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					Rich Dad Poor Dad
1. For the house, I must say that for most of his life they did not really have a house
and hard work. In other words, most people every few years to buy the new house,
each time with a new 30-year loan repayment on a loan.
2. Even people from the interest paid on home mortgages was tax- free benefits, they
must first pay off the loan, or only after the after-tax income to pay for various
expenses.
3. Property taxes. My wife's parents house a month for their property tax
dollars to pay up to 100O, this is their retirement to pay a tax, which taxes the day
they are nervous, they often feel forced to move away from.
4. Does not always increase the value of the house. In 1997, a friend of mine has a
house worth 1 million U.S. dollars, and today he's the house was worth
only 700 thousand U.S. dollars.
5. The biggest loss is the loss of opportunity. If all your money is invested in the
houses, you have to work hard, because you are constantly in cash flow from
expenditure items, rather than the inflow of the asset is, this is a typical middle class
cash flow pattern. The correct way is like? If a young couple in their early entry in the
multi-asset investment and more money, the next few years they will ease some flies,
especially they are ready to send their children to college, then. Item because the
investment assets will continue to increase their assets, automatically compensate for
expenses. The first investment to buy a large house could only get mortgages to cover
the rising expenses, the result is just robbing Peter to pay the Western Wall.
In short, the decision with a very expensive house, not the early start to investment in
securities, will a person's financial life 在 Xingchengchongji the
following three aspects: 1. Lost Liao Zi Chan with other value-added of the Shiji.
2. This can be used to pay for capital investment will be used to house a variety of
high, long-term expenses.
3. To lose access to education. People often put their house, savings and pension plan
assets included in their project.
Because they have no money invested, and therefore would not invest in, which
makes them unable to obtain investment experience and investment community will
never be accepted as "sophisticated investors. " The best
investment opportunities are often first give those "sophisticated
investor", then they changed hands for those timid of people, of course,
changed hands when they have taken away most of the benefits.
My educated dad's financial situation, the best live shows, "Rat
Race" style of life of people of the economy. Amount of people they are
always out, simply not possible to invest. A result, their liabilities, such as mortgages,
credit card loans are always more than their assets also.
Rich Dad's financial statements also explains why the rich get richer.
Assets, income generated by the project can make up for spending much, and can use
surplus income to reinvest in the asset side. With the investment in the accumulation
of more and more assets, the corresponding revenue is more and more and more,
creating a virtuous circle.
The result: the rich are getting richer!
Middle class find themselves in financial matters always struggling, why? The main
income of the middle class wages, and when the wage increases, taxes also increased,
more importantly, their expenditures tend to increase also the same as income
increased.
They repeated the house as a major asset investment, rather than invest ment income
for those who can bring real assets.
This idea of the house when the assets and the idea that more money will buy a bigger
house or to consume more of the financial management philosophy is to form the
basis for today's debt-ridden society. Spending too much debt and the
family pulled into the vortex of financial uncertainty, this kind of situation or even in
people performance excellence and revenue growth in the time constant, which is
high risk due to lack of financial knowledge of life caused by education.
90 economic downturn, a large number of unemployed people, the middle class had
already shown how fragile financial situation.
Company pension plans are suddenly "401K Plan" have been
replaced by the social security system obviously in trouble and can not be a source of
income after retirement, produced panic in the middle class. The look of it as good
today, many people aware of the problem and start a mutual fund, investment growth
is largely driven the stock market gradually recovered, and a growing number of
mutual funds were created to meet the needs of the middle class investment needs.
Mutual funds so popular because of the risk small. Purchaser of the general fund to
pay taxes because of busy and loans, savings, the cost of a child to college, pay credit
cards, no time to study how to invest, so they rely on mutual fund management
experts to help them invest. Moreover, because the mutual funds many projects, so
that they feel the risk is "decentralization" of the.
The educated middle class in favor of the proposed''fund
managers to spread the risks, "saying they want the safe operation and
avoid risk.
But the real reason is still in the early lack of financial ed ucation, which is the risk
faced by ordinary middle-class causes. They must be safe operations, because of their
weak economic position: they balance the balance sheet has never been, take a lot of
debt and no real assets to generate income. Their source o f income is wages, living
entirely dependent on their employers.
So when the real "relationship between a lifetime opportunity"
comes, these people can not seize the opportunity, they must ensure safety, because
they are burdened with high taxes and debt.
As I said at the beginning of this section, the most important rule is to clarify the
difference between assets and liabilities. Once you understand the difference, you will
try to buy only the assets which can generate revenue, this is the way you took the
best way to get rich. Continue to do so, your assets will increase. At the same time
also pay attention to reduce your debt and expenses, which will let you have more
money into assets item. Soon, the money will be more to allow you to make some
speculative investing, these investments can produce from 100% to unlimited return,
5,000 dollars investment will soon turn to a million or more. This middle class as
"too risky" investment virtually no risk, just because you lack
some very important not to know what the financial knowledge of how to look at
these investment opportunities. As long as you have sufficient financial knowledge,
you do not be afraid to "risk."
