Subconsciously, we do not realize that this programming is the reason why we think, feel, and do things in making decisions about money and wealth.
“These are things I do on a regular basis. These are things that have assisted me greatly in retiring young and retiring rich. I trust they can also be of use to you. Always remember that the process of retiring young and retiring rich is primarily a mental and emotional process…more than a physical process. Once you begin that journey in your mind and in your heart, the rest of you should soon follow."
1. Decide
A person with a poor context will say something like, “I’ll never be rich.” A person with a middle-class context might say, “Job Security is important.” A person with a rich context might say, “I need to increase my Financial IQ so I can work less and make more money.”
2. Find a friend or loved one who wants to go on the journey with you.
Be sure to have friends who demand more of you rather than tell you why you cannot do what you want to do. If you have friends or family who are not committed to improving their financial IQ, life can be a long financial struggle, regardless of how much money you earn.
3. Seek competent advice and begin building your own team of financial and legal advisors.
Your most expensive advise is the free advice you receive from you financially struggling friends and relatives. Financial advisors who did not practice hat they preached or did not buy the investment products they sold you. Again, choosing the right people is a very important skill. People can be either assets or liabilities.
4. Set a retirement date. Sit down with your loved ones, your advisors, and set date for your early retirement.
If you will actually do this process and discuss an actual date with these people, your present context will begin to argue with your future context. It is a great and fun process to go through. You will definitely hear many different realities and different contexts.
5. Write down a plan on a piece of paper once you have set the date for your early retirement.
Put that plan where you can have a look at it every day. Update the plan as you progress and learn more and more. Just because you may be poor today does not mean you have to be poor tomorrow. Becoming rich and staying rich requires a plan and the determination to follow it. One day at a time.
6. Plan your early retirement party.
Be excessive and be lavish. Once you can retire early, money will no longer be a problem. Even if you do not achieve your goal, you will have great fun going through this process. And who knows, you might even have to throw that early retirement party early.
7. Look at a deal a day. Remember it costs you nothing to go shopping.
The point is to do something every day to improve your financial intelligence for at least ten minutes a day. It may be something as simple as reading one article from the money or business section of your newspaper…even if you are not interested in it. It will begin to improve your vocabulary. Listen to financial or business information apes or CDs while you drive or work out at the gym. Attend a financial seminar at least once a year.
If you do not want to pay for a seminar, just look in the financial section o your local newspaper and you will find many free investment seminars. There are even groups or community that offers free courses on a mission to educate people. Even if you do not learn anything, you are bound to meet other people just like you.
8. Remember that all markets follow three main trends.
They are up, down, and sideways. Some markets go up, down, and sideways over years and in less than a minute. That is why when someone advises you to “Invest for the long term” ask them what they mean. Ask them for a more detailed explanation. Most financial advisors are simply parroting what they have been taught by their sales manager so they may have difficult explaining what they say.
9. Go to our Web sites that teach financial literacy regularly.
Think of these websites as the place for people who are going to retire young and retire rich. Ex: Richdad.com, TrumpUniversity.com, and blogs from people who are on their way.
If you do not plan on following your parents’ footsteps and working hard all your life, then start by checking in regularly with Richdad.com. One of the problems with following your parents’ advice no money is that technology and financial IQ are changing faster than most people can change.
Today, it is possible to get rich quickly and stay rich forever if you stay abreast of the changes in technology and financial intelligence. That means it’s getting easier and easier to become rich quicker with more safety. The catch? You need to keep up and keep learning and get good advisors. That is why you want to stay up-to-date, checking in regularly on our Web site.
10. Always remember that words are free.
If you want to get rich quickly, you need a rich vocabulary. Always remember that there are three basic classes of assets. They are businesses, paper assets, and real estate. Each of these assets uses different words. Each of these assets is like a foreign countr with a foreign language. If you are interested in real estate, begin to learn the vocabulary or the jargon. Once you learn the words, you will be better able to communicate to yourself and others in that asset class.
2 Basic types of words:
1. Content words
For example, internal rate of return is an important group of words especially for real estate investors who use a lot of leverage to invest with. Internal rates of return are content words.
2. Context words
For example, when someone says, “I’ll never understand internal rates of return,” this person is describing their mental context about the content words, in this case internal rates of return.
Be aware of constantly improving your content vocabulary and watching your context vocabulary…because words are the tools that power one of your most powerful assets…your brain. Forbid yourself from ever saying, “I can’t afford it.” Or “I can’t do it.” Or “I could never learn that.”
Ask yourself instead, "How can I afford it?” or “How can I do it?” or “How can I learn it?” Remember that a big difference between a rich person and a poor person is simply the quality of their words.
11. Talk about money.
If your friends don’t want to talk about it, you may want to find a new group of friends. In my group of friends, we talk about money, business, investing, successes and problems. Most of my friends are also very rich and do not have the context that talking about money is evil or dirty.
Money is a subject all people all over the world have in common…so why not talk about it?
12. Make a million dollars starting with nothing.
One of the saddest things I see today is people not knowing how to make money out of nothing. It saddens me to see grown, highly paid executives of major corporations know how to spend a lot money, but not really know how to make a lot of money on their own.
With your loved one or friends who are on the journey with you, spend time together brainstorming how you can take an idea and turn that idea into millions of dollars, starting with no money or very little money. This process is like going to the gym for your muscles. This regular exercise strengthens your brain and gets it ready for that moment you make your move.
In Conclusion
Your brain is still your most underused asset. It has plenty of horsepower yet to be used. Lazy people want to get rich quickly, and successful people want to get financially smart quickly and keep getting smarter.
The point is, if you want to retire young and retire rich, and you don’t have much money, education or experience, begin using your brain.
In my reality, it does not take money to become rich. In my reality it does take mental and emotional power.
The final point of all these tips is that none of the above exercises will help you retire young and retire rich if you do them regularly and faithfully. Always remember that your future is determined y what you do today, not tomorrow.
Excerpts from Robert Kiyosaki
Disclaimer:
The owner of this blog does not claim any ownership of any words. Neither does this blog claim accuracy of the letters and wordings from the source.
If you find this intereseting, I would suggest you read more by buying the book.
