1. It’s not how much money you make . It’s how much money you keep.
2. Nowadays people are too focused on money and not their greatest wealth that’s their financial education. If people are prepared to be flexible keep an open mind and learn, they will grow richer despite tough changes.
3. Intelligence solves problem, money without financial intelligence is money soon gone.
4. Rich acquire assets. The poor and middle class acquire liabilities that they think are assets.
5.An asset puts money in our pocket whether we work or not, and a liability takes money out of our pocket.
6. If you want to be rich simply spend your life buying or building assets. If you want to be poor or middle class ,spend your life buying liabilities.
7. 80% of most families, the financial story paints the picture of hard work to get ahead. However, this effort is for naught because they spend their lives buying liabilities instead of assets.
8. Money only accentuates the cash flow pattern running in your head. If your pattern is to spend everything you get, most likely an increase in cash will result in an increase in spending. Thus the saying,” A fool and his money is one big party.”
9. The real trouble is how they choose to spend the money they have. It is caused by financial illiteracy and not understanding the difference between an asset and a liability.
10. Japanese were aware of 3 powers :
. The Power of Sword (symbolises weapons)
. Power of Jewel ( symbolises power of money)
. Power of Mirror (symbolises power of self knowledge)
11. Too often the poor and middle class allows the power of money to control them.
12. If they used the Power of mirror they would have asked themselves,”Does this makes sense?” All too often instead of trusting their inner wisdom most people follow the crowd.
13. That’s why Japanese values the power of mirror the most, for it is only when we look into it we find truth. Fear is the main reason that people say play it safe.
14. Schools were designed to produce good employees instead of employers.
15. The greatest losses of all are those from missed opportunities. If all your money is tied up in your house , you may be forced to work harder because your money continues blowing out of the expenses column instead of adding to the asset column the classic middle class cash flow pattern. If the young couple would put more money into their asset column early on , their later years would be is easier . Their assets would have grown and would be available to help cover expenses.
16. If you want to buy a bigger house first buy assets that will generate the cash flow to pay for the house.
17. Keep liabilities and expenses down so more money is available to continue pouring into the asset column.
18. The investments which the middle class calls “too risky“, those investment is not risky for the financially literate
The problem with simply working harder is that each of these three levels takes a greater share of your increased efforts. You need to learn how to have your increased efforts benefit you and your family directly.
19. Want to grow rich ? Concentrate your efforts on buying income producing assets -when you truly understand what an asset is keep liabilities and expenses low . You will deepen in your asset column.
20. Financial aptitude : What you do with the money once you make it, how to keep people from taking it from you, how to keep it longer and how to make that money work hard for you.
