Robert Kiyosaki - second chance. Second Chance (2015) Don't be afraid of your debts

Robert Kiyosaki

Second chance

SECOND CHANCE (For your money, your life and our world) by Robert T. Kiyosaki, 2015.

Dedication

This book is dedicated to Dr. Richard Buckminster Fuller (1895–1983).

Dr. Fuller is a person who is almost impossible to describe or categorize. He has been called a futurist, inventor, teacher, philosopher and architect. Twice he was accepted into Harvard University and twice expelled.

Buckminster Fuller has received numerous honorary doctorates, U.S. patents, prizes and awards, notably the Gold Medal of the American Institute of Architects and the Presidential Medal of Freedom from President Ronald Reagan.

Buckminster Fuller's greatest recognition came from his development of the geodesic dome, a design that is used throughout the world today. One such dome is featured at the Future Community Experimental Prototype theme park at Disney World. He was called the first futurist - the man who gave prediction of the future the status of a scientific discipline. Many of Fuller's predictions have already become reality, and many are becoming reality today.

Most of all, Dr. Fuller was loved for his humanity and was called “a planet-friendly genius” and “the grandfather of the future.” In 1982, American bard John Denver dedicated his song “What One Man Can Do” to him.

Pictured above is the Fuller Geodesic Dome US Pavilion at the Expo 67 World's Fair in Montreal.

This book begins with a description of my trip to Expo 67. I hitchhiked from New York to Montreal to see the Fuller Dome... and to see the future.

Acknowledgments

A heartfelt thank you to Mike Sullivan, Rich Dad's CEO, and Shane Caniglia, Rich Dad's President, for taking the company off the ballast of the past and into the future. And for giving Rich Dad Company a second chance.

Special thanks to the Rich Dad team for their support to Mike and Shane at a time when our souls were being sorely tested.

Rich Dad Team

Katie Grady – 2000

Mona Gambetta – 2001

Bob Turner – 2002

Christina Ingemansdotter – 2004

Greg Arthur - 2006

Mike Allen – 2007

Brett Bottesh – 2008

Ryan Nalepinski – 2008

Mike Sullivan – 2009

Shane Caniglia – 2009

Robert Boorman – 2009

Robb Leconte – 2009

Brad Kendall – 2009

David Leong – 2009

Rhonda Hitchcock – 2009

Aidalia Fuentes – 2010

Darrin Moore - 2010

Jack Koch – 2011

Zeke Contreras – 2011

David Adams - 2012

Derek Harju – 2012

Matthew Stein – 2012

Tony Femino – 2012

Melissa Marler – 2012

Josh Nesa – 2014

Matt Quirk – 2014

Acknowledgments

Special thanks to Mona Gambetta. Without her, this and most of Rich Dad's other books would not have seen the light of day. Like the Energizer Bunny, Mona is always willing to work beyond the call of duty, 24 hours a day, 7 days a week. If Rich Dad Company were a military organization, Mona would have been awarded the Silver Star for her courage and bravery.

I'm sure Mona and everyone else at Rich Dad will join me in thanking the Plata publishing team. Each of them contributed to the creation of this book. Special thanks to Rhonda Hitchcock, Steve King, Greg Arthur, Dave Leong, Jake Johnson, Kelly Coppola, Garrett Sutton and Darrin Moore.

I want to thank my wife Kim for being a rich woman with the perfect blend of love, wisdom and beauty and being the source of strength at the heart of the Rich Dad Company.

And of course, thanks to the millions of people around the world who, just like you, read the Rich Dad books, play our games and teach them to their children. Thank you all for driving Rich Dad forward and being an active part of our global mission:

Increase the financial well-being of humanity.

Acknowledgments

Thank you, Rich Dad Advisors, for your willingness to share your extraordinary wisdom.

