The Best Guard to Financial Freedom

I often write about real-life investments. I do this because I want you to understand how I use my financial education.

I write to encourage you to learn, study, practice, and possibly see the world differently. Today, there is a lot of money in the world. There are trillions of dollars looking for a home because governments of the world are printing trillions in counterfeit money, aka fiat currency. Governments do not want the world to go into a depression, so they print more funny money. This is why the price of gold and silver go up and why savers are losers.

The problem is that this phony money is in the hands of only a few people. So, the rich get richer, the poor and middle class grow poorer, the economy worsens, and the problem grows bigger.

I am writing this Article because it does not help heal the world if I do not share what I know. That would be greedy. I write because I believe we need real financial education before the world economy can truly recover. Ultimately, I write because I believe it is better to teach you to fish than to give you a fish.

With that said, there is an important part to your financial education but get to understand this story:

 

One of the things Robert Kiyosaki learned from His rich dad when he was nine years old was what determined if something was an asset or a liability—and it is not what your banker or your real estate broker calls it. What determines if something is an asset or a liability is a very important word—probably the most important word in business and investing. The word is cash flow said Rich Dad. In other words, if the cash is flowing into your pocket, then the item is an asset.

Robert has a lot of rental properties. Every month, cash flows into His pocket from that real estate. However, with His personal residence, cash flows out of His pocket. Robert rich dad would say, “My rental properties are assets, but my personal residence is a liability because the cash is flowing out.” One of the reasons people struggle financially is because they don’t understand the difference between assets and liabilities. Now, I’m not saying, “Don’t buy a house, and don’t buy a big house.” I’m not saying, “Live cheaply and frugally,” because I don’t believe in that. If you want to be successful financially, the most important thing is you need to know the difference between an asset and a liability. That requires financial literacy.

With this Article, I will show you how to reduce some of your investment risk by increasing your financial literacy.

Robert said although He had a rich dad who taught Him many things, He still came from a relatively poor family. He’s not one of these rich kids whose daddy gave them a lot of money or a big trust fund or a company to inherit. That’s not His own story. In fact, back in 1985, He and His Wife were homeless because one of their businesses had failed.

I don’t say that to be dramatic. It’s just to explain that He had to come off the streets. He had to bounce back from a tremendous setback to achieve what he has today. All His rich dad gave Him was guidance on how to go from where He was to where He’s today. That’s what I want to share with you. I want to share the insight, wisdom, and Robert rich dad’s teachings on how to become a wealthy person. I want to teach you how to fish rather than give you a fish.

Now, what you’ll read may disrupt some of your thoughts and maybe some of your core beliefs, but I want to reassure you that I know what separate winners from losers. The reason many people are not successful is because of fear. They say, “I don’t want to invest because it’s risky,” or “I don’t want to start my own business because it’s risky,” or “What happens if I lose money?” or “What happens if I fail?”

 

These words reflect the core value of security. The fear of failing, the need for a steady paycheck, and a fear of change influence their core fears.

Robert’s wife and partner, Kim often speaks about this. She says, “I first started investing in 1989. Fearful and unsure of what I was doing, I stumbled around neighborhoods near our home and finally found a cute 2-bedroom, 1-bath house that seemed to be a good rental prospect. I nervously put in an offer, and with a little back-and-forth negotiation, my offer was accepted. Now more fear kicked in. I was more focused on what I might lose versus what I would get. I looked for every excuse possible for why I shouldn’t buy that house. I somehow quieted my fear long enough to go ahead and buy the property, taking very deep breaths along the way.”

The people who are going to be successful must first face their fear. I am not sure you ever conquer your fears, but you can face them and overcome them as you find success. Successful people, or “winners” as rich dad called them, take control of their lives. They know that their mistakes are their opportunities to learn and to grow. The fear of investing does not frighten them. It challenges them.

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