There are many things you can learn from this book. I just pick a few ideas that I learnt from it.
1. Thinking small will limit your potential. Thinking big will take you places. Ask yourself why your plans are so small. Then begin to expand your horizons.
2. Knowledge is only the foundation of great enterprises. Einstein said that imagination is more important than knowledge. What he meant is : Without imagination and the ability to visualize possiblities, what would be the point of great knowledge? Put knowledge and imagination together, and in no time you’ll have something plenty big in your “think big tank”
3. Many people are afraid to fail, so they don’t try. They talk, but they don’t do.
When I was interested in acquiring the (former) Commodore Hotel near Grand Central Station years ago, a friend told reporters my idea was like “fighting for a seat on the Titanic”. Admittedly, I was working against great odds. The area around Grand Central had become really dilapidated, but the armchair critics made me wonder : Why not do something about it instead of just complaining? Applying this thinking to yourself and to your situation. You’ll not only learn a lot, but by taking risks you’ll learn how much you didn’t know.
4. To create wealth, you have to upgrade the value of your time so that others are willing to pay more for it. Give more than you ask.
5. Have an Automatic Investment Plan (AIP) where money is withdrawn, automatically and regularly from your paycheck or your checking or savings account, and invested on your behalf. Where you should place your AIP is based on your personal preference and investment expertise.
Most rich people get rich on small amounts of money invested regularly at above-average rates of return. Assume a person earns $25,000 per year. They never get a raise and never get fired. They work from age 25 to 65. Over the course of their career, they will earn $1 million. If they take 10% ($2,500) of their annual income = $208 per month and invest that money in a decent mutual fund say 9.08%, they will retire with $1 million. So small amounts of money do matter.
Most people see 20-40% of their money evaporate each month, so even if they put money in an AIP in place, many won’t even notice that the money is gone. Many investors start out on the path to wealth by setting up an AIP. They watch their investment account grow, but then it all comes to a grinding half when they sabotage themselves by stealing earnings, cashing them out and spending the returns. There is nothing wrong with enjoying the fruits of your labor, but if you truly want to create wealth, you must keep “hands off”. Do this faithfully, and you will retire early and rich with very little effort. All you have to do is to allow your money to fulfill its only purpose : to make more money.
5. There is an interesting debt elimination method in the book.
Second,take inventory of the debts. List the name of the debt, the total payoff balance and the monthly payment.
Thirdly, determine your payoff ratio and payoff priority.
Start with the debt that has the highest pay-off priority number. Put 10% of your gross income on this one debt and make a new, higher payment. At the same time, you must take 2 other actions simultaneously : Continue making the monthly minimum payments required on all other debts, and refrain from creating any additional debts. Pay off all your debts in this way until you are completely debt free. (including the debt on your house and cars)
Finally, when you are completely debt free, you can start to invest your debt money.
6. The book also offers a checklist for selecting the one most promising business opportunity.