The simple formula for building great wealth
When I was younger, my rich dad said to me, “The rich get richer partly because they invest differently than others. They invest in things that are not offered to the poor and the middle class. Most important, however, they have a different educational background. If you have the right financial education, you will always have plenty of money.”
Rich dad often spoke of the three E’s of successful investors have. They are:
Most people understand reading, writing, and arithmetic. But those who are financially successful also have a different kind of education—financial education.
Financial education is the foundation for building wealth.
You know you are financially smarter when you can tell the difference between:
- Good debt and bad debt
- Good losses and bad losses
- Good expenses and bad expenses
- Tax payments versus tax incentives
- Corporations you work for versus corporations you own
- How to build a business, how to fix a business, and how to take a business public
- The advantages and disadvantages of stocks, bonds, mutual funds, business, real estate, and insurance products, as well as the different legal structures
A successful investor has a plan, is focused, and plays to win. This doesn’t mean that you won’t fail. Failure is part of the game. What separates the winners from the losers when it comes to investing is the ability to take the experiences, both successes and failures, and to learn from them to get better and better. That is what I mean by experience.
Most people do not learn from their successes and failures. Instead, they jump from one thing to another hoping one will stick. Hot tips don’t make you rich, experience does.
3. Excess cash
When most people hear they need excess cash to be a successful investor, they check out. I often hear them say things like, “I’m living from paycheck to paycheck,” or, “I’ll never have enough money to really invest well.”
The problem is that people hear excessive cash instead of excess cash.
When Kim was first starting out investing, she bought a small house in Portland, Oregon. She did not have a lot of extra money on hand. But she did have a great financial education, a plan, and was building her experience. She was able to save up the money needed for the down payment, and purchase the property. It cash flowed about $25 per month.
There is nothing wrong with starting small. It is through small investments that are successful that you can grow to larger and larger investments. Today, Kim owns thousands of apartment units across the US.
How’d she get there?
It started with financial education, continued with experience, and was kick started by wisely investing a little bit of excess cash. You can do the same, starting today.
We invite you to attend our upcoming Property Investment Seminar – http://propertyseminars.co.za/
The value of process versus end result
At some point in life, we all want to lose a little weight. Losing weight (and keeping it off!) is a process. You don’t just go to bed and then wake up slim and trim. Nope. You exercise regularly. You make some changes to your diet. And over time you start to see the results.
Investing is the same way. There is no secret get-rich-quick formula. You don’t go to bed one night and wake up wealthy the next morning. There may be people who promise these things, but I have yet to see one that lasts for the long-term.
Investing is a journey
In the process of becoming investors, we learn. We get some hands-on experience. We make mistakes—and learn from them. We get more and more experience. And in this process our knowledge, our confidence, and our abilities grow. Not to mention our bank accounts. In many ways, investing is a journey filled with highs and lows, joys and sorrows. But a journey always worth taking.
The journey is the reward
This is the key: The process we go through is even more important than the end goal. Who we become in the process, as a result of all the learning, mistakes, and experience, is where the real value lies.
As the old Chinese proverb goes, “The journey is the reward.”
The journey can be hard
1985 was the year from hell. Robert and I lost pretty much everything. At one point, we even lived in our car. It was undeniably the worst year of our lives. My self-esteem was crushed. The upsets were constant. My inner voice was saying persistently negative things like, “You can’t do that,” “You’re going to fail,” “You don’t know anything,” and, “You’re hopeless.”
I would honestly go to bed some nights thinking how much easier it would be if I just never woke up. It was the lowest point of my life.
The journey is worth it
Now, looking back many years later, I realize that Robert and I were both going through our own processes. There was no pretending: it was miserable. Yet, by going through that process, hitting bottom and then pulling ourselves back up, it was probably one of the best things that could have happened for both of us.
The result of that extremely difficult time made both Robert and me stronger and smarter individually and more committed and assured as a couple. It was invaluable. That was the reward at the end of the process.
Start your journey today
I guarantee that your own journey is waiting for you today. On it, you will make mistakes—sometimes huge ones! You will be challenged. You’ll have fearful moments. There will be times when your character is tested. But if you shy away from the challenge, you won’t grow. You won’t learn. And you won’t gain anything.
Today is the day to start your journey. Book your seat for our upcoming property investment seminar
The IGrow Wealth Property Club provides an holistic approach to wealth creation by using entry-level property as the underlying asset class.
The IGrow Wealth Property Club team of experts view direct ownership of property as the cornerstone and alternative vehicle to traditional investment products. It is a proven fact that 95% of people will not be able to retire financially independent. The Property Club’s investment principles for the local investor are influenced by Robert Kiyosaki’s methods of investing but geared for the South-African property market.
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