Self-fulfilling prophecy.

How can I afford it?

1. Money is an idea
2. Money does not make you rich
+ That’s why gamblers or lottery winners are not rich
3. 2 kinds of money problem: not enough and too much.
+ Everybody has money problems.

4. Five different levels of Investors:

+ Level 1: The zero-financial-intelligence Level
- Low financial-intelligence level
- Everything bought you buy loses value or costs your money.
+ Level 2: Money savers.
- Bonds, retirement plan, bank deposits are not safe as you think.
- Inflations and taxes.
- Is a strategy for people who do not want to learn anything.
- Bond market is the biggest market in the world simply because most
people are savers, not inverstors.
+ Level 3: The I’m-too-busy level
+ Level 4: The I’m-a-professional level.
- Assets: Business, Real Estate, Paper, Commodities.
- The fear of investing does not frighten, but challenges them.
+ Level 5: The Capitalist Level
QUESTIONS:
1. What level of investor are you?
+ Level 2 and 1.
- Low financial-intelligent.
- Having an inclination to be a saver, not investor.
- I have time to learn.
2. What level of investor do you want or need to be in the near future?
+ In the near future, How can I do to achieve level 4?
NOTE: In order to become a level-5 investor, we must develop prerequisite skills
as a level-4 investor.
“MONEY IS SEEN WITH YOUR MIND”
+ “It’s not what your eyes see”. A piece of real estate is a piece of real estate. A
company’s stock certificate is a company’s stock certificate. You can see those
things.
+ But the really important things here are those you can’t see. These are deals,
financial agreements, the market, the risk factors, the cash flow, the tax laws, etc.
+ Some of the important questions:
- Why would you pay such a high interest rate?
- What do you figure your ROI to be?
- How does this investment fit into your long-term financial strategy?
- What vacancy factor (rate) are you using?
- Have you checked the association’s history of assessments?
- Have you figured in management costs?
- What percentage rate did you use to compute repairs?
- Did you know that the city has just announced it will be tearing up
the roads in that area and changing the traffic pattern?
FORMULA: BE-DO-HAVE
+ Can’t change our surroundings. Focus to change your thought first.
YOU need to change your mindset first.
+ Don’t copy what the rich buy or how they live. Copy how they think and who
they are at their core being.
+ When it comes to risking money, we all experience fear, even the rich. The
difference is how we handle the fear. The rich will play smart and learn to manage
the risks. In contrast, the poor will play safe.
 Same emotion, different thought: Different being--- Different doing---
Different having.
“Thought about money: I can’t afford this land either. But my business can.”
1. Ultimately, invest in stock or real estate are all investing business.
2. The worst way to invest is to invest by individual. (investing through
business is the best way).
1. Fill out your own personal financial statement. In order to get where you want to go, you
need to know where you are. This is your first step to take control of your life and spend more
time minding your own business. See the following sample financial statement, as used in the
CASHFLOW game.
2. Set financial goals. Set a long-term financial goal for where you want to be in five years, and
a smaller, short-term financial goal for where you want to be in one year. Set goals that are
real- istic and attainable.
A. My five-year financial goals are: 1) I want to increase cash flow (i.e., passive income—
income you earn without you having to work for it) from my assets to $_______per month. 2) I
want to have the following investment vehicles in my asset column (e.g., real es- tate, stocks,
businesses, commodities) ______________________________
B. My one-year financial goals are: 1) I want to decrease my debt by $_______.