Sunday, October 09, 2016

  • where are your daily activities take you? where your hard work is taking you? what does the future hold?
  • take a long view of your life
  • I am not interested in going to the gym, but I go because I want to feel better and live longer. Life is much like going to the gym. The most painful part is deciding to go. Once you get past that, it's easy.
  • how you choose to spend the money you do have 
  • start an investment portfolio early 
  • know what an asset is, acquire them, spend your life buying assets 
  • first buy assets that will generate the cash flow to pay for what you want to buy
  • the asset generates more than enough income to cover expenses, then the balance reinvested into the asset; the asset continues to grow and the income it produces grows with it 
  • treating your home as an investment and a pay raise means you can buy a larger home or spend more is the foundation of debt-ridden society
  • don't have no asset that generate income, don't allow your only source of income is your paycheck
  • only buy income-generating assets
  • keep liabilities and expenses down
  • for most people, they must keep their profession and rely on their wages to fund their acquisition of assets
  • have income generated from assets each month that fully cover your monthly expenses; increase your monthly case flow from asset to the point that it exceeds your monthly expenses
  • if you want to increase your expenses, you first must increase your case flow from assets
  • excess cash flow from assets reinvested into the asset
  • the more money that goes into assets, the more assets grow, then the more cash flow grows
  • the rich focuses on their asset, while others focus on their income statements
  • additional money is used to purchase income-generating assets
  • keep your daytime job, but start buying real assets
  • keep your expenses low, reduce your liabilities, and diligently build a base of solid assets
  • overcome the fear of losing money (how you handle fear and failures that makes the difference in your life); for winners, losing inspires them; for losers, losing defeats them; always try to turn every disaster into an opportunity
  • if you hate risk and worry...., start early
  • start saving as a habit when your are young
  • start early and set up a retirement plan
  • if you have little money and you want to be rich, you must first be "focused", not "balanced"--put a lot of your eggs in a few baskets. Don't do what poor and middle class people do--put their few eggs in many baskets
  • cynics criticize, winners analyze
  • you don't make money because you choose to not lose money
  • focus on what you want, instead of what you don't want
  • don't stay busy as a way of avoiding sth you don't want to face
  • the cure for laziness is to be greedy. don't say I can't afford it (this shut down ur brain). say how can I afford it (this open ur brain)
  • do what you feel in your heart to be right--- for you will be criticized anyway. you'll be damned if you do, and damned if you don't
  • A purpose is a combination of wants and don't wants. the don't wants creat the wants
  • I choose daily
  • CNBC--goldmine of investment information
  • be true to yourself and be willing to not go along with the crowd, in the market, it is usually the crowd that shows up late and is slaughtered
  • if a real deal is on the front page, it is too late in most instances
  • there is always another wave, people who hurry and catch a wave late usually are the ones who wipe out
  • if smart investors miss a wave, they search for the next one and get themselves in position
  • wise investors buy an investment when it is not popular, they know their profits are made when they buy, not when they sell
  • each month, allocate money to asset before you pay your montly expenses
  • don't get into debt
  • savings are only used to create more money, not to pay bills
  • first find out how much property or stocks your manager own and what percentage they pay in taxes--to knwo if they mind their own business
  • ask--how fast do I get my money back, ROI (return of/on investment) is important
  • move money in for a week to a month while the stock moves up. then put your initial dollar amount out, and stop worrying about the fluctutations of the market. because your initial money is back and ready to work on another asset. so money goes in, then it comes out, you own an asset that is technically free---look at more than ROI, it's the assets you get for free once you get your money back
  • only play with money you can afford to lose
  • risk come from not knowing what you are doing
  • profit is made when you buy, not when you sell
  • the rich don't work for money, they have their money work for them --- the importance of passive income and portfolio income, these twos are money work for you
  • earned income--go to school, get good grades, find a secure job --work for money
  • passive income--- in most cases, income derived from real estate investments
  • portfolio income---income derived from paper assets, such as stocks, bonds, mutual funds
  • the key to become wealthy is the ability to convert earned income into passive income and/or portfolio income as quickly as possible
  • the taxes are highest on earned income, the least taxed income is passive income
  • own a real estate investment company for passive income, and parcitipate in private placements and initial public offerings of stock for portfolio income
  • asset is sth that puts money in my pocket
  1. stocks (if possible, stocks of small companies, especially startups );with small companies, to be out out the market in a year
  2. bonds
  3. government securities
  4. notes (IOUs)
  5. income-generating real estate: start small and keep trading the properties up for bigger properties and, therefore, delaying paying taxes on the gain. hold real estate less than 7 years
  6. royalites from intellectual property (music, scripts, patents)
  7. certificated deposit (CD), tax lien certificates
  8. mutual funds--safe, you don't have time to study to learn how to invest, so you reply on the expertise of the manager of a mutual fund; include many different types of investments (divesified)
  9. businesses that do not requrie my presence, own these businesses, but they are run or managed by other people; if you have to work there, it's not a business, if becomes ur job
  10. anything else that has value, produces income or appreciates, and has a ready market 
  • a liability is sth that takes money out of my pocket, don't spend your life buying liabilities
  1. (large house) mortgage
  2. credit card loan, consumer loan
  3. credit cards
  • an intelligent person work with or hires people who are more intelligent than they are; work with smarter people than we were and to bring smart people together to work as a team
  • labor unions are designed to protect specialists; because your life would be dedicated to learn a skill that was valuable in only one industry. If you were pushed out of that industry, your life skills would not be as valuable to another industry 


  • use corporation to make become rich--- Inc. & Grow Rich!  by Cheri S. Hill, Diane Kennedy, C.W. Allen
  • Warren Buffett
  • Peter Lynch ---how to choose stocks, Beating the Street 

from poor dad, rich dad

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