From $350,000 in Debt to Buying Our First Condo in Waikiki

When Jomel and I got married in August of 2012, we had a combined debt of $350,000. By April of 2016 we had not debt, I quit my job in December, and we just bought our first condo in Waikiki on August 28, 2017.

Now I live a dream life, where I get to be a full time Mom, work my online business part time, and I spend lots of time enjoying the beautiful beaches and outdoor fun of Hawaii.

11 Secrets To Make Money With Your Mind

Read this like your life depends on it…because financially, it does.

“In late 1974, I purchased a small condominium on the fringes of Waikiki as one of my first investment properties.  The price was $56,000 for a cute two-bedroom, one-bath unit in an average building.  It was a perfect rental unit…  and I knew it would rent quickly.

I drove over to my rich dad’s office, all excited about showing him the deal.  He glanced at the documents and in less than a minute he looked up and asked: “How much money are you losing a month?”

“About $100 a month,” I said.

“Don’t be foolish,” rich dad said.  “I haven’t gone over the numbers, but I can already tell from the written documents that you’re losing much more than that.  And besides, why in the world would you knowingly invest in something that loses money?”

“Well, the unit looked nice, and I thought it was a good deal.  A little paint and the place would be as good as new,” I said.

“That doesn’t justify knowingly losing money,” smirked rich dad.

“Well, my real estate agent said not to worry about losing money every month.  He said that in a few years the price of the unit will double, and in addition, the government gives me a tax break on the money I lose.  Besides, it was such a good deal that I was afraid someone else would buy it if I didn’t.”

Rich dad stood and closed his office door.  When he did that, I knew I was about to be chewed out as well as be taught an important lesson….

…On that day, I learned more about money and investing than I had in all my previous 27 years of life.”

(pp. 97-98 of The Cashflow Quadrant by Robert Kiyosaki)

The 11 Secrets to Make Money With Your Mind

1) How to handle “You can’t do that” – when you bring up a winning investment proposal, your advisors/realtors/etc may say “You can’t do that”. What they really mean is “They can’t do that”. It does not mean that it can’t be done. Don’t listen, make it happen.

2) $1.4 Trillion Looking for a home – everyday money is circulating electronically, it is invisible because most of it is electronic. If you know how to take care of money, money will flock to you, and be thrown at you. People will beg you to take it.

3) Train your eyes to see only 5% and your mind to see 95% when you invest – “The average person is 95 percent eyes and only 5 percent mind when they invest,” said rich dad. Be sure to only take advice from people who actually know what they are doing, and know their numbers…who know how to take care of money.

4) Train your brain to see money – The ability to make money begins with financial literacy, with understanding the words and the numbers

5) Know what real risk is – understand each investment, and how much is put in, how much the costs are, the return, possible set backs and pluses, practice with small investments and work your way up. Practice, practice, practice

Bad advice is risky – most people learn about money by modeling what their parents did with money, they hear advice or see what others do, and they can’t tell the difference between good and bad advice

6) Your advisors are only as smart as you – If you are financially naive, they must by law offer you only safe and secure financial strategies. If you are an unsophisticated investor, they can only offer low risk, low yield investments. They’ll often recommend “diversification” for unsophisticated investors. Few advisors take the time to teach you. Their time is also money. So if you will take it upon yourself to become financially educated and manage your money well, then a competent adviser can inform you about investments and strategies that only a few will ever see. But first, you must do your part to get educated. Always remember, your adviser can only be as smart as you.”

7) Know the difference between an asset and a liability

8) Understand THE GAME OF MONEY – Who is indebted to whom?

Money is debt – The more people you are indebted to, the poorer you are.
Words that lure you into the losing position of the game are:

“Low down, easy monthly payments”

“Don’t worry, the government will give you a tax break for those losses”

Who owes you?

The more people who owe you, the richer you are.

9) What is your interest rate…really?

10) If you take on debt and risk, you should be paid.

11) Understand the difference between facts and opinions
Common opinions are:
“You should marry him. He’ll make a great husband.”
“Find a secure job and stay there all your life.”
“Doctors make a lot of money.”
“They have a big house. They must be rich.”
“He has big muscles. He must be healthy.”
“This is a nice car, only driven by a little old lady.”
“There is not enough money for everyone to be rich.”
“The earth is flat.”
“Humans will never fly.”
“He’s smarter than his sister.”
“Bonds are safer than stocks.”
“People who make mistakes are stupid.”
“He’ll never sell for such a low price.”
“She’ll never go out with me.”
“Investing is risky.”
“I’ll never be rich.”
“I didn’t go to college so I’ll never get ahead.”
“You should diversify your investments.”
“You shouldn’t diversify your investments.”

Do you due diligence.

Understand the investment, do the math yourself, ask all the questions, after you analyze, act.

The 7 Levels of Investors from The Cashflow Quadrant by Robert Kiyosaki

Did you know according to Robert Kiyosaki in his book The Cashflow Quadrant, 50% of the adult population is a Level 0 Investor?

Level 0 is the level where people say they have nothing to invest.

I was a Level 0 investor in my 20s.  Are you a level 0 investor?

If you aren’t a Level 0 investor, then maybe you are a Level 1 investor, which are investors who borrow for everything!  They borrow to spend, they borrow to invest, they borrow to pay their bills.

