Why the Rich gets Richer - Best Advice by Robert Kiyosaki

The fundamental problems of working for money has not been revealed. Only after the Rich Dad Poor Dad came to be. People have big problem with money. Some is shortage of money and the other having too much money. These are problems after all.

For big proportion of world people, their profession is their income. That become very common for those big majority, Yet for rich but minority people, their assets are their income. Very big different, isn’t it?

Always in keep in mind taht if you want to buy something, first you must generate more than enough cash from your assets to cover these incoming expenses. Remember not to buy luxurious thing first but rather buy it at the last spot.

Excess cash flow generated by my assets should be reinvested into other assets.

Do not simply aim for more income, aim for more assets.

Keep your expenses low and reduce your liabilities.

It is suggested to create a corporation or company to keep your assets containing and that it decreases your tax payment. For example, if you are a worker you got paid monthly but without doing anything the city persons already taxed your bills. You then have to spend the little left. A corporation earns, spends everything it can before anything happens to that money. And then they will let the money gets taxed after about 10 or 20 cycle of money working. This is real differentiation between how rich and the poor spend money.

For the rich, they are using money to work for other more money but for the poor they just got money and they spend that money without further investment and producing more money cycle. The poor get money from the monthly payment and without doing anything their money already get taxed. Imagine if they can use those whole amount of money to do something else before it gets taxed, how will be the different. A lot big different. They can generate income three or four times bigger.

Know a little about a lot. Learn something about accounting, investing, markets, the law, sales, marketing, leadership, writing, speaking, and negotiating. An investment in knowledge pays the best interest.

Work to learn, don't work to earn. Find a job where you can learn one or more of the above mentioned skills.

Do not simply buy investments. First invest in learning about investing.

You will become what you think an study, then you must be very with when choosing materials for your lasting study. You must be selective and that pick up the right books will lead you to the right career and better. And that made a wrong decision will push you down the in appropriated place you don't like to see.

Also, not only book is important but who wrote that book and what are their background is even very vital. Because author's background will reflect in the writing. Hence, find people who are the best in their field, not just in theory but their real experiement and successful and failure story. You must associate yourself with them always if you want to be like them.

Very wrong for some people. They want to get lots of money but what they are actually doing is not the way to reach their at all. When we are able to make the right decision is not enough and we need to able to work in that chosen field by own hand, head, and heart.

Losing and gaining is simply heritage of human beings. No matter the poor ort he rich. However, most poor individuals do not lose that bad habit. They try not to lose money and want always gaining. It’s nonsense. And from the past history no one get rich without not losing any money. They all lose and they are happy to lose, not sad. Afraid of losing money is big struggle for money maker. Here to get financial freedom, never afraid of losing money.

Failure inspires winners and defeats losers. When something does not work out the way you planned, let it inspire you to try a different approach. Learn and move on.

Must be able to get your emotion under contronl. Never allow your scaredness and fearing to nightmare or dictate your activity. As we experience, during stock prices go down, many people begin to give up. Y, when the local shop starts their sale, flux of people come to buy as much as they can.

Most sellers ask too much. It is rare that the asking price is lower than something is worth.

Surround yourself with people who are smarter than you, and pay them well!

Saying "I can't afford it" shuts down your brain. Asking "How can I afford it?" opens up your brain and triggers your financial genius to come up with a creative solution.

Why don’t pay yourself first. Each month, firstly divide some part of money for new investment and keep it generates new income before letting those money destroyed by your bills. If you do so, you‘ll come up short. Use this pressure to pay to inspire you to come up with innovative ways to get enough money to pay the bills before the money collector comes to your house. Of course, it is a difficult but when one can overcome it they will stay safe for lifelong. Hence it’s very important to stick to this principle. However, it does not mean you should be irresponsible. Always pay the bills. Just pay yourself first because it means give yourself a thum, a reward or an encouragement. What happen if you get yourself paid at last minute? You feel no motivation, no mood to move forward.

Have a clear purpose in mind. Why do you want to earn more passive income? For me, because I do not want to work all my life. I want to have control over how I decide to spend my time. Also, I want to support my parents financially, because they have been working hard all their life and they deserve an amazing retirement. Write down yours, because it will keep you motivated.

Listening is more important than talking. Do not constantly argue and think with your mouth, but instead ask questions and absorb new ideas.

On the market: do not follow the crowds, and do not try to time the market. Profits are made when you buy, not when you sell.
Share on Google Plus

About Unknown

My name is Horn Ken. I design this blog with purpose to share leadership development tips and also working to find greatest sources for leadership building. I hope users benefit from this blog as I do. Please kindly share it if you find my article useful!