Lesson 2 – The Merchandise of Kings!

What is “The merchandise of kings”?

“Power is simply” the ability to act. “Since ancient times, power has been the commodity of kings. Power originally came to those who were physically stronger. Later, it came to those who had a special inheritance to through royalty. More recently, it reached those who had the greatest wealth or capital. Today, those with specialized and valuable knowledge have the greatest capacity for power. ” Anthony Robbins – from his book Unlimited Power

Valuable and specialized knowledge.

In Lesson 1, we learned that there are only two things that can prevent you from getting rich. You do not know how or are not willing to apply what you know. Today we will dive into reason number one.

Simply put, chances are you were never taught how to get rich. Think for a moment, what is it that separates you from the Donald Trumps of the world or from any mega-rich person?

It’s time? No! we all have the same 24 hours every day. However, as you will learn, how you spend your 24 hours will make a difference.

Is it a privileged background? Not at all. Remember that from poverty to wealth poverty is required to begin with.

Ah ha! It must be education! Absolutely not! At least not in the traditional sense. When we think of education, most of us think of going to school, graduating, possibly attending college or graduate school so we can graduate and get a good “JOB.” Traditional education teaches us to become a productive part of the workforce, but by no means does it teach us the basics of wealth! You may remember going to an algebra class or studying a foreign language, or history, or economics.

How many times have you gone to Wealth Building 101 or Advanced Personal Financial Success? We never suspect, and if you’ve attended classes that you think were teaching how to build wealth, doesn’t it make sense that your instructors should have been rich? It was them?

Did you know that Fred Smith, founder of Federal Express, received a “D” on his final paper? The one that describes the world’s first overnight package delivery service! Also known as Fed_Ex

Avis of AVIS car rental, McDonald of McDonald’s hamburgers, Colonel Sanders of Kentucky Fried Chicken, Lear of Lear Jets, Henry Ford, and Abraham Lincoln all have one thing in common: they never graduated from HIGH SCHOOL!

So far the traditional education!

The fact is that the specialized and valuable knowledge of wealth creation is self-taught. The good news is that it is easy to understand and enjoyable to learn, and if you apply that knowledge, you will begin to build wealth.

Welcome to your first day of school, Wealth Building 101.

How come most rich people got like this?

If you knew you have a 74% chance of winning, would you buy a lottery ticket? Millions of people line up each week to buy lottery tickets for a chance to get rich. However, according to the US Department of Health and Welfare, less than 1% of all wealth in America was created by lottery winners.

What if you could beat the odds?

74% of all wealth in America was made in one way; starting and owning your own business. If you own your own business, the chances of you getting rich are 284% greater than any other form of wealth creation. This includes all the other get-rich methods, from professional sports figures to astute investors to lottery winners! It makes absolute sense that if your goal is to get rich, you must have your own business!

So now we have learned that the greatest opportunity to get rich is owning your own business.

The second set of valuable and specialized knowledge is a whole new way of looking at your personal finances.

Robert Kiyosaki, in his # 1 blockbuster, best-selling book, developed an entirely new and simplified way of understanding your personal spending and earnings patterns, and how they bring you closer or further to becoming rich. Explain these cash flow concepts in more detail.

The following information is compiled from his book Rich Dad Poor Dad: What The Rich Teach Their Kids About Money That The Poor And Middle Class Don’t! and Robert’s website: http://www.richdad.com

financial statements

Rich Dad said: “The riskiest investor of all is a person who is out of control of his personal financial status. These are people who have nothing but liabilities that they believe to be assets and both in expenses and income and whose sole source of income is your job. “

Understanding your financial status is the foundation for taking control of your personal finances. Rich Dad believes that the relationship between the income statement and the balance sheet was everything. What is the first step towards financial freedom? Take control of your financial status.

Cash flow pattern of the poor (or a young person still living at home): The poor spend every penny they earn and have no assets or liabilities, only expenses. Cash flow is limited to income and expenses, and the poor’s cash flow pattern reflects income from a job that is used to pay for expenses such as rent, food, clothing, transportation, and taxes.

Middle-class cash flow pattern: Middle-class individuals accumulated more debt as they became more successful. A raise in pay qualifies them to borrow more money from the bank so they can buy personal items like bigger cars, vacation homes, boats, and motor homes.

Your salary income comes in and is spent on running expenses and then paying off this personal debt. As your income increases, so does your personal debt. This is what we call the rat race.

Rich Cash Flow Pattern: The rich make their assets work for them. They have gained control of their expenses and are concentrating on acquiring or building assets. Their businesses pay most of their expenses and they have few, if any, personal responsibilities.

An individual’s cash flow pattern can show a combination of these three types. What pattern does your financial status reflect? What story does your financial status tell? Are you in control of your expenses?

As you can see, the poor, the middle class, and the rich have dramatically different cash flow patterns. The poor and the middle class work for income and spend their money on necessities or service and the ever-increasing burden of debt; while the rich have their money or assets working for them, and they reinvest their income in additional income-producing vehicles.

Part of becoming financially fit to get the ball rolling. You may be wondering, “How can I invest my income in income-generating assets when I already spend most or all of my income on necessities and debts?”

In tomorrow’s lesson, we’ll show you how to immediately put extra money in your pocket, this month, without changing jobs, asking for a raise, or making a profit from whatever business you choose to start! In fact, tomorrow we’ll show you how you can fund your first income-generating asset with the leftover cash to help you with the monthly budget.

That’s it for today’s lesson.

Here are the key points to remember from today’s lesson:

When it comes to building wealth, you don’t need a formal education and it doesn’t do much to prepare you to become rich. 74% of all wealth in America was made in one way; starting and owning your own business.

Your biggest chance to get rich is owning your own business.

The poor, the middle class, and the rich have dramatically different cash flow patterns and spending habits.