Excerpts from book 'Why We Want You To Be Rich"

    This book is co-authored by Donald Trump and Robert Kiyoaki. They share their experience of success and gives invaluable lessons to the reader. I have put some excerpts here in bullet forms. Please read the book for full understanding and you may deviate meaning of some of the texts below just because it has been opted from a whole chapter or paragraph. There are lot many gems to it and to all the books’ of which excerpts we release here. The excerpts as gems may differ from person to person. We are putting them as we found to be useful to readers’ in general.

Readers’ views are welcome.

BOOK EXCERPTS FROM THE BOOK ‘WHY WE WANT YOU TO BE RICH’”

·         …. But the best part is how to share thought process behind his actions.

• Most rich people want to keep their secret to themselves.
• …. so they are asset- rich and cash-poor.”
• You don’t start with a finished skyscraper- you start with a blue print and a foundation.
• …. Real life doesn’t give a lot of room for sympathy or excused.
• We want people to let go of the entitlement mentally and become rich so they can solve the problem…. Their own problems.
• … start thinking like rich people rather than poor and middle class people.
• Warren Buffett says,

“Diversification is protection against ignorance. It makes very little sense if you know what you are doing.”

• The best way to have an edge is to live on one…
• Intelligence is the ability to solve problems.
• When it comes to money, the biggest financial problems you can solve, the higher your financial intelligence.
• There are many definitions for intelligence, One of the more practical one  I learned from my rich dad, is “Intelligence is the ability to solve the problems.”
• Where it is important to learn from people like Warren Buffett and Donald, it is also important to find your own formula.
• If you want to make yourself rich, solve problems.
• Indentifying problems creates the opportunity for creating a solution.
• In very simple term a defined benefit plan it will cover you as far as long as you live. A defined contribution plan will cover you only as long as there is money in your account.
• The generation following baby-boom generation, often called generation-x and generation-y.
• … Bad times can make you rich.
• It is a matter of leadership and the ability to solve problems. If my staff thinks I spend money carelessly, then they will spend money carelessly.
• … I like buying the best, but I don’t like wasting money.
• Leaders are those people who have replaced fear with discernment which means they can predict the inevitable.
• …. See problems as challenges…
• I believe he is saying in other words,
• ‘..that getting rich is common sense, requiring only simple math.’
• The Graham’s law states that when bad money enters the system, good money goes into hiding.
• Very real problems for USA or any country

1.    A growing trade deficit

2.    A growing national debt

3.    A falling dollar

4.    Baby  boomers without money

5.    Entitlement mentality

6.    Higher oil prices

7.    Tax breaks for the rich

• There are 3 types of investors in the world:

1.    People who do not invest at all

2.    People who invest not to lose.

3.    People who invest to win.

This book is for you want to invest to win.

Donald and I invest to win while others invest not to lose.

• See money and making money as a game-

We have fun. We enjoy the game. Sometimes we lose, but mainly we win, we have fun.

“But most people don’t see making money as a game.” “They think of it as life and death, winner and losers “ or survival or struggle for life  itself… which is why they are terrified of losing money that’s why they look at investing as risky.”

… Making money is fun life is supposed to be fun.

… We play hard. We play to win. We have fun that’s what life’s about.          

• “If I don’t build tallest and biggest, I don’t want to build.”
• If your reality begins with your dreams, your dreams will become your reality.
• Being stubborn is a big part of being a winner.
• The other components of winning are simply, a winning attitude. I tell people to see themselves as victorious.
• Do not let the fear of the unknown hinder your aspirations and your financial well-being.
• Learn about money and make it work for you. That’s the key to successful investing..

In war,

“Sometimes it is best to walk away and rise to fight another day”

The same holds in business.

• The script idea,

“We are all in charge of writing our own movie, and that movie is our life. Imagine yourself writing sense – what kind would you want to have...?”

