If you are looking to make some investment in 2016 here are seven rules that I did recommend you follow according to business rabbi Robert Kiyosaki as culled from his book "Rich Dads guide to investing"
1, Always decide what kind you are after it could any of the following
*Earned Income i.e your salaries and monthly wages, this is the most difficult form of income to build wealth because it is highly taxed.
*Portfolio Income; derived from tangible assets like stocks,bonds,mutual funds e.tc
*Passive Income; generated from tangible assets such as real estate, royalty arrangements.
2, Convert earned income into portfolio or passive income. The basic of successful investing is to take earned money and turn into paper assets that will generate portfolio income in the future.
3,Invest in securities that become assets; a security is something that you can invest cash in like a stock in a company or real estate. A security an asset only if it generates income for you.
4, Find securities that are liabilities and turn them into assets; good investors find securities which are currently out of favour but which other investors will want to buy once they are fixed.
5, Be prepared for whatever happens; Good investors train and educate themselves so they will recognise a good opportunity when it presents itself. The financially astute learn how to do well in either an up market or down market.
6, Recognize that good deals always find the cash needed if an investor has done the homework and developed a track record of success, finding the money will never be a problem.
7, Understand the trade off between risk and reward the investor intuitively understands speculative investments offer potential rewards but have correspondingly higher risks attached.
Investing is not a race you are not in competition with anyone else. People who compete usually have huge ups and downs in their financial life. You are not here to finish first, all you need to do to make more money is simply focus on becoming a better investor_Robert Kiyosaki and Sharon Lechster
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