Rule 5: The rich invent money
When Alexander Graham Bell had just patented his invention, the telephone, he went to the biggest corporation of that time. Bell offered Western Union his patent and his company for $100,000. Western Union refused and Bell went on to create a billion dollars communication industry, with AT&T at the helm. Just like Alexander Graham Bell, we too have our 'inner critic' which makes us doubt ourselves and possibly beg with others like Bell did with Western Union. It is equally true that there is a 'brave hero' inside us who dares to build something. It was possibly the 'brave hero' inside Bell that helped him overcome the rejection from Western Union and set him on the path of creating massive wealth using his invention of the telephone.
Information is wealth We are living in extraordinary times today. While land was the currency of wealth a few centuries ago, today it is information. Wealth today is not shackled by the geographical constraints. Opportunities abound around us, and this is the right time to ensure that our financial intelligence is at its best.
How do we then increase our financial intelligence? The first concept of financial intelligence is that money is not real. The real money is our mind. Great opportunities to make money emerge from a well-trained mind. The mind, when trained well, identifies opportunities that later turn into money. Once we realize that the real money is in training our mind to be financially intelligent, we will be willing to take risks and invest in opportunities that others do not see.
See the rule 1
See the rule 2,3,4
Rule 6: Work to learn
A business consultant once told me, (They) are one skill away from great wealth. This phrase means that our income can jump exponentially if we master one more additional skill. Earlier in this summary, we got to know that financial IQ is a combination of accounting, investing, understanding markets and understanding the law. However, what most people understand about making money is 'work hard'. For most of us, our income would go up exponentially if we combine 'working hard' with the additional skill of financial IQ. While my Poor Dad encouraged to study more and become a specialist in one domain, my Rich Dad encouraged me to 'know a little about a lot.' It is important to understand, at this stage, that learning does not get along well with job security.
Education is the best investment You can learn only that much if you are in the same job for years. Falling in love with job security is a wrong long-term strategy. It may work in the short term, but in the long run, it is recommended that we work to learn more, rather than earn more.
Education is more valuable than money in the long run. Management of cash flow, management of your time and management of people, are the key management skills needed for success. Communication skills and the ability to sell are the other core skills required to succeed in life.
Why do the financially literate struggle? Being financially literate does not solve everything, though. Financially literate people may still struggle to build revenue generating assets due to the following reasons.
Fear of losing money: There is nothing wrong in having a fear of losing money. This fear exists in all of us. What makes the difference is how you handle that fear. If the response to this fear is about playing it 'safe', then you start fearing failure, which becomes a much bigger problem than fearing losing money. The inability to take a risk makes the financially literate person ignore opportunities to build his asset's column. Failure should inspire winning, not take you to the safe shores.
Deep-rooted cynicism: That inner critic inside us can help us, or it can destroy us. When our doubts take over our lives, then for every action that you plan, there will be a doomsday scenario. The more you listen to the doomsday scenario, the more such thoughts will strangle you, forcing you to let go of every opportunity to buy a good quality asset.
Laziness: Are you too busy to take care of your wealth? Does the same hold for your health also? The reality is that this is not about you being busy, this is about you avoiding something that you would rather not face. In order to beat laziness, you need to be a little greedy. Being greedy helps you move ahead, ask for more. Of course, too much greed will take you on the wrong track altogether.
Bad habits: Good habits are difficult to build, while bad habits face no resistance at all. Prioritize yourself when it comes to financial literacy. Do not be the first to pay the bills. That's a bad habit because it prioritizes others over you. Do not get pushed around by landlords, bill collectors and so on.
Arrogance: When your ego combines with ignorance, it is a lethal combination. This lethal combination is called arrogance. Do not try the snake oil sales pitch to cover for your ignorance. Instead, educate yourself.
Go ahead, take action In order to make your money work for you, take action! Look for new ideas and look for teachers who can help you learn something new. Pick up Peter Lynch's book Beating the Street to understand how to pick stocks. When the stock market crashes, do not run for cover. Dive deep end and start buying. Money is not real, it is an illusion, an idea. The science of making money is about thinking differently, identifying opportunities that help build revenue generating assets. Think and Grow Rich is a popular book that you may be aware of. There's a reason why the book is not titled Work Hard and Grow Rich. Building a strong financial IQ will help you move away from general speak like 'Work hard' and move you towards leveraging insights to improve your financial IQ and build your wealth.
Start now, as action always beats inaction.
Thank you all
see the rule 1
see the rule 2,3,4
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