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  3. I HAVE INCURRED SO MUCH LOSSES TRADING ON MY OWN…I TRADE WELL ON DEMO BUT I THINK THE REAL MARKET IS MANIPULATED… CAN ANYONE HELP ME OUT OR AT LEAST TELL ME WHAT I'M DOING WRONG ?

  11. I think I'm blessed because if not I wouldn't have met someone who is as spectacular as Expert Mrs Lucy Mary Liam. Though I started with $1000 but it was successful, it's been four months since I started investing with her and it's been a great experience

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  29. All of these diagrams are obviously oversimplified. Everyone has living

    expenses, the need for food, shelter, and clothing. The diagrams show the

    flow of cash through a poor, middle-class, and wealthy person’s life. It is

    the cash flow that tells the story of how a person handles their money.

    The reason I started with the story of the richest men in America is to

    illustrate the flaw in believing that money will solve all problems. That is

    why I cringe whenever I hear people ask me how to get rich quicker, or

    where they should start. I often hear, “I’m in debt, so I need to make more

    money.”

    But more money will often not solve the problem. In fact, it may

    compound the problem. Money often makes obvious our tragic human

    flaws, putting a spotlight on what we don’t know. That is why, all too often,

    a person who comes into a sudden windfall of cash—let’s say an

    inheritance, a pay raise, or lottery winnings—soon returns to the same

    financial mess, if not worse, than the mess they were in before. Money only

    accentuates the cash-flow pattern running in your head. If your pattern is to

    spend everything you get, most likely an increase in cash will just result in

    an increase in spending. Thus, the saying, “A fool and his money is one big

    party.”

    Cash flow tells the story of how a person handles money.

    I have said many times that we go to school to gain scholastic and

    professional skills, both of which are important. We learn to make money

    with our professional skills. In the 1960s when I was in high school, if

    someone did well academically, people assumed this bright student would

    go on to be a medical doctor because it was the profession with the promise

    of the greatest financial reward.

    Today, doctors face financial challenges I wouldn’t wish on my worst

    enemy: insurance companies taking control of the business, managed health

    care, government intervention, and malpractice suits. Today, kids want to be

    famous athletes, movie stars, rock stars, beauty queens, or CEOs because

    that is where the fame, money, and prestige are. That is the reason it is so