Rich Dad's Prophency (2002)

Rich Dad's Prophency (2002)

Rich dad said “Always watch for changes in the law. Every time a law changes, the future changes.”
The words “security” and “freedom” were not the same words. The more security you gain, the more freedom you lose. A person who seeks security often gives up control over parts of their lives.

The more control you give up, the less freedom you have. Many people feel insecure about their financial future and their retirement because they have given up most of the control over their financial future.

Build Your Ark
1 Are you willing to take control of your ark?
2. Develop your own financial statement. You can use the format of the game sheet from Cashflow 101.

All that glitters is not gold. Watch which mutual fund, stock, public company or financial advisory service is doing the most advertising. In other words, which one is glittering? I become a little suspicious of mutual fund companies or stock brokerage firms that advertise a lot. Those ads are expensive, costing millions of dollars. Someone has to pay for those ads and that someone is obviously the investor.

Which direction the cash is flowing determines if something is an asset or a liability? Assets cash flow money into the income column.
As captain of your own ark, you too will need to post lookouts on your bow and in the crow’s nest.
1. Keep your word

Dr. Fuller said that we are entering the age of integrity. Integrity simply means whole or complete. This means that your thoughts, words and actions need to be the same.
2. Keep an open mind and your ears tuned for change.

Since changes are now invisible, you will have to see more with your mind than your eyes.
3. Learn to read financial statements

If you do not have neat and complete financial statements, are not articulate in explaining your financial position, then the chances are that the only kind of debt you will be granted is bad debt at high interest rates.
4. Use technology

Learn how to use charts and softwares that give individuals the same power to see and search for investments that giant investment firms have.
5. Watch for bigness

There is a saying in the investment world that when someone becomes famous enough for the front cover of a national magazines, their career is over. The moment something or someone becomes too big, they are about to decline and to be replaced by something or someone new.
6. Watch for changes in the laws

Rich dad was forever watching for changes in the laws and the effect the laws had upon on our future.
7. Watch out for inflation

If inflation sets in, anything of questionable value will lose value, while things of value, assets such as real estate, gold, silver and utility stocks, may greatly increase in value.
8. Pay close attention to government’s handling of its social programs
Some government policies may not be pushing problems forward onto future generations. If governments begin raising taxes excessively, be prepared for anything, and be prepared to act quickly. Today. money can literally move at the speed of light.

Next with the above 8 concepts in mind, review the 8 possible changes. How can you turn these negatives into business opportunities?

1. Millions will be left destitute in old age.
2. Medical care will get even more expensive.
3. Terrorism will increase.
4. Japan, currently the world’s second largest economy is on the brink of financial collapse and depression.
5. China will become the world’s largest economy.
6. The world population will continue to age.
7. Wall Street is obsolete.
8. Big corporations are losing the public trust and failing.
By reviewing these items regularly and brainstorming the possibilities for businesss opportunities, your financial awareness will improve dramatically. If you can do it with a group you can challenge each other to set and achieve goals.

About dailytools

I live in Singapore. Out of impulse, I decide to try out wordpress blog, despite having always blog my daily readings on for over the past 2 years.

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