Own a house as an employee, you work hard and the results are as follows: 1. You
work for others. If, like most people pay to work, your efforts to make the employer
or shareholder wealth, your success will enable employers to work and success and
can retire early.
2. You work for the government. You have not yet seen the Government had taken
away part of the wages, working hard just to increase government revenue. Most
people are working for the government.
3. You work for the bank. After taxes, your spending the next largest is the repayme nt
of a mortgage loan and credit card loans.
The problem is if you only know how to work hard, take away from you the above
three results also will work more. You need to learn how to make your efforts more
and more directly to you and your family benefit.
Once you have decided to concentrate on creating your own business, how do you set
goals? For most people, their goal is to keep their jobs and wages made dependent on
the assets they want.
With the increase in assets, how they should measure their success? When they can
realize they are rich and have a wealth? As I have my own definition of assets and
liabilities, as I have my own definition of wealth. In fact, this is me from a 名叫巴克
敏 Baptist. Philae where people borrowed. Some people called him a liar, while
others called him a genius, he was in the construction industry around a few years ago
had a lot of rumors. In 1961 he applied for a patent dome structure, in the application,
Philae talked about "wealth" words. At first, this definition is
indeed confusing, but read, you begin to have feeling. He is defined as: wealth is to
support a person's ability to survive long, or if I stop working today, I can
Huoduo Jiu?
Unlike net assets is defined as the difference between assets and liabilities, as though
such a definition is often full of crap on people and on the expenditure point of view
on the worth of something. This definition of wealth for the development of a new
measure of the true and accurate method creates the possib ility, now I know I can
measure and indeed the goal of economic independence where one step has been
achieved.
Net assets generally include those non-cash assets, after the pile as you buy the
materials in the garage. Wealth is a measure of how much money is your money and
your financial viability.
Wealth is assets under cash flow and expenditure under the outflow of cash flow to
compare the set.
Let's look at an example. For example, I can produce one thousand U.S.
dollars of assets per month, but I have to spending 2000 U.S. dollars per month, then I
have no wealth to speak of it?
Let us return to Buckminster. Philae definition, with his definition of what I live for a
few days? Assume 30 days a month, according to this definition, I can only live half a
month.
When I can get items a month from 2000 U.S. dollars of assets, the wealth that I have
had.
Of course I am not rich, can I have a wealth of. Now every month I have received
from the assets of key cash flow and expenditure equal.
If I want to increase spending, I first have to increase the producing assets of cash
flow to maintain my level of wealth. Note that, when I no longer dependent on wages,
if I quit, I can use the monthly cash flow generated by asset items to maintain
spending, which means I can still survive.
My next goal is to get extra cash from the assets of another investment. Entry into the
assets of more money, assets will increase as follows; assets increased faster, the more
cash flow was. As long as I control the expenditure of assets to generate cash flow
under, I would become rich, there will be more and more labor than my own sources
of income other than income.
As this reinvestment process renewed, I finally embarked on the road to riches.
Please remember these words: rich buy assets; poor, only expenditure; the middle
class buy liabilities they think are assets.
So how can I start my career? Please listen to the founder of McDonald's
how to say

Volume IV
Lesson: Pay attention to their cause
In 1974, McDonald's founder Ray. Crocker, was invited to Austin for the
Texas State University MBA class for lectures, one of my good friend Keith.
Cunningham was a student in this class. In an exciting lecture, the students asked Ray
if they are willing to go to a place frequented with a beer, Lei Gaoxing accepted the
invitation.
When these people get the beer, the mine asked: "Who can tell me what I
was doing?" "At the time everyone laughed," Keith
said: "Most MBA students think that Ray is a joke. "see no
answer to his question, so Ray asked:" Do you think I do? "The
students laughed again, and finally a bold student shouted:" Ray, everyone
knows you do hamburgers The. "
Lei Haha smiled: "I expect you will say." He stopped laughing
and quickly said: "Ladies and gentlemen, I do not do hamburgers business,
my business is real estate."
Keith said that Ray spent a long time to explain his words. Ray's long-term
business plan, basic business will be sold at all McDonald's outlets to the
various partners, he has always attached great importance to the geographical location
of each branch, because he knows real estate and location of each branch will be the
most important success factor, while, when the mine to implement his plan, those who
bought the store will pay for McDonald's group bought the store from the
ground.
