A Lesson From Why We Want You To Be Rich By Trump And Kiyosaki
Tags: donald trump, robert kiyosaki, why we want you to be rich
Why We Want You To Be Rich .. Is Free From Pretence, Totally Transparent And Easily Understood
Note from Diane: One of the must re-reads for people concerned about the current economic climate is the Donald Trump and Robert Kiyosaki book Why We Want You To Be Rich.
It is RICH in it’s CONTENT …
Very RICH in it’s MESSAGE and the LESSONS you can take from it are extremely RICH!
When a millionaire feels humble in the presence of a billionaire you know you are in a gear shift in your mindset. Donald Trump comes from a wealthy family and he is a billionaire, Robert Kiyosaki grew up in Hawaii, is from a middle class background and became a millionaire later in his life.
So what lesson can we learn from the clash of these two giants in the personal finance world that can help steer you through the predicted DEEPEST recession since the Great Depression …
Feature Article: A Lesson From Why We Want You To Be Rich By Trump And Kiyosaki
Robert Kiyosaki quotes from his Rich Dad that “there are two things you can invest, TIME and MONEY.” He also goes on to say that” most people do invest much time and they lose their money”.
Using the 90/10 rule of money as a rough guide he goes on to say that 90 percent of INVESTORS invest their money but they do not invest their time so the 10 percent that make 90 percent of the money invest more time than money.
Where do you see yourself in these following examples
- NON INVESTOR invests no time or money and has no financial education
- PASSIVE INVESTOR invests no time but invests money and has no financial education
- ACTIVE INVESTOR invests time and money and has lots of financial education.
The first two groups are also the groups that will say that investing is risky, and with very little financial education they are most likely to fall prey to any financial advisor promising safety and security.
One of my favourite saying in life is “Just because someone says it doesn’t make it right” and in the financial world you can easily think someone knows a lot more than you and that is where the risk lies.
- For example did you know that less than 20 percent of all stockbrokers and real estate brokers invest in the product they recommend to you?
- How many of our politicians and lawmakers have any real world investment experience?
The reason most E/S Quadrant people ( employees and self employed people) suffer is because they take financial advice from other people in the same Quadrant.
Sometimes It Is Your Own Ideas That Are Holding You Back
Sometimes it is your own ideas, the ones you have been brought up with or the advice your parents gave you that will hold you back when it comes to becoming an active investor.
When it comes to investing, it really is a minefield out there and if you are looking for a quick way to becoming a high powered stock market trader ..there isn’t one.
Another reason people never reach the level of becoming an active investor is that they wait for a windfall to happen BEFORE they begin their financial education and that is a very flawed philosophy that usually leads to financial disaster for life!
So how much time have you got before the predicted greatest depression of all time hits? Who knows, but the timeline leading up to where we are today looks something like this:-
The Writing On The Wall ..
1971 : The decision was made to stop backing the US Dollar with gold. This one single change has created decades where borrowing trillions of dollars that cannot be repaid has become the reality we see around us today. More currency has been printed in the last four years then the previous 36 combined.
1974 : ERISA (the Employment Retirement Income Security Act) was passed. ERISA eventually led to what we know as the 401k plans. The problem as we showed in last week’s Wealth Wednesday blog post is that a savings plan is not a retirement plan and many people with a 401k plan will not have enough money to retire on.
1989 : The World Wide Web went up as the Berlin Wall came down and a whole new economic structure started to replace the industrial age as we entered the information age. Jobs that had been secure for years crumbled as the skill set required to succeed in the information age changed.
1996 : Everything speeded up when the Telecom Reform Act was passed. It now makes sense to hire a programmer, lawyer, doctor and accountant in countries where the cost for these services in much lower. It also meant that Broadband and high speed internet connections started to be rolled out in homes across the world changing the way we communicate forever.
2001 : China was admitted into the World Trade Organization (WTO) and many Western nations such as the G-8 nations have become consumers rather than producers, taking away factories and industry and creating a huge balance of trade problem. In many Western nations the middle classes are shrinking whereas in China and India they are growing and growing fast.
2004 : 44 percent of the USA Treasury Debt was owned by foreigners. No other leading country has ever incurred this level of foreign debt and affording the payments to service the debt is almost impossible. There will be a limit to the amount of debt the world will tolerate.
2010 : China’s Dagong credit rating agency just downgraded US sovereign debt rating from AA to A+, in order to reflect their view of the US’s ability and willingness to repay our massive debt levels. Insider selling of stocks hit an ALL-TIME record week of $4.5 Billion, as those in the know head for the exits before the expected crash. And we’ve started to see massive inflation in food and commodities over the year, (average increase of 45%), we’ve also seen continued deflation in credit based assets, such as home ownership.
So without wishing to sound too much like someone wearing a sandwich board and a tin foil hat .. the writing isn’t just on the wall .. it is on Times Square in neon lights!
Feel free to share if it helped you!