Blair Singer, Advisor Rich Dad since 1981 on sales and team building issues

Ken McElroy Advisor Rich Dad since 1999 on issues of real estate, debt and capital raising

Garrett Sutton, Esq. Advisor Rich Dad since 2001 on business plans and asset protection

Darren Weeks Advisor Rich Dad since 2001 on issues of entrepreneurship and education

Tom Wheelwright, Certified Public Accountant, Advisor Rich Dad since 2006 on taxes and wealth accumulation strategies

Andy Tanner Advisor Rich Dad since 2006 on paper assets issues

Josh and Lisa Lannon Rich Dad advisors since 2008 on social entrepreneurship and behavior change

Although this book touches on politics and government, it does not contain any hidden political agenda. The author is neither a Republican nor a Democrat. For that matter, he sympathizes with the independent party.

This book uses terms God And spirit. However, this is not a religious book. There is no religious background to it. The author believes in freedom of religion, in the freedom to believe - or not believe - in God.

Preface

We are called to be the architects of the future, not its victims.

Richard Buckminster Fuller

Once upon a time...

America was the richest creditor country in the world.

Once upon a time...

The US dollar was backed by gold.

Once upon a time...

those who printed money were considered criminals and called counterfeiters.

Once upon a time...

a person got an education, got a job, retired young, and then lived happily ever after.

Once upon a time...

Current page: 1 (book has 25 pages total) [available reading passage: 5 pages]

Robert Kiyosaki

Second chance

...

SECOND CHANCE (For your money, your life and our world) by Robert T. Kiyosaki, 2015.

© 2015 by Robert T. Kiyosaki. This edition published by arrangement with the Rich Dad Operating Company, LLC. First Russian Edition: October 2015

© Translation. Edition in Russian. Decor. Potpourri LLC, 2015

Dedication

This book is dedicated to Dr. Richard Buckminster Fuller (1895–1983).

Pictured above is the Fuller Geodesic Dome US Pavilion at the Expo 67 World's Fair in Montreal.

This book begins with a description of my trip to Expo 67. I hitchhiked from New York to Montreal to see the Fuller Dome... and to see the future.

Acknowledgments

Special thanks to the Rich Dad team for their support to Mike and Shane at a time when our souls were being sorely tested.

...

Rich Dad Team

Katie Grady – 2000

Mona Gambetta – 2001

Bob Turner – 2002

Christina Ingemansdotter – 2004

Greg Arthur - 2006

Mike Allen – 2007

Brett Bottesh – 2008

Ryan Nalepinski – 2008

Mike Sullivan – 2009

Shane Caniglia – 2009

Robert Boorman – 2009

Robb Leconte – 2009

Brad Kendall – 2009

David Leong – 2009

Rhonda Hitchcock – 2009

Aidalia Fuentes – 2010

Darrin Moore - 2010

Jack Koch – 2011

Zeke Contreras – 2011

David Adams - 2012

Derek Harju – 2012

Matthew Stein – 2012

Tony Femino – 2012

Melissa Marler – 2012

Josh Nesa – 2014

Matt Quirk – 2014

Acknowledgments

I want to thank my wife Kim for being a rich woman with the perfect blend of love, wisdom and beauty and being the source of strength at the heart of the Rich Dad Company.

Increase the financial well-being of humanity.

Acknowledgments

Thank you, Rich Dad Advisors, for your willingness to share your extraordinary wisdom.

Blair Singer, Advisor Rich Dad since 1981 on sales and team building issues

Ken McElroy Advisor Rich Dad since 1999 on issues of real estate, debt and capital raising

Garrett Sutton, Esq. Advisor Rich Dad since 2001 on business plans and asset protection

Darren Weeks Advisor Rich Dad since 2001 on issues of entrepreneurship and education

Tom Wheelwright, Certified Public Accountant, Advisor Rich Dad since 2006 on taxes and wealth accumulation strategies

Andy Tanner Advisor Rich Dad since 2006 on paper assets issues

Josh and Lisa Lannon Rich Dad advisors since 2008 on social entrepreneurship and behavior change

Preface

We are called to be the architects of the future, not its victims.

Richard Buckminster Fuller

Once upon a time...

America was the richest creditor country in the world.