McDonald's today is the world's largest real estate companies,
and it has the real estate even more than the Catholic Church. Today,
McDonald's already has the United States and the rest of the world some of
the most valuable street corners and intersections in prime locations.
Keith said it was his life's most important lesson. Today, Keith owns a car
wash, his most important business car wash business is real estate.
The previous lesson, we show that most people in addition to his work beyond
ourselves to other people, first of all is for the company boss, and then for the
government, and finally to the bank loan for the Changhai work.
Child, can not McDonald's near my home. However, my rich dad was
taught to Mike and I like mine. Crocker to the Texas State University MBA students
are taught the same curriculum knowledge, this is the rich's third secret.
No. secret is: "concerned about their cause." Financial problems,
who are often people who work for others, life, many people stop working when they
get nothing.
Our current education system can make today's young people to learn a
skill and get a good job, their lives will revolve around wages or income as previously
mentioned items. When the completion of certain skills, the y will go to a higher level
of school training professional capacity, they will be trained as engineers, scientists,
chefs, police officers, artists.
Writers, etc., these vocational skills to enable them to join the labor force and work
for money.
Please note that your work and your career a huge difference between. I often ask
people: "What is your career?" They would say: "I
am a bank employee." Then I asked him if he has a bank, they often reply:
"No, I work there."
In this case, they confuse their own professional and career, they could be bankers,
but they should have their own careers. Ray. Crocker on his career and very clear
distinction between the cause of his career is always constant: a businessman. He sold
milk mixer, and later to sell hamburgers, but his cause is the accumulation of property
can generate income.
The problem is that schools often have learned to be your professional staff. If you
study cooking, you'll become a chef; if you studied law, you will become
lawyers; if you learn is automated, you will become engineers. Become what you
learn the terrible consequences of professional staff is too many people so you forget
to pay attention to their cause, they spend a lifetime to pay attention to the cause of
others and make others rich.
For financial security, people pay attention to their cause. Around your business is
your asset, not your income. As said before, its first rule is to know the difference
between assets and liabilities, and assets to buy one. The focus of the rich care about
their assets while others are concerned about their income.
This is why we always hear people say: "I need to pay,"
"I want to be nice to get a promotion,&q uot; "I want to go
back to school to further study in order to obtain a higher income job,"
"I want to go to overtime, "" Maybe I can do two
jobs, "" I will resign within two weeks because I fo und a higher
wage job "and so on.
In some ways, these are sensible ideas. But if you listened to mine. Crocker, you will
find that you have not followed your own business, these ideas still turn around the
wage income. Only you can increase income for the purchase of income-producing
assets, you can get a real financial security.
Most of the poor or middle class is the basic reason for the financial conservative:
"I can not bear the risk", which means that they lack the
financial knowledge of plaque, they must attach to the work, they must be safety.
When the inevitable economic downturn comes, millions of workers find that their
so-called greatest asset - the house was about to eat them alive! Because the house
every month to spend. Automotive - another of their "assets",
are swallowed their lives. Spent 1,000 U.S. dollars bought golf clubs, were thrown in
the garage, is now worth 10O0 dollars. Without job security, they lost in life. The
assets that they can not help them tide over the financial crisis.
I guess most of us who have filled out credit applications to banks to obtain loans to
buy a house or car. A look at the so-called "net assets" is very
interesting, the reason is interesting because our bank accounting practices allow
people to house and car counted as assets.
One day, in order to obtain a loan, because my financial situation looks bad, so I
bought new golf clubs, buy art collection, audio, telephone, Armani suits, watches,
shoes and other personal items to increase the number of the asset side.
Finally my loan application was rejected because I am too much in the real estate
investment. Finance Committee does not like me to get income from real estate
investing, they just want to know why I did not earn the salary of a formal job. They
do not ask Armani suits, golf clubs or art collection where they come from. When you
are inconsistent with "standard", the life will be tough.
Every time I hear someone say that his net worth is 1 million or 10 million or other
figures are a little scared. A major reason is that the net asset value is not an exact
thing, not only that, but when you start the sale of assets, you even have to pay tax
revenue for the result.
So many of insufficient income are more likely to fall into financial difficulties. To
increase the cash, they have to sell assets. First of all, their personal assets to the
selling price just that they are incurred in the balance sheet on a small number; second
income if they have to pay taxes, meaning that each housing, the government will take
the proceeds from their A walk, reducing the debt can be used to help them out of cash.
That is why I say that the net assets of a person than they actually own that much less
why.
Mind your own business and to continue your daily work. You can buy real estate,
rather than debt or buy some once used by your home, there is no value of personal
items. Once you lay out a new car, you have lost money 25% of the car. Car is not a
true asset, even if your bank manager so that you list it under assets. When I used a
value of 400 U.S. dollars when the new golf clubs, it was only worth 150 U.S. dollars.
