Now, I will admit that there are people I have actually sought out because they had money. But I was not after their money; I was seeking their knowledge. In some cases, these people who had money have become dear friends. I’ve noticed that my friends with money talk about money. They don’t do it to brag. They’re interested in the subject. So I learn from them, and they learn from me. My friends who are in dire financial straits do not like talking about money, business, or investing. They often think it rude or unintellectual. So I also learn from my friends who struggle financially. I find out what not to do.Rich Dad Poor Dad
Some people are just so ignorant.
My intuition nudged at me a few months ago about a guy who made a ridiculous comment through a text message. So, I blocked him, but after going to a business where we have mutual business partners, he was there. I decided to unblock him and give him a chance — but after I caught him in a couple of lies and he tried throwing me under the bus by throwing a long-term business partnership in flames….I backed off.
Then there was an ignorant comment such as, “oh, I guess it didn’t feel good making less than ________ baht this month.”
First, never talk about a black man’s money.
Two, why would you even make a jaw-dropping, head-scratching ridiculous remark like that?
Three, Hold this BLOCK.
In this podcast, I talk about NEVER IGNORING THE INTUITION. If someone makes a comment straight off the back and something tells you “I don’t like this person,” that voice is your intuition and you should listen to it.
Guys, welcome to the first two of the ten steps on how to developer your powers. These excerpts below are from Robert Kiyosaki’s book, so make sure you tune into the podcast at the end to hear me explain how you can do it.
1. Find a reason greater than reality: the power of spirit
If you ask most people if they would like to be rich or financially free, they would say yes. But then reality sets in. The road seems too long with too many hills to climb. It’s easier to just work for money and hand the excess over to your broker.Rich Dad Poor Dad
I once met a young woman who had dreams of swimming for the U.S. Olympic team. The reality was that she had to get up every morning at four o’clock to swim for three hours before going to school. She did not party with her friends on Saturday night. She had to study and keep her grades up, just like everyone else.
When I asked her what fueled her super-human ambition and sacrifice, she simply said, “I do it for myself and the people I love. It’s love that gets me over the hurdles and sacrifices.”
A reason or a purpose is a combination of “wants” and “don’t wants.” When people ask me what my reason for wanting to be rich is, I tell them that it is a combination of deep emotional “wants” and “don’t wants.”
I will list a few: first, the “don’t wants,” for they create the “wants.”
Quote from Vientiane Embassy in Podcast Down Below
I don’t want to work all my life. I don’t want what my parents aspired for, which was job security and a house in the suburbs. I don’t like being an employee. I hated that my dad always missed my football games because
he was so busy working on his career. I hated it when my dad worked hard all his life and the government took most of what he worked for at his death. He could not even pass on what he worked so hard for when he died. The rich don’t do that. They work hard and pass it on to their children.
Now the “wants.” I want to be free to travel the world and live in the lifestyle I love. I want to be young when I do this. I want
to simply be free. I want control over my time and my life. I want money to work for me.
Those are my deep-seated emotional reasons. What are yours? Be greater than your reasons. I have lost money and been set back many times, but it was the deep emotional reasons that kept me standing up and going forward. I wanted to be free by age 40, but it took me until I was 47, with many learning experiences along the way.
As I said, I wish I could say it was easy. It wasn’t. But it wasn’t
that hard either. I’ve learned that, without a strong reason or purpose, anything in life is hard.
IF YOU DO NOT HAVE A STRONG REASON, THERE IS NO SENSE READING FURTHER. IT WILL SOUND LIKE TOO MUCH WORK.
2. Make daily choices: the power of choice
Choice is the main reason people want to live in a free country. We want the power to choose.
