Minithugg
Code Breaker
Divine
LEVEL 1
400 XP
What I can share with you are some interesting insights from two books that got me thinking: The Rich Father, The Poor Father, and The Cash Flow (by: Robert Kiosaki).
'Financial freedom may be free, but it's not cheap. Freedom has its price ... and if you ask me, it's worth the price.'
1. Measure wealth with time and not money
The definition of wealth reads:
'The number of days you can survive without physical work (your or any other household member) while still maintaining your standard of living.'
Financial intelligence is not so much about how much money you make, but how much money you have left, how well the money is working for you and how much money you have provided for it.
The book is called Rich Father, Poor Father because Robert gives all his postulates and explanations through the comparison of teaching and upbringing of his "two fathers". One is the biological, "poor" father (who actually belongs to the middle class) and the other, the rich father - the dad of his best friend who has his own company, millions and time to teach them business. His biological father graduated from college, his doctorate and working as a college professor. He has a "steady / stable" job, decent incomes and a completely different mindset from a rich father who is not nearly as educated but immensely wealthy.
'One of the reasons I learned so much from my rich father was that he had enough free time to teach me.'
2. Don't let yourself get into the habit of working for a paycheck.
Rich people don't work for a paycheck.
Your boss's goal is not to make you rich. His sole responsibility to you is to get paid regularly. If you want to be rich, you have to do it yourself.
Many often complain about their jobs, feel that they are overworked and underpaid. By no means do they admit that it's actually much easier to work for someone. You do your share of the work, you are responsible for your small area of ??work, and you get a set fee each month. It gives you a sense of (false) security. Having your own business is much more stressful, it requires much more engagement, uncertainty and a different way of thinking and thinking.
The hardest part about moving from an employee category to a businessman or investor category is the attachment to how you make money, said the rich father. It's more than a habit change, it's a cure for addiction. Because of this, he stressed to Mother and me that we never work for money. He insisted that we learn to create our own systems as a way to make money.
'Money is a drug. The habit of working for money is very difficult to deal with.'
3. Ask the right questions.
'People are looking for a quick answer and I want to tell them what to do. Instead of hearing who they should be and how to do what it takes to earn great wealth.'
"I can't afford this" makes person sad. It leads to feelings of helplessness, and to depression, and often depression. Another term for this is apathy. “How can I afford this?” Opens the door to possibilities, excitement and dreams.
When I decided to get out of the "rat race", I simply asked myself the question: "How can I afford not to have to work anymore?" Then my mind started struggling with answers and solutions.
4. No money is needed to make money
'The idea that money is needed to make money is the thinking of financially unsophisticated people. This does not mean that they are not intelligent. They simply did not master the science of making money. Money is just an idea. If you want more money, just change your mindset.'
What you have in your head determines what you will have in your hands. Money is just an idea. There is a great book called "Think and Grow Rich." . The headline does not say "Work hard and get rich." Learn how to make money work hard for you and make your life easier and happier. Don't play it safe; play smart.
- The educated father encouraged Robert to be smart.
- His rich father encouraged him to know how to hire smart people.
5. Invest in assets.
'Assets are something that make money. Liabilities are something that takes money away. That's about all you need to know. If you want to be rich, you just need to spend your life buying assets. Not knowing the difference is what really causes the most financial problems.'
The rich buy luxury items only at the end, and the poor and mediocre tend to do so first and foremost. The poor and mediocre often buy luxury items such as big houses, diamonds, cars, jewelry or yachts as they want to look rich. They really look like that, but they really just went into even bigger debts. People who have inherited a family inheritance, who have always been wealthy, fill the asset column first. Only then, with the revenue generated by the assets, do they afford some new luxury. The poor and mediocre on luxus spend their own blood and sweat and the inheritance of their children.
6. Bankrupt before thirty
The best way to come up with a winning idea is to have 1000 ideas that have failed. The rich father thought it best to go bankrupt before he was thirty.
'In reality, there are endless many new ideas, billions of people offering products or services, millions of products - and just a handful of those who know how to build great business systems.'
Successful people know that success is a bad teacher. People learn from mistakes, and in business, mistakes are often paid for with money.
