BUSINESS TIPS 102

7 Ways to Build Financial Wealth (By Robert Kiyosaki) - Your financial wealth is your responsibility. If you desire to be rich, it is one that can be yours if you follow the path laid out below. 1️⃣ Savers Are Losers. 👉🏻 Compounding the problem is that the interest rate paid by most savings accounts trails behind the rate of inflation. 👉🏻 In other words, your money sitting in a bank - while earning interest - is becoming less valuable. 👉🏻 Building real financial wealth begins with educated investing, not with saving money. 2️⃣ Pay Yourself First. 👉🏻 If you use your income to pay for your bills and financial obligations first, you'll end up with nothing short-term or long-term. 👉🏻 In the short-term, you are unable to invest in what will provide escape from living paycheck to paycheck. 👉🏻 In the long-term, you will have nothing to live on during retirement. 👉🏻 Paying yourself first means that when money comes in, you designate a portion of it to purchasing income-producing assets before one cent goes to anyone or anything else. 3️⃣ Expand Your Means. 👉🏻 Just like the riches always concentrate on creating money and you will expand your means. 👉🏻 Create money by purchasing assets that pay for what you want. 4️⃣ Focus on Moving to the Right Side of the CASHFLOW Quadrant. 👉🏻 As shown in the picture below, those who are able to create and maintain wealth are found on the right side of the quadrant. 👉🏻 Regardless of which quadrant you are presently in, becoming rich begins - and ends - with a commitment to take the necessary steps to move and stay on the right side of the quadrant. 👉🏻 Where you are in the CASHFLOW Quadrant today isn't as important as where you focus, because today's focus will create tomorrow's reality. 5️⃣ Pay Taxes Like the Rich. 👉🏻 If you want to become rich, you need to keep more of what you make and pay less in taxes. 👉🏻 Use the tax laws that are already set up to help you keep what is yours - provided that you are making your money from the right side of the CASHFLOW Quadrant. 6️⃣ Mind Your Own Business. 👉🏻 When you forget to mind your own business, you eventually end up owning a job instead of a business. 👉🏻 B's and I's create systems (build automated process for their investing or entrepreneurial pursuits) that can run with or without them. 👉🏻 They think in terms of scalability. 👉🏻 By making processes scalable, exponential growth is only a matter of adding additional resources - namely other people's time and money - instead of longer hours and harder work on your part. 👉🏻 This is what it means to "mind your own business." 7️⃣ Diversify Your Portfolio. 👉🏻 If you only diversify within one asset class, you are exposing yourself completely to the weaknesses of that one asset class. 👉🏻 True diversification comes from investing across different investment vehicles (asset classes) such as real estate, commodities, businesses, and paper assets.