Financially, with every dollar we get in our hands, we hold the power to choose our future: to be rich, poor, or middle class. Our spending habits reflect who we are. Poor people simply have poor spending habits. The benefit I had as a boy was that I loved playing Monopoly constantly. Nobody told me Monopoly was only for kids, so I just kept playing the game as an adult. I also had a rich dad who pointed out to me the difference between an asset and a liability. So a long time ago, as a little boy, I chose to be rich, and I knew that
all I had to do was learn to acquire assets, real assets. My best friend, Mike, had an asset column handed to him, but he still had to choose.
Most people choose not to be rich. For 90 percent of the population, being rich is too much of a hassle. So they invent sayings that go: “I’m not interested in money.” “I’ll never be rich.” “I don’t have to worry.
I’m still young.” “When I make some money, then I’ll think about my future.” “My husband/wife handles the finances.” The problem with those statements is that they rob the person who chooses to think such thoughts of two things: One is time, which is your most precious asset. The second is learning. Having no money should not be an excuse to not learn. But that is a choice we all make daily: the choice of what we do with our time, our money, and what we put in our heads. That is
the power of choice. All of us have choice. I just choose to be rich, and I make that choice every day.
Invest first in education. In reality, the only real asset you have is your mind, the most powerful tool we have dominion over. Each of us has the choice of what we put in our brain once we’re old enough. You can watch TV, read golf magazines, or go to ceramics class or a class on financial planning. You choose. Most people simply buy investments rather than first investing in learning about investing.
A friend of mine recently had her apartment burglarized. The thieves took her electronics and left all the books. And we all have that same choice. 90 percent of the population buys TV sets, and only about 10 percent buy business books.
So what do I do? I go to seminars. I like it when they are at least two days long because I like to immerse myself in a subject. In 1973, I was watching this guy on TV who was advertising a three-day seminar on how to buy real estate for nothing down. I spent $385 and that course has made me at least $2 million, if not more. But more importantly, it bought me life. I don’t have to work for the rest of my life because of that one course. I go to at least two such courses every year.
I love CDs and audio books. The reason: I can easily review what I just heard. I was listening to an investor say something I completely disagreed with. Instead of becoming arrogant and critical, I simply listened to that five-minute stretch at least 20 times, maybe more. But suddenly, by keeping my mind open, I understood why he said what he said. It was like magic. I felt like I had a window into the mind of one of the greatest investors of our time. I gained tremendous insight into the vast resources of his education and experience.
The net result: I still have the old way I used to think, and I now
have a new way of looking at the same problem or situation. I have two ways to analyze a problem or trend, and that is priceless. Today, I often say, “How would Donald Trump do this, or Warren Buffett or George Soros?” The only way I can access their vast mental power is to be humble enough to read or listen to what they have to say. Arrogant or critical people are often people with low self-esteem who are afraid of taking risks. That’s because, if you learn something new, you are then required
to make mistakes in order to fully understand what you have learned.
If you have read this far, arrogance is not one of your problems. Arrogant people rarely read or listen to experts. Why should they? They are the center of the universe.
There are so many “intelligent” people who argue or defend when a new idea clashes with the way they think. In this case, their so-called intelligence combined with arrogance equals ignorance. Each of us knows people who are highly educated, or believe they are smart, but their balance sheet paints a different picture. A truly intelligent person welcomes new ideas, for new ideas can add to the synergy of other accumulated ideas. Listening is more important than talking. If that were not true, God would not have given us two ears and only one mouth. Too many people think with their mouth instead of listening in order to absorb new ideas and possibilities. They argue instead of asking questions.
I take a long view on my wealth. I do not subscribe to the get-rich-quick mentality most lottery players or casino gamblers have. I may go in and out of stocks, but I am long on education. If you want to fly an airplane, I advise taking lessons first. I am always shocked at people who buy stocks or real estate, but never invest in their greatest asset, their mind. Just because you bought a house or two does not make you an expert at real estate.
When I decided to exit the Rat Race, it was simply a questionRich Dad Poor Dad
of “How can I afford to never work again?” And my mind began to kick out answers and solutions. The hardest part was fighting my real parents’ dogma: “We can’t afford that.” “Stop thinking only about yourself.” “Why don’t you think about others?” and other similar sentiments designed to instill guilt to suppress my “greed.”
