Avoiding Life's Greatest Trap

Kiyosaki's pointers on avoiding this trap...

So why do men hurry to work each day ? Is it that they really enjoy what they do ?

Most people in Life are driven by two emotions- Fear and Desire. Fear of going without money and the desire of all the wonderful things money can buy!
So the pattern is set...go to work, pay bills, go to work.You are trapped forever and as your income increases so does your spending...you are forver stuck in this Rat race. To avoid life pushing you into this trap its important not to react when you should actually be thinking.

Job is only a short term answer to a long term problem. So how does one stop working for money and start making it work for you instead?
Confront your fear and don't cave in to your desire. Use your mind to see oppurtunities that you would miss if you are only looking for money and security in life. The moment you start seeing beyond these two things you will start seeing oppurtunities and you will avoid one of life's biggest trap.

Rich people buy assets.
Poor people only have expenses.
The middle class have liabilities they think are assets.
So in order to strike gold you need to know the difference between an asset and a liability.

An asset is something that generates income for you while a liability burns a hole in your pocket( mortgages, credit cars). Earning a lot of money is not half as important as what you do with this money when it comes into your hands.

Most people think that their home is their biggest investment but actually its a liability so ideally you should put in money in your asset column early on( stocks , bonds, mutula funds, real estate).

So how do you know if you are wealthy?
One way to find that out would be to calculate how long you can survive if you were to retire today? This depends on how much income is generated by your assets as now you no longer have a fixed paycheck coming in each month. Most of us are totally dependent on our paycheck to meet our expenses. We are loaded with liabilities and don't have income generating assets.
So invest in assets and cut down the expenses and liabilities.

There is a difference between one's profession and one's business. Most of us work hard to make others rich . If you want to get rich then mind your own business. Your profession should get you income that you can use to build up your business. Focus should be on the asset column and not the income statement.

We are scared of taking risks for we are fiscally conservative and that is because we are financially illiterate.That si why the stress should be on learning how to interpret numbers only then can we take calculated risks.

Its the heart afraid of breaking that never learns to love ...