• One definition of leverage is the ability to do more with less.
• When Doland and I think working hard, while we both work hard individually, we actually think about other people working hard for us to help make us rich. That’s leverage

OPT = Other People’s Time

OPM = Other People Money

• Your savings are a liability to the bank even though those same savings are asset to you. On the other hand, your debt is an asset to the bank, but it is your liability.
• For our current economic system to keep growing it needs smart people who borrow money and get richer, not people who borrow money and get poorer.
• Leverage is the key to great wealth.
• Remember your mind is your greatest lever.
• …. RichDad hated excuses
• “We are all born rich. We all have been given the most powerful lever on earth, our minds, so use your mind for leverage to make you rich rather than to make excuses.”   
• Look for opportunity in every climate thats leverage.
• NEW-

And the 10 percent than make 90 % of the money invest more time than money.

... because we invest more of our time than money.

• … and make it a practice to teach what  I learned -  because teaching is one of the best ways to learn.
• Buffett “if you are sitting in a poker game and after 10 minutes, you do not know who the patsy is…then you are the patsy.”
• Try to get experience of business and investing without risking money.

• About money
• …you see, it is not the quest for money that makes me rich, it is the quest for knowledge. It is the desire to learn more, do more, accomplish more and help those who want to learn that  ­­­­­­­­­­­­­­­­­­­­drives me and money is just the score, a measure total he how we are doing. Money is the celebration of success, just as the lack of money is the reminder that we need to learn more. Just as a traveler watches for mile markers, I look at money simply as a marker – a marker that measures the journey and distance travelled.
• The most effective way to learn is by actually doing. The next more effective method is through simulating the real experience.
• If something is going to affect your life, it is best to know as much as you can about it.
• -Donald J Trump
• Observe a week how you spend your time. Write how you spent each of your hour of 168 hours of the week.
• Then, reframe the allocation of time and activities. Then implement it.
• OTHER PEOPLE’S RESOURCES: Using strategic partners creates leverage, and is often called OPR.
• The IB and I side is nothing but leveraging-other people’s money and time.
• As entrepreneurs and real estate investors, the 6 controls we want are:

1.    Income

2.    Expense

3.    Assets

4.    Liability

5.    Management

6.    Insurance

• Once you understand what you are going to leverage, your next task is to make sure you have control.

• I hire qualified people and trust they will do their best, but I make sure to keep in touch with them and keep my door open to them. I don’t micromanage, but know that, ultimately the responsibility is mine.
• Real estate and businesses, on the other hand I deal for right people. In fact, the more creative you are, the better your chances to becoming rich.

You can apply more creativity and innovation when you have more control.

Once you have control get creative.

• … because we don’t have unnecessary energy sappers like overstaffing, overstuffing of unused space. Everyone knows what they are doing and they do it.
• Creative people do not need to be motivated by anyone else. They motivate themselves.
• They find inspiration instead of waiting for it.
• Creativity and control can go hand in hand.
• The 8 parts that make up a business are:

1.    Mission

2.    Leadership

3.    Team

4.    Product

5.    Legal

6.    Systems

7.    Communications

8.    Cashflow

• Many entrepreneurs fail simply because one of more of the eight pieces of the BI Triangle is weak of nonexistent.
• The ‘product’ is lease important item of the B-I triangle and the mission is the most important.
• The mission is the most important part of the business.
• The world is filled with great products that fail. The products fail simply because they do not have the power of BI Triangle behind them.
• Too many people are people dependent. Mc Donald is system dependent.
• …these types of businesses focus on people and not on developing great systems. A great team of highly paid people will fail without great systems.
• Rarely, you will find entrepreneurs who are great CEOs. Donald Trump is one of those people. So are Bill Gates, Michael Dell and Steve Jobs.
• The 10 percent who make 90 percent of the money do the things that 90 per cent of the other people do not do..!!
• ..like educating themselves, creating finding and utilizing opportunities, leveraging, using control, using creativity, using OPM, using OPT, using OPR etc.
• …so many times, innovation results from common sense.
• Thinking expansively includes seeing what is possible and making it happen.
• Learn your lessons from as many sources as you can.
• Try imagining expanding your world to include new adventures, new friends and new places. As you expose to new experiences, you will generate new ideas. You will see new problems that you can find solutions to.
• Donald Trump and Warren Buffett make a lot of money simply because they know that the end-result of their endeavor is predictable-the opposite of risky.
• Once you understand PREDICTABILITY, you will see it everywhere.
• When you drive up to a gas station to fill your car with gas, it is predictability in action.
• Once you understand predictability, you will see it everywhere. And wherever you see predictability, you will understand why someone or some business is making a lot of money without much risk.
• When I buy a building, I am confident that I will receive the following four types of income;