Too much greed, however, as anything in excess can be, is not good. But just remember what Michael Douglas said in the movie Wall Street: “Greed is good.” Rich dad said it differently: “Guilt is worse than greed, for guilt robs the body of its soul.” I think Eleanor Roosevelt said it best: “Do what you feel in your heart to be right—for you’ll be criticized anyway. You’ll be damned if you do, and damned if you don’t.”
Our lives are a reflection of our habits more than our education. After seeing the movie Conan the Barbarian, starring Arnold Schwarzenegger, a friend said, “I’d love to have a body like Schwarzenegger.” Most of the guys nodded in agreement.
“I even heard he was really puny and skinny at one time,” another friend added.
“Yeah, I heard that too,” another one said. “I heard he has a habit of working out almost every day in the gym.”
“Yeah, I’ll bet he has to.”
“Nah,” said the group cynic. “I’ll bet he was born that way. Besides, let’s stop talking about Arnold and get some beers.”
This is an example of habits controlling behavior. I remember asking my rich dad about the habits of the rich. Instead of answering me outright, he wanted me to learn through example, as usual.
“When does your dad pay his bills?” rich dad asked. “The first of the month,” I said.
“Does he have anything left over?” he asked.
“Very little,” I said.
“That’s the main reason he struggles,” said rich dad. “He has
bad habits. Your dad pays everyone else first. He pays himself last, but only if he has anything left over.”
“Which he usually doesn’t,” I said. “But he has to pay his bills, doesn’t he? You’re saying he shouldn’t pay his bills?”
My point is that it’s those doubts and cynicism that keep most people poor and playing it safe. The real world is simply waiting for you to get rich. Only a person’s doubts keep them poor. As I said, getting out of the Rat Race is technically easy. It doesn’t take much education, but those doubts are cripplers for most people.
“Cynics never win,” said rich dad. “Unchecked doubt and fear creates a cynic.” “Cynics criticize, and winners analyze” was another of his favorite sayings. Rich dad explained that criticism blinded while analysis opened eyes. Analysis allowed winners to see that critics were blind, and to see opportunities that everyone else missed. And finding what people miss is key to any success.Rich Dad Poor Dad
This is a story of my life. Am I playing it safe by staying here in Thailand for 7 years? Full story in podcast down below.
Real estate is a powerful investment tool for anyone seeking
financial independence or freedom. It is a unique investment tool.
Yet every time I mention real estate as a vehicle, I often hear, “I don’t want to fix toilets.” That’s what Peter Lynch calls noise. That’s what
my rich dad would say is the cynic talking, someone who criticizes and does not analyze, someone who lets their doubts and fears close their mind instead of open their eyes.
So when someone says, “I don’t want to fix toilets,” I want to fire back, “What makes you think I want to?” They’re saying a toilet is more important than what they want. I talk about freedom from the Rat Race, and they focus on toilets. That is the thought pattern that keeps most people poor. They criticize instead of analyze.
“I-don’t-wants hold the key to your success,” rich dad would say. Because I, too, do not want to fix toilets, I shop hard for a property manager who does fix toilets. And by finding a great property manager who runs houses or apartments, well, my cash flow goes up. But, more importantly, a great property manager allows me to buy a lot more real estate since I don’t have to fix toilets. A great property manager is key to success in real estate. Finding a good manager is more important to me than the real estate. A great property manager often hears of great deals before real estate agents do, which makes them even more valuable.
In my own life, I’ve noticed that winning usually follows losing. Before I finally learned to ride a bike, I first fell down many times. I’ve never met a golfer who has never lost a golf ball. I’ve never met people who have fallen in love who have never had their heart broken. And I’ve never met someone rich who has never lost money.Rich Dad Poor Dad
- Riding a bike
- Track & Field
- Video Games (Blitz 2003)
“Texans don’t bury their failures. They get inspired by them. They take their failures and turn them into rallying cries. Failure inspires Texans to become winners. But that formula is not just the formula for Texans. It is the formula for all winners.”
