🔍 The Book in 3 Sentences

How a person thinks about building wealth impacts their ability to do so.
Building wealth requires making your money work for you, not the other way around.
Wealth generation requires hard work and discipline.

💭 Impressions

This was my second time reading through the book. I remembered that it had some solid advice. What I forgot is that, like a lot of books, it is repetitive in places and the principles could have been taught in less words.

Why I choose this book

I wanted to revisit and rebuild my own financial views and playbook. Lately I have bought into some of the standard practices that are promoted and I wanted to challenge those assumptions.

👨‍🎓 What the book taught me

💡 How my life / behavior / thoughts / ideas have changed as a result of reading the book.

I need to focus on using income to generate additional income by buying income-generating assets.

🎙️ My Top 3 Quotes

“The poor and the middle class work for money. The rich have money work for them.”
“Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.”
“I would say that one of the hardest things about wealth-building is to be true to yourself and to be willing to not go along with the crowd.”

📒 Summary + Notes

“Life pushes all of us around. Some people give up and others fight. A few learn the lesson and move on. They welcome life pushing them around. To these few people, it means they need and want to learn something. They learn and move on. Most quit, and a few like you fight.” (Location 533)

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But the truth is that you let life push you into submission. Deep down you were terrified of taking risks. You really wanted to win, but the fear of losing was greater than the excitement of winning. (Location 548)

The poor and the middle class work for money. The rich have money work for them. (Location 589)

Buying or building assets that deliver cash flow is putting your money to work for you. (Location 594)

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When it comes to money, most people want to play it safe and feel secure. So passion does not direct them. Fear does.” (Location 602)

As governments expand and need more and more money, the only place to get it is the middle class. (Location 652)

People’s lives are forever controlled by two emotions: fear and greed. (Location 720)

Fear keeps them in this trap of working, earning money, working, earning money, hoping the fear will go away. But every day they get up, and that old fear wakes up with them. For millions of people that old fear keeps them awake all night, causing a night of turmoil and worry. So they get up and go to work, hoping that a paycheck will kill that fear gnawing at their soul. Money is running their lives, and they refuse to tell the truth about that. Money is in control of their emotions and their souls.” (Location 747)

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Retirement does not mean not working. For us, it means that, barring unforeseen cataclysmic changes, we can work or not work, and our wealth grows automatically, staying ahead of inflation. (Location 1063)

Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets. (Location 1111)

“The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn.” (Location 1150)

When I want a bigger house, I first buy assets that will generate the cash flow to pay for the house. (Location 1338)

Keep liabilities and expenses down so more money is available to continue pouring into the asset column. (Location 1385)

Wealth is a person’s ability to survive so many number of days forward—or, if I stopped working today, how long could I survive? (Location 1411)

They work first for the owners of the company, then for the government through taxes, and finally for the bank that owns their mortgage. (Location 1617)

One of the main reasons net worth is not accurate is simply because, the moment you begin selling your assets, you are taxed for any gains. (Location 1660)

Businesses that do not require my presence I own them, but they are managed or run by other people. If I have to work there, it’s not a business. It becomes my job. (Location 1677)

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With small companies, my investment strategy is to be out of the stock in a year. (Location 1698)

On the other hand, my real estate strategy is to start small and keep trading up for bigger properties and, therefore, delay paying taxes on the gain. (Location 1699)

Note: This is done via 1031 exchange rules

Think of it this way: Once a dollar goes into your asset column, it becomes your employee. The best thing about money is that it works 24 hours a day and can work for generations. Keep your day job, be a great hardworking employee, but keep building that asset column. (Location 1709)

Yet the one thing that holds all of us back is some degree of self-doubt. (Location 2153)

Today, wealth is in information. And the person who has the most timely information owns the wealth. (Location 2182)

Personally, I use two main vehicles to achieve financial growth: real estate and small-cap stocks. (Location 2394)

It was this business consultant who gave me the phrase: “They are one skill away from great wealth.” (Location 2689)

“Workers work hard enough to not be fired, and owners pay just enough so that workers won’t quit.” (Location 2761)

choosing teachers who have actually DONE what you want to do. (Location 2769)

Instead of simply working for the money and security, which I admit are important, I suggest they take a second job that will teach them a second skill. (Location 2806)

Note: I did this for over a decade with all of the side hustles I ran The skills I gained there allow me to do what I do today

