poor dad rich dad Flashcards
money
what is the summary of what they learned from the rich dad?
the sooner you stop thinking you need a paycheck the easier your life will be, to keep learning and working for free, and your mind will be forced to work hard to make money.
if you are forced to solve a problem you will end up solving it faster, just like making money for kids.
what is the first major lesson?
the rich dont get rich by being paid higher but you get rich by owning things that increase in value and by reinvesting what you earn, things like that are business, real-estate, natural resources, and intellectual property.
the key for financial indepence is having money that makes more money.
what is the differrent between business and profession?
profession is how you draw a salary, business is how independent of you your money makes money.
what is the concept of pay yourself first?
is basically to buy assets before even doing taxes or any other thing.
how do you put your money to work?
the key is to buy things that generate income, instead of things that generate expenses aka liabilities.
what are the assets?
business that doesnt require your presence, stock,bonds,funds, income generating real-estate.
what are the strongest mental obstacles that face human being
1-self doubt: or lack of confidence hold all of us back to a degree some are affected more than others some not, when you realize a great opportunity you must seek it fast.
2-Fear: it manifests in a lot of ways, one is fear of losing or failure the bad thing of this is that it does make you forced to play safe and that result losing opportunities, winners are not afraid of losing but losers are afraid of failure, remember winning requires not being afraid to lose.
3 and 4- fear of rejection and risk well both are vetal but also both can be avoided if you realize the opportunity cost.
5-cynicism: there will always be reasons why things wont work, there will never perfect oppourtiny so stop acting like it will come and act with imperfection, its not good idea no one else did it?? what if things didn’t go as planned? that will never work. fuck you it will, other people are blind to opportunities because they seek safety.
6-laziness: developing financial intelligence takes 5 years of working I prefer work hard for 40 years instead, bruh. busy people are just lazy, force yourself.
7-feeling guilty for being greedy: hhhhh skip everyone think about themselves mother teressa.
explain the lesson5 keep learning all the time?
learning is not one year not two years its life time task, well for financial life you need four pillars: 1-accounting, financial literacy, 2-investing, 3-understanding markets, 4-taxes avoiding.
underappreciated skills are: 1-salesm 2-marketing, communication,3-negotiating, investing, people management, financial intelligence.
steps to start:
1- find a reason
2-actively choose to be rich and think about it everyday: ask yourself what a rich person would do in this situation.
3-choose friends carefully.
4-Master a formula, a way to make money and then learn new one.
5- pay yourself first
6-pay your advisers and brokers well.
7-buy assets that generate money.
8-buy luxuries with income from assets only.
9-find a hero.
10-give others first and it will come back many times over.
