Why We Want You to Be Rich: Two Men- One Message- Donald J. Trump Robert T. Kiyosaki
In Why We Want You to Be Rich Donald Trump and Robert Kiyosaki are both concerned, their concern is that the rich are getting richer but America is getting poorer. Like the polar ice caps, the middle class is disappearing.
The rich are getting richer and poor are getting poorer. Middle class is shrinking.
Most people do not choose to learn to manage their own money. They simply turn their money over to experts and then hope and pray their experts are truly experts.
In His book How To Get Rich, Donald Trump says, “Be your own financial advisor.” Trump continues, “Many people go hire financial adviser, but I have seen a lot of these advisors destroy people.”
It important to learn from people, and it’s also important to find your own formular. Jack Dorsey also advises people to find their own path.
You must work through your own process, for the value to be attributes to your goals.
Many people struggle financially because they think cheap and buy cheap.
Financial IQ means, the ability to look beyond present and into the future and make decision based on those insights financially.
Donald Trump view
“I may have an advantage because I’m one of those people who do not require a lot of sleep- may be 3 or 4 hours a night, so extra hours I read. I keep up with world events, I read a lot of history. Why history? We learn from history, from the civilizations and empires that have made up the history of the world this far. Learn from History to avoid making the same blunders. Those who haven’t learned from history are destined to repeat it” Donald Trump.
“The mind that is open to a new idea never comes back to its original size.” Einstein
Don’t settle for complacent, remember what Ralph W. Emerson once said, “What lies behind us and what lies before us are tiny matter compared to what lies within us.
3 Types Of Investor
- People who do not invest at all- They expert their company or government to take care of them and their family when their days of work are over.
- People who invest not to lose- they generally invest in what they think is safe investment. Majority are in the saver’s mentality when it comes to investing.
- The people who invest to win- They are willing to study more, want more control and invest for higher returns.
INVESTING TO WIN
Life is supposed to be fun. Living below your means and clinging to a job security is not the best way live. Expand your means and enjoy life. Play to win and you will win. Playing safe and living below your means will doom you to poverty.
Playing it safe and living below your means and clinging to a job security is riskier.
Learn how to invest to win. Excessive bad-debt will punish you, you need to be in good debt. Being stubborn is a big part of being a winner, many people have failed because they have given up too soon.
Ignorance can be more expensive than education and that certainly includes your financial education. Do not let fear of unknown hinder your aspiration and your financial well-being.
“Learn about money and make it work for you that is the key to successful investing.” Donald Trump.
Quadrants in Why We Want You to Be Rich and their meaning Robert’s View
E- Stands for Employee
S- Self-employed
B- Big Business owners
I – Stand for Investors
Quadrant B and I are not taxed a lot as they create employment.
People in Quadrant E say, “I’m looking for safe, secure job with benefits.”
S– a small busines person says, “If you want it done right do it yourself.”
Quadrant E seeks security so they value security and freedom. The thing is people with most freedom are locked up in jail, in maximum prison.
Money is important, with it you can buy more choices in life.
The difference between a saver and an investor is leverage. Leverage is the ability to do more with less.
For our current economic system to keep growing, it needs smart borrowers… people who borrow money and get richer, not people who borrower and get poorer. 90/10 rule of money applies, that is 10% borrowers in the world use debt to get richer, while 90% used debt to get poorer.
If you can understand that debt can be good, and carefully learn to use it as leverage, you will gain an advantage over most savers.
Most savers thinks that debt is bad and paying off the mortgage on their home is smart. And for many people debt is bad and getting out of it is smart. Yet, if you are willing to invest some time in your financial education, you can get ahead faster using debt as a leverage. But again, I CAUTION you to invest in your financial education before you invest with debt.
There is good and bad debt. The purpose of getting financial education is to know when to use debt and when not to.
Diversification is a good strategy only because it protects investors from themselves and from incompetent or unscrupulous advisor.
Donald’s View
Money is like a talent. It doesn’t do much good if you keep it to yourself. It has to be developed, it has to be nurtured, it has to be used properly.
Investing is not for everyone, but it’s like any skill, once you try it and learn about the results, it can be surprisingly exciting. I can hear it now, “Investing is exciting?” When I hear that reaction that person hasn’t tried it yet.
Another difference between a saver and investor. Savers are still living in the realm of fear. Investors have conquered that fear and are reaping the reward. Deal with your fears. Never shelf your ideas for a better time, act now.
TWO THINGS YOU INVEST
- Time and
- Money
Since many people do not invest much time, they lose their money.
