Rich Dad Poor Dad | S5 – E50 | Lesson VIII | Teach & You Shall receive – The power of giving

If I could leave one single idea with you, it is that idea. Whenever you feel short or in need of something, give what you want first and it will come back in buckets. That is true for money, a smile, love, or friendship. I know it is often the last thing a person may want to do, but it has always worked for me. I trust that the principle of reciprocity is true, and I give what I want. I want money, so I give money, and it comes back in multiples. I want sales, so I help someone else sell something, and sales come to me. I want contacts, and I help someone else get contacts. Like magic, contacts come to me. I heard a saying years ago that went: “God does not need to receive, but humans need to give.”

Rich Dad Poor Dad

If you need money, help people receive money. If you need coaches or people to join your podcast, refer others over to your friends platforms. Need a new job? Help others get jobs. This is how the compound effect works.

Often just the process of thinking of what I want, and how I could give that to someone else, breaks free a torrent of bounty. Whenever I feel that people aren’t smiling at me, I simply begin smiling and saying hello. Like magic, the next thing I know I’m surrounded by smiling people. It is true that your world is only a mirror of you.

So that’s why I say, “Teach, and you shall receive.” I have found that the more I teach those who want to learn, the more I learn. If you want to learn about money, teach it to someone else. A torrent of new ideas and finer distinctions will come in.

There are times when I have given and nothing has come back, or what I have received is not what I wanted. But upon closer inspection and soul searching, I was often giving to receive in those instances, instead of giving for the joy that giving itself brings.

Podcast

In this episode, I talk about how people get into FAD or PWM (people without money) markets.

For example, Bitcoin was a FAD market. In 2018, the hysteria was insane. You had people making podcasts, videos, etc….and they all fell for it. Sure, Bitcoin still exists today, but the hysteria has gone away and the voices are now silent.

I read a post on FB yesterday that someone I knew once tried creating a business for new grads. Well, if you just graduated from university, more than likely you’re in debt — therefore, you’re in a PWM market. I’m not lucky, but when I entered the ESL space, I knew that this was a billion-dollar industry with a massive opportunity to go to AR/VR in the future with an insane amount of collaborations. So, because I’m worldwide, I’m not reliant on economies that have deteriorated (Thailand and probably have the countries on planet Earth). There are economies that are surging, at the moment, and because I’m a trainer and have specific skill-sets, I attract those individuals because I have assets.

I’m in a People-With-Money market. This is something you need to consider before starting a business.

Tune in!

Topic: Spotify Takes A Heavy-hitter; YouTube is in Trouble

A podcaster/pseudo-comedian (shots fired) by the name of Joe Roegan signed a $100 million-dollar contract with Spotify a few days ago. What does this mean? Spotify literally just stole not only one of the top YouTubers away but also destroyed Google and Apple podcasts. He will have to take all of his content off YouTube (except micro-snippets he can put on to promote) and move it to Spotify. Did Spotify lose 100 million? No, their market share skyrocketed and they profited 5 billion! What does this mean for YouTube, a company that has been de-platforming individuals for free-speech and perpetuate bullying, harassment, and trolling? Well, this could mean the end. LISTEN IN!

RICH DAD POOR DAD | S5 – E48 | LESSON VIII | 10 STEPS TO DEVELOP YOUR POWERS #5 pAY yoURSELF fIRST

If you cannot get control of yourself, do not try to get rich. It makes no sense to invest, make money, and blow it. It is the lack of self-discipline that causes most lottery winners to go broke soon after winning millions. It is the lack of self-discipline that causes people who get a raise to immediately go out and buy a new car or take a cruise.

It is difficult to say which of the 10 steps is the most important. But of all the steps, this step is probably the most difficult to master if it is not already a part of your makeup. I would venture to say that personal self-discipline is the number-one delineating factor between the rich, the poor, and the middle class.

Simply put, people who have low self-esteem and low tolerance for financial pressure can never be rich. As I have said, a lesson learned from my rich dad was that the world will push you around. The world pushes people around, not because other people are bullies, but because the individual lacks internal control and discipline. People who lack internal fortitude often become victims of those who have self-discipline.

