Paper money is fake money because you cannot convert it into gold. If there is any problem, the government will print more notes. Even our teachers and schools are fake because they don’t teach us anything about financial education. Rich people have made our education system in such a way that no one else can become rich except them. Your house is mortgaged, your stocks, mutual funds, bank balance and retirement funds are all fake assets. If the stock market ever crashes, it can all fly away in a jiffy.
Second thing you should understand that gold and silver are God’s money. Dollar and other currency is government money. You also learned that the Chinese elite used to print paper money to build monuments and fight wars. Roman elites used to reduce the value of their gold and silver coins by mixing copper and nickel. After the 2008 crash, the US government had printed trillions or trillions of fake paper money. This brings to mind the question that why were Americans told to “trust in God”?
Third, you know why Kiyosaki keeps gold and silver as it is, according to him, an insurance against the stupidity of the elites. No matter how the stock market crashes, his gold or silver will not come under fire because Kiyosaki does not trade or invest his gold or silver. Also you understood about derivatives like mortgage backed security and credit default swaps. Investment banks create these derivatives and then sell them to government and pension funds, and when these derivatives are exposed, the poor and middle class suffer the most.
Fourth, you must know about such simple tools that will save your life. Here is the income statement and balance sheet. A rectangle for the income statement. Its top part is income and the bottom part is expenses. The second rectangle is for the balance sheet, with assets on the left side and liabilities on the right side. Fill this diagram after drawing it on the paper and then you will see your financial situation clearly. Remember, Assets make you money while Liabilities empty your pockets.
You also understood that successful people learn from their mistakes and work in teams. There is no shame in this if you have made a mistake, nor is it wrong to ask for help from others. Big businessmen always do such partnerships in which they benefit.
Business owners and investors pay less tax than employees and professionals. The government gives tax breaks to companies so that they can open more branches in the city or in the state. That is because entrepreneurs or investors provide those opportunities to the people which the government cannot do.
And last you learned about retirement funds. Americans are being forced to become investors through ERISA and 401(k) programs. But they don’t know that their money is going to get stuck. Many pension funds are unfunded. In the US, there are trillions of dollars in unfunded liabilities in Social Security and Medicare. The root of this trouble is the dot com crash of 2000 and the real estate crash of 2008, after which millions of people’s homes were sold again and again and they were forced to live a life of poverty.
Now that you have all the information, what is your plan now? Educate yourself. Find out more about your income, expenses, assets and liabilities. Keep your income and balance sheet updated.
Never invest in something you don’t understand. Never fall for brokers and financial advisors. They care more about their fees than your money.
If you are an Employee or a Self Employed Professional then becoming an Entrepreneur or Investor should be your goal. Having a business of your own means that you are not solely dependent on paychecks and neither do you need to pay for retirement funds. Along with this, the government also gives you tax breaks and by becoming an entrepreneur, you have complete control over your money.
To get more information about this, read as many books as possible. Learn how you can make smart investments. Change your Employee Mindset to become an Entrepreneur. Life is too short so we hope you will be able to enjoy retirement comfortably with the people you love.