5-1-16 Mey, Jordan & Jomel  at the Aston in Waikiki

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.

5-1-16 Mey, Jordan & Jomel  at the Aston in Waikiki

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!

5 Biggest Mistakes People Make When Investing in Real Estate

Would you like to avoid the 5 Biggest Mistakes People Make When Investing in Real Estate?

Well, pay close attention to today’s training and learn what I’ve learned from multiple millionaires who are successful real estate investors, including Tom Wheelwright from his book Tax-Free Wealth, and Robert Kiyosaki from his book Rich Dad Poor Dad.

 

5 Biggest Mistakes:

1) Thinking that buying a home to live in is an investment

-People end up using all of their savings as a down payment

-They stop saving when they realize how big their mortgage is

-end up paying money to the bank in mortgage interest

-they spend all their time improving and maintaining their house

-they don’t get experience as an investor

-Property taxes might increase at any time, causing some home owners to have to sell their homes

– Consolidating debt with home equity loans often causes increased spending, which leads to further debt

2) Not properly looking at the cash flow of an investment property

-Property Taxes

-Insurance (mortgage insurance, hazzard insurance, flood insurance, etc)

-Maintenance (plumbers, handy men, roof repair, leaks, etc)

-Management (handle rental laws, and evictions, filling vacancies, screening renters)

-Tenancy Vacancies

-Cost of down payment

-Cost of mortgage fees, points, interest

-Fixed interest mortgages vs adjustable rate

-Legal fees

-Accounting fees

-Tax prep fees

3) Buying your first rental property out of state, or out of your country

-Paying more for maintenance (not being able to check work)

-Management will be less likely to service you (as you are farther away)

-Cost to visit your property

-Lacking experience to run your own property and not gaining it as the property is out of state or out of the country

4) Not Claiming Depreciation for the building

According to Chapter 7 of Tax-Free Wealth, by Tom Wheelwright, one of the biggest mistakes people make, is that they do not claim depreciation of their real estate investment property.

Why, it’s because they are lazy, or their CPA is lazy, or they are ignorant of this important deduction.

In his example, he shows what would happen if you have an investor who buys an $800,000.00 apartment building that cash flows $12,000/yr, or $1,000/mo.

$800,000 (cost of home)
-$200,000 (cost of land)
$600,000 (cost of building and contents)
-$100,000 (cost of contents)
=$500,000 (cost of building)

$500,000
x 3.6% (depreciation for building)
=$18,000 (depreciation deduction)

Without claiming depreciation for the building, you would have to pay taxes on the $12,000 earned from the rental property.

When you claim the $18,000 in depreciation, the rental income is completely tax free, because your business claims a loss of -$6,000!

Not only that, if you structured it properly, the -$6,000 will pass through to your ordinary income tax, reducing your taxable income by $6,000!

5) Not Claiming Depreciation for the contents of your rental property

Tom Wheelwright points out that separating the contents from the value of the building alone is the proper way to file your taxes.

There must be a study conducted by either a CPA or an engineer to evaluate which parts of the investment property are considered contents, and which parts are considered the building structure.

The good thing for an investor, is that contents depreciate at a much faster rate than the building, which leads to a higher percentage used to calculate the depreciation of contents vs. the building structure.

In his example which I showed above, the contents of the building were valued at $100,000.

$100,000 (contents of the apartment building)
x 20% (depreciation for contents)
=$20,000 (depreciation deduction)

So, with the building depreciation, you can reduce not only the taxes on the rental income (you pay no taxes), you also reduce your personal taxable income even more!

$12,000 (rental income)
-$18,000 (building depreciation)
-$20,000 (contents depreciation)

Conclusion

Top 5 Life Changing Books About Working Less And Playing More

…would you like to work less and play more?

…if so, then these Top 5 books are must reads for you…

…buy them in the next 10 days…

…and finish reading them in 1 month and your life will transform beyond your wildest dreams…

  1. The 4 Hour Work Week

    …this was the first book that I read that talked about how to reduce your working hours so you can spend more time doing what you love…

    …this is assuming that your work is not what you love…

    …Timothy Ferris details how to change a full time job into only 4 hours a week…

    …he does this step by step, with easy to follow instructions…

    …he includes resources on outsourcing and how to use them…

    …also details exactly what to tell your boss to transition out of your job…

    …he even discusses a method to detail your dream goals and plan how much they will cost, and action steps to achieving them…

    …this is the most detailed how to book out there and a must read for anyone who wants to work less and play more…

  2. The 80/20 Principle

    …this is a classic that is recommended by The Four Hour Workweek…

    …it details studies of how to do 20% of the work to get 80% of the results in business…

    …it also looks in detail at investing and money, as well as how to make our everyday lives more fulfilling and happy…

    …this book is like a classic read…

    …all serious business owners know of this book and apply it to their businesses…

    …it may be a little dense, and not as fun to read as the 4 Hour Work Week, so I suggest you read that one first…