Once upon a time...

The US dollar was backed by gold.

Once upon a time...

those who printed money were considered criminals and called counterfeiters.

Once upon a time...

a person got an education, got a job, retired young, and then lived happily ever after.

Once upon a time...

all you had to do was buy a house, and when your house went up in value, you became rich.

Once upon a time...

all you had to do was invest your money in the stock market, and when the market went up, you became rich.

Once upon a time...

a college diploma entitled him to a high salary.

Once upon a time...

age was an asset.

Once upon a time...

a retired person could count on being taken care of by Social Security and Old Age Health Insurance.

Unfortunately, these times have sunk into the past. The fairy tale has come to an end. The world has changed and continues to change.

IN: - So what should ordinary people do now?

A: This is what our book is about. You will learn how to give a second chance to yourself, your money and your life.

This book is divided into three parts: "Past", "Present" and "Future".

Past reveals real reasons financial crisis.

The present analyzes where you are today.

Future talks about second chances for your money and your life, and how you can use the opportunities that can be found in difficult times of crisis to create the life you want.

The word “crisis” has become the most important word today. You need to remember that every crisis has two sides: danger And opportunity.

Second chances require you to avoid dangers and were preparing for opportunities, which exist during the period growing global financial crisis.

Part one

Old school

Get an education, get a job, work hard, buy a house, get out of debt and make long-term investments in the stock market.

Preface

I recently stopped by Starbucks and ran into a friend I hadn't seen in years. I was glad to see him, but surprised that he was working behind the counter.

– How long have you been working here? – I asked.

“About five months,” he replied, taking my order.

- And what happened? – I asked.

– After the market crash in 2007, I lost my job. I found another place, but that company soon collapsed. Our savings quickly ran out and we ended up losing our house. We just couldn't pay for it anymore. But don’t worry,” he continued, “we are working.” We are not on welfare. We both have jobs, but they pay very little. So I work part-time here at Starbucks to make a couple extra bucks. Feel the pun: I work for bucks at Starbucks!

Having said this, he laughed loudly.

Stepping aside so that the customers behind me could place their orders, I asked:

– What are you doing for your future?

– I went to study again. I'm going to get another master's degree. You know, it's quite funny to be a student again. Sometimes I even attend lectures with my son. He will soon receive his first master's degree.

– Did you take out an education loan?

- Yes. What else can we do? Of course, these are enslaving loans. I'll have to pay for the rest of my life mine. It's good that my son will have more time to pay off his loan. But we all need additional education. Only then will we have a chance to find a well-paid job. We need to make money. You need to earn a living. That's why you have to study.

After paying, I received a cup of hot coffee. When I offered a tip to my friend, he refused, and I understood why he did that. So I wished him luck and walked out the door.

The first part of this book is devoted to the past. More precisely, how we got to the global financial crisis.

George Orwell wrote in 1984:

In times of universal deception, telling the truth is a revolutionary act.

Chapter first

Why the rich don't work for money

They use money for fraud... Our wealth is stolen through the money we work for.

Richard Buckminster Fuller

Rich Dad Poor Dad was published in 1997 with our own money because all the major publishers we approached turned us down. Some of them sarcastically declared: “You don’t know what you’re writing about.”

They especially objected to some of my rich dad's statements, such as:

1. Your home is not your asset.

2. Savings holders lose.

3. Rich people don't work for money.

Ten years later, in 2007, the subprime mortgage crisis hit and many home owners learned the hard way that their home was not an asset.

In 2008, the US government and the Federal Reserve Bank began printing trillions of dollars and millions of savers lost out as the purchasing power of money fell due to inflation, higher taxes, and lower interest rates on their savings.

Rich Dad's number one lesson in Rich Dad Poor Dad was, “Rich people don't work for money,” and of the three money statements listed above, it was the least criticized. In this chapter, you will learn why this statement is the most important of my rich dad's lessons and why it is important to understand before you consider your options for second chances—both for your money and for your life.

