Rich dad believed in the KISS principle—Keep It Simple, Stupid (or Keep It Super Simple)—so he kept it simple for us, and that made our financial foundation strong.
So what causes the confusion? How could something so simple be so screwed up? Why would someone buy an asset that was really a liability? The answer is found in basic education.
We focus on the word “literacy” and not “financial literacy.” What defines something to be an asset or a liability are not words. In fact, if you really want to be confused, look up the words “asset”Rich Dad Poor Dad
An asset puts money in my pocket. A liability takes money out of my pocket.
and “liability” in the dictionary. I know the definition may sound good to a trained accountant, but for the average person, it makes no sense. But we adults are often too proud to admit that something does not make sense.
To us young boys, rich dad said, “What defines an asset are not words, but numbers. And if you can’t read the numbers, you can’t tell an asset from a hole in the ground.” “In accounting,” rich dad would say, “it’s not the numbers, but what the numbers are telling you. It’s just like words. It’s not the words, but the story the words are telling you.”
“If you want to be rich, you’ve got to read and understand numbers.” If I heard that once, I heard it a thousand times from my rich dad. And I also heard, “The rich acquire assets, and the poor and middle class acquire liabilities.”
Here is how to tell the difference between an asset and a liability. Most accountants and financial professionals do not agree with
the definitions, but these simple drawings were the start of strong financial foundations for two young boys.
Our school system, created in the Agrarian Age, still believes in homes with no foundation. Dirt floors are still the rage. So kids graduate from school with virtually no financial foundation. One day, sleepless and deep in debt in suburbia, living the American Dream, they decide that the answer to their financial problems is to find a way to get rich quick.
Construction on the skyscraper begins. It goes up quickly, and soon, instead of the Empire State Building, we have the Leaning Tower of Suburbia. The sleepless nights return.
As for Mike and me in our adult years, both of our choices were possible because we were taught to pour a strong financial foundation when we were just kids.
Accounting is possibly the most confusing, boring subject in the world, but if you want to be rich long-term, it could be the most important subject. For rich dad, the question was how to take a boring and confusing subject and teach it to kids. The answer he found was to make it simple by teaching it in pictures.
My rich dad poured a strong financial foundation for Mike and me. Since we were just kids, he created a simple way to teach us.
For years he only drew pictures and used few words. Mike and I understood the simple drawings, the jargon, the movement of money,
Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.
and then in later years, rich dad began adding numbers. Today, Mike has gone on to master much more complex and sophisticated accounting analysis because he had to in order to run his empire. I am not as sophisticated because my empire is smaller, yet we come from the same simple foundation. Over the following pages, I offer to you the same simple line drawings Mike’s dad created for us. Though basic, those drawings helped guide two little boys in building great sums of wealth on a solid and deep foundation.
For those of you who want the rundown right here, here are some common indefinite pronoun uses tested in the TOEIC test.
Some(-one/-body/-where): used for sentences with a positive meaning.
No (-one/-body/-where): used to give a negative meaning to a positive sentences.
Any (-one/-body/-where): often used for questions and sentences with a negative meaning.
All, any, both, few, many, more, other, several, some: used as plural
Every, each, either, -one: used as singular.
Tune into the podcast down below for the test tactic.
“Remember what I said before: A job is only a short-term solution to a long-term problem. Most people have only one problem in mind, and it’s short-term. It’s the bills at the end of the month, the Tar Baby. Money controls their lives, or should I say the fear and ignorance about money controls it. So they do as their parents did. They get up every day and go work for money, not taking the time to ask the question, ‘Is there another way?’ Their emotions now control their thinking, not their heads.”
“Can you tell the difference between emotions thinking and the head thinking?” Mike asked.Rich Dad Poor Dad
The absolute TRUTH! I’ve never heard it put so eloquently. A job is a short-term solution to a long-term problem. Genetics maybe? Mother did the same thing — work hard for a dead end check and pay all the bills.
Whenever I speak to groups of people, they often ask what I would recommend that they do. “How do I get started?” “Is there a book
you would recommend?” “What should I do to prepare my children?” “What is your secret to success?” “How do I make millions?”
Whenever I hear one of these questions, I’m reminded of the following story:
The Richest Businessmen
In 1923 a group of our greatest leaders and richest businessmen held a meeting at the Edgewater Beach hotel in Chicago. Among them were Charles Schwab, head of the largest independent steel company; Samuel Insull, president of the world’s largest utility; Howard Hopson, head of the largest gas company; Ivar Kreuger, president of International Match Co., one of the world’s largest companies at that time; Leon Frazier, president of the Bank of International Settlements; Richard Whitney, president of the New York Stock Exchange; Arthur Cotton and Jesse Livermore, two of the biggest stock speculators; and Albert Fall, a member of President Harding’s cabinet. Twenty-five years later, nine of these titans ended their lives as follows: Schwab died penniless after living for five years on borrowed money. Insull died broke in a foreign land, and Kreuger and Cotton also died broke. Hopson went insane. Whitney and Albert Fall were released from prison, and Fraser and Livermore committed suicide.