“I always tried to turn every disaster into an opportunity.” John D. Rockefeller
If you hate losing, play it safe. If losing makes you weak, play it safe. Go with balanced investments. If you’re over 25 years old and are terrified of taking risks, don’t change. Play it safe, but start early. Start accumulating your nest egg early because it will take time.
But if you have dreams of freedom—of getting out of the Rat Race—the first question to ask yourself is, “How do I respond to failure?” If failure inspires you to win, maybe you should go for it—but only maybe. If failure makes you weak or causes you to throw temper tantrums—like spoiled brats who call attorneys to file lawsuits every time something doesn’t go their way—then play it safe. Keep your daytime job. Or buy bonds or mutual funds. But remember, there is risk in those financial instruments also, even though they may appear safe.
The world is filled with talented poor people. All too often, they’re poor or struggle financially or earn less than they are capable of, not because of what they know, but because of what they do not know. They focus on perfecting their skills at building a better hamburger rather than the skills of selling and delivering the hamburger. Maybe McDonald’s does not make the best hamburger, but they are the best at selling and delivering a basic average burger.Rich Dad Poor Dad
Don’t build the hamburger, people! You know why? Who else can build hamburgers? EVERYONE! Who can sell them? Not EVERYONE. This is the point of the story. Once robots start making hamburgers, you’re not expendable. You’re now disposable. You’re no longer a employable, and you’ll become unemployable.
The main management skills needed for success are:
- Management of cash flow
- Management of systems
- Management of people
The most important specialized skills are sales and marketing. The ability to sell—to communicate to another human being, be it a customer, employee, boss, spouse, or child—is the base skill of personal success. Communication skills such as writing, speaking, and negotiating are crucial to a life of success. These are skills I work on constantly, attending courses or buying educational resources to expand my knowledge.Rich Dad Poor Dad
In school and in the workplace, the popular opinion is the idea of specialization: that is, in order to make more money or get promoted, you need to specialize. That is why medical doctors immediately begin to seek a specialty such as orthopedics or pediatrics. The same is true for accountants, architects, lawyers, pilots, and others.Rich Dad Poor Dad
When I went to Australia, my family’s logic and my logic were completely different. Because I wanted to achieve something far greater than me, I was ridiculed by my family, ostracized, and never spoken to again. My logic was far greater than any that had beset on my family. My achievements are far greater than anything any family member in history has achieved. I had rich dad’s logic.
When I quit my high-paying job with Standard Oil, my educated dad had a heart-to-heart talk with me. He was bewildered. He could not understand my decision to resign from a career that offered high pay, great benefits, lots of time off, and opportunity for promotion. When he asked me one evening, “Why did you quit?” I could not explain it to him, though I tried hard to. My logic did not fit his logic. The big problem was that my logic was my rich dad’s logic. – Robert Kyosaki
Job security meant everything to my educated dad. Learning meant everything to my rich dad.
Educated dad thought I went to school to learn to be a ship’s officer. Rich dad knew that I went to school to study international trade. So as a student, I made cargo runs, navigating large freighters, oil tankers, and passenger ships to the Far East and the South Pacific. Rich dad emphasized that I should stay in the Pacific instead of taking ships to Europe because he knew that the emerging nations were in Asia, not Europe. While most of my classmates, including Mike, were partying at their fraternity houses, I was studying trade, people, business styles, and cultures in Japan, Taiwan, Thailand, Singapore, Hong Kong, Vietnam, Korea, Tahiti, Samoa, and the Philippines. I was partying also, but it was not in any frat house. I grew up rapidly.Rich Dad Poor Dad
Great opportunities are not seen with your eyes. They are seen with your mind. Most people never get wealthy simply because they are not trained financially to recognize opportunities right in front of them.Rich Dad Poor Dad
I love this. When it comes to money-making opportunities, they’re not seen with my eyes. I had to prime my mind to get the most out of it. I get a number of ideas on a routine basis that can propel my finances to even greater heights, simply by investing in my mind.