What you need to know about money

The topic of money can be complex and scary. But if you start with the basics and use them as building blocks, you can gain the knowledge you need to understand the intricacies of money, learn the principles of investing, and understand how to make money work for you.

First of all, you need to understand that money is a thing in handling which you you can achieve mastery, a thing that can give you the confidence to make informed and smart decisions.

IN: - Who needs a second chance?

A: – All of us.

IN: - Why?

A: – Because money – and our ideas about it – have changed and continue to change.

IN: - Why is it important?

A: – Because the poor will become poorer, the middle class will shrink, and the rich will get richer.

IN: - But everyone knows that it has always been this way. The rich get richer and everyone else gets poorer. What could be new in this process?

A: – That many people who are rich today will become the new poor.

IN: - Why will rich people become the new poor?

A: – There are many reasons. One is that many rich people measure their wealth in terms of money.

IN: - What's wrong with that?

A: – That money is no longer money.

IN: - But if money ceased to be money, then what became money?

A: – Knowledge has become the new money.

IN: - Are you saying that since knowledge became money, many poor and middle-income people today have the opportunity to become the new rich tomorrow?

A: – Absolutely right. In the past, the rich were those who controlled land and resources such as oil, weapons, and giant corporations. Today the situation has changed. We live in the information age - and information is available in abundance and can often be obtained for free.

IN: - But then why doesn't everyone become rich?

A: – In order to turn information into knowledge, education is required. Without financial education, people cannot turn information into personal wealth.

IN: - But America spends billions on education. Why then are there more poor people than rich people?

She formal Hundreds of billions of dollars are spent on education, and financial almost nothing stands out.

IN: - Why is financial education not included in educational programs?

A: – I have been asking this question for many years – since I was nine years old.

IN: - And what did you manage to find out?

A: – I learned that knowledge gives power. If you want to control people's lives, limit their access to knowledge. This is why, throughout human history, despots have burned books and exiled (or even killed) those who possessed knowledge and threatened their power. Before the American Civil War, many states prohibited the teaching of slaves to read and write. Knowledge is the most powerful force in the world. That is why control over them is a prerequisite for maintaining power.

The formula is:

...

Information × Education = Knowledge.

Knowledge is strength, lack of knowledge is weakness.

My poor dad was a highly educated man with a Ph.D., but little to no financial education. He had authority in the education system, but very little power in the real world.

My rich dad did not graduate from high school, but he received an excellent education in the world of money. And while he was no match for poor dad in terms of formal education, he had much more power in the real world.

IN: - This means that those in power maintain their power through the education system by determining what to teach and what not to teach. So why is financial education not included in school curricula?

A: – I am sure that this is the reason. Today, financial knowledge gives more power than the guns, whips and shackles of slavery. Lack of financial education makes slaves of billions of people around the world.

IN: - What replaced guns, whips and shackles?

A: – Monetary system.

IN: - Monetary system? Our money? But how can a monetary system provide power over people?

A: – The monetary system is needed to keep people poor, not to make them rich. The monetary system is designed to force people to work hard for money. Money enslaves those without financial education. People without financial education become wage slaves.

The best way to steal our wealth is money - the very thing for which most have to work their whole lives. This is why the people who work the hardest for money, the so-called “working poor,” continue to get poorer rather than richer, no matter how hard they work.

IN: - But how exactly is our wealth stolen through money?

A: – There are many ways. You may already know some of them. Here they are:

1. Taxes

The value of your labor is stolen through taxes.

2. Inflation

When the government prints money, prices rise. Rising prices force people to work more in order to pay more money for taxes and inflation.

3. Savings

Banks steal savers' wealth using what is known as fractional reserve banking. Let's assume that the reserve ratio is 10. This means that if a saver deposits $1 into his savings account, that $1 deposit allows the bank to lend $10 to borrowers. Essentially, this is another way of printing money, which not only fuels inflation, but also reduces the purchasing power of the investor's money. And this is just one of many reasons that confirms what rich dad said: “Savers lose.”