Rich Dad Poor Dad | S5 – E47 | Lesson VIII | 10 Steps to Develop Your POWERS (3-4)

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

How I created a skillset before covid19 shattered jobs

The language school where I have been teaching since May last year had to close on the 18th March. I am owed three weeks pay, which should have arrived by 11th April at the latest. There are 8 other teachers in the same boat and we have all been unable to contact the owner. He isn’t answering his phone, e-mails or Line messages (but the messages are being read) I need my money!

Anonymous Teacher in Thailand

I’m fortunate enough to have built up my skillsets over the course of 5 years. However, the comment above, which I found on a website, shows a plead from an individual who works at a language center (like me) that sadly fell into the grim reality of a corrupted owner. He was supposed to get paid but the owner has literally went AWOL, or so it seems (because line messages are being read). I have empathy for these teachers, including the rest around the world, who have had their jobs completely slashed away. 36 million English speakers in America have lost their jobs and that toll will continue climbing because the spread of the virus will amplify.

In the past here in Thailand, there have been floods that wiped up a large portion of the country, inundating homes and districts for up to a half-a-year, coups that ran rampantly on the streets of Thailand, disrupting an entire nation. Riots between two political parties that saw dozens of lives lost, but this certainly trumps them all, doesn’t it?

The company that hires and sends us to teach in Thai public schools refuses to tell the teachers when our contracts will officially begin. Meaning we don’t know if they will begin in May or July. If our contracts don’t begin until July, it means we will have gone from March to the end of July with little or no pay. The fact the company refuses to be upfront with teachers, only highlights the poor character of this Thai-run company. 

They assume that they can string the foreign teachers along and we will be there when school starts. But they assume wrong. When the school term starts again, I suspect the companies and schools that have ignored and not looked after the foreign teachers will be left with giant holes to fill. Loyalty is a two way street.

Anonymous Teacher

I think you guys get the point. Because this gentleman is a 1 in 2,000 foreigner teachers (give or take a couple thousand) here in Thailand, he can be disposed of, just like most Americans who have lost their jobs to COVID.

However, because I’m a podcaster, online trainer, teacher, have proven my capabilities and have gotten results, I’m probably a 1 in 3 here in Thailand, putting me in a category that’s hard to get into.

“Arsenio, do you have a lot of work here in Thailand?” Absolutely NOT. There are forces beyond my power that play a pivotal role in this white-ocracy, but because I’m well-known online because the videos, and worldwide because my podcast….there are people inquiring from all corners of the world for my services. How did I do this?

  • Become an asset; not a number
  • Learn skills that others don’t know
  • Build an online persona
  • Strengthen your four cores of credibility
  • Content creation

Whether you’re at home and stuck — or wondering what you can do with all the free time, this is the best way you can start strengthening skills that can provide you with extra income…not waiting on others to open their doors.

Rich Dad Poor Dad | S5 – E33 | Lesson V | Two Types of Investors & How to Get Started

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:

  1. 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.
  2. 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.

  1. 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.
  2. 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.

Rich Dad Poor Dad | S5 – E31 | Lesson V | Another Way to Develop Financial Intelligence

Another case for developing your financial intelligence over a lifetime is simply that more opportunities are presented to you. And the greater your financial intelligence, the easier it is to tell whether
a deal is good. It’s your intelligence that can spot a bad deal, or make a bad deal good. The more I learn—and there is a lot to learn—the more money I make simply because I gain experience and wisdom as the years go on. I have friends who are playing it safe, working hard at their profession, and failing to gain financial wisdom, which does take time to develop.

Rich Dad Poor Dad

Gaining experience and wisdom, just like in life, is the most important aspect of developing an area of life.

We also own a stock portfolio, surrounded by a corporation that Kim and I call our “personal mutual fund.” We have friends who deal specifically with investors like us who have extra money each month to invest. We buy high-risk, speculative private companies that are just about to go public on a stock exchange in the United States or Canada. An example of how fast gains can be made are 100,000 shares purchased for 25 cents each before the company goes public. Six months later, the company is listed, and the 100,000 shares now are worth $2 each. If the company is well managed, the price keeps going up, and the stock may go to $20 or more per share. There are years when our $25,000 has gone to a million in less than a year.

Rich Dad Poor Dad

Wow! This is just SPECTACULAR! To see this puts a huge smile on my face, and now I’m going to be diving very closely into this because if I’m able to buy into a company before it goes public, I would have completely profited from all of this.