    …this book is extremely interesting and thought provoking once you get into it…

  3. The Cash Flow Quadrant

    …Robert Kiyosaki, a Hawaii born and raised author, wrote this book discussing the various types of ways to make cash or money…

    …there is the EMPLOYEE, the SELF-EMPLOYED, the INVESTOR, and the BUSINESS OWNER…

    …he discusses how the E and S quadrants are more time intensive, and the I and B quadrants do not require you to trade your time for money…

    …so in order to work less and play more, one has to be in the I or the B quadrant…

    …he discusses many examples and methods to move from one quadrant to the other…

    …he also details what a good investment is vs a bad investment…

    …this book is a must read for anyone serious about have money work for them and make less work and more play…

  4. Think and Grow Rich by Napoleon Hill

    …a classic read recommended by most modern authors on wealth building…

    …this book details exactly the steps needed to create a fortune in any field…

    …it discusses the methods, what to do, and all the action steps you need to become rich…

    …and as the title suggests, it’s more about how to think properly that will get you the results that you are searching for…

    …now, the book is a little dated, so the English is older and may be harder to understand…

    …if you find it difficult to read then team up with someone who understands older English and create a mastermind around this book…

    …trust me, it is worth it!

  5. The Values Factor by Dr. John DeMartini

    …this book has scientifically tested exercises to follow to reprogram your brain cells to wealth building…

    …you can actually just focus on the chapter on financial freedom and it will probably take you a month or more to finish all of the exercises…

    …however, they take time because they are actually restructuring your brain as you follow them…

    …this book is based on work by Dr. John DeMartini, who has used the exercises time and again with people in his various seminars around the world…

    …I’ve done the exercises in that chapter and it took me about 3 months to complete them…

    …everytime I did an exercise my life and Networth improved…

    …it is because of this book that our business now has capital resources and investments…

    …we have a more sustainable business that we not take seriously…

    …we also have saved thousands in just a year’s time to sustain our personal and business goals…

    …read this book if you want to understand the science of your brain…

    …do the exercises to see results quickly begin to appear in the form of more money in your life…

…I love blogging about Financial Freedom!

…Do you have something that you are passionate about?

…are you a writer who wants to actually profit from your knowledge?

…I seriously suggest that you take up blogging, with our highly profitable Viral Blogging System…

…check it out by clicking below…

Can Playing Robert Kiyosaki’s Cash Flow Game Make You Financially Free?

…can a playing a game make you financially free?

…well, Cash Flow is a game that was recommended to me by one of my financially free friends (became free at 37)…

…he told me to play it every week until I could finish the game in an hour or less…

…truth be told, when he played with us he got out in 20 minutes…

  1. So What is the Cash Flow Game?

    Cash Flow is a board game invented by Robert Kiyosaki’s Rich Dad Poor Dad company…

    …the goal of the game is to:
    1) Get out of the Rat Race
    2) Become Wealthy by attaining $50,000/monthly passive income or Obtaining your dream

    …every player has a cash flow work sheet…

    …in the beginning of the game, they pick a card and that gives them their occupation, salary, taxes, mortgage, debt payments, value of any assets and cash in the bank…

    …all of these are listed on the cash flow work sheet under assets and liabilities…

    …the expenses are added up and subtracted from the income giving a cash flow number…

    …everytime you pass the payday square on the gameboard, you pay yourself your cashflow (income – expenses)…

    …everyone has a game piece which is a different colored rat…

    …you go around a circle in the middle of the board, rolling dice…

    …you land on either a payday square, small opportunity, large opportunity, Market or DooDads…and there are also special squares for charity and if things really go bad…

    …small opportunities give you the options to buy houses or condos, or start multi level marketing companies, or buy shares of stocks, or buy CDs…

    …large opportunities give you the option to buy larger multi unit properties, or other more expensive business opportunities…

    …market brings in factors like how the stock market is doing, or how property values are doing…

    …Doodads are cards where you buy things…

    …the point of this part of the game, the rat race, is to get out…

    … in order to get out, you need your PASSIVE INCOME to be GREATER THAN your EXPENSES…

    …so every turn you have, you track it…

    …when you finally get out of the rat race, then you go into the outside of the board…

    …everyone at the start of the game already chose one of the dream squares to be their dream…

    …so you roll dice and and you buy bigger opportunities and see if you can land on your dream (and have enough cash to afford it)…

    hack image

  2. Is Cash Flow Fun?

    …YES…

    …it’s a board game that you can play with your friends…

    …it’s fun to get out of the rat race and to become wealthy…

    …landing on your dream is especially fun…

    …some people who have mental blocks to math may find it frustrating until they decide to just do the math (which is not hard, just adding and subtracting)…

    …it is told that we play the game the way we play your life, so if you are pretty poor at your personal finances, it may be harder in the beginning to get out of the rat race…

    …or you may want to give up after the first hour if you don’t feel like you are making progress…

    …the longest it took me to win the game was about 2 and 1/2 hours…

    …in my house we play until everyone wins…

    …so it really depends on how you play!