Using the 90/10 rule of money as a rough guide, I would say that 90% of investor invest money, but not time. And the 10% that makes 90% of the money invest more time than money.
Relationship between investing Time verse Investing Money Robert’s View
| Non-investor | Passive Investor | Active Investor |
| Invest no time | Invest no time | Invest time |
| Invest no money | Invest money | Invest money |
| No financial education | No financial education | Lots of financial education |
That’s why non-investor and passive investor says, “investing is risky” they have little or no financial education (experience) hence, they fall prey to any financial advisor promising safety and security.
Many investors think investing is risky because they take financial advice from financial experts who have very little financial training or experience.
The reason why E $ S quadrant people suffer is because they take financial advice from others Es $ Ss. You need to choose you adviser carefully.
When it comes to investments, the question you should ask are how do you;
- Reduce risk and increase returns?
- How to find great investment?
- How to know good deal from bad deal?
- Invest with less of your own money and more OPM (Other People Money)?
- How do you get experience without risking money?
- Handle losses?
- How do you find good advisors?
True student know they will not probably find the right answers, because they are always better answers.
Why We Want You to Be Rich Donald’s View
Money will affect your life, my theory is that if something is going to affect your life, it’s best to know as much as you can about it.
If you want to be rich you need leverage, if you want to be rich, you need a lot of leverage.
Kiyosaki love investing in business and real estate because he can control the outcome. In stocks, bonds and mutual funds one has no control. Diversification is required when one has no control.
Control is all about education. The more financially educated we become, the faster we can spot situations that are advantageous and those that are not. Life is full of risk, but we can reduce risk by becoming more educated.
Having low financial IQ will make you think investing is risky. You can learn how to increase your by reading summaries notes on The Power Of Financial Education.
Learn the world of finance well to excel don’t depend on investment advisor- you should learn enough for yourself first, if you want full proof, do the proofing yourself.
The greatest risk we all face is not moving forward with what we learned.
Know how to sell. The price of not knowing how to is way too higher, higher than money.
THREE D’s
- Desire
- Drive
- Discipline
You may have a Desire to be rich, but no Drive or Discipline or both.
TRIPLE E’s
- Education
- Experience
- Execution
We know people have great Education but lack real world Experience. When they lack real-world experience they are unable to Execute.
In college, you have to do what others don’t want to do to in order for you to have an edge.
The best way to deal with problems was to just keep going, persist and continue working on solutions.
Some quotes Donald’s dad used to send him;
“He who has never learned to obey cannot be a good commander”. Aristotle
“Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity.” George S. Patton.
“What you cannot command don’t enforce.” Sophocles
The first and best victory is to conquer self. Plato
We are what we repeatedly do. Excellence then is not an act, but a habit.
What you want in life is up to you. There is no one in your way. If you want something desire is not enough. You need to do what it takes to be a winner before you can win. Life is a rip-off when you expect to get what you want.
Wondering how you can double your money? You can buy and sell things, charge interest, find a multiple source of income.
The sign of higher Financial IQ is high cash flow flowing into the income column.
Learn to develop an investor’s mentality rather than a saver’s mentality. You’ll sleep better when you’re older if you do.
If you are good at budgeting, leveraging and understanding control you’ll become rich without needing a higher-paying job.
Do a review of your financial status once a week. See it necessary as doing laundry.
Simplicity or complexity
If you are an adult without much money you have two basic choices;
- Live below your means
- Expand your means
OR
- Simplicity- Living below your means
- Complexity- Increasing complexity means increasing your financial awareness of the world around you as well as the world in front of you. It could means reading a business book, magazines like Fortune, Times, Forbes, Economist just to keep a pulse of the world. Competitive complexity means being a student of the world, money, people and business 24/7/365 that is 24hrs a day, 7 days a week, 52 week a year.
Why invest in real estate?
You have control unlike stocks and bonds.
People worry about a job security because they lack of control over their job.
In additional to control, real estate offers many other advantages as follow;
- Cashflow
- Leverage
- Amortization- tenants pay off the debt
- Depreciate
- Creativity- the values of property improve through creativity.
- Expandability
- Predictability
- Tax-deferred money
- Appreciation
Starting your business
In this book you are advised to start your own business. The authors believe by owning a busines is the best mirror you can look into and it will give you instant feedback every time.
If you are good it will make your rich than Tiger Woods.
Your financial statement is your real-world report card.
“We make a living by what we get, but we make a life by what we give.” Winston Churchill
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Why We Want You to Be Rich: Two Men- One Message By Donald J. Trump Robert T. Kiyosaki was published by Rich Press (October 9, 2006). It has 320 pages.