Definition of Wealth and How to calculate wealth.
Wealth is the amount of money you have in your bank account.
Wealth calculates on the number of days you live your life with ease, without worry about money.
Example: I have $2000 in my bank account and my daily expenses is $200 a day. Then, my wealth is 10 days. If my daily expenses reduce to $100 a day. Then, my wealth is 20 days.
Kinds of Money.
Money is of two kinds. The sad part is poor and middle-class people knows about one kind of money. Money that generates from hard work and labor.
The money generated from hard work and labor will not make you rich but it makes you exhausted. To become rich you have to invest money in assets.
You hear this phrases in your life, Rich get richer and poor get poorer.
It is because rich people focuses on asset while poor people focuses on income. To know more about asset and liabilities read Rich Dad Poor Dad by Robert T. Kiyosaki.
Now two area of focus creates differences. As employee and self-employ keep on getting paychecks till the date he works. While investor and business owner keep on getting cash even they stop working.
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Three Reasons you failed to become financially free.
- You want to become rich quickly. The habit is often seen in poor people but becoming rich is a subtle process that takes time and patience.
- Lack of knowledge in tax loopholes.
- Habit of buying luxurious stuff. As it makes you feel rich but it was making a hole in your pocket.
Suggested Reading: The Richest Man In Babylon.
Selling- the golden skills to run your business.
Poor and middle-class people think, selling is a job of selling product from door to door, but, it is a myth. Selling is far more than selling product. Speaking in public is also a part of selling.
Now the tiny ability makes difference. Poor people are horrible in selling, and unable to sell anything. But rich people are experts in it.
You can see many talented youth failed to pass an interview. As they lack the ability to sell their professional skills.
You can also see lonely men and women. They are lonely because they fail to communicate people around them.
Three kinds of leader.
You can find the first leader in schools. The leader motivates you by fear. You might hear the phrase, if you did not work hard, you will not get a good grade and will not get a good job.
The second leader was in the business. It teaches you techniques to defeat your competitor.
The third leader is in the network marketing business. The leader ignites your spirit and teach you useful skills to achieve dreams.
Three kinds of intelligence.
Emotional intelligence helps you to build friendship with others. It teaches you to calm your emotions and maintain peace within.
Financial Intelligence determines your working style. It determines the money you will earn, spend, and save in your bank account.
Mental Intelligence is generally IQ measured in schools. The most common mental intelligence test is WISC-V (Wechsler Intelligence Scale for children).
Five types of dreamer.
In this, you will learn kinds of dreamer.
1. The boy that dreams in the past. The common reason for this is, the boy has nothing thrilling and exciting things to do in the present.
2. The boy that is afraid to dream big. The reason for this is, he did not belief in his ability to achieve big. So he make a habit to dream small.
3. Imagine a boy that decides to achieve a dream. He sets goal, make plan and carry out his dream. Now he did not have any other goal to carry out. So the boy makes his life boring.
4. Un-planned dreamers are in the list of number fourth position. Unplanned dreamers dare to dream big, but, lack in executing the plan. The un-planned dreamers want to do all alone, so they failed to achieve their goals.
5. You must develop the mentality of achievers. The achiever is on the number fifth in the list. Achiever sets goal make a plan and execute it.
Then, they set another goal after completing the first one, to keep adding excitement and thrilling moment in life.
You can also download the pdf of the business school summary to brush up your knowledge in the future.
At Last: Here are my favorite Quotes from this book.
- It is more important to grow your income than cut your expenses. It’s more important to grow your spirit that cut your dreams. – Robert Kiyosaki.
- Don’t be addicted to money. Work to learn. don’t work for money. Work for knowledge. – Robert Kiyosaki.
- The fear of being different prevents most people from seeking new ways to solve their problems. – Robert Kiyosaki.
- Winners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoid success. – Robert Kiyosaki.
- If you want to be rich, you need to develop your vision. You must be standing on the edge of time gazing into the future. – Robert Kiyosaki.
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Above article is the extract version of the book “The Business School” written by “Robert Kiyosaki”.