Monday, May 30, 2011

Applying Kiyosaki's So Called "Unfair Advantage"

When I facilitate groups with my kids at work,  one of the concepts that I teach them is called "LAP". This is an acronym which means: Learn, Apply, and Practice. The video above is called An Unfair Advantage, which refers to the advantage that a person has when they have learned, applied, and practiced effective financial education. In an earlier post a projection of a penny compounded was shown over a 30 day period. In this article I want to focus on the first 20 days.  I will use the first 20 days as targets to aim at as I write my blog articles. 

Targets 1 through 6 seem to have already been achieved based on my current investing.  Targets 7 through 13 are so small that I am almost embarrassed to mention them, yet they are necessary steps that need to be taken in order to get to higher levels. Targets 14 through 17 would relieve some financial pressure. And, Targets 18 through 20 would create life style upgrade.

Target 1 ------------------------------>$0.01
Target 2------------------------------> $0.02
Target 3 ------------------------------>$0.04
Target 4------------------------------> $0.08
Target 5 ------------------------------>$0.16
Target 6 ------------------------------>$0.32
Target 7 ------------------------------>$0.64
Target 8 ------------------------------>$1.28
Target 9 ------------------------------>$2.56
Target 10 ------------------------------>$5.12
Target 11------------------------------> $10.24
Target 12 ------------------------------>$20.48
Target 13 ------------------------------>$40.96
Target 14 ------------------------------>$81.92
Target 15 ------------------------------>$163.84
Target 16 ------------------------------>$327.68
Target 17 ------------------------------>$655.36
Target 18 ------------------------------>$1,310.72
Target 19 ------------------------------>$2,621.44
Target 20------------------------------> $5,242.88

As a youth counselor I have never earned over 30 thousand a year. Targets 19 and 20 would create financial independence and wealth for most people in my peer group.  The challenge is to figure out how to bridge the gap between Target 7 and 18.

All I can do at this point is take one step at a time. I currently earn approximately 60 cent a month through dividends. I know this is not a lot of money but it is a start. I will start saving at least 30 dollars a month and invest that money into dividend paying stocks. When I have built up enough money I will move into covered calls. My next target is to raise my 60 cent in income to at least 64 cent.

What are your Financial Targets? Please tell what they are in the comment box below.