What is the “Goods of Kings”
Power is simply “the ability to act.” Power has long been a commodity of kings. Initially, power came to those who were the strongest physically. Later, it came to those who inherited a special legacy thanks to royal power. to those who had the greatest wealth or capital. Today, those who possess special and valuable knowledge have the greatest capacity for power. ” Anthony Robbins – from his book “Unlimited Power”
Specialized and valuable knowledge.
In Lesson 1, we learned that only two things can stop you from becoming rich. You don’t know how, or don’t want to apply what you know. Today we will dive into the number one reason.
Simply put, you have never been taught how to become rich. Just think for a moment that this is what separates you from Donald Trump in the world, or what of it – any mega-rich person?
Or a couple? No! we all have the same 24 hours every day. As you learn, the way you spend your 24 hours will still change.
Is this a privileged background? Not at all. Remember, rags to wealth require rags to begin with.
A-a-a! It has to be education! Not at all! At least not in the traditional sense. When we think about education, most of us think about going to school, graduating from school, maybe going to college or graduate school so we can finish school and get a good “JOB”. Traditional education teaches us to become a productive part of the workforce, but in no way teaches the basics of wealth! You may remember going to algebra classes, or learning a foreign language, or history, or economics.
How many times have you gone to “Wealth 101” or achieved personal financial success? We never suspect, and if you happened to attend classes that you feel taught wealth building, doesn’t it make sense that your instructors were supposed to be rich? Were they?
Did you know that Fred Smith, the founder of Federal Express, got a “D” on his term paper. One that describes the world’s first overnight package delivery service! AKA Fed_Ex
Avis car rental AVIS, McDonald’s burgers from McDonald’s, Colonel Sanders with fried chicken in Kentucky, Lear from Lear Jets, Henry Ford and Abraham Lincoln have one thing in common – they never graduated!
So much for traditional education!
The fact is that special and valuable knowledge on building wealth is self-taught. The good news is that it’s easy to understand and enjoy learning, and when you apply that knowledge, you’ll start to create wealth.
Welcome to your first day of classes, Creating Wealth 101.
How did most wealthy people do that?
If you knew you had a 74% chance of winning, would you buy a lottery ticket? Every week millions of people line up to buy lottery tickets to get a chance to get rich. However, according to the U.S. Department of Health and Welfare, less than 1% of all wealth in America was created by lottery winners.
What if you could beat the odds!
74% of all wealth in America was done in one direction only; opening and owning your own business. If you own your own business, the chances of becoming rich are 284% greater than any other way of creating wealth. This includes all the other methods of getting rich – from sports figures Pro, to smart investors and lottery winners! It is absolutely clear that if you want to get rich, you have to have your own business!
So we have now learned that the greatest opportunity to become rich is to own your own business.
The second set of special and valuable knowledge is a completely new way to look at your personal finances.
Robert Kiyosaki in his most popular book № 1 has developed a whole new and simplified way to understand your personal spending and earning patterns, as well as how they bring you closer to either wealth. Explain these concepts of cash flow in more detail.
The following information is gathered from his book “Rich Dad”. “Poor dad. What do the rich teach their children about money, and the poor and the middle class do not!” and Robert’s website: http://www.richdad.com
Rich Dad said: “The most risky investor of all is a person who does not control his personal financial statements. These are people who have nothing but obligations, which they believe are assets and as much expenses as and income and whose only source of income is their work ”.
Understanding your financial statements is the basis for controlling your personal finances. Rich Dad believes that the relationship between the income statement and the balance sheet was everything. What is the first step to financial freedom? Take control of your financial statements.
Cash flow pattern for the poor (or young people who still live at home): the poor spend every penny and have no assets and liabilities, only expenses. Cash flow is limited by income and expenses, and the cash flow structure of low-income people reflects income from work used to pay for expenses such as rent, food, clothing, transportation, and taxes.
The structure of cash flow for the middle class: middle class people accumulated more debt as they performed. The pay rise allows them to borrow more money from the bank so they can buy personal belongings such as bigger cars, holiday homes, boats and motor homes.
Their wages come in and are spent on running costs and then on repaying that personal debt. As incomes increase, so does their personal debt. This is what we call the rat race.
Cash flow pattern for the rich: rich people work for them. They gained control over their expenses and focused on acquiring or building assets. Their businesses pay most of their expenses, and they have few personal obligations, if any.
The flow chart of a person’s cash can show a combination of these three types. What chart does your financial report reflect? What story is your financial report about? Do you manage your expenses?
As you can see, the poor, the middle class and the rich have radically different flows. The poor and middle class work for profit and either spend money on basic necessities or on maintenance and a steady increase in the debt burden; while the rich have money or assets working on them and they invest their profits in extra profitable cars.
The part becomes financially viable in order to ride the ball. You may ask yourself, “How can I invest my income in income-generating assets when I spend most or all of my income on needs and debts?”
In tomorrow’s lesson, we’ll show you how to immediately put extra money in your pocket this month without changing jobs, without demanding a raise, and without making a profit from any business you decide to start! In fact tomorrow we will show you how you can finance your first profitable asset with cash to help your monthly budget!
That’s all for today’s lesson.
Here are the highlights to remember from today’s lesson:
When it comes to building wealth, formal education is not needed, and does little to help you become rich. 74% of all wealth in America was done in one direction only; opening and owning your own business.
Your greatest opportunity to become rich is to own your own business.
The poor, the middle class and the rich have significantly different cash flow patterns and spending habits.