- The rich have money work for them
The poor and middle class are in a constant rat race; getting up, go to work, pay bills, buy luxuries, go back to work again. They are controlled by fear, lack of knowledge and greed.
Meanwhile, the rich often have businesses which doesn’t require their presence. They are constant life learners, they don’t let emotions control them and their lives are not determined by their paychecks. - It’s not how much money you make, it’s how much you keep
Money accentuates the cash flow you have in your head. It’s crucial then to understand how accounting works. But what’s more important is to know the difference between an asset and a liability, and buy assets.
An asset is anything that puts money in your pocket. Assets can be: a business which doesn’t require your presence, real estate, stocks, bonds, notes and royalties from intellectual property. - A liability takes money out of your pocket.
Liabilities can be: mortgage, car loans, credit/debit cards, school loans etc. - Focus on your asset column not your income statement
You need to have your own business which revolves around the asset column not your income column. More money only brings more problems, learn cash management instead.
Rich people buy luxuries last, only the poor buy luxuries to look rich. - The rich are not taxed
The rich created corporations as a vehicle to limit their risk of being taxed. Having a corporation means utilizing financial IQ in the categories of; accounting, investing, understanding markets and understanding laws. - It’s not the smart who get ahead but the broad
What holds us back is some degree of self-doubt. The single powerful asset we all have is our mind, if trained well, it can create enormous wealth seemingly instantaneously. Have guts and take risks. Risks will always be there, instead of avoiding them learn to manage them.
The three skills of investors are to find an opportunity that everyone has missed, to raise money and to organize smart people. And when you need advice choose your advisors wisely.
- Work to learn, don’t work for money
Seek a job for what you will learn, more than what you will earn. There are skills which you should learn, depending on your type of profession. For example, a young writer can go for skills like advertising, copywriting, sales and public relations. Some people are one skill away from great wealth.
Remember to work on your management skills; management of cash flow, systems and people. Also, work on your communication skills and, sales and marketing.
- Choose heroes
Heroes do more than inspiring us. Heroes make things look easy. Copying heroes is a powerful way of learning. If they can do it, so can you