Later in this book, I will talk about other ways in which money is stolen from you. As I said before, “a monetary system is meant to keep people poor, not to make them rich.”

IN: - Can you prove it?

A: – Since a picture is worth a thousand words, I will show you a diagram. Of course, it cannot serve as evidence, but it does tell a story about the growing number of people in need of government help.

War on Poverty

In 1964, President Lyndon Johnson announced the beginning of the War on Poverty. Many believe that we won this war. Many people don't believe it. The chart below shows the number of people covered by the American Grocery Relief Program. Contrary to the belief of many that we have won the war on poverty, the rise in the number of people surviving on food stamps paints a very different picture.

The chart shows that in 1975, approximately 17 million people received food stamps. By 2013, this figure had increased to 47 million and continues to grow.

...

Number of food stamp recipients (annual)

www.trivisonno.com

IN: - If the number of poor people is growing, where do they come from?

A: – They are supplied by the middle class. Many of today's poor were quite prosperous members of the American middle class a few years ago.

War on the middle class

...

The number of families whose earned income corresponds to the middle class level is steadily decreasing

In addition to the stagnation of middle-class income growth, since the early 1970s there has been a downward trend in the number of families with middle-class earned incomes. The share of American families earning between 50 and 150 percent of median income was 42.2 percent in 2010, up from 50.3 percent in 1970.

Percentage of families whose annual income is 50 percent of the median

Second Chance Robert Kiyosaki

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Title: Second Chance
Author:
Year: 2015
Genre: Foreign business literature, Popular about business, Management, personnel selection

About the book “Second Chance” by Robert Kiyosaki

“Second Chance” is an excellent business book that is dedicated to the topic of management. Recruiting personnel, running a successful business - all this is written in Robert Kiyosaki’s book “Second Chance”. Read quality business literature to help guide you in the world.

This amazing book was written for those who clearly realized that it was time to start in a new and big way. This literary work is dedicated to those people who realize that it is insanely stupid and vulgar to accumulate currency and banknotes, because every day banks all over the world print editions of euros and dollars. Why invest thoughtlessly for the long term if you need to start living right now? “Second Chance” speaks precisely to these moments. Financial markets are experiencing crashes and declines. And, as Robert Kiyosaki writes, it is very thoughtless to send your child to a comprehensive school because there are no subjects on financial literacy. Who will give your child the right financial education? That's right, certainly not general education teachers. On the pages of his most popular best-selling book, Robert Kiyosaki “Second Chance” will be able to tell you in the most detailed way about the dangers, risks and opportunities that a person has in the vastness of the global economic crisis.

It is not for nothing that “Second Chance” is today considered a recognized worldwide bestseller. This book is published and reprinted. There are even audio versions of it coming out.

Robert Kiyosaki decided to fully reveal the meaning of the Chinese character for “crisis”. In Chinese writing, the word “crisis” is the character for “opportunity” and the character for “danger”. And now the writer gives his version of the answer to what a financial crisis is, what is the main dissatisfaction of the financial system. This book, if you start reading it carefully, will allow you to get a real second chance to start living from scratch. If you read this work of fiction and business carefully, you will understand that making smart decisions is not difficult. You will quickly learn this simple art. And then new opportunities, prospects, and monetary moments will open up in your life.

Robert Kiyosaki decided to destroy the idea of the monetary system in the pages of his monumental work “Second Chance”. He proved that this knowledge is mythological. The writer teaches how an ordinary citizen can get out of the “circle” of devaluation and inflation. Read this work, learn and reach a new level. We are confident that you will succeed. The book is sobering and insightful. Many of the writer’s thoughts seem wild and absurd (for example, about the fact that debt only makes a person richer), but they really work. You need to cultivate yourself and raise a new generation of people on such financial literature.

On our website about books lifeinbooks.net you can download for free without registration or read online the book “A Second Chance” by Robert Kiyosaki in epub, fb2, txt, rtf, pdf formats for iPad, iPhone, Android and Kindle. The book will give you a lot of pleasant moments and real pleasure from reading. You can buy the full version from our partner. Also, here you will find the latest news from the literary world, learn the biography of your favorite authors. For beginning writers, there is a separate section with useful tips and tricks, interesting articles, thanks to which you yourself can try your hand at literary crafts.

