Read the book with me, pick it up here: https://amzn.to/2OLDCIH
Lesson 5: The Rich Invent Money
There is a serious problem with our lack of financial literacy, that problem is it holds us back from having the confidence to make moves. This fear and self doubt can be crippling and lock you into an unsatisfying career. You really do need courage, technical, and financial knowledge to go out on your own and start businesses.
Prior to our modern age, people who owned land controlled the wealth. The next era were the industrialists and manufacturing. Now, it is the holders of information and data. It is interesting how these waves come and go, it is so important to learn how to identify an opportunity and not let it slip.
The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth.
This quote is a recurring theme in financial independence books. Basically, you cannot move mountains, but you can take your mind with you. Even if an opportunity fails, and you have to relocate, you can always bring your mind.
One example Robert uses to demonstrate this idea that the rich truly make money is how he started investing in real estate. Basically, he found a great opportunity, the numbers made sense and he knew he could turn a profit. He borrowed the down payment from an investor, purchased the property, the resold it immediately for a profit, paid the investor back, 1031’ed the profits to buy his next place, all within a short period of time.
There are two very different types of investors:
If you want to be someone who builds these deals, you need 3 skills:
I am just a regular guy who does far to much research on financial independence and early retirement (FI/RE). I look forward to sharing my journey with you all.