Rich dad poor dad guide to investing summary of the book
For example, say you own a restaurant with your partner. Instead of putting all your eggs in the one basket, invest wisely. Perhaps one partner owns the business, and the other owns the building it is in. However, I have taken so much from this book in regards to the role business plays in building your wealth. Free Audiobook Did this summary excite you?
Book summaries are great, but I also really believe that you will not fully understand the book or the author without trying the real thing. Learn more about this subject by listening to the full book for free via Audible. Put it into action To start working toward your financial goals, you have to know what your goals are. Not everybody wants to have a silly amount of money. Some people just want to be comfortable and not have to worry about paying their next set of bills.
No matter what your goals are, you need to make some before starting your journey. You should consider buying this book if… People looking to invest for the first time should read this book. Also, as a side-hustler, I found this helpful and a great way to view my business. Here's some of my notes: Don't be an average investor. The best way to invest is to have your business buy your investments for you. The rich created investments called businesses. Learn how to build business and how to analyze a business.
Insurance is a very important product and needs to be considered as part of your financial plan. It is a safety net or a This book is about the different types of investors, the different business structure and entity, the 10 investor controls, and the B-I Triangle. It is a safety net or a hedge against financial liabilities and weak spots.
Also, as you become rich, the role of insurance and type of insurance in your financial plan may change as your financial position and needs change. So keep that part of your plan up to date. Insurance is a very important product in anyone's life plan. The trouble with insurance is that you can never buy it when you need it. So you have to anticipate what you need and buy it hoping you'll never need it.
Insurance is simply peace of mind. Your financial team may include: Financial planner, banker, tax accountant, tax attorney, broker, bookkeeper, insurance agent, successful mentor. Making mistakes is the way we were all designed to learn. Learn to say "What priceless lesson can I learn from this mistake? To be a rich investor, you must have a plan, be focused, and play to win. Think on both sides of the coin. The rich investor must have more flexible thinking than the average investor.
Sophisticated investor knows the 3 Es: Education, Experience, and Excessive cash Investing is not risky. Being out of control is risky. Have a financial plan for when you did not have enough money and when you will have too much money. Find a financial adviser to write a financial plan for financial security, financial comfort, and rich. Investing is a plan, not a product or procedure.
It is a very personal plan. A plan to get you from where you are to where you want to be. Don't invest until you have a plan. When it is investing, simple is better than complex. If you can't do it automatically after you learn it, you shouldn't follow it. When you look at an investment, overlay it with your personal financial statement, and see where it fits.
Since investing is a plan, you want to see how this investment's financial statement impacts your personal financial statement. You can analyze how you can afford the investment. By knowing your numbers, you know what will happen if you borrow money to buy an investment and the long-term impact balanced with income and outflow due to debt payments.
Having too much money is as big a problem as having not enough money. Your exit is often more important than the entry strategy. The rich do not want to own anything but want to control everything. And they control via corporations and limited partnerships. Turn your ideas into assets that buy assets. Business buys assets with pre-tax dollars. Buy assets with gross income and pay taxes with net income. Consult with your financial and tax advisers to determine the appropriate structure for your situation.
The number one control you must have to be an investor is control over yourself. It isn't the investment that is risky, it is the investor who is risky. As the world becomes crowded with more and more products, the businesses that survive and do well financially will be businesses that focus on serving and fulfilling the company's mission and their customers' needs, rather than just increasing the company's revenues. Investors invest in management Look at the team for experience, passion, and commitment.
Money follows management. It consists of Cash Flow Management, Communication, Systems, Legal and, Product By looking at the financial statements of a company, you can easily see which areas of a business are communicating and which are not.
A public company has increased communications problems. One for the public and one for the shareholders. When people say they wish they haven't taken their company public, it usually means that they are having shareholder communication problems. Being able to communicate effectively with as many people as possible is a very important life skill. The primary - and possibly only - job of those in the B quadrant is to communicate with people in the other quadrants. Get a job with a company that will train you in sales.
Get through your fears and the world will open up. Give in to your fears and your world will get smaller every year.
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