1.    Rental income

2.    Depreciation income (a.k.a phantom cashflow)

3.    Amortization (my tenant pays off my loan)

• Appreciation (the dollar is dropping in value)
• You want to be foolproof, do the proofing yourself.
• It saves time to work intelligently, from the beginning.
• America has one of the worst education system in the world.
• You have to do what others don’t want to do to have an edge.
• The harder you work, the luckier you get.
• In business and investing, I am fanatic about practice and preparation. I practice to reduce risk. I improve my skills to reduce risk. I study to reduce risk. I play to win and the prize goes to the one who plays the game with the least risk and the most confidence.
• I have looked at tens of thousands of possible investments and purchased only a few of them.
• I realized that entrepreneurship is not risky. Being unprepared is risky.
• Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity.
• We are what we repeatedly do. Excellence then is not a act, but a habit.- Aristotle
• Once your thoughts and attitudes change, your actions change and so do your results.
• The tougher the negotiation, the more relaxed the environment needs to be. When the environment is relaxed, there is often more flexibility in thinking.
• When you make mistake, please do not lie about it or pretend you did not make one, as many adults do.
• A great real life budgeting experience is to undertake the purchases of your house for some months.
• I recommend all students who want to become rich to study accounting and business law.
• Take a class in accounting and business law even if you do not have any plan to become an accountant of lawyer.
• Every entrepreneur knows that Cashflow is king.
• Many people struggle financially simply because they are not good at sales or marketing.
• Expense side is most important. if you are going to be rich you need to know how to spend to make yourself rich.
• Real estate investors and entrepreneurs make money because creativity is allowed in real estate and business.
• Once you leave school, invest some time converting that education into experience. Converting educational theory to real life is vital.
• …and the earlier you understand the basic rules, the better chances you have of winning the game.
• It’s important to do more than is expect if you expect to excel.
• Raise the bar for yourself. Never settle for doing ‘enough’. Today’s world is competitive and moves so quickly that you will have to raise your stamina level if you expect to remain in the competition or to even get into the competition to begin with.
• Chance favors the prepared mind.- Louis Pasteur
• Life is too short not to dream of paradise, whatever it looks like to you.
• Travel and see the accelerating world of money, known as globalization.
• …technical investing is essential for teaching investors to invest with insurance. As I have said many times, professional investors invest with insurance. Amateurs do not.
• The baby-boom generation, that group born between 1946 and 1964, was, in many ways, a very fortunate group.
• The baby boom generation is in the LAST generation of the industrial age and the FIRST generation of the Information Age.
• Let love lead your life and not fear.
• Self made people are less afraid of losing money because they know they can make it back.
• …the person fails to find an environment that supports him or her becoming rich.
• A person needs to seek the environment that is best for his or her genius to flourish.
• “There are many rich people in poor environment”
• Many people do not grow rich simply because they are in poor environments.
• Sometimes, the fastest way to change and improve yourself is simply to change your environment.
• Laziness is the assassin of genius.
• Do not begin to focus on the negatives of the situation. Begin to focus on the solutions!
• …you have as much right to be successful as anyone else does.
• Everyday id filled with defining moments.
• If you cannot lead yourself, you will not be able to lead others.
• Investing is not risky, people are risky.
• The third problem is: Most people cannot follow a formula for long-which is why, for example there are so many different diets being sold, generally to the same people.
• The key to real estate is great management.
• You can get rich faster if you do not have to pay taxes!!
• One of the positive of investing in real estate is that it moves slowly.
• Long-term success in life is a reflection of your education, life experience and personal character.
• …there are many ways a person can become very rich-if he or she is focused.
• Once you’ve had your own business, it’s hard to go back to working for someone else.
• A leader inspires you to be bigger than your doubts and fears.
• Financial literacy is the power to see with your mind what your eyes can not see.