The rich collect money and use other peoples money to service the income producting assets they own.
A borrower of money is the slave to the lender. One must figure out was to be the lender/owner of money to win the economic game. For example, use income producing real estate.
Don’t sign up for an auto loan slavery trap. Get out of student loan debt tactfully. How? Save 85% of all you earn. Spend the rest of your money on food, mountain trips, Denver trips, but save save save.
A mortgage on an income producing property is an investment. A home mortgage is a payment – understanding the difference is critical in this business.
Most powerful wealth building tool is your income.
Making money is a game. Then, the money game turns into doubles game. It’s all about doubling your money – that’s it. How soon can you double your money? That’s the game of money, and just like a game, the more you play the more likely you are to win. For example, if I played 100 games and you played 2, I’ll probably win.
Critical concepts on money and investing.
> risk tolerance – how do I double my money by my time horizon?
> time horizon – when do I need to earn my money by?
Money likes to be seduced – seduction is a skill. Learn the seduction game with money. Money is turned on to people who know exactly what they are doing.
Money doesn’t like to be bored. Money needs to be working, rather than staying somewhere. Money is always moving, always working – velocity of money.
Grow a crisis account.
When it’s the end of the world (2008) 90% of people loose their mental shit and do stupid things with their money. Smart investors understand everything is on sale and have already preppared by saving buckets of cold hard cash.
Know the philosophies of the politicians and community leaders i.e. taxing employees but not businesses.
Study smart investors.
Play your game, don’t compare.
> you need to play doubles, focus on your game, time horizons, risk tolerance. Don’t focus on the guy ahead of you or you can fall back in doubles.
Befriend money makers.
The game is about leverage.
Diversification will take 30-40 years to get rich.