Often I recommend joining a network-marketing company, also called multilevel marketing, if they want to learn sales skills. Some of these companies have excellent training programs that help people get over their fear of failure and rejection, which are the main reasons people are unsuccessful. (Location 2807)

Note: Lots of people won’t agree because, done wrong, NWM can feel gross But, the right companies do have the best training programs and you will learn networking and sales

Labor unions are designed to protect specialists. (Location 2820)

The reason so many talented people are poor is because they focus on building a better hamburger and know little to nothing about business systems. (Location 2837)

The ability to sell—to communicate to another human being, be it a customer, employee, boss, spouse, or child—is the base skill of personal success. Communication skills such as writing, speaking, and negotiating are crucial to a life of success. (Location 2873)

I know of no other skills to be more important than selling and marketing. (Location 2889)

The primary difference between a rich person and a poor person is how they manage that fear. (Location 3032)

If you have little money and you want to be rich, you must first be focused, not balanced. (Location 3103)

the first question to ask yourself is, “How do I respond to failure?” If failure inspires you to win, maybe you should go for it—but only maybe. If failure makes you weak or causes you to throw temper tantrums—like spoiled brats who call attorneys to file lawsuits every time something doesn’t go their way—then play it safe. (Location 3113)

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But a savvy investor knows that the seemingly worst of times is actually the best of times to make money. (Location 3147)

Doubt is expensive. (Location 3167)

“I-don’t-wants hold the key to your success,” (Location 3186)

A stop is simply a computer command that sells your stock automatically if the price begins to drop, helping to minimize your losses and maximize some gains. (Location 3206)

I offer you the following 10 steps to awaken your financial genius. (Location 3456)

1. Find a reason greater than reality: the power of spirit (Location 3464)

I don’t want to work all my life. I don’t want what my parents aspired for, which was job security and a house in the suburbs. I don’t like being an employee. (Location 3474)

IF YOU DO NOT HAVE A STRONG REASON, THERE IS NO SENSE READING FURTHER. IT WILL SOUND LIKE TOO MUCH WORK. (Location 3485)

2. Make daily choices: the power of choice (Location 3486)

Our spending habits reflect who we are. (Location 3489)

In reality, the only real asset you have is your mind, the most powerful tool we have dominion over. (Location 3501)

3. Choose friends carefully: the power of association (Location 3528)

I would say that one of the hardest things about wealth-building is to be true to yourself and to be willing to not go along with the crowd. (Location 3548)

Smart investors don’t time the markets. (Location 3551)

4. Master a formula and then learn a new one: the power of learning quickly (Location 3561)

I have a different slant. I say, “You become what you study.” (Location 3563)

formula. The next trick was to have the discipline to actually put into action what I had learned. (Location 3571)

5. Pay yourself first: the power of self-discipline (Location 3583)

It is the lack of self-discipline that causes people who get a raise to immediately go out and buy a new car or take a cruise. (Location 3586)

Simply put, people who have low self-esteem and low tolerance for financial pressure can never be rich. (Location 3589)

That is what the book is really about—having the guts to go against the tide and get rich. (Location 3629)

So rule number one in paying yourself first is: Don’t get into consumer debt in the first place. (Location 3635)

Don’t get into large debt positions that you have to pay for. Keep your expenses low. (Location 3642)

6. Pay your brokers well: the power of good advice (Location 3656)

A good broker should provide you with information, as well as take the time to educate you. (Location 3662)

What I find funny is that so many poor and middle-class people insist on tipping restaurant help 15 to 20 percent, even for bad service, but complain about paying a broker three to seven percent. (Location 3669)

7. Be an Indian giver: the power of getting something for nothing (Location 3685)

On every one of my investments, there must be an upside, something for free— (Location 3709)

8. Use assets to buy luxuries: the power of focus (Location 3714)

As a habit, I use my desire to consume to inspire and motivate my financial genius to invest. (Location 3754)

Too often today, we focus on borrowing money to get the things we want instead of focusing on creating money. (Location 3754)

9. Choose heroes: the power of myth (Location 3762)

When it comes to investing, too many people make it sound hard. Instead, find heroes who make it look easy. (Location 3781)

10. Teach and you shall receive: the power of giving (Location 3782)

Stop doing what you’re doing. In other words, take a break and assess what is working and what is not working. (Location 4000)

Make lots of offers. (Location 4019)

I always make offers with escape clauses. (Location 4032)

The key to financial freedom and great wealth is a person’s ability to convert earned income into passive and/or portfolio income. (Location 4203)

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