Podcast

Rich Dad Poor Dad | S5 – E28 | Lesson V | The Story of The Economy in Phoenix Circa 1990

That is why I invest in my financial intelligence, developing the most powerful asset I have. I want to be with people moving boldly forward. I do not want to be with those left behind.

I will give you a simple example of creating money. In the early 1990s, the economy of Phoenix, Arizona, was horrible. I was watching a TV show when a financial planner came on and began forecasting doom and gloom. His advice was to save money. “Put $100 away every month,” he said. “In 40 years you will be a multimillionaire.”

Well, putting money away every month is a sound idea. It is one option—the option most people subscribe to. The problem is this: It blinds the person to what is really going on. It causes them to miss major opportunities for much more significant growth of their money. The world is passing them by.

As I said, the economy was terrible at that time. For investors, this is the perfect market condition. A chunk of my money was
in the stock market and in apartment houses. I was short of cash. Because people were giving properties away, I was buying. I was not saving money. I was investing. Kim and I had more than a million dollars in cash working in a market that was rising fast. It was the best opportunity to invest. The economy was terrible. I just could not pass up these small deals.

Houses that were once $100,000 were now $75,000. But instead of shopping with local real estate agents, I began shopping at the bankruptcy attorney’s office, or the courthouse steps. In these shopping places, a $75,000 house could sometimes be bought for $20,000 or less. For $2,000, which was loaned to me from a friend for 90 days for $200, I gave an attorney a cashier’s check as a down payment. While the acquisition was being processed, I ran an ad advertising a $75,000 house for only $60,000 and no money down.

The phone rang hard and heavy. Prospective buyers were screened and once the property was legally mine, all the prospective buyers were allowed to look at the house. It was a feeding frenzy. The house sold in a few minutes. I asked for a $2,500 processing fee, which they gladly handed over, and the escrow and title company took over from there. I returned the $2,000 to my friend with an additional $200. He was happy, the home buyer was happy, the attorney was happy, and I was happy. I had sold a house for $60,000 that cost me $20,000. The $40,000 was created from money in my asset column in the form of a promissory note from the buyer. Total working time: five hours.

Rich Dad Poor Dad

Rich Dad Poor Dad | S5 – E22 | Assets you DON’T Have to Follow!

So what kind of assets am I suggesting that you or your children acquire? In my world, real assets fall into the following categories:

  • Businesses that do not require my presence I own them, but they are managed or run by other people. If I have to work there, it’s not a business. It becomes my job.
  • Stocks
  • Bonds
  • Income-generating real estate
  • Notes (IOUs)
  • Royalties from intellectual property such as music, scripts, and patents
  • Anything else that has value, produces income or appreciates, and has a ready market

As a young boy, my educated dad encouraged me to find a safe job. But my rich dad encouraged me to begin acquiring assets that I loved.
“If you don’t love it, you won’t take care of it.” I collect real estate simply because I love buildings and land. I love shopping for them, and I could look at them all day long. When problems arise, the problems aren’t so bad that it changes my love for real estate. For people who hate real estate, they shouldn’t buy it.

I also love stocks of small companies, especially start-ups, because I am an entrepreneur, not a corporate person. In my early years,
I worked in large organizations, such as Standard Oil of California, the U.S. Marine Corps, and Xerox Corp. I enjoyed my time with those organizations and have fond memories, but I know deep down I am not a company man. I like starting companies, not running them. So my stock buys are usually of small companies.

Rich Dad Poor Dad

When I say mind your own business, I mean to build and keep your asset column strong. Once a dollar goes into it, never let it come out. Think of it this way: Once a dollar goes into your asset column, it becomes your employee. The best thing about money is that it works 24 hours a day and can work for generations. Keep your day job, be a great hardworking employee, but keep building that asset column.

As your cash flow grows, you can indulge in some luxuries. An important distinction is that rich people buy luxuries last, while the poor and middle class tend to buy luxuries first. The poor and the middle class often buy luxury items like big houses, diamonds, furs, jewelry, or boats because they want to look rich. They look rich, but in reality they just get deeper in debt on credit. The old-money people, the long-term rich, build their asset column first. Then the income generated from the asset column buys their luxuries. The poor and middle class buy luxuries with their own sweat, blood, and children’s inheritance.