I look at money much like my game of tennis. I play hard, make
mistakes, correct, make more mistakes, correct, and get better. If
I lose the game, I reach across the net, shake my opponent’s hand, smile, and say, “See you next Saturday.”
There are two kinds of investors:
- The first and most common type is a person who buys a packaged investment. They call a retail outlet, such as a real estate company, a stockbroker, or a financial planner, and they buy something. It could be a mutual fund, a REIT, a stock or a bond. It is a clean and simple way of investing. An analogy would be a shopper who goes to a computer store and buys a computer right off the shelf.
The second type is an investor who creates investments.
This investor usually assembles a deal in the same way a person who buys components builds a computer. I do not know the first thing about putting components of a computer together, but I do know how to put pieces of opportunities together, or know people who know how.
It is this second type of investor who is the more professional investor. Sometimes it may take years for all the pieces to come together. And sometimes they never do. It’s this second type of investor that my rich dad encouraged me to be. It is important to learn how to put the pieces together, because that is where the huge wins reside, and sometimes some huge losses if the tide goes against you.
If you want to be the second type of investor, you need to develop three main skills.
- Find an opportunity that everyone else missed. You see with your mind what others miss with their eyes. For example, a friend bought this rundown old house. It was spooky to look at. Everyone wondered why he bought it. What he saw that we did not was that the house came with four extra empty lots. He discovered that after going to the title company. After buying the house, he tore the house down and sold the five lots to a builder for three times what he paid for the entire package. He made $75,000 for two months of work. It’s not a lot of money, but it sure beats minimum wage. And it’s not technically difficult.
- Raise money. The average person only goes to the bank. This second type of investor needs to know how to raise capital, and there are many ways that don’t require a bank. To get started, I learned how to buy houses without a bank. It was the learned skill
of raising money, more than the houses themselves, that
was priceless. All too often I hear people say, “The bank won’t lend me money,” or “I don’t have the money to buy it.” If you want to be a type-two investor, you need to learn how to do that which stops most people. In other words, a majority of people let their lack of money stop them from making a deal. If you can avoid that obstacle, you will be millions ahead of those who don’t learn those skills. There have been many times I have bought
a house, a stock, or an apartment building without a penny in the bank. I once bought an apartment house for $1.2 million.
I did what is called “tying it up,” with a written contract between seller and buyer. I then raised the $100,000 deposit, which bought me 90 days to raise the rest of the money. Why did I do it? Simply because I knew it was worth $2 million. I never raised the money. Instead, the person who put up the $100,000 gave me $50,000 for finding the deal, took over my position, and I walked away. Total working time: three days. Again, it’s what you know more than what you buy. Investing is not buying. It’s more a case of knowing.
3. Organize smart people.
Intelligent people are those who work with or hire a person who is more intelligent than they are. When you need advice, make sure you choose your advisor wisely.
It is not gambling if you know what you’re doing. It is gambling if you’re just throwing money into a deal and praying. The idea in anything is to use your technical knowledge, wisdom, and love of the game to cut the odds down, to lower the risk. Of course, there is always risk. It is financial intelligence that improves the odds. Thus, what is risky for one person is less risky to someone else. That is the primary reason I constantly encourage people to invest more in their financial education than in stocks, real estate, or other markets. The smarter you are, the better chance you have of beating the odds.Rich Dad Poor Dad
This is a quick message/podcast for all gamblers out there, including a family member. Why take ridiculous risks, betting on superficial sports that don’t have much ROI when you can do stocks.
Great opportunities are not seen with your eyes. They are seen with your mind. Most people never get wealthy simply because they are not trained financially to recognize opportunities right in front of them.