Let me share an article I've read about Robert Kiosaki's facts and tips on how to get out of the rat race and move on to the world of too much money, what he call the Fast Track.
Fact #1 - Money is an idea.
Kiyosaki realized that one difference between the rich and the poor is in the way they use words. "words become ideas and word becomes flesh." What you say or confess becomes true, so he advises us to change our ideas. An example: Kiyosaki's real dad (an intellectual who never got rich), used to say, I'll never be rich" or I can't afford it." Kiyosaki's rich dad (his best friend's dad who taught him finance) forbade him to say the latter, from thinking of how you can't ever be rich. Then you'll get creative and indeed think of the many avenues you can take.
Fact #2 - Money does not make you rich
The poor and the middle class think that if they work hard, they will earn a lot of money and get rich. But why doesn't this happen? "More money doesn't necessarily make you rich," explains Kiyosaki. take it from the rich: They have money working for them --through proper investments.
Fact #3 - There are two kinds of money problems:
Not enough money and too much money... the poor see only one side of the coin. "There is not enough money so they work hard, hoping they'll earn money to make them rich." The rich, on the other hand have too much money and are under pressure to put it somewhere where it won't be idle. Aim to be on this side.
Fact #4 - Earned money cannot make you rich.
What Kiyosaki has been saying all along is that you shouldn't just depend on your salary. Passive income (income from labor or your job) and portfolio income (income from your assets or investments) are what will make you rich. By "invest," he means converting your earned income into passive and portfolio income."
A word about assets: We normally think of them in a form of a car or a house. But Kiyosaki tell us that these are actually liabilities, since you have mortgage bills and car loan payments to meet. "Assets put money in your pocket. These give you income that keeps working, even if you stop working."
Fact #5 The way you manage your cash flow can make you poor or rich.
We see this at work whenever we get a windfall, like 13th month pay or a bonus. We can do three things with it: save it all, save some and spend some, or spend it all. if you go with the last option, your money will be gone in a flash and you didn't get any richer. Money comes in and out "like a treadmill," he says.
Another scenario: A person works hard and has a good salary. He buys a car and a house. Burdened with payments, he works hard some more. Boss sees his hard work so he raises his salary. But when that happens, taxes go up and soon there's no money to buy a real asset.
"Build and asset that puts money in your pocket whether you work or not. It may take a while --two , three, five years. This is delayed gratification," says Kiyosaki.
His advise: Keep your full-time job while you start investing or a part-time business. Watch your cash flow. You might be on the Fast Track sooner than you think.
Now, this is why I put up my part-time business and since I live near in a real market district (Patrick's Mini Shop -- aimed at grade school, high school and college-aged shoppers opened last June 14). Patrick's inventory includes school and office supply (soon with more items and fashion accessories).
I'd like to make this part-time business expand and succeed... wish me luck ♥
Oh, don't forget to join my Giveaway
Ends June 30, 2010
Ends June 30, 2010
This post is linked to: Sunday Favorites with Chari