The author of the financial bestseller “Rich Dad Poor Dad,” Robert Kiyosaki, in his book “Second Chance” calls for forgetting about generally accepted norms in order to become richer. His views are often criticized (saving money is madness, and higher education is wasteful), but those who want to gain financial independence should definitely read it. We publish the most important points from his bestseller.

How I found my second chance

In the fall of 1985, the tide of life took us Robert Kiyosaki and his wife Kim to Australia, where we found others who liked what we taught. We used games to teach people about socially responsible entrepreneurship and investing. By December 1985, one of the seminars we held in Sydney had brought us a small profit, and this is one of the reasons we love Australia and Australians. We let go of our entire past, and the flow of life brought us to Australia, where the Australians gave us the chance to become good teachers.

Once Kim and I became clear about our purpose, the educational company we started began to expand. We have branches in New Zealand, Canada, Singapore and Malaysia. In the United States, our business was booming.

Ten years later, in 1994, we sold this business to our partner. At that time, Kim and I had already achieved financial freedom. Kim was 37 and I was 47. We achieved financial freedom without a day job, without government assistance, and without a retirement portfolio filled with stocks, bonds, and mutual funds. When people started asking us how we achieved financial freedom without traditional investment and retirement plans, Kim and I knew it was time to take advantage of our new second chance.

Following one of Buckminster Fuller's general principles (a principle that applies in all cases without exception), we created the following business - a company that today is called Rich Dad. The general principle we followed was: “The more people I serve, the more effective I become.” Determined to serve more people, Kim and I began improving the CASHFLOW® game and I sat down to write Rich Dad Poor Dad. The official opening of the Rich Dad company took place on my 50th birthday, April 8, 1997. Our mission is formulated briefly and clearly: “To raise the financial well-being of humanity.”

Serve more people with your business

As I take my second chance, I try my best to follow this general principle when making business decisions. Instead of caring only about my own enrichment, I began to train myself to think about how to make not only myself richer, but also others. This generalized principle helped Kim and I decide to sell the seminar company we founded to a partner. Although the business was quite successful, it was limited in terms of the number of people we could serve. It was not easy for us to part with this business, which we loved, successfully built and made profitable. However, we intuitively knew that it was time to move on. It's time to find ways to serve more people.

In 1996, the first commercial version of our game CASHFLOW® was presented in Las Vegas and Singapore. The next step was to develop a marketing plan to sell this game. In 2004, the New York Times newspaper dedicated an article to CASHFLOW® gaming clubs entitled “Money Game is More and More Valued,” where, in particular, it was reported that the number of such clubs worldwide had exceeded 3.5 thousand. Many of these clubs still exist today, continuing to serve more people than Kim and I could ever reach on our own.

Q: If you want to serve more people, why don't you offer the game for free? A: We've considered using government grants to fund game production, but that would be trying to get people into a poor dad mindset instead of trying to encourage them to adopt a rich dad entrepreneurial mindset. Moreover, when people are offered something for free, it often does not make them want to escape poverty. They develop a benefit recipient mentality, which destroys initiative and a sense of personal responsibility.

For those of you who are serious about taking a second chance in your relationship with money and your life, I encourage you to ask yourself, “How can I serve more people?” - instead of asking the question “How can I make more money?”

Words can make you rich

Injustice is financial ignorance. Today, almost all people in all parts of the world are being robbed of their wealth through the financial system, that is, through their money. And the saddest thing is that most of them don't realize it. The main means of removing wealth are work, savings and investments in the securities market.

Millions of people live in poverty or struggle for financial survival simply because they use the wrong words. Millions of people are in desperate financial straits because they treat their liabilities as assets. Rich dad's definitions were simple and straightforward. He said: “Assets put money in your pocket. Liabilities take money out of your pocket.”

