the consumer economy and “rich dad. poor dad.” what the wealthy teach their kids about money...
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The Consumer Economy and
“Rich Dad. Poor Dad.”
What The Wealthy Teach Their Kids
About Money
That The Poor And Middle Class Don’t.
The Consumer Economy
Continuous growth through continuous consumption.Most of us define ourselves in terms of: How much and what we consume. Our role in the making of what we consume. Our ability to persuade others to consume.
Its philosophy is spreading throughout the world.“If your reason for becoming rich is so that you can look rich, you will never become rich.”
The Consumer EconomyWe are a free country, not necessarily a fair country. We are all free to fail.
We’re being brainwashed to be “Good Employees.”
What’s said: Go to school Study hard Get good grades Get a good “JOB” Work hard
What’s NOT said: So you can consume lots of stuff. And look like you’re wealthy.
Why aren’t we learning/being taught about Wealth?
The Consumer Economy
“J.O.B.” for most of us means “Just Over Broke.”
A job is a short-term solution to a long-term problem. What’s that problem?
The wealthiest people I know all have their own businesses.
Most of the following ideas about money and wealth creation are From Robert Kiyosaki and his partner and co-author, Sharon Lechter.
I highly recommend that you study their writings more deeply on your own.
Some Books and Resources by Robert Kiyosaki and Sharon
Lechter
Rich Dad. Poor Dad.
Who Took My Money
Cashflow Quadrant
Cashflow Game
Cashflow, The E-Game
Rich Dad’s Guide to Investing
Retire Young. Retire Rich.
Rich Kid. Smart Kid.
Financial IntelligenceIt is not your boss’ job to make you wealthy or secure. It’s her job to give you a paycheck . . . nothing more.Making more money will not solve your problem if money management is your problem.
The key is not how much you make. It’s:How much you keep. (Delayed gratification)How hard it works for you. (Smart investing)How much you have left over for family and
your favorite charities. (Giving back)
Financial Intelligence
Money is a drug.Money pushes you around. You will obey those who provide or take your money. Employers/BossesBill collectorsTax collectorsLandlordsFamily and friends
Will you push back?
Financial IntelligenceQuestion: Are you smarter than your money?
Answer: Do you work for money, or does money
work for you?
Your money can work for you, or it most certainly
will work for someone else.
When money works for you, every dollar is an
employee. Each dollar works to bring you even
more dollars while you’re asleep.
That’s called Passive Income.
Sources of Passive Income“What do you do?” versus “What do you own?”“What investments do you own that brings you passive income?” Interest from savings and CD’s Dividends from stocks Assets that appreciate in value (e.g., stocks, real estate) Self-operating businesses that generate cash (e.g., income properties,
websites, network marketing) Royalties from books, software, games, patents, licensing, franchising fees,
etc. Residuals from acting, music, software, games, etc. Profit-sharing arrangements by consultants, celebrity, endorsers Residuals for insurance and securities agents’ sales Pensions, retirement plans, Social Security
Financial Intelligence
“Being Rich” and “Being Wealthy” are not the same.
Being Rich is about how much money you possess.
Can a person be rich and poor at the same time?
Being Wealthy is about having Passive Income that equals or exceeds your lifestyle. Therefore, you never have to work another day in your life.
How long you can survive without ever having to go to work?
Financial IntelligenceYou have two professions: One for you and one for your money.So you must find a job for your money that is: Safe Pays well Receives great benefits Free from abuse and thief
You wouldn’t hand your children over to total strangers for their care and keeping. Why do you do it with your money.Take care of you money and it will grow and multiply and take care of you.
Financial IntelligenceRich Dad/Poor Dad’s Basic Philosophy
Know the difference between an ASSET and a LIABILITY, and only buy assets.A True Asset gives a positive cash flow each
and every month.
Live below your means, while constantly increasing your means.
Make your PASSIVE INCOME cover your Lifestyle Expenses forever.
