“60 Minutes To Getting Rich.” Robert Kiyosaki

A 60-minute seminar by Robert Kiyosaki, that provides personal insights into how to get rich – including the rich mindset, how to read financial statements, the importance of understanding the cash flow quadrant and learning how to invest.

And this article tintota.com will help you answer the following questions about ““60 Minutes To Getting Rich.” Robert Kiyosaki“.

60 Minutes To Getting Rich

60 minutes to getting Rich – Robert Kiyosaki Seminar

Money is an Idea
Money is an idea, it is whatever you think it is.

The way you think about money and the ideas that you have about money, is one of the key reasons you have the amount of money that you have.

What your parents tell you about ‘money’, is often what leads to your long-term views about money. What are the words that you associate with when you think about money?

Be careful about whose idea’s you are listening to.

Some key concepts

Money does not make you rich: Money is a powerful tool, that if you use well, can make you richer.
2 kinds of money problems: Too little money / Too much money.
Choice: It comes down to the choice that you make – do you want to be poor, middle class or rich.
Need to work hard for money: No! Your money needs to work hard for you.
Importance of Financial Literacy
It is critical that you know how to read a financial statement:

Income / Expenses
Asset / Liability
The difference between and asset & liability

An asset puts money into your pocket, whether you work or not. A liability takes money from your pocket, whether you work or not.

An asset will create income, a liability will create expenses.

This is why your house is a liability and not an asset.

Cashflow Quadrant
EMPLOYEE BUSINESS
SELF – EMPLOYED INVESTOR
Employees & Self-employed both work for their money.

Business owners have other people work for their money. They may not be that smart themselves, but they know how to surround themselves with smart people.

Investors have their money work hard for them. Investors want money velocity – they want to put in their money, multiply it and get it back quickly.

There are the following key differences between the left quadrants (employees / self-employed) and the right quadrants.

EMPLOYEE / SELF-EMPLOYED BUSINESS / INVESTOR
Money linked to your time. Money not linked to your time.
Cannot leave and still make money. Can leave, and still make money.
Money comes immediately. Do not need patience. Need to have great patience. Need to be willing to invest upfront, and wait years for a payback.
Pay taxes upfront, tax laws written against them. Delay being taxes, by taking advantage of the tax benefits available to business and investors. Tax laws are written by the rich for the rich.
Rich Dad’s Guide to Investing
Acquire Assets
The key is to learn how to acquire assets.

It’s not how much money you make, it’s how much you keep. How much of your income, is hitting your bottom line and being invested in assets. What makes the rich, is not that they are making more money, it is that they are keeping more money.

How rich are you?

If both you and your wife stop working, what happens? If income keeps coming in despite your not working, you have assets and you are rich.

The definition of wealth is – how much time can you survive without working?

Retire Early and Rich
Debt vs Equity
Use your bank’s money to retire. There is ‘good debt’ and ‘bad debt’.

If you want to get rich, load up with ‘good debt’. When you want to become rich fast, it it important to have enough starting capital, and borrowing ‘good debt’ helps multiply the capital that you start with.

Real Estate – A banker will always lend money against Real Estate.

Never break your bank – Money that you have invested in an asset, should never be touched to satisfy some tacky near-term desire. For the rich, building their assets are more valuable than any short-term desire.

Real Estate Investing
For every 1 property that I buy, I consider 100 properties. A 100:1 properties is the ratio!

Of the 100 deals that you look at, you put low-ball offers of 10, of which 3 get accepted and then I buy one property.

The reason I don’t have a job, is because it interferes with my looking for deals.

Money is an Idea

Money is a concept, and it’s what you make of it.

As a result of how you think about money and the concepts that you hold, you have the amount of money you have.

Your long-term views on’money’ are typically shaped by what your parents tell you about it. In your mind, what images come to mind when you hear the term “money?”

Be aware of who you’re listening to and what they’re saying.

The following are a few fundamental notions.