7. Learn to think by numbers.
People who are employed or self-employed think in words, in order to be successful as a business owner or investor, you have to think in numbers.
If you can't read the numbers, you're doomed to accept someone else's opinion.
'Your financial survival depends on the facts, not on the opinion of a friend or advisor. Leadership is the ability to get the best out of people. It's easy to learn the technical skills of business ... working with people is the hard part.'
Intelligent people are those who collaborate with, or hire, people who are more intelligent than themselves.
8. Look that big debts are being repaid by someone else.
I find it particularly interesting to think about debt. It is often inevitable to take credit for developing and improving a business, buying a new one or moving into a bigger apartment, a better car. Robert says it can also be done in a very smart way.
For example, instead of buying a landscaped house with a small salary and paying off the loan himself for years, he bought a house with a large plot of land. He then settled and sold it along with a small portion of the plot. From that money he built a house for himself on the other part of the payday and paid back the loan.
This requires extensive real estate knowledge, but is one example he gives in the book.
'Take care when borrowing. If it's your personal debt, look to be small. And if it's some big debt, watch it be repaid by someone else.'
'If you borrow and take risks, you should be paid for it.'
9. Learn to control risk, not avoid it.
The difference between gamblers and investors is the following. For gamblers, investing is a game of chance. For an investor, investing is a game of skill.
What you know is your greatest wealth. What you don't know is your biggest risk. Risk always exists, so learn to control it instead of avoiding it.
10. Strengthen self-discipline and good habits.
Habits. Our life is a reflection of our habits more than our education.
In a world that is changing so fast today, it no longer matters as much as you know, because your knowledge is often outdated. What matters is how fast you learn.
Lack of personal self-discipline is the number one factor that divides the rich, poor and the middle class.
The rich and the poor differ only in how they spend their free time.
11. Start even when you don't have all the answers.
Many people never start a project simply because they don't have all the answers. You will never have all the answers, but start regardless.
Passion builds business. Not fear. Realize your passion.
To be successful, you need to learn to overcome your fear of rejection and stop worrying about what others will say about you.
The three most important management skills you need to start your own business are:
'Financial freedom may be free, but it's not cheap. Freedom has its price ... and if you ask me, it's worth the price.'
1. Measure wealth with time and not money
The definition of wealth reads:
'The number of days you can survive without physical work (your or any other household member) while still maintaining your standard of living.'
Financial intelligence is not so much about how much money you make, but how much money you have left, how well the money is working for you and how much money you have provided for it.
The book is called Rich Father, Poor Father because Robert gives all his postulates and explanations through the comparison of teaching and upbringing of his "two fathers". One is the biological, "poor" father (who actually belongs to the middle class) and the other, the rich father - the dad of his best friend who has his own company, millions and time to teach them business. His biological father graduated from college, his doctorate and working as a college professor. He has a "steady / stable" job, decent incomes and a completely different mindset from a rich father who is not nearly as educated but immensely wealthy.
'One of the reasons I learned so much from my rich father was that he had enough free time to teach me.'
2. Don't let yourself get into the habit of working for a paycheck.
Rich people don't work for a paycheck.
Your boss's goal is not to make you rich. His sole responsibility to you is to get paid regularly. If you want to be rich, you have to do it yourself.
Many often complain about their jobs, feel that they are overworked and underpaid. By no means do they admit that it's actually much easier to work for someone. You do your share of the work, you are responsible for your small area of ??work, and you get a set fee each month. It gives you a sense of (false) security. Having your own business is much more stressful, it requires much more engagement, uncertainty and a different way of thinking and thinking.
The hardest part about moving from an employee category to a businessman or investor category is the attachment to how you make money, said the rich father. It's more than a habit change, it's a cure for addiction. Because of this, he stressed to Mother and me that we never work for money. He insisted that we learn to create our own systems as a way to make money.
'Money is a drug. The habit of working for money is very difficult to deal with.'
3. Ask the right questions.
'People are looking for a quick answer and I want to tell them what to do. Instead of hearing who they should be and how to do what it takes to earn great wealth.'