Entrepreneurs: The Driving Force Behind Small and Micro Businesses
Entrepreneurs: The Driving Force Behind Small and Micro Businesses
The Age of the Entrepreneur
A new business is born in the U.S. every 11 seconds. Study of influential Americans: THE defining trend of the 21st century is Entrepreneurship. Entrepreneurs launch 3.5 to 4.5 million businesses a year in the U.S.The Micro-Business: 14% of Inc. magazines top 500 fastest growing businesses were started with less than $1,000.Survey of college seniors: 49% of men and 31% of women said they were interested in pursuing entrepreneurship after graduation.
Small Businesses...Are defined as having less than 100 employees and $10 million in sales.Make up 98.5% of all the businesses in the U.S.Employ 52% of the nation's private sector workforce.Create more jobs than big businesses.Lead the way in training workers for jobs. Produce 51% of the nation's GDP.Account for 47% of business sales.Create 4X more innovations perR & D dollar spent than medium-sized firms and 24X as many as large companies.
What Is an Entrepreneur?
A person who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to exploit those opportunities.
Types of EntrepreneursClassic Entrepreneurs start a business from scratch and does whatever it takes to make it strong and profitable.Managerial Entrepreneurs take over when the business is up and running and use their management and communication skills to keep it operating smoothly. These businesses need a careful, polished hand. So these CEO’s are as much concerned about protecting the existing asset as they are about making it bigger.Most entrepreneurs are either one type or the other, not both.
Entrepreneurs and Business Models
Entrepreneurs design and execute Business Models to exploit opportunities they’ve identified.Business Models are systems or formulas generate revenue for the business. “Am I hauling buckets or building a pipeline?” Can you make a better hamburger than McDonald’s? Can you
build a better system for making burgers than McDonald’s?
There are tons of great ideas, but few great models/systems.Success = A Good Model/System + DisciplineHow good is your personal business model?
Business Model vs. Business Plan
A Business/Revenue Model is a one-page diagram that describes the specific way the business expects to make money. Certainly there can be extras - notes and explanations - but the business model itself is a single concept.
A Business Plan is a detailed document, typically 50 to 100 pages, with a lot of financial projections. If you want investors or to apply for a loan for a new business, a business plan is expected.
Marshall Reddick Real Estate Network
Business Model
EscrowEscrow
SoCal CollegeSeminars
SoCal CollegeSeminars
SoCal ClubMeetings
SoCal ClubMeetings
NationwideBrokers
NationwideBrokers
SelectProperties
SelectProperties
CollectCommission
CollectCommission
SoCal Prospects
Close Sale
Close Sale
FinancingFinancing
PropertyManager
PropertyManager
E-CommerceWebsite
E-CommerceWebsite
World Prospects
Simple Product-First Business Model
“Make It, and They Will Come.”
Select/MakeProduct
Select/MakeProduct
DecideMessage
DecideMessage
SelectMedia
SelectMedia
GetConsumers
GetConsumers
Customers needwhat I think they need.
“Here’s the product.It’s what you need.It’s the best.”
Spray and pray. Repeat process.
Simple Customer-First Business Model“Let’s Go Fishing.”
DecideCustomers
DecideCustomers
SelectMedia
SelectMedia
DecideMessage
DecideMessage
MakeProduct/Brand
MakeProduct/Brand
What’s my favorite fish?What’s my Niche?Am I passionate?Do I have expertise?
Which ponds have my favorite fish?Find Big, Addicted fish--high probability prospects.
What bait aremy fish eating?Find a CompetitiveAdvantage.
Start fishing.
BuildDatabase
BuildDatabase
Stock yourPrivate Pond
TestTest
Decide Your Customers
Do you have a passion, hobby, interest or talent (PHIT)? How many people/businesses share your PHIT? Do you know what makes them tick? How/what have competitors marketed to them in the past? Where/how can you learn more about your PHIT?
Do you have a particular knowledge base, expertise, or skill (KES)? How many people/businesses need your KES? How have competitors provided your same KES? Where/how can you learn to get more KES?
Ideas for Micro BusinessesNetwork Marketing CompaniesList of Network Marketing Companies
Online Auctions E-Bay Yahoo Overstock.Com
Retailing/Wholesaling Café Press Amazon
Info-preneurship Books, manuals, newsletters, CD’s, podcasts, teleseminars
Finding Existing Business to Buy BizQuest.com
What’s are the hot topics and products? Buzz Yahoo