At the age of nine, I already knew that I was going to become a rich person because rich dad taught me the meaning of financial words. I knew I would be rich because I knew the difference between assets and liabilities. At the age of nine, I knew that my main task was to acquire assets and minimize liabilities.

Entrepreneur works for assets

Millions of people struggle financially because they call their homes and cars assets instead of liabilities. But the sad thing is that most people have no idea what an asset actually is.

Instead of focusing on the word savings, we focused on the word debt and used debt to acquire assets. When children are told to “go to school, work hard, save money, buy a house (because owning a home is an asset), get out of debt, and invest long term in the stock market,” they are blinded by words. People cannot see the world of the rich on the opposite side of the coin.

Take the time to make a written list of all your property and divide it into assets and liabilities. The asset-liability test is very simple: if you stop working, what will bring you money and what will suck money from you? Most poor and middle class people have only liabilities - but no assets. Most pension plans are non-asset based. These are unfunded liabilities from which money will begin to leak, at best, after you are unable to work. The moment people start looking for assets they can acquire or build, their world begins to change. They begin to see the invisible.

Self-employed people work for money. Entrepreneurs from the quadrant work for assets. For example, a real estate agent is classified as self-employed because he works for money or commission. A real estate entrepreneur works to acquire properties that are assets and produce cash flow.

Find your favorite assets

In any financial statement, assets are divided into four main classes: business, real estate, securities, goods. Take a moment and ask yourself which asset class (or classes) you are most interested in. In this case, the answer cannot be right or wrong.

Second chances start within you. I encourage you to take enough time to become familiar with all four asset classes so that you can delve into the topic and study them thoroughly. If none of them turn out to be love at first sight, then take a break and wait until you find an asset class you can fall in love with.

Always remember the ironclad rule: “The best investments are never advertised.” The key word here is never. The best investments, regardless of asset class, are always offered to insiders, members of a small circle. Your goal should be to become such a good investor, rich and knowledgeable, that you can enter the inner circle and gain access to inside information. As you may know, insider trading in a public market like the stock exchange is illegal. However, insider investing in private markets is perfectly legal. For example, when the Chinese company Alibaba went public, its shares were sold to outsiders. But insiders took the lion's share of the profits - long before Alibaba was offered to the public.

Be a generalist

Unfortunately, statistics show that nine out of ten new businesses will not survive the first five years. The reason most businesses fail is because traditional education trains students to become experts. And entrepreneurs must be generalists.

Q: What is the difference between specialists and generalists? A: A specialist knows a lot about a little. A generalist knows a little about a lot of things. Q: And why do specialists fail? A: They lack the business skills needed to be entrepreneurs, skills that are not typically taught in school. Q: Name one skill that is not taught in school. A: Entrepreneurs must know how to sell. If they don't know how to do this, they won't be able to feed themselves. Many people don't quit their jobs because their income in this job is higher than what they can get from sales. Q: What do you mean by this? A: Let's assume that a person receives a salary of 10 thousand dollars per month. If he becomes an entrepreneur, his income from sales must be at least 50 thousand dollars. Q: Why must sales income be at least $50 thousand? A: This is a simple rule of thumb. The ratio should be approximately 5:1. For every dollar you earn as an employee, you need to earn at least five times that amount as an entrepreneur. This is the only way you can feed yourself and your business. When you become an entrepreneur, you have expenses that employees don't have. These are the costs of producing a product, costs of equipment, costs of doing business, taxes, fees for specialist services, etc.

Research shows that most entrepreneurs make less than the people they hire based on the number of hours they actually work. For example, many entrepreneurs get down to business after their employees' workday ends. The employee goes home and enjoys life, while the entrepreneur's working day is just beginning. Employees and self-employed persons are specialists. Entrepreneurs are generalists.

Don't be afraid of your debts

Most financial experts advise people: “Get rid of debt. Live debt free." Living debt-free may be good advice for people without financial education, but it is not sound financial advice. In the world of money, there are two types of debt: 1. Good ones. 2. Bad.

