The 6 things I learned from the Rich Daddy

The Rich Dad Poor Dad by Robert Kiyosaki is the #1 Best-Selling personal finance book of all time.

Well, you might say, Kat, I hate to read, but show me the money…

I got you. I read the book, so you don’t have to. Here are the first three takeaways you can start today and make a fortune tomorrow. I will cover the other three next week.

#1 How did Robert turn $45,000 to $1.2 million plus without paying any taxes?

The Snowball Effects of Buying Real Estate

One day Robert saw a crappy house when he was jogging in the neighborhood in Portland, Oregon. The owner sold the house to him for $45,000, and he, later on sold the house for $95,000, so in theory, he has a gain of $50,000, but he used the Sec 1031 exchange to defer the gain, and no tax was trigger at the time, and he used the money to buy a 12-units apartment complex. That complex is next to the Intel plans in Beaverton, OR, so the location was HOT. The owner of the apartment lived overseas, and they had no idea the apartment complex was worth $450,000, so he sold it to Robert for $275,000. Later, Robert sold it for $495,000. He then used the money to buy a 30-unit apartment complex that was valued at $875,000. He only needs to put down $225,000. Those apartment complexes helped him generate $5,000 every month, and he later sold the apartment complex for $1.2 million.

You see, Robert turned his $45,000 into $1.2 million without using any additional money. Anyone can do it. Check out the housing inventory in Las Vegas.

#2 Why Robert bought his Porsche car using this…

Before becoming a multi-millionaire, Robert worked as a salesman at a car dealer. One day, he showed up to work with his brand-new Porsche car, and everyone thought he was making a payment. No, he bought it with the dividends. What is a dividend? This was how he did it…he invested in the stock market. He invested in the stocks that paid dividends historically. For example, if a company has a good year, and the stock goes up, to make the investor happy, the company will pay out dividends; if you have a large stock portfolio, you likely have more dividends. The dividend is taxed at a capital gain tax rate of 0%, 15%, or 20%, which is much lower than the regular W-2 job ordinary tax rate, which can go up to 37%.

The amazing thing is that even though you spent the dividend, you still have the stocks. Stocks are like hardworking mini employees; they work and generate income for you.

Imagine how much money Robert saved on buying the Porsche with his dividend money, which is taxed at 15%, vs. using hard-earned income money, which, on average, is taxed at 10-37%, depending on your income. Plus, taking out a car loan, another 8% interest, is a total of 30% additional money on top of the price tag!

#3 A lucrative career with lots of Money & FREEDOM- Sales in print

Robert shared a story about being interviewed by a reporter, who asked him, “Hey Robert, what’s the secret of becoming rich?” Robert suggested she become a copywriter since she has a background in journalism. What is a copywriter? Well, a copywriter turns words into action and influences buying decisions. Copywriting is a lucrative career.

If you want to learn more about copywriting, check out Lana Sova's copywriting book. Lana Sova is a successful six-figure copywriter. The amazing thing is that Lana is not a native English speaker, and she makes a bank writing in English, so anyone can do it.

Next week, I will uncover the other three items in Rich Dad and Poor Dad; if you are serious about making money, and you are a FAST action taker, and want a copy of the book, email us one thing you want to learn about money. For the first three FAST ACTION takers this week, they will get a copy of the book on us (Value at $20).