A Short Summary of ‘Your Financial Rules: Change Your Mind, Change Your Life’, online webinar by Robert Kiyosaki’s Rich Dad Coaching.

Successful investors posses:

A vision – the ability to see what others do not see

Courage – the ability to act despite of fear

Creativity – the ability to think outside the box

Self-confidence – the ability to withstand criticism

Self-control – the ability to delay gratification.

 

Industrial-Age Thinking vs. Information-Age Thinking

Industrial	Information-Age:
Get a job and save money	Create assets on your own
Your pension and Social Security will protect you in retirement	Your pension and Social Security will not support you when you retire
Your income will go down when you retire	Your income should increase as you age
Blue chip stocks and mutual funds are safe investment	Blue chip stocks and mutual funds will not protect you if there is a stock market crash
Study hard and find a safe, secure job	Study hard, but also become financially literate
Put your investment in the hands of someone else	Watch your investment but seek competent advisors

 

Robert’s Cash Flow Quadrant:

 

E – Employee (driven by benefits)

S – Self-employed worker, or Small business owner (driven by self-sufficiency)

B – Business owner (driven by systems and ideas)

I – Investor (driven by absolute freedom)

On the right side of the Quadrant (B, I), you gain time and therefore freedom to make money, to give it away, and to have more time to be with your loved ones.

 

Assets vs. Liabilities

Assets put money in your pocket, while liabilities take money from you.

Assets are: Cash, Bank accounts, Stocks, Bonds, Mutual funds, Retirement funds, Debts owed to you, Net value of businesses you own, Net value of income-producing real estate you own.

Liabilities are: Credit cards balances due, Mortgage, Car loan, School loan, Personal loan, Taxes.

 

Income

There are three types of income: Earned, Passive, and Portfolio.

 

Financial statements

A financial statement is your ‘personal story’ told in numbers. Most people don’t prepare personal financial statements. They just try to balance their cheque books each month.

Summary by Gil Dekel, PhD. Webinar accessed here on 30 October 2010.
This summary © Gil Dekel. 6 Jan 2011.