I was a Level 1 investor in my mid 30s.  Are you a level 1 investor?

I’ve actually moved past Level 2 (saver) and Level 3 (“smart investor”) up to Level 4 (Long-Term Investors) and entering Level 5 (Sophisticated Investors).

Want to find out more about your level and how you can go to higher and higher levels?

Watch this video blog and comment below on what investor level you are at and where you want to be!

11 Tips From Young Financially Free Entrepreneurs on Wealth, Passive Income and Investing

Did you know that over the last 7 years, I paid off almost $50,000 in debt, create a passive income stream that pays me monthly, and also increase my Net Worth to over $100,000?!?

Not only that, I became completely debt free in April of 2016 and left my bank job on December 23rd of the same year.

I have gone from working over 80 hours a week for money to now working less than 5 hours per week for money, as an internet entrepreneur who helps other mothers create financial freedom.

I had a lot of help along the way, from young financially free entrepreneurs in their 20s, 30s, and 40s.  

Here are 11 tips that I learned that changed my life on wealth, passive income and investing.

11 Tips From Young Financially Free Entrepreneurs on Wealth, Passive Income and Investing

Tip #1 – The Habit of Saving is Important (Not the amount)
You would think that saving a lot of money makes you rich, and saving a little won’t.

However, the key is not how much you save, it’s the habit of saving. So, every time you have money come into your life, you take at least 10% and pay yourself first (meaning you save it for investing).

If you are waiting until you have more money to save, then you will never be rich.

The reason you don’t have enough money to save, is because you don’t have a savings habit.

Even if you have to borrow an extra dollar every month just to save money, do that, and at least start saving every month. Make it a habit.

Tip #2 – Understand The Rule of 72 and How Interest Rates Work So You Can Grow Investments and Grow Debt

The ‘Rule of 72’ is a way to determine how long an investment will take to double.

72 / Rate = Years to Double Your Money

Example:

72 / 14.99 = 4.8 years to double your money

Now you can see why it’s important to lower all of your debt interest rates as low as possible, and to increase the rate of return on your investments.

Tip #3 – Play Cash Flow (Board Game created by Robert Kiyosaki) every week until you can win the game in 30 minutes or less every time

This game really had me focus on financial freedom, rather than what everyone else does…focus on making more money so they can spend more money.

Financial Freedom = Passive Income > Expenses

When you play the game, you have to increase your passive income to be greater than your expenses.

If you’re passive income does not increase, you cannot get out of the rat race.

This helped me really focus on my passive income.

Tip #4 – 8% is the Minimum Return for Real Estate Investors, Don’t Invest in Real Estate Overseas Unless You Have a Resident Manager

So I was thinking of buying property outside of Hawaii at one point, and I talked to my wealth real estate investor friend, and he told me this advice.

First of all, I wanted to buy the house I lived in, but it was on the market for $1,000,000+. So I needed an investor to go in with me.

However, when I asked my real estate investor friend, he said that no investor would go in on that deal, because they would only be making 4%.

Then I looked to make money buying property in Las Vegas or LA, and then he advised me not to invest overseas unless I had a resident manager. The reason is if you have only one house or condo that you are renting, then if something goes wrong, you have to rely on a Property Manager, and they are not going to care about 1 small property owned by someone far away.

Repairs will be more expensive, and your tenancy rates will be worse, because they won’t look for new renters right away. You will be low priority.

The only way to keep expenses down is to have a resident manager.

Tip #5 – Have a Big Burning Why
If you don’t why you want to be financially free, then when obstacles come (and they always do), you will not get past them.

A burning desire fuels the energy you need, to learn what you have to learn, to make mistakes and learn from them and keep on going, no matter what.

My friend’s big why was that he felt embarrassed by his lack of wealth, and had great pride. And he also wanted before his dad died, so he had a time limit too.

Tip #6 – Negotiate With Your Creditors (Debt, Credit Cards) to Lower Your Interest Rate

So, when I got this advice, I had at least 3 credit cards that I had debt on. And the interest rates were all pretty high. When I heard this advice, it really helped me. I used it to lower the interest on ALL of my credit cards…so it works.

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Tip #7 – Track Your Net Worth

Tip #8 – Set The Next Big Goal Before The Current Big Goal is Achieved

Tip #9 – Do The Mental Work

Tip #10 – Only Take Advice From People Like You, Who Already Do What You Want To Do

Tip #11 – READ, READ, READ
Rich Dad Poor Dad by Robert Kiyosaki
The Cash Flow Quadrant by Robert Kiyosaki
Money is My Friend by Phil Laut
The Richest Man In Babylon by George Clason
Secrets of the Millionaire Mind by T Harv Eker
Your Money or Your Life by Joe Dominguez & Vicki Robin
It’s Not About The Money by Brent Kessel
How To Make A Hell Of a Profit and Still Get To Heaven by John DeMartini
The Values Factor by John DeMartini
You Can Heal Your Life by Louise L. Hay

Are you an E, S, B or I in Robert Kiyosaki’s Cash Flow Quadrant?

Are you an E, S, B or I in Robert Kiyosaki’s Cash Flow Quadrant?

Watch today’s video training and learn what you are and how you can make more money in your life!

Ready to get started by masterminding with others who are working towards financial freedom? Then join a Finance Freedom Mastermind by clicking here, watching the free video training and get started!