Life's lesson

Summary of principles:

What is money? money is something everyone agrees on. Money can be any thing you want to be. If you can make something everyone agrees, then you can make money.

Know the difference between working for money and making money work for you, and Profession over Business. Work for money: profession, you work # of hr, and awarded $ per hr. Reality is: if you stop, $ does not come, and you can only work certain amount of hrs and being dependent on salary, rat race beings. Let money work for you: business, money comes even when you are not present, it works for you 24 hrs a day regardless of where you are what you are doing.

Asset: brings $ into your pocket.
Liability: takes $ out of your pocket.
Asset over liability, cashflow goes into asset first before going into expense. Must pay yourself first (regular contribution to asset) when the cheque is received, bills last, and use your intelligence not emotion to cut down expense, while make additional money to cover the bills.
Asset: Stock, mutual fund, real estate, GIS, bond, royalties, patents.... which will later help you to develop your own business. Liability: Mortgage, loans, debt, car payment, expense, anything out of your pocket. Your liability is someone's asset, your asset comes from someone's liability.

A house may be an asset or liability depending on the net income of the house. Ex: If the total month expense related to the income is less than the total income the house generate (ie via rent from tenant), then the net monthly income regarding the house is a surplus, thus the house is considered an (income generating) asset. If net income is deficit, then the house is a liability.
So always focus on asset, avoid liability.

True intelligence is knowing what is appropriate than what is right or wrong. Seeks balance, how much you should do, rather than being extreme and say either right or wrong right off the (emotional) bat....all about balance.

If you want something, you must first give.

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"Life is the best teacher of all. Most of the time, life does not talk to you, it just sort of pushes you around. Each push is life saying - Wake Up! There is Something I Want You to Learn.
Life pushes all of us around, some give up, others fight, those who want to learn something and move on, they welcome life pushing them around."

"Laziness does not make one healthy nor wealthy."

"Passion is combination of love and courage, fueled by anger and discontent.

"Self inflicted fear, ignorance, and desire/greed (which naturally rises from emotions) is what keeps people working for money."

Fear of not having money, and once they do, they feel money will buy them everything....this becomes an endless cycle that traps people into working for money their entire life...being rich and earn high paychecks does not solve the problem, it only makes you more fearful of losing money (fear) and wanting to earn more (desire)...this is when you are working for money, your emotions are controlled by money, your life is controlled by money. Ignorance is when you stop learning and search knowledge of oneself, you are shut off from the rest of the world, your perspective becomes narrowed, your mind is closed. Ignorance is the cause of greed and fear

Use your emotions to think, not to think with emotions. Higher emotions tend to lower financial intelligence. Mortgage: paying for home they never own, property tax, don't always appreciate in value, mortgage draws money away from other opportunities to make money, lost of time where other could grow in value, loss of additional capitol for other investment chance, lost of education. Primary income should be through income producing asset, not just wage itself. concentrate on buying income generating asset, keep liabilities (such as house) down.

"The rich buy assets, the poor only have expenses, the middle class buy assets thinking they are liabilities." Middle class work for owners of company, the government through taxes, and finally the banks through mortgages...this is a financial struggle...working for someone entire life, life revolve around wage and income column...this a lifestyle that they are trapped and will never get out of debt.

Business: something that generates asset without you being there you own, but managed by others (or else would be a profession). Stocks, bond, mutual funds, income generating real estate, notes IOU, intellectual royalities, patents, etc that appreciates and have a ready market.

Difference between Profession and Business: Schools trains people to have professional skills to enter the workplace to work for money. ex: if you are a banker, bank would be your profession, not business. . If you own the bank, bank would be your business. Ray Krock, McDonald's founder separates between profession and business: his profession is selling hamburgers (income), yet his business is the accumation of income producing real estate (asset). Most of us focus only on the income from our profession (ie wage, seeking raise or higher pay, educate for raise, cling to job and play safe could not help them survive during crisis), but not the asset. So buy real asset.

Work to learn, not to make money...to seek what you will learn rather than what you will earn...look down the road to see what skills they want to acquire before choosing a specific profession before being trapped in a rat race. "You want to learn a little about a lot"
Leadership, selling

"How many people can cook a better hamburger than McDonalds? then how come McDonalds make more money than you do? So many talented people are poor because they focus on cooking a better hamburger and know little about business."

"best selling author, not best writing author."

manage of cash flow, time organization, people, selling, marketing, negotiating, communication
1. Need a strong reason/purpose greater than reality
2. Choose, power to choose is in you, every action every moment you need to choose...choosing to be rich requires certain spending habits you have to make. Choose to spend it foolishly and you will be poor. Choose to spend on liability and you will be a middle class, choose to spend on your mind and asset, then you will be wealthy. Learn & time are most important asset, what we do with our time?
3. Choose friend carefully, learn from all of them, what to do, what not to do.
4. master a formula of making money, then learn a new one.
5. Pay yourself first, power of self discipline, spend on asset, control desire and cut expense. Pay bill is the last, when run into difficulty paying bill, don't draw money from saving to pay for it, but use your intelligence to make more money. Mental fortitude.
6. pay broker well, pay professionals well (they educate you ,and give you better information, their service will earn you money, more they make, more you make.
7. Indian giver,
8. Buy luxury only from asset, not credit. Learn to make money, not work or borrow money to pay for luxury.
9. Need for hero, and naivety, follow them no to read and learn from them, their experience, negotiation, investment strategy.
10. If you want something, you first need to give. Be charitable and giving, both in money and education. If you want something, first give you what you want. When you in need of something or short of money, health, always give yours first, it will always come back. Be generosity which what you are, and the power of generosity will make them smarter. Principle of reciprocity. Poor is more greedy than wealth.

Job = just over broke..work then pay bill. Workers work hard enough to not get fired, while the owners pay just enough so the workers wont quit.

"Wealth is a person's ability to survive so many days forward." - Buckminster Fuller - fincancial survivability compared between asset (excluding wage) and expense. Asset is re-invested back into asset, while expense maintain low.

Living a life of fear and ignorance....
Dont react (dont let money control your emotion), think!
Dont work for money, let money work for you.

asset and liability, acquire only asset, not liability....use asset bring you cash, not money, money only accentuate your flow of cash.
Financial illiteracy: spend on liability than asset, do not know how to spend money wisely. Do more for less. An intelligent person hire people who are more intelligent than they are.
"more money does not solve problems, intelligence solve problems."

R. Kiyosaki

I don't run, I fight.

Priority: 1. be Rich, 2. be comfortable, 3. be secure.

Money can be any thing you want to be.

True intelligence is knowing what is appropriate than what is right or wrong. (seeks balance, how much you should do, rather than being extreme and say either right or wrong right off the (emotional) bat.