How Do You Invest?
From a young age, I’ve always been told to get good marks, get a good job, your property is an asset, save for retirement, find a financial planner, diversify and debts is bad. This advice acquired always made sense because everyone I talked to said the same thing. We all have been trained the same formula for trading and at times it is difficult for most of us to be disciplined enough to stay on track with all of this advice.
It was not until I read Robert Kiyosaki’s publication Rich Dad Poor Dad which i began to look at investing from a totally different perspective. This formula is great if you would like to invest like the majority of investors. The relevant question is, is it possible to become rich with this advice? I would say it’s possible, but it is more challenging if you follow the pack of almost all. Good Grades – Good grades are necessary in order to be accepted into the best schools.
Getting into the best institutions may open doors that are not available for the Average Joe. This may come at a cost. School teaches our kids that very poor is a poor characteristic. If getting good marks comes possible for the individual, they may not learn how to apply themselves. When they face difficult problems out of school they might not know how to handle being less than perfect.
- Approximately what percentage of new businesses fail in their first season
- Income from stocks (start-ups)
- Write and Publish an eBook
- Price(current) x Quantity(current)
Even though many doctors and attorneys earn a higher income, many of them have a problem with finances because they consume too much still. Some consume too much only to maintain a certain “status” in their community or they don’t know how to control their impulses. They might have a very high IQ however they might not have mastered their emotional intellegence.
Good Job – Everyone requires a good job to get life’s encounters and if you are lucky, unwanted cash to invest. The problem with employment is you are working for a salary. What goes on if you lose your job or heaven forbid you get sick and cannot work and the amount of money goes away completely with the job? Than working for money Rather, we have to find a genuine way for money to work for all of us. I understand that is easier said than done.
We hear constantly our home is an asset. The simplest way to describe the difference between a secured asset and responsibility is that an asset puts money in to your pocket and a liability requires money out. If your expenses such as mortgage, property taxes, and maintenance surpass the income you generate from your home, your home is a liability then. Actually, your house can be an asset for your mortgage lender. Saving for Pension – Saving cash is preferable to consuming material possessions always. The problem with saving money in a savings account is that it is possible that you will lose cash everyday that it sets in your account.