"I can't afford this" makes person sad. It leads to feelings of helplessness, and to depression, and often depression. Another term for this is apathy. “How can I afford this?” Opens the door to possibilities, excitement and dreams.
When I decided to get out of the "rat race", I simply asked myself the question: "How can I afford not to have to work anymore?" Then my mind started struggling with answers and solutions.
4. No money is needed to make money
'The idea that money is needed to make money is the thinking of financially unsophisticated people. This does not mean that they are not intelligent. They simply did not master the science of making money. Money is just an idea. If you want more money, just change your mindset.'
What you have in your head determines what you will have in your hands. Money is just an idea. There is a great book called "Think and Grow Rich." . The headline does not say "Work hard and get rich." Learn how to make money work hard for you and make your life easier and happier. Don't play it safe; play smart.
- The educated father encouraged Robert to be smart.
- His rich father encouraged him to know how to hire smart people.
5. Invest in assets.
'Assets are something that make money. Liabilities are something that takes money away. That's about all you need to know. If you want to be rich, you just need to spend your life buying assets. Not knowing the difference is what really causes the most financial problems.'
The rich buy luxury items only at the end, and the poor and mediocre tend to do so first and foremost. The poor and mediocre often buy luxury items such as big houses, diamonds, cars, jewelry or yachts as they want to look rich. They really look like that, but they really just went into even bigger debts. People who have inherited a family inheritance, who have always been wealthy, fill the asset column first. Only then, with the revenue generated by the assets, do they afford some new luxury. The poor and mediocre on luxus spend their own blood and sweat and the inheritance of their children.
6. Bankrupt before thirty
The best way to come up with a winning idea is to have 1000 ideas that have failed. The rich father thought it best to go bankrupt before he was thirty.
'In reality, there are endless many new ideas, billions of people offering products or services, millions of products - and just a handful of those who know how to build great business systems.'
Successful people know that success is a bad teacher. People learn from mistakes, and in business, mistakes are often paid for with money.
7. Learn to think by numbers.
People who are employed or self-employed think in words, in order to be successful as a business owner or investor, you have to think in numbers.
If you can't read the numbers, you're doomed to accept someone else's opinion.
'Your financial survival depends on the facts, not on the opinion of a friend or advisor. Leadership is the ability to get the best out of people. It's easy to learn the technical skills of business ... working with people is the hard part.'
Intelligent people are those who collaborate with, or hire, people who are more intelligent than themselves.
8. Look that big debts are being repaid by someone else.
I find it particularly interesting to think about debt. It is often inevitable to take credit for developing and improving a business, buying a new one or moving into a bigger apartment, a better car. Robert says it can also be done in a very smart way.
For example, instead of buying a landscaped house with a small salary and paying off the loan himself for years, he bought a house with a large plot of land. He then settled and sold it along with a small portion of the plot. From that money he built a house for himself on the other part of the payday and paid back the loan.
This requires extensive real estate knowledge, but is one example he gives in the book.
'Take care when borrowing. If it's your personal debt, look to be small. And if it's some big debt, watch it be repaid by someone else.'
'If you borrow and take risks, you should be paid for it.'
9. Learn to control risk, not avoid it.
The difference between gamblers and investors is the following. For gamblers, investing is a game of chance. For an investor, investing is a game of skill.
What you know is your greatest wealth. What you don't know is your biggest risk. Risk always exists, so learn to control it instead of avoiding it.
10. Strengthen self-discipline and good habits.
Habits. Our life is a reflection of our habits more than our education.
In a world that is changing so fast today, it no longer matters as much as you know, because your knowledge is often outdated. What matters is how fast you learn.
Lack of personal self-discipline is the number one factor that divides the rich, poor and the middle class.
The rich and the poor differ only in how they spend their free time.
11. Start even when you don't have all the answers.
Many people never start a project simply because they don't have all the answers. You will never have all the answers, but start regardless.
Passion builds business. Not fear. Realize your passion.
To be successful, you need to learn to overcome your fear of rejection and stop worrying about what others will say about you.
The three most important management skills you need to start your own business are:
- managing cash flow,
- managing people,
- managing your own time.