People tell you: Study Hard. . . So you can get good grades. . . So you can find a good job . . . So you can find a good company to work for. People tell you: Study Hard. . . So you can get good grades. . . So you can find a good job . . . So you can find a good company to work for. An Entrepreneur will tell you: You dont want a good company to work for. . . You want to study hard to find out how to buy a good company and sell it. People tell you: Study Hard. . . So you can get good grades. . . So you can find a good job . . . So you can find a good company to work for. An Entrepreneur will tell you: You dont want a good company to work for. . . You want to study hard to find out how to buy a good company and sell it. THIS OF COURSE CAUSES A CONFLICT WITHIN YOU! I do not take the subject of money lightly I do not accept the comments like: Were not interested in money were school teachers. F.A.TS?= Financial Aptitude Testing Financial aptitude is never tested. So there is a growing gap between the haves and the have nots. Financial education is left up to the parents. So a poor parent will teach poor attitudes. There is a big difference between literacy in words and literacy in numbers. INCOME EXPENSES ASSETS LIABILITIES The difference between an asset and a liability. ASSET: An asset is something that puts money in your pocket without you working for it. LIABILITY: A liability is something that takes money out of your pocket. ASSETS LIABILITIES HOUSE CAR HOUSE CAR ? ? ASSETS LIABILITIES HOUSE CAR HOUSE CAR CASHFLOW ASSETS LIABILITIES HOUSE CAR HOUSE CAR ? ? INCOME EXPENSES JOB $1000 INCOME EXPENSES JOB $1000 RENT MORTGAGE FOOD STEREO CLOTHES ASSETS LIABILITIES HOUSE CAR CREDIT CARDS ASSETS LIABILITIES HOUSE CAR CREDIT CARDS KIDS THE CASHFLOW PATTERN OF SOMEONE WHO IS POOR. THE CASHFLOW PATTERN OF SOMEONE WHO IS MIDDLE-CLASS. THE CASHFLOW PATTERN OF SOMEONE WHO IS MIDDLE-CLASS. They are on a treadmill. Their liabilities keep them at work. They never get ahead. THE CASHFLOW PATTERN OF SOMEONE WHO IS RICH. If you want to be Rich and Happy Dont go to school! By Robert Kiyosaki. The Secrets of the Rich NO.1 The Poor and the Middle-Class work for money. The Secrets of the Rich The Poor and the Middle-Class work for money The Rich have money work for them. The Secrets of the Rich NO.1 STATISTICS. 25% ARE DEAD. 51% HAVE INCOMES OF $6000. 20% HAVE INCOMES OF $6000 - $35000. 3% HAVE INCOMES OF OVER $35000. 1% ARE RICH. The Secrets of the Rich NO.2 MIND YOUR OWN BUSINESS. My PROFESSION was sales BUT My BUSINESS was real estate. _______________________________________________ My PROFESSION was sales BUT My BUSINESS was real estate. _______________________________________________ Dont mind somebody elses business. Youve got to take care of YOURSELF! EXAMPLES OF ASSETS REAL ESTATE. STOCKS. BONDS. INTELLECTUAL PROPERTY [BOOKS]. MUTUAL FUNDS BUSINESSES. There are people who: OWN A BUSINESS. and There are people who: OWN A J OB. There are people who: OWN A BUSINESS. and There are people who: OWN A J OB. _______________________________________________ When you OWN A J OB you are not free YOU must do the work! The Secrets of the Rich NO.3 CREATE INVESTMENTS DONT BUY THEM THE STAGES OF CREATING AN INVESTMENT EXAMPLE: 1. I buy 5 houses for $5000 down each 2. Those 5 houses are worth to me $30,000 each 3. I sell each house for $60,000 4. I make $30,000 profit on each house 5. That profit is created in the ASSET column THE STAGES OF CREATING AN INVESTMENT EXAMPLE: 1. I buy 5 houses for $5000 down each 2. Those 5 houses are worth to me $30,000 each 3. I sell each house for $60,000 4. I make $30,000 profit on each house 5. That profit is created in the ASSET column 6. I created $30,000 X 5 = $150,000 in the form of a NOTE 7. Then I took 10% interest on that $150,000 8. This gives me annually $15,000 into my INCOME column 9. Over the 30 years repayment period I have make $450,000 The Secrets of the Rich NO.4 EXPAND THE PRODUCT BEFORE YOU BUY THE STAGES OF CREATING AN INVESTMENT EXAMPLE: 1. I bought 80 acres of land for $150,000 with a house on it. 2. I sold the house with 4 acres for $150,000. THE STAGES OF CREATING AN INVESTMENT EXAMPLE: 1. I.P.Os Initial Public Offering 2. You are offered shares at $1.50 3. Traders come in and your shares may go to $5.00 4. Then a mutual fund may pick it up and they may go to $20.00 [THIS IS WHERE THE BROAD PUBLIC PICK UP THEIR SHARES] OR: 1. Create 5 founders and 5 million shares at 10c STAGE 1 2. Sell them for 50c per share STAGE 2 3. Offer them at IPO STAGE 3 Get in before they go to IPO by creating them yourself. IF YOU REALLY WANT TO MAKE MONEY THE BEST WAY TO DO IT IS BETWEEN YOUR EARS. THINK DONT WORK HARD! What is your winning formula? Part of my winning formula was: Dont do what everybody else is doing. Some of your formulas might be: Be good, do as you are told, take orders. What blocks most people from achieving is that they are not willing to LET GO of their winning formula. . . Some of you will still go home and go back to work. Part of my winning formula was: Dont do what everybody else is doing Some of your formulas might be: Be good, do as you are told, take orders What blocks most people from achieving is that they are not willing to LET GO of their winning formula. . . Some of you will still go home and go back to work. If you want to be successful you have got to be willing to change your winning formula. TO BE AN ACHIEVER YOU HAVE GOT TO DO SOMETHING YOU HAVE GOT TO USE THE INFORMATION YOU GET ACHIEVERS TAKE ACTION ARE YOU WILLING TO TAKE ACTION ? ARE YOU WILLING TO MAKE MISTAKES ? Secrets of the Rich (Part 4) Robert Kiyosaki What We Are Today Not an information Society anymore A Learning Society - People will not care what you know but how fast can you learn. How fast can you drop the old winning formula and adopt a new winning formula? How fast can u adopt new ideas? Two Tips 1 st Tip: Never say you cant afford it 2 nd Tip: Watch out for your friends; Choose your friends carefully Paying your liabilities How to pay for your liabilities? Buy assets first, let your assets pay for your liabilities. Make Mistakes... Achievers are willing to take risks. Learn from mistakes. If you dont make mistakes , you dont learn anything. Thats the winning formulae! You will be what you will to be Poem By William Shakespeare