1. We All Need Financial Education
The most students leave school with zero financial skills.
They learn how to make some money, but have no idea how to make more money from their money, or how to spend their money.
You need financial education to take charge of your money.
2. The Difference Between the Rich and Poor
1st - Needs
2nd - Investments
3rd - Wants
1st - Wants
2nd - Needs
3rd - Investments
This is the only 1 reason why the rich have their money work for them and why both poor and middle-class work for their money.
3. Change Yourself
Accept that you are the problem instead of blaming your family for not being rich.
When you realize you're the problem, your environment will change.
Simple step-by-step framework to change yourself :
• Read every day
• Get Into Action
• Quit a Bad Habit
• Level up Your Skills
• Overcome Your Fears
• Get out of Your Comfort Zone
• Write a Letter to Your Future Self
• Learn From People Who Inspire You
4. Use Accounting to Keep Your Money
Accounting is the most important subject if you want to be rich.
Assets: put money in your pocket.
Liabilities: take money out of your pocket.
Rich people are those that acquire assets, while poor people are those who acquire liabilities
5. How Taxes Benefited the Rich
Historically, taxes were voted by the poor and middle class to only tax.
Instead of punishing the rich, taxes are punishing the poor and middle-class.
The poor are taxed before expenses. the rich have a corporation that's taxed after expenses
6. Don't Confuse Your Profession With Your Business
You work first for your boss, then for the government through taxes, and finally for the bank that owns their mortgage.
But forget to increase your asset column.
You can keep your day job and put your money into assets.
Once a dollar is in your asset column, never take it out.
Invest in appreciating assets:
- Dividend stocks
- Rental properties
- Index funds
- Bonds - Gold
When you want to buy a liability, first buy an asset that generates enough cash to cover it.
7. Your Mind Is Your Most Valuable Asset
100 years ago, industry was wealth. Today, information is wealth.
Train your mind how to:
- Find opportunity
- Leverage money
- Organize intilligent people
You'll have to take risks-calculated risk with informed decision.
8. Become a Generalist Rather Than a Specialist