RICH investments – making money work
posted in investments |
RICH DAD says, to make money work for you, you have to learn how money works. Making investment is the best way you can put your money to use. If it’s lying idle with you in any form, it will not work instead will loose its purchasing power as the time passes by. So smart investments make up a positive cash flow and are very essential, if we really want to be financially free.
Kiyosaki says it takes some financial intelligence to make money out of your investments as there are good chances of loosing it as well, if you are bad at recognizing the right opportunity.
This advice may sound simple, but if you think about it, millions of investors invest their hard-earned money every day and receive little to nothing in return. In other words, their investment costs them money rather than makes them money.
And millions of people put a little money aside, either in a bank or under the mattress, and receive little to nothing in return. They all pay to invest rather than getting paid to invest.
Kiyosaki says the lesson he learnt from his RICH DAD was that investing should make him richer every month, not poorer. It should put money in his pocket every month, not take money out. To him, it was a miracle that so many financial services salespeople could convince financially naive people that it was smart to pay money to invest.
Once you understand this lesson and start finding investments that make money, your life is never the same. In my opinion, grasping this distinction is one of the biggest differences between the rich and everybody else.
According to Kiyosaki, he invests primarily for cash flow, not capital gains. Most people invest for capital gains, which is why they buy a stock, mutual fund, or piece of real estate and hope the price will go up. Not him. While he occasionally invests for capital gains, but prefer to invest for cash flow. It is always harder to investments for cash flow.
Knowing the difference between investments that cost you money and ones that make you money is what separates rich investors from naive investors.
Kiyosaki says, “My rich dad would advise you to keep looking, and train yourself to invest like a pro.”
This is again where financial education comes in, if a person is not good at finances, he won’t be getting any returns from the idle money and there will always be more chance of loosing out on his investments.
“I have a problem with too much money. I can’t reinvest it fast enough, and because I reinvest it, more money comes in. Yes, the rich do get richer.” Robert Kiyosaki
Learn from Robert Kiyosaki and other world’s best gurus…..on your way to success and financial freedom, inspired…
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Gagan.
