# The way to financial literacy

> Notes from Rich dad, poor dad!

## financial literacy allows one to read numbers, and numbers tell the story.

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Take the time to develop your financial intelligence
Harness the power of your brain and the asset column.

I have said it before, but it’s worth repeating. Financial intelligence
is made up of these four main technical skills:
1. Accounting
Accounting is financial literacy, or the ability to read
numbers. This is a vital skill if you want to build
businesses or investments.
2. Investing
Investing is the science of money making money.
3. Understanding markets
Understanding markets is the science of supply and
demand Alexander Graham Bell gave the market what it
wanted. So did Bill Gates. A $75,000 house offered for
$60,000 that cost $20,000 was also the result of seizing
an opportunity created by the market. Somebody was
buying, and someone was selling.
4. The law
The law is the awareness of accounting corporate, state and
federal regulations. I recommend playing by the rules.

> Great opportunities
are not seen
with your eyes.
They are seen
with your mind.

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**Living paycheck to paycheck or take some risk to invest?**

Wealthy people are not afraid of losing. But losers are. Failure is part of the process of
success. People who avoid failure also avoid success.

# Types of investors
1. The first and most common type is a person who buys a
packaged investment. They call a retail outlet, such as a real
estate company, a stockbroker, or a financial planner, and they
buy something. It could be a mutual fund, a REIT, a stock or
a bond. It is a clean and simple way of investing. An analogy
would be a shopper who goes to a computer store and buys a
computer right off the shelf.

2. The second type is an investor who creates investments.
This investor usually assembles a deal in the same way a
person who buys components builds a computer. I do not
know the first thing about putting components of a computer
together, but I do know how to put pieces of opportunities
together, or know people who know how

It is this **second** type of investor who is the more professional
investor. Sometimes it may take years for all the pieces to come
together. And sometimes they never do

## How to be the second investor?
**3 Main skills:**
### 1. Find an opportunity that everyone else missed.
Learn finance.
### 2. Raise money (Capital)
- How to buy without a bank?

The majority of people let their
lack of money stop them from making a deal. If you can avoid
that obstacle, you will be millions ahead of those who don’t
learn those skills.
### 3. Organize smart people.

There is a lot to learn, but the rewards can be astronomical. If you
do not want to learn those skills, then being a type-one investor is highly
recommended

> There is always risk, so learn to manage risk instead of avoiding it.

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# When it comes to money, the only skill most people know is to work hard.

Combine those four: **accounting, investing, marketing, and law.**

Technical skills and making money with money is easier than most
people would believe.

> “You want to know
a little about a lot”
was rich dad’s
suggestion.

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### “Workers work hard enough to not be fired, and owners pay just enough so that workers won’t quit.”

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## A good point to shit on your job
many hospitals in countries with socialized medicine
need to make tough decisions such as, “Who will live, and who will
die?” They make those decisions purely on how much money they
have and how old the patients are. If the patient is old, they often will
give the medical care to someone younger. The older poor patient
gets put to the back of the line. Just as the rich can afford better
education, the rich will be able to keep themselves alive, while those
who have little wealth will die.

---

## The main management skills needed for success are:
1. Management of cash flow
2. Management of systems
3. Management of people

**The most important specialized skills are sales and marketing.**

The skills of selling and marketing are difficult
for most people, primarily due to their fear of rejection.

The better you are at communicating, negotiating, and handling your fear of
rejection, the easier life is.

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## 10 steps as a process to develop your God-given powers, powers over which only you have control.
1. Find a reason greater than reality: the power of spirit
2. Make daily choices: the power of choice
3. Choose friends carefully: the power of association
4. Master a formula and then learn a new one: the power of
learning quickly
5. Pay yourself first: the power of self-discipline
6. Pay your brokers well: the power of good advice
7. Be an Indian giver: the power of getting something for nothing
wise investors must look at more than ROI. They look at
the assets they get for free once they get their money back. That is
financial intelligence.
8. Use assets to buy luxuries: the power of focus
9. Choose heroes: the power of myth
10. Teach and you shall receive: the power of giving

# HEROS?
When it comes to investing, too many people make it sound hard.
Instead, find heroes who make it look easy.

Donald Trump, Warren Buffett, Peter Lynch,
George Soros, and Jim Rogers