The 6 things I learned from the Rich Daddy

Hey friends, thanks for sticking around for Part 2 of the 6 things I learned from the Rich Daddy.

Last week, I revealed the first three secrets from the book Rich Dad Poor Dad by Robert Kiyosaki, the #1 Best-Selling personal finance book of all time.

1. How Robert turned his $45K into $1.2 Million without using any of his own money and without paying any taxes, using the snowball effect of Real Estate.

2. How Robert purchased his Porsche car with dividends.

3. He is living proof that anyone can learn copywriting and make tons of money.

This week, I will reveal the other three secrets from the book. Before we get into it, we will give out three FAST ACTION takers who want a copy of the book by Emailing us a topic you want to learn about money at [email protected]

#4 The Unheard 16% Interest Solution

Roberts talks about how to invest money into a tax lien, which can generate up to 16% interest rate. What is tax lien? The city and county regulate a tax lien. It is when a homeowner fails to pay property tax, and the county still needs the money to pay for public services, for example, firefighters, police officers, schools, and roads, etc…when the county is unable to collect the property tax, tax lien now goes to auctions. You will pay the defaulter's property tax once you bid and win the tax lien. So basically, you are the bank. Once the homeowner pays you back, the homeowner will pay you back with interest and penalty. Often, the interest can go as much as 16%.

On the West Coast, Arizona is the closest state that has a tax lien auction. They host tax lien auctions every February, and it is usually the best time to visit Arizona, with its nice weather, beautiful mountains, and sightseeing.

#5 The Rich buy Assets, the Poor buy liability

This chart is flowing everywhere in the book. Robert talks about how when the rich get paid, they put the money in assets first, then they get paid, whereas the poor, when they get paid, put the money in liabilities.

For example, when the rich get paid, they put the money in the stock market and use the dividends to pay for their living expenses. Dividends are taxed at only 15%, whereas regular income could be taxed at 10%- 37%.

#6 Pay yourself first, then pay the bills later

Roberts developed a habit of paying himself first and paying bills later. He knows that if he comes short of paying bills at the end of the month, he will work harder. Do you agree this habit?