Investor Lesson 13 ~ Reduce Risk Through Financial Lieracy – In the world of investing there are three basic asset classes you can invest in. Roughly 80% of the very rich became rich through building a business.

Do you increase the value of your money by spending it on assets or do you devalue your money by spending it on things that devalue over time?

Being financially literate gives you the knowledge you will need to understand when you see an asset producing investment. Learning how to read the relevant financial information will allow you to decide for yourself if an investment is risky or safe.

Investor Lesson 14 ~ Financial Literacy Made Simple - Rich dad explained financial literacy very simply by explaining the difference between as asset and a liability. An asset puts money in your pocket while a liability will cost you money. If you can figure this out from the financial statement of an intended investment you have lessened the risk associated with investing.

Investor Lesson 15 ~ The Magic of Mistakes - Mistakes are opportunities to learn something new. If you are not willing to make mistakes and learn from them it is unlikely you will become one of the  really rich. You will often learn more from your failures than your successes.

Investor Lesson 16 ~What is the Price of Becoming Rich - You can become rich by being financially smart. You must take the time to learn financial literacy, you must have a plan and you must be willing to make mistakes.

So we, you and me are in the business of wealth creation I wonder how many of us have nutted out all those areas and considered them as working interactively together. Anyway on with the task at hand – Robert Kiyosakis Wealth Creation Key Points :-

Become Financially Educated - There are five strategies that Kiyosaki recommends here-

1. Never say ‘I can’t afford it’ instead ask yourself ‘How can I afford it?’ or ‘How    can I do this?’ Another thing people often say is ‘I know’, it’s another statement that should be avoided because it closes your mind to other possibilities.
2. Read, open your mind to learning. Get your hands on books that teach positive mindset and investing.
3. Find a mentor, someone who has done what you want to achieve. Then be willing to learn. Lot’s of people have a need to already know if you want to move forward with your life you have to be willing to learn.
4. Associate with positive people who are also moving forward with their lives. You will know by what they talk about, are they positive or are they always complaining. Who you spend time with has a lot to do with where you are in life. Wealth creation seminars are a great place to meet people willing to grow and progress.
5. Keep on learning you will never know it all. Be grateful for what you have family, friends and a wealthy country to live in. Stay humble, we are all at differing stages of development where you are doesn’t put you above or below anyone else, believe in you.

Robert says you have to be willing to invest in your education and be responsible for learning what you need to know, if not there’s little chance you will be successful.

Be Honest and Have Integrity - Always do what you say you will and always do it with honesty. There’s no use trying to get wealthy by being dishonest. We’ve seen many crash and burn from what appeared to be successful positions. Always work towards aligning you intentions with your actions.

Alchemy - This is Robert’s way of saying become a financial wizard. By that he means the more financial knowledge you have the more you will be able to make money and create opportunities with less capital. You will recognise opportunities, find investors and put deals together using less and less of your own finances yet recieve great returns.

Lifestyle - You don’t need to be extravagant. Have a nice house, drive a nice car, be good to your family but you don’t need to own everything. If you want to go out in a boat rent one buying too many toys is a liability.

Philanthrophy - When you are wealthy consider donating money to worthwhile charities, Robert and his wife donate to Greenpeace and the World Wildlife Foundation. Donating or setting up a charity or scholarship means you will go on giving long after your gone and your time on this earth will have far reaching benefits.

Robert Kiyosaki far exceeded his business goals, you don’t know where you will go on your wealth creation journey but following Robert’s steps above will mske sure you go somewhere wonderful.
Have an Inspiring Day

Teresa and the Team at

AustraliaWealth.com.au