Simply put, good debt makes you richer, and bad debt makes you poorer. It's no surprise that millions of people without financial education (and the United States as a nation) have accumulated mountains of bad debt. For example, when I buy an apartment building, I use debt to finance the transaction. If these apartments bring money into my pocket every month, then this debt of mine is good. But if my apartments are losing money every month and I have to pay the mortgage myself, then that same debt becomes bad. Let me repeat again: only cash flow allows you to determine whether a particular debt is good or bad.

Don't save money

Many financial experts say: “Save, put off and put off again, denying yourself everything.” A person in his right mind would probably ask: “Why save money when governments are printing it?” By saving money, we lose our wealth.

Q: But what is the opposite of saving? Accumulating debt? A: Yes and no. Debts by themselves do not solve the problem. They are only part of the solution. The opposite of saving is what is called “money velocity.” Most people "park" their money in places where it is kept in the form of savings or investments in retirement plans. Smart people make their money work by putting it into circulation. Simply put, when money stops flowing, it loses its value. If money works, its value increases.

Train your intellect

I have been teaching professionally since 1984. The more people I taught, the more I became convinced that there are four types of intelligence: 1. Physical. Outstanding athletes have good physical learning abilities. Physical intelligence is concentrated in the muscles. As golfers say, you need to develop muscle memory. 2. Mental. Most students who do well in school have good mental learning abilities. Mental intelligence is located in the brain. That's why people say, "Let me think about it." 3. Emotional. This type of intelligence is called success intelligence. The better a person's emotional intelligence, the better they can cope with life's challenges, such as fear, loss, anger and boredom. Emotional intelligence is located in the belly... or in our gut. 4. Spiritual. Artists, poets and religious leaders have highly developed spiritual intelligence. It is located in the heart.

Rate your four types of intelligence. Use a scale of 1 to 10, with 10 being the highest. 1. How strong is your physical intelligence? 2. How strong is your mental intelligence? 3. How strong is your emotional intelligence? 4. How strong is your spiritual intelligence?

If you score more than 30 points, then you have a very good opportunity for a second chance in your financial life. If the total score is below 30, then find a friend you trust and discuss your strengths and weaknesses with him. For a second chance, you will need to develop and use all four types of intelligence.

Change your attitude towards wealth

For many years, television producers called me, asking if I would like to organize such a television image show. They wanted me to take the “poor man on the street” and turn him into a real rich man. Each time the discussion came to the same questions: “Can this be done?” and “How could we do this?” - and every time it all ended with the same question: “How does a caterpillar turn into a butterfly?” The fact is that external and internal transformation are completely different things. Repainting an old house or choosing a beautiful outfit for someone is not difficult at all. All these are just external transformations. But how to turn a person from poor to rich? Clothes and cosmetics alone are not enough for this. This requires internal transformation. A poor person becomes a rich person as a result of an invisible transformation - and this process is much more complex than simple painting work. Internal transformations are bad material for reality television because they are invisible. These transformations are associated with a change in the internal context - what people think about themselves, their money and decisions. I know that this can be shown, but so far TV producers, and myself, have not yet found a format suitable for this purpose.

Much of the blame for today's economic crisis lies with people who want to look rich on the outside but are not rich on the inside. A striking example of the perniciousness of this human tendency was the subprime mortgage crisis. Millions of poor and middle-class people with no jobs, no income, and no assets were given loans so they could buy a home or refinance the debt on an existing home with loans they would likely never be able to repay. The banks then repackaged these subprime loans as derivatives and sold these “weapons of mass financial destruction” to a money-hungry world. In other words, the pressure to appear rich on the outside can cause ups and downs in the real estate and stock markets and lead to skyrocketing consumer credit card debt (and even student loan debt).

This book is not about external transformation. The idea of a true second chance has nothing to do with remodeling the kitchen, painting the house, getting new clothes, losing a few pounds of excess weight, and going back to school to get an education and a high-paying job.

The book is provided by the publishing house "Potpourri"

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