To the adult, the expenditure remained low, reducing borrowing and hard work will
help you lay a solid asset base. Not have their own house on young people, parents
should teach them to understand the difference between assets and liabilities so that
they leave home, marry, buy a house, have children, in high-risk bets or financial
transactions dependent at work and loans to buy anything to establish a solid asset
base before, it is very important. I have seen many young couples, because they can
not distinguish between assets and liabilities, soon after marriage most years into the
future can not get rid of debt in the way of life.
For most people, when the youngest child left home, the parents realized they did not
make adequate preparations for retirement. Then, to their own parents and sick, they
found themselves back a new burden.
So, you or your children should be given what assets? In my opinion, the real assets
can be divided into the following categories: 1. Without my presence can be a
functioning business. I have them, but by someone else business and management. If I
had to work there, then it is not my career but my career had; 2. Stock; 3. Bonds; 4.
Mutual funds; 5. Generate income real estate; 6. Notes (IOU); 7 . patents such as
music, manuscripts, patents; 8. any other value, can generate income or may have a
good flow of value-added and market things.
Or a child, I educated dad encouraged me to find a stable job, Rich dad encouraged
me to start acquiring the assets of my favorite, "because if you do not love
it, they will not care about it." I bought real estate because I love buildings
and land, I like to buy them, I just looked at them all day, when problems arise, not
bad to make me not like real estate. But for those who already hate people, real estate,
investment real estate is clearly not a good idea.
I like the small company stocks, particularly start- up companies, because I was an
entrepreneur, not an employee. Early years, I have some large organizations, such as
Standard Oil of California, the U.S. Marine Corps and Xerox, to work in these
institutions has left me happy memories. But I know I am not a company employee, I
like to run the company but not to operate them, so I bought the stock are small
companies. Sometimes I even start their own small companies and listed them so that
the wealth generated from the new issue of shares. I love this game. Many people fear
that small, not the company reputation. That their risks. Small company risk is great,
but if you invest in love object, to understand it and understand the rules of the game,
the risk will be reduced. For small companies, my investment strategy is: get rid of 1
year. On the other hand my real estate investment strategy is to start small and a little
bit bigger the sale, conditions permitting, a number of shots late as possible, the
benefits of doing so is to defer payment of income tax, so that assets may increase
dramatically against. I usually hold real estate in seven years.
Over the years, even I'm still doing things the Marine Corps and Xerox, I
started to do rich dad advised me to do. I go to work, but I am also concerned about
my career, I have a small company by buying and selling stocks and real estate assets
that I became very active. Rich dad always stressed that financial knowledge, he said,
accounting and cash management, you know, the more you will be able to better
investment analysis and began to establish his own company.
I do not encourage those who do not want people to build their own companies to go
so dry, I do not want everyone to run the company. However, sometimes when people
can not find work, open a company touches a solution, but not necessarily to be
successful: 10 new companies were nine failures in 5 years, those who survived the
first five years the company has there will be nine-tenths of the ultimate collapse.
Therefore, only when you really willing to have their own company, I suggest you
re-do things. Otherwise, continue to work at the same time concerned about their own
careers it.
When I say attention to their cause, my intention is to build a stronger ex assets. Just
think, if one U.S. dollar assets fall into your entry, it becomes your employees.
On the money, best of all make it to work 24 hours a day, and services for your
generations. Remember: make a hard-working employees, to ensure your work, but
continue to build your assets item.
When you increase cash flow, you can buy a little luxury, an important difference is
that the rich buy luxury goods last, the poor and the middle class will first buy such
big houses, jewelry, leather, precious stones, luxury yachts products, because they
want to look rich. They look very rich indeed, but in fact they have caught the loan
trap. The total money that people who are long-term prosperity is to first build up
their assets, and then use the income generated by assets to buy luxury goods, the
poor and middle class are using their hard-earned money and will leave our children
purchase luxury estates.
True luxury is the accumulation of real assets, investments and incentives. For
example, when my wife and I got through the sale of additional income housing, she
bought a Mercedes, this is not to increase the risk of her job or risked bought.
However, when real estate appreciation and eventually have enough cash inflow
enough to buy the car, she waited four years.
This luxury is indeed a reward, because it proves she knows how to increase their
assets, the significance of her car has been not only a vehicle, means she can use their
financial knowledge to get it.
Most people are impulsively made a loan to buy a new car or other luxury goods, they
may be tired, so new items can look a bit. Use the loan to buy luxury goods that make
people give up something sooner or later, because the debt by buying luxury goods is
a big burden.
You take the time and investment to build their own business, you are ready to reach
that magic secrets - the greatest secret of the rich. This paved the road to riches secret,
end of the road are hard for you to pay attention to your own time and return t he cause
of
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