  3. Does Playing The Game Make You Financially Free?

    …well, according to my friend, if you play every week until you get out in under an hour, then you will definitely be more mentally prepared to become free…

    …you see, after playing many times, you automatically start calculating cash flow in your own life…

    …and you pay more attention to PASSIVE INCOME, which is something that I never looked at before in my own life…

    …it’s not how much you make either, it’s how you manage it to get passive income…

    …in the game, the janitor almost always get out of the rat race first…

…have you played Cash Flow?

…What do you think of it?

…Please comment below…

3 Crucial Lessons I Learned From Robert Kiyosaki

…have you had the chance to meet Robert Kiyosaki, the author of Rich Dad Poor Dad and The Cash Flow Quadrant…

…and maker of the game Cash Flow?

…well, if you are interested in becoming financially free, or helping others do so, he is someone who has taught me a lot…

…read on to learn the most important lessons…

 

  1. …how would you like to be financially free at 37 years old?

    …so, when I was introduced to Robert Kiyosaki it was through a friend who was only 2 years older than me at 37 years old, who was already financially free…

    …he told me to play the Cash Flow game every week until I could get out in an hour…

    …why?

    …because playing the game gives you practice to become financially free…

    …it trains the brain to look for opportunities that create passive income, and avoid overspending and buying things that will take money away (liabilities)…

    …it was funny but one of the worst cards to get was the yacht!

    …when you got the boat you had to pay all of these expenses and have to pay a lot every month to house it, insure it…yikes!

    …it was a real wake up call and helped me begin to track my passive income and my expenses…

    …and work on increasing my passive income and reducing my expenses…

  2. …do you think buying the home that you live in is a good investment?

    …think again!

    …did you calculate how much it would cost to pay taxes, insurance, upkeep?

    …did you know that the interest you pay in your mortgage is paid up front in the first 7 years to the bank?

    …did you know if you took the entire 30 years to pay off your mortgage you might be paying double or more of the purchase price in interest?

    …and you have no idea if the value will go up or down…

    …it does not give you any passive income…

    …in fact, you get a mortgage which reduces your cash flow (unless it’s less than your rent)…

    …because of the lessons I learned in the Cash Flow Quadrant, I have never bought a house…

  3. …what type of income earner are you?

    …employee?

    …self employed?

    …business owner?

    …investor?

    …Robert Kiyosaki has a whole book that discusses these four ways of earning an income called the Cash Flow Quadrant…

    cashflow-quadrant

    …the employee and the self employed person trade their time for money…

    …if you own the business and don’t have to work it all day (have systems and other people working it for you)…then you can have time…

    …if you are a good investor and your money is working for you and making a return in passive income…then you have time…

    …the goal is to be a business owner and/or investor if you want time freedom…

…I’d love to hear about your mentors!

…I actually listen to my mentors everyday through an expansive video library…

…click the image below to connect with successful entrepreneurial business owners with time freedom =)

The 5 Most Informative One Minute Book Summaries On Living A Financially Free Life

…want to get more done in less time?

…well, here are 1-minute summaries of great books that I’ve read and you don’t have to, unless you want to…

…find out if they are right for you be watching these 1 minutes summaries…

  1. One Minute Summary of The Four Hour Work Week by Timothy Ferriss

    …a classic book that could make you free in just a few years…

    …not reading this book is literally risking your life…

    …want to get your own copy, click the picture below to get it from Amazon today…

  2. One Minute Summary of It’s Not About The Money by Brent Kessel

    …monk turned financial fund manager and wealth planning expert…

    …he will tell you more than how to get more money, he will tell you how to finally live the life of your dreams by understanding the true nature of happiness…

    …get your own copy by clicking the picture below…

  3. One Minute Summary of Money Is My Friend by Phil Laut

    …do you think money is your friend?

    …you better if you want to have more of it in your life…

    …this book could be a game changer for you…

    …want to read it yourself, click the picture below to get your copy…

  4. One Minute Summary of The Richest Man in Babylon by George Clason

    …one of the best books I’ve ever read on becoming wealthy…

    …it covers all of the basics…in a fun story telling way…

    …I love the chapter on the money lender…

    …and so will you!

    …want to enjoy the book for yourself, grab it from Amazon by clicking the picture below…

  5. One Minute Summary of Cashflow Quadrant by Robert Kiyosaki

    …this is a book that explains how to become financially free…

    …it also explains what everyone is doing in the world to make their money and why some of it works…

    …and shows you how to be one of the small percentage that actually do become financially free…

    …read it and become enlightened…

    …click the picture below to get your own book from Amazon…

Want to listen to business leaders in online marketing teach you how to make more money, create a successful business and become a better leader?

…I listen to audios for hours a day to do just that, and I invite you to check out my library be clicking the image below…