The poor and the middle class work for money, and the rich make money work for them.
This part emphasizes the role of thinking with the brain, and should not be controlled and dominated by the panic of lack of money. Work is only a stopgap measure to solve long-term problems. Most people have only one problem in mind, and it is short-term, that is, they have to pay the bill at the end of the month, so they are afraid. Money controls their lives, or ignorance or fear of money controls their lives. He wants people to learn to think with their brains, find opportunities that others can't see and find better ways to make money. Most people don't see this opportunity, because they are busy looking for money and stability, so they are limited.
Second, learn financial knowledge.
Most people don't realize that in life, it's not how much money you earn, but how much money you leave behind.
1. You must understand the difference between assets and liabilities and buy assets as much as possible.
Assets are things that can put money in your pocket, and liabilities are things that take money out of your pocket. Once you understand this difference, you will try your best to buy only assets that can bring benefits. This is the best way for you to get rich. Keep doing this, and your assets will continue to increase in value. At the same time, pay attention to reducing your debts and expenses, which will give you more money to invest in assets.
Soon, there will be enough money for you to make some speculative investments, which can generate returns from 100% to unlimited, and the investment of $5,000 will soon become 1000,000 or even more. This kind of investment, which is called "too risky" by the middle class, is actually not risky, just because you lack some very important financial knowledge and don't know how to treat these investment opportunities. As long as you have enough financial knowledge, you don't have to be afraid to take risks.
Step 2 read numbers
Rich dad said, "It's not words that define assets, but numbers." If you want to be rich, you must read and understand numbers. "Numbers themselves have little meaning, just as words themselves have little meaning. What matters is what numbers or words want to express. In the financial report, looking at the figures is to find out the situation and understand the flow direction, that is, where the money flows.
3. Definition of wealth
Wealth is the ability to support a person for how long, or how long can I live if I don't work today? Wealth is determined by comparing the cash flow generated under assets with the cash flow flowing out under expenditures. Every month, the cash flow of assets equals expenditure, which means that you have wealth. If we want to increase expenditure, we must first increase the cash flow generated by assets to maintain the level of wealth. Note that at this time, I no longer rely on wages. If I resign, I can still use the cash flow generated by assets to maintain my monthly expenses, which means I can still survive.
The next goal is to get extra cash from assets and invest it. The more money flows into assets, the faster the assets increase; The faster the assets grow, the more cash will flow in. As long as the expenditure is controlled under the cash flow generated by assets, it will become rich, and there will be more and more other sources of income besides its own labor income. With the continuous continuation of this reinvestment process, I finally embarked on the road of getting rich.
Third, pay attention to your own career.
People with financial problems are often people who work for others all their lives. Many people have nothing when they stop working.
Your career revolves around your assets, not your income. The rich care about their assets, while others care about their income. Only when the increased income is used to buy income-generating assets can real financial security be obtained.
Physical assets can be divided into the following categories: 1. A business that can run normally without me. I own them, but they are run and managed by others. If I have to work there, it's not my profession but my career; 2. stocks; 3. bonds; 4.*** The same fund; 5. Real estate that generates income; 6. Notes (IOUs); 7. Patents such as music, manuscripts and patents; 8. Anything that is valuable, can generate income or may add value, and has a good circulation market.
The more you know about accounting and cash management, the better you can make investment analysis and start your own company.
Fourth, we must understand the tax law.
If you know nothing about the law, you can easily do something wrong; If you know the law, you can make full use of the rights given to you by law to realize your career.
Financial quotient consists of four aspects of professional knowledge:
The first is accounting, which is what I call financial knowledge. If you want to build your own empire, financial knowledge is a very important skill. The more funds you manage, the higher the accuracy you need, or the building will fall down. This is the left brain to deal with, or details. Financial knowledge can help you read financial statements, and with this ability, you can also distinguish the advantages and disadvantages of your business.
The second is investment, which I call science in Qian Shengqian. Investment involves strategies and schemes, which the right brain should do, or create.
The third is to understand the market, which is the science of supply and demand. This requires understanding the "technical side" of the emotion-driven market.
The fourth is the law. It can help you effectively run an enterprise that enters the fields of accounting, investment and marketing, and achieve explosive growth. People who know about preferential tax policies and company laws can get rich faster than employees and small business owners.
Fifth, the investment of the rich.
I feel sad to see that students clearly know what to do, but lack the courage to put it into practice. In the real world, people often rely on courage rather than intelligence to surpass others.
Change is everywhere, old things die and new things come into being. We should renew our ideas and adapt to changes. Cultivate creative financial thinking. Rich financial knowledge means more choices.
Our only and most important asset is our mind. If well trained, it can create a lot of wealth in an instant, so that wealth is no longer exclusive to kings and queens 300 years ago. And an untrained mind will let future generations continue to live extremely poor lives by teaching their families incorrect lifestyles.
If you know what you are doing, it is not gambling; If you put money into a transaction and just pray, you are gambling.
The main reason why most people are not rich is that they are too worried about losing. Winners are not afraid of losing, and losers are afraid of losing. Failure is the mother of success. If you avoid failure, you will avoid success.
Sixth, don't work for money.
Most people need to learn and master more than one skill. Only in this way can their income increase greatly.
