| |
Broke Masses |
Successful Middle Class Investor |
Rich |
| 1. Who |
Employees |
Employees & Self-Employeed -
Me and Me |
Business Owners & Investors -
Me and Me |
| 2. Education |
Highschool or college graduate |
- Values Education, often college graduate - Me
- Attends course and seminars on investing - Me |
Values only "street smart education, often aquired from peers and/or self-learned - I think there is a benefit to a college education for some people, but self-ed and "on-the-job" learned skils are usually the ones that stick. |
| 3. Major financial goal |
To survive until next payday |
To build up a significant net worth by age 55-56 |
Freedom - ME!!!!!!!! |
| 4. Focus |
Salary or hourly wage |
Net worth |
Cash flow - working on it |
| 5. Cash Flow Management (CFM) |
"How much do I have in my wallet?" |
Understands the value of CFM |
Understands that CFM is the foundation to all wealth - Me, thanks to Kiyosaki's books and games |
| 6. Definition of an asset |
A 6-pack in the fridge |
Anything that has market value |
Anything that produces a positive cash flow - Me |
| 7. Home |
Would like to own one |
One of their most important assets - Me |
A home is a liability, not an asset - this one I had a lot of trouble with. Yes, by the rich definition, my house is a liability, not an asset, because I pay the mortgage company - they don't pay me. But the peace of mind, comfort, safety, relaxation, enjoyment, etc. that I get from owning all the walls and the land around them makes me classify my house as an "asset" to my well-being. |
| 8. Investment vehicles |
- Government pension
- Lotteries |
- Mutual funds - used to, but not any more
- blue chip stocks - only invest in the stock market using Kim Snider's strategy
- real estate: condos, houses & duplexes |
stocks: IPOs as investors and/or key shareholders
- real estate: larger projects
- businesses - Me |
| 9. Investment sources |
The government |
Invests in financial products created by others |
Creates products and services to sell to the MIddle Class and the masses - Me |
| 10. Investment systems |
Hope |
- dollar cost averaging (DCA)
- low down real estate systems |
- Create their own or modify others - Me
- Often learn from other rich investors who are their peers - learning |
| 11. Expected rate of return |
Get rich quick |
12% to 30% - Me, although I'm working on moving into the next column over soon |
50% to 500%+++ |
| 12. Risk |
Has no idea how to evaluate it |
Accepts moderate risk |
Most investments are low or very low risk - Me, but it took a lot to overcome my fears of risk |
| 13. What works |
If it doesn't work, keep doing it |
Learn what works and keep doing it no matter what |
Keep learning and innovate, innovate, innovate - Me, but I can fall into "it works, don't mess with it" mode |
| 14. Time horizon |
Next payday |
Long term |
Tailored to each goal or investment - Me, absolutely |
| 15. Real estate |
Would like some |
Buy & hold, waits for it to go up in value |
"You make money when you buy, not when you sell" - to be Me |
| 16. Most valuable resource |
Paycheck - Me, for now |
Investments - Me, working on it |
Time - Me, retiring way before age 65 |
| 17. Why work? |
Work for the weekend |
Work for money of which 10-20% goes to investments - Me |
Money works so they don't have to - to be Me |
| 18. Advisors |
Broke friends & family |
Financial planners, accountants - Me, for taxes anyway |
Themselves, each other, coaches, selected professionals - Me, my business has a great support team of people who have done this, done it well, and teach others how to do the same |
| 19. Resources |
TV |
- The Millionaire Next Door - Me read
- The Wealthy Barber |
- Rich Dad/Poor Dad - Me read
- The Cashflow Quadrant - Me read
- The Cashflow Game - Me read
- Robert Kiyosaki tape sets |
| 20. Key indicator event |
Savings account with $100 in it |
$1 million net worth |
Passive income exceeds expenses - Me, working on it |
| 21. Questions and Answers |
Don't really understand the distinction |
Asks questions and seeks the right answer - Me |
Knows there are many answers - Me, learning |
| 22. Delegation |
"If you want it done right, you have to do it yourself." - Me |
"You can deligate what you don't know" - Me |
"If you don't know the fundamentals, you can get slaughtered!" - Me, learning |
