Sacred Cow 9 of 11 - Work Hard

Work Hard from Rich Dad on Vimeo.

Working hard for money is an obsolete idea which is making people poorer. As Robert said in the video "people cannot wait for Friday, and dread Sunday." Due to a lack of financial education the harder we work for money the more we pay in taxes.

A transition is moving from one place to another or from one behavior to another.  If we are ever going to Eradicate poverty and Build Wealth, through Financial Education - We must transition form working for money in the income statement.  And, work for Assets  in our financial statements.  If we can work the we will end up paying less in taxes. This was the main lesson I took away from this video.

Additionaly, I thought the example showing 1 gold coing compared to a bag of coins between 2000 and 2010 was amazing. The value of dollars is going down and buying less.  As the dollar loses value, inflation goes up…Inflation cause people to become poorer.

That is all I have for today. Let's Eradicate poverty and Build Wealth, through Financial Education!

I'll end with this question. In what way are you working smarter, rather than harder? Please leaver your comments below.

Sacred Cow 7 of 11 - Get out of Debt

Get Out of Debt from Rich Dad on Vimeo.

Good Debt? Those two words were never connceted in my mind until I saw this video. I would have to agree with Kim Kiyosaki when she said that DEBT was 4 letter word.


I hate being in debt. In fact when the Bible states that "The borrower becomes slave to the lender", I cannot think of a better way to sum up my thoughts on debt. I have placed myself in a bad situation with student loans and credit card debt becasue of my lack of financial education.


I often hear financial gurus state that people do not understand the power of compound intrest. I think people understand it perfectly. They understand it ... In REVERSE. Debtors understand how to pay intrest rather than have it paid to them. At least that is my experience when I think of credit card payments and student loans.


By selling covered calls I have started to receive payments for renting out my stocks. My goal is to cashflow the stocks and re-invest, in order to create a compounding effect. I guess time will tell how effective my plan is.


One more point that I got from the video was the power of collateral. According to one of the members on the rich dad team, Banks lend money on real estate because there is collatoral or something physical.  I believe that I could use that concept in the future build my own business.


Please leave and comments or question in the comment box below.


Have a Great Day. Let's Eradicate poverty and Build Wealth Through Financial Education.

Sacred Cow 5 of 11 - Your House is an Asset

Your House is an Asset from Rich Dad on Vimeo.

One day I would love to own a home. However, it is clear that a house is not an asset. It is clearly a Liability. Living here in Arizona where we are consistently ranked among the top places where foreclosures take place, many people can confirm that their house is not an asset.

In this video we learn that a house can be an asset if we are receiving positive cashflow through rental properties. While I am not in Real Estate, I do apply the concept to paper assets , by treating my stocks like rental property. For more information on how this is done please read the free report below which reveals, “How to Treat Stocks like Rental Property”.

Treating stock like rental property

View more presentations from Demond Johnson.

As Kim Kiyosaki said, “There are 4 asset classes: Business, Real Estate, Paper Assets, and Commodities. I am currently in 2 of the 4 asset classes. The first is paper assets , and, the second is commodities.

By the end of the year I intend on creating a solid business online for a business, but I do not plan on being in real estate this year.

That is all I have for now. Have a great day. Let’s Eradicate poverty and Build Wealth through Financial Education.

PS. If you like my blog please click the follow button in the right column. If you have any questions or comments please leave them in the comment box below.

Sacred Cow 4 of 11 - Live Below Your Means

Live Below Your Means from Rich Dad on Vimeo.

Live below your means... I know this one all to well. This describes my current lifestyle perfectly. I also clearly understand what Robert Kiyosaki means when he says that living below your means kills your spirit. Living pay check to pay check just to pay bills, SUCKS.

Another powerful part in the video was when Kim Kiyosaki says that she never grew up around entrepreneurs or had any wealthy role models. I haven't either. I constantly read books from the RichDad series with the goal of understanding how to CREATE WEALTH and EXPAND MY MEANS.

So far I have only found 2 ways to expand my means in the investor quadrant. The first is buying dividend stocks which pay automatically on the stock payout date. And, the second way is to sell covered calls against stock holdings which allows me to rent my stocks out to bring in income. Covered Calls only require about 1 hour of my time a month to choose the one I want to sell, and I look at my account balance at the end of each day.

I have not learned how to turn this into a BIG BUSINESS yet, but I am working on it by increasing my knowledge. If I can put knowledge of money within me, then it is bound to show up in my reality.

Well that does it for now. Have a Great day. Let's Eradicate poverty and Build Wealth through Financial Education.

PS... Please feel free to leave any questions or comments on this post in the comment box below.

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