The Secrets of the Rich

Most people work very hard for little money clinging to the illusion of job security. They get 2 week vacation a year, and end up with a skimpy pension after 45 years of work. Their lives are run forever by two emotions - fear and greed. Fear of being without money motivates them to work hard, and when they get a paycheck greed kicks in with all the wonderful things money can buy.

Does this sound like you? Then I suggest reading “Rich Dad Poor Dad” by Robert Kiyosaki. It will change your mind set about money forever. Here’s just a bit of what it offers:

  • The rich have money work for them. The poor and middle class work for money. The rich understand that a job is a short-term answer to a long-term problem. They know that money is an illusion, like the donkey and the carrot. The sooner you forget about needing a paycheck the easier life will be. Your mind will show you ways to make money.
  • Rich people acquire assets. Poor & middle class acquire liabilities thinking they’re assets. To be rich, you must understand the difference between an asset and liability. Assets create income. Liabilities create expenses. Your house is a liability, not an asset. Educate yourself and buy income generating assets.
  • The rich mind their own business. They tend to their assets rather than spending all their life working for someone else. They focus on their increasing their assets rather than increasing the income statement (in other words, a pay raise). Once a dollar goes into your assets, never let it come out. Each dollar is like an employee that works 24 hours a day and for generations.
  • The rich create corporations. A corporation is merely a legal document that creates a legal body without a soul. Employees earn, get taxed and live on what is left. A corporation earns, spends everything it can and is taxed on anything that is left. It’s one of the biggest legal tax loopholes that the rich use. They’re easy to set up and inexpensive if you own investments that are producing good cash flow.
  • The rich invent money. They create investments by assembling a deal (much like assembling the parts of a computer and putting it together). They find an opportunity that everyone has missed. They know how to raise money and organize smart people. They manage risk rather than avoid it. In school we learn that mistakes are bad. But in truth, that’s how we learn so they’re actually good. The rich know you’ll never learn if you don’t try.
  • The rich work to learn. They don’t work for money Ask yourself “Where are these daily routines taking me?” Are you looking into the future or just your next paycheck? The rich are constantly learning how to get ahead. They are getting skills that help them manage cash flow, systems, and people.

As a homeowner and employee, you make three organizations rich. Your company is richer because your fear of job loss equals working harder which equals more money for them. Your bank is richer from your mortgage and credit card debt. And the government is richer from taxes (most work from Jan - May just for the government taxes alone).

To free yourself from that lifelong cycle, I suggest you invest in your brain. Get a library card and start with this book. You’ll know where to go after that. I promise.