Extracts from 'Rich Dad's Guide to Investing'
by Robert Kiyosaki
The rich don't work for money. They know how to make money work for them.
10% of the people always made 90% of the money.
The average investor does not make money in the market. They do not necessarily lose money; they just fail to make money. I have seen so many investors make money one year and give it all back the next year.
People who suddenly become rich - by things such as inheritance, a big jackpot from Las Vegas, or the lottery - suddenly become poor again because psychologically, all they know is a world of not enough money. So they lose all their suddenly found wealth and go back to repeating the only world of money they know: a world of not enough money.
If you do not have a plan for having too much money, then you will lose all your money and go back to the only plan you know, which is what 90% of the population knows: a world of not enough money.
It's not what we say out loud that determines our lives. Its what we whisper to ourselves that has the most power.
When it comes to investing, simple is better than complex..... If you can't do it automatically after you learn it, you shouldn't follow it...... A passive or mechanical system of investing will in most cases beat a human system of investing.
Investing is to convert earned income into portfolio income or passive income as efficiently as possible. And that, in a nutshell, is all an investor is supposed to do. That is about as basic as it can get.
A true investor is prepared for whatever happens. A non-investor tries to predict what and when things will happen.
The bull comes up the stairs and the bear goes out the window.
Just as you trade money to buy real estate, or pay money for a share or stock, a business owner will pay people money to build a business asset.
If you want to be rich, never work only for the money, learn to spot opportunities not jobs, and learn to read financial statements.
Where you find the best investment opportunities is from understanding accounting, the tax code, business law and corporate law.
The riskiest investors of all are persons who have nothing but liabilities they think are assets, have as much in expenses as they have in income, and whose only source of income is their labour.
It is not how much your investment goes up that matters, its how much it can come down that is most important.
The average investor is planning for retirement and will not find out if their plan worked or not until it is too late.
When you come to the boundaries of what you know, its time to make a mistake.
There is a bit of magic hidden in every mistake. So the more mistakes I make and I take the time to learn from, the more magic I have in my life.
In school you are given the lesson first. On the street, you're given the mistake first and then its up to you to find the lesson, if you ever find it.
For me, learning to control my temper has been a lifelong process. So has the process of being willing to take risks, make mistakes, and be grateful for the other person - even though I may no longer speak to or do business with that person. When I reflect back on my life, I would say that it is this mental attitude that has made me the most money and has brought me the most success.
It has been this way throughout the ages. It is the people who do not have assets who work for, or are controlled by, those people who create, acquire, or control the assets.
Millions of people faithfully place their retirement savings and other monies into the market. However it is the intermediaries who actually make the large sums of money, not necessarily the individual investor or retiree.
There are people who buy tickets to the game, and there are people who sell tickets to the game. You want to be on the side that is selling the tickets.
I love to listen to investors who are crying that blues about their investment losses. I want to find out what they did wrong. I'm always looking for the skipper of the Titanic.
The most important thing here is not return on investment. The most important thing is return of investment.
Money is just an idea. It you think money is hard to get and you'll never get rich, then it will be true for you. If you think that money is abundant, then that can be true.
Turn trash into cash.
Lots of easy money makes people think they are financial geniuses when in fact, they become financial fools.
If you want to be a rich private citizen, you need to be as poor and penniless as possible on paper.
He who makes the rules, gets the gold.
Never take a job for money. Take a job only for the long-term skills you will learn.
The problem with having a job is that you cannot sell the job, regardless of how hard you work.
When the 'money high' hits, people feel more intelligent, when in fact they are becoming more stupid.
You get what you fear.
I have recommended that people join a network marketing company to gain sales experience.
Boldness has genius, power, and magic in it.
Goethe
How did Rockefeller, Carnegie and Ford become yesterday's ultra-rich. They built companies and sold shares in their company to the public. They worked hard to become selling shareholders rather than buying shareholders. In other words, it could be said that by being selling shareholders, they printed their own money - legally. They created a valuable business and then sold shares of ownership in the business to other buying shareholders.