School loan, Personal loan, Taxes.
There are three types of income: Earned, Passive, and Portfolio.
A financial statement is your ‘personal story’ told in numbers. Most people don’t prepare personal financial statements. They just try to balance their cheque books each month.