Money does not make you wealthy; but, it may make you wealthier if you know how to utilize it effectively.

Too little money vs. too much money: There are two types of money issues.

Ultimately, it’s up to you whether you want to be poor, middle-class, or wealthy.

The answer is a resounding “No!” You need to put your money to work for you.

Importance of Financial Literacy

You must be able to read a financial statement in order to succeed:

Amount of money earned / money spent

Assumption of Risk

How assets and liabilities vary

Even if you don’t have a job, owning an asset is a way to earn money. Even if you don’t work, a liability eats away at your wallet.

Importance of Financial Literacy

A resource generates revenue, but a liability generates costs.

As a result, it’s not a good idea to keep your home.

Cashflow Quadrant

EMPLOYEE BUSINESS
SELF – EMPLOYED INVESTOR

Employees and self-employed alike work hard to earn a living, regardless of whether they are employed or self-employed.

The money that business owners amass is earned via the labor of others. Even if they aren’t so brilliant, they know how to surround themselves with intelligent individuals.

Money works hard for investors. Investors are looking for a high rate of return with a high rate of return on their initial investment.

Between the left and right quadrants, the following main distinctions may be identified.

EMPLOYEE / SELF-EMPLOYED BUSINESS / INVESTOR
Money linked to your time. Money not linked to your time.
Cannot leave and still make money. Can leave, and still make money.
Money comes immediately. Do not need patience. Need to have great patience. Need to be willing to invest upfront, and wait years for a payback.
Pay taxes upfront, tax laws written against them. Delay being taxes, by taking advantage of the tax benefits available to business and investors. Tax laws are written by the rich for the rich.

Rich Dad’s Guide to Investing

It’s all about mastering the art of asset acquisition.

When it comes to money, less really is more when it comes to retaining what you’ve earned. Do you know how much of your money is going to the bottom line? The wealthy aren’t the ones who earn more money; rather, it’s the ones who keep more of it.

What is your net worth?

What would happen if you and your wife both decide to take a leave of absence? You are wealthy if your income continues even if you aren’t working.

How long can you go without working before you run out of money?

Retire Early and Rich

Retire with your bank’s money. “Good debt” and “bad debt” are two distinct types of debt.

Get into “good debt” if you want to become wealthy. Borrowing “good debt” may help you double the cash you start with if you want to get wealthy quickly. It is crucial to have adequate initial capital.

A bank will always lend money against Real Estate.

Do not overextend yourself. – Never touch money you’ve put in an asset to fulfill some narcissistic short-term want. For the wealthy, long-term wealth creation is more important than any short-term ambition.

Real Estate Investing

I look over 100 homes before making a decision on a single purchase. The ratio of attributes is 100:1!

You look at 100 deals and make ten low-ball bids, of which three are approved, and I then purchase one of those properties.

I don’t have a job since I don’t want it to interfere with my deal-hunting.

Real Estate Investing

FAQ 60 Minutes To Getting Rich

Why the rich get richer and the poor get poorer Robert Kiyosaki?

Reasons why the affluent become wealthier and the poor get less wealthy. In the words of Robert Kiyosaki: “The concept of money is taught at home, not in school. As a result, the affluent become wealthier and the poor get poorer.”

How did Kiyosaki become successful?

For the first time, Robert Kiyosaki established his own business in 1977, selling tiny leather and nylon items, including waterproof “surfing wallets,” after leaving from the Marine Corps in June 1974 as a sales representative for Xerox Corporation.

What are Kiyosaki assets?

If anything has worth, generates revenue, or increases in value over time, then it is considered an asset by Kiyosaki. “Assets are a way to increase your wealth.” A good illustration of this is his concentration on three different types of assets: business, real estate, and printed matter (meaning stocks, bonds, and mutual funds).

Conclude

Get into “good debt” if you want to become wealthy. Borrowing “good debt” may help you double the cash you start with if you want to get wealthy quickly. It is crucial to have adequate initial capital.

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