I suggest that young people should look at what they can learn when looking for a job, not just how much money they can earn. When I talk to adults who want to earn more money, I always advise them to take a long-term view of their lives. I admit that it is very important to work for money and a stable life, but I still advocate finding another job and learning another skill from it. I often suggest that if you want to learn sales skills, you'd better enter a company with a chain marketing system or a multi-level market. Most of these companies can provide good training programs to help people overcome the frustration and fear caused by failure, which is often the main reason why people can't succeed.
Management qualities necessary for success include: 1. Cash flow management; 2. System management (including self, time and family); 3. Personnel management.
The most important professional skills are selling and knowing how to market. Sales skill is the basic skill of personal success, which involves communication with others, including customers, employees, bosses, spouses and children. Communication skills, such as written expression, oral expression and negotiation skills, are more important to a person's success. I don't know if there are more important skills than sales and marketing, but it is difficult for most people to master sales and marketing skills, mainly for fear of rejection. Therefore, the more you handle interpersonal communication and business negotiation, and the more you control the panic when you are rejected, the better your life will be.
Besides being good learners, sellers and marketers, we also need to be good teachers and students. To be truly rich, we must be able to give and get. For those who are trapped by finance or occupation, they often lack both giving and taking. I know that many people are poor because they are neither good teachers nor good students.
Seventh, overcome difficulties.
Victory means not being afraid of failure. "
Successful people don't pursue "balance" at first, and those who pursue balance will only stand still and will not move forward. If you want to make progress, you must first be "unbalanced" and pay attention to how you can make continuous progress. We can't move forward because we want to protect those safe things, but the opportunity has slipped away from us. We watched the passage of time, and the pimples in our hearts made us do nothing. In life, we all have this state more or less.
My point is that anxiety and cynicism make most people live a poor but safe life. The real world is waiting for you to get rich, but it is these concerns that keep people from getting rid of poverty. As I said, getting rid of the "rat race" life is technically very easy and does not require much education, but those concerns make it difficult for most people to move.
They regard busy work as a way to avoid some problems they don't want to face. Nobody told them this, they covered up the problem. In fact, if you remind them, they will often feel unhappy.
Rich dad doesn't care much about what I actually want to buy. He just wants to create a stronger mind and a more energetic spirit to pursue and get the life he wants by urging us to keep thinking about "how can I pay for it?" Do what you think is right-because no matter what you do, you will always be criticized. If you do, you will be accused; If you don't do it, you will still be accused. "
Eighth, ten steps to develop financial quotient.
1. Spiritual power
What kind of life you don't want to live, what kind of life you want to live. I want to travel around the world freely; I want to live in the way I like; I want to be like this when I was young; I want to control my time and life freely; I want money to work for me.
2. Make your own choices every day: the power of choice.
This is the main reason why people want to live in a free country.
In fact, we should make a choice every day: that is, how to use our time, our money and what we have learned in our minds to achieve our goals. This is the power of choice.
3. Choose your friends carefully: the power of relationships.
First of all, I won't choose my friends based on my financial situation. I have friends who are rich and poor, because I believe that a threesome must have my teacher, and I am willing to study hard from each of them.
4. Master a pattern, and then learn a new pattern: the power of fast learning.
What you learn, what you will become. In other words, you should pay attention to what you want to learn, because your spiritual strength is very strong, and what you learn will make you yourself.
By the way, in today's rapidly changing world, you are not required to learn too much, because when you learn, it is often out of date. The question is how fast you learn, that is, I said earlier that you should have the ability to learn quickly. This skill is priceless. If you want to make money, it is very important to find a shortcut.
5. Pay yourself first: the power of self-discipline.
Don't try to get rich if you can't control yourself.
The three most important management skills necessary for starting a business are: 1. Cash flow management; 2. Personnel management; 3. Personal time management. I want to say that these three management skills apply not only to enterprises, but also to everything. For example, you manage your daily life or your family, business, charity, city and country. Self-discipline can enhance any of the above skills. I attach great importance to the sentence "Give yourself first".
So the answer is: 1. Don't take on too much debt. Keep expenses low. First increase your assets, and then use the cash flow generated by your assets to buy a big house or a good car. It is not a wise choice to fall into the "rat race". When you are short of funds, bear external pressure instead of using your savings or investment. Use this pressure to stimulate your financial talent, think of new ways to make more money, and then pay the bill. Doing so can not only improve your earning power, but also improve your financial quotient.
The rich know that savings can only be used to create more money, not to pay bills.
6. Pay your broker handsomely: the power of good advice.
7. Be an "Indian giver": the power of selflessness.
8. Assets are used to buy luxury goods: concentration of power.
9. The power of myth.
10. Give first, then take: the power of giving.
So in the end, I want to say, "Give first, then take". I found that the more I sincerely teach those who want to learn, the more I learn from it. If you want to learn about money, you must first tell others what you think, and then, new ideas and good inspirations will come out like mountain torrents. What you should do is to be generous with what you have. In turn, you will get rich returns.
Don't do those ineffective things, find something effective to do. . Looking for new ideas. I often go to bookstores to look for unique and unusual ideas to get new investment ideas, which I call models.