Following are the last four lessons from the section of Kiyosakis book that asks are you mentally prepared to be an investor. Take your time through the lessons to prepare yourself mentally for wealth.
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.
Tags: assets and liabilities, financial literacy, investment education, Robert Kiyosaki