I doubt if anyone can say what really happened to these men. If you look at the date, 1923, it was just before the 1929 market crash and the Great Depression, which I suspect had a great impact on these men and their lives. The point is this: Today we live in times of greater and faster change than these men did. I suspect there will be many booms and busts in the coming years that will parallel the ups and downs these men faced. I am concerned that too many people are too focused on money and not on their greatest wealth, their education. If people are prepared to be flexible, keep an open mind and learn, they will grow richer and richer despite tough changes. If they think money will solve problems, they will have a rough ride. Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.
So when people ask, “Where do I get started?” or “Tell me how to
get rich quick,” they often are greatly disappointed with my answer.
I simply say to them what my rich dad said to me when I was a little kid. “If you want to be rich, you need to be financially literate.”
That idea was drummed into my head every time we were together. As I said, my educated dad stressed the importance of reading books, while my rich dad stressed the need to master financial literacy.
“Because it is ignorance about money that causes so much greed and fear,” said rich dad. “Let me give you some examples. A doctor, wanting more money to better provide for his family, raises his fees. By raising his fees, it makes health care more expensive for everyone.
It hurts the poor people the most, so they have worse health than those with money. Because the doctors raise their fees, the attorneys raise their fees. Because the attorneys’ fees have gone up, schoolteachers want a raise, which raises our taxes, and on and on and on. Soon there will be such a horrifying gap between the rich and the poor that chaos will break out and another great civilization will collapse. History proves that great civilizations collapse when the gap between the haves and have-nots is too great. Sadly, America is on that same course because we haven’t learned from history. We only memorize historical dates and names, not the lesson.”
“Aren’t prices supposed to go up?” I asked.
“In an educated society with a well-run government, prices should actually come down. Of course, that is often only true in theory. Prices go up because of greed and fear caused by ignorance. If schools taught people about money, there would be more money and lower prices. But schools focus only on teaching people to work for money, not how to harness money’s power.”
“But don’t we have business schools?” Mike asked. “And haven’t you encouraged me to go for my MBA?”
“Yes,” said rich dad. “But all too often business schools train employees to become sophisticated bean-counters. Heaven forbid a bean- counter takes over a business. All they do is look at the numbers, fire people, and kill the business. I know this because I hire bean-counters. All they think about is cutting costs and raising prices, which cause more problems. Bean-counting is important. I wish more people knew it, but it, too, is not the whole picture,” added rich dad angrily.
“So is there an answer?” asked Mike.
“Yes,” said rich dad. “Learn to use your emotions to think, not think with your emotions. When you boys mastered your emotions by agreeing to work for free, I knew there was hope. When you again resisted your emotions when I tempted you with more money, you were again learning to think in spite of being emotionally charged. That’s the first step.”
Guys, welcome back to another listening/developing speaking podcast and today you’re going to listen to how to annotate presentation slides.
Often times, presenters handout presentation slides to the audience. What you should do is learn how to annotate them.
Build on the information provided int he handout in the following ways:
Ahhh, here’s goes one of my new activities for the years. I wrote out a paragraph about sports, and how it runs deep within my bloodlines. However, on my blog, which is down below, there are missing words that you need to fill in. When you’re finished, send it to me for correction! Let’s see how you guys fair.
Are you good at sports? I am. I love watching the little snippets on YouTube during ______________________ morning. My favorite is track and field, and it’s because I used to be a runner back in high school and college. I realized I wasn’t very _________________ I was in college, and I ended up quitting because my passion for it had gone away. What is your __________________? Do you like it? I also love NCAA March Madness. It is one of the most exciting sports in the world (________________________________) because the amount of _______ that happens. Parity is when the David, the lesser team, defeats the ___________, the bigger team. Another great thing about sports is that it keeps us healthy. I do at least 20 minutes of cardio a day and 3-days of ____________________ and strength work.
Found probably the most useful chart in all of the free world. Down below is a chart of how words and vowels sound. Because I just unleashed a course on UDEMY (or soon to be and you’ll see it advertised), I would love to go over how vowels and particular words should sound.
Welcome back to the second part of the listening (which you heard yesterday), and more importantly, HAPPY NEW YEARS! That was an exceptionally fiery way to close out the New Year by giving you guys as much material as possible. So many new things that will be approaching this year and will give you a rundown soon! Until then, enjoy this follow up!
Listen to the podcast down below and listen to the lecture before numbering the below ideas 1-10 in the order they are presented.
Here’s another snippet (follow-up from yesterday) that I recorded. On the bird nests, there was a lot of information to cover, and unfortunately my student missed out on almost the entire bottom paragraph. I wish I had recorded the ensuing tests because she did remarkable after the first couple, especially in number 2. Nonetheless, here we go!
When we think of bird nests, we typically imagine a simple cup-like shape made of twigs and branches, nestled in the crook of a tree. While many birds do craft nests like this, other birds create different kinds. Some birds craft elaborate nests for their young, while others simply lay their eggs directly on the ground. Today we will be talking about two types of bird nests: ground nests and burrow nests.
Many birds do not build traditional nests at all, but rather create a small depression in the ground or in leaf litter in which they lay their eggs. These nests are referred to as ground nests or scrape nests. Many shorebirds and some vultures build this type of nest. Other birds, like some species of raptors and owls, also nest on the ground, but they do not create a depression. These birds just seek out a secluded place and lay their eggs directly on the ground.Bestmytests.com
If you want an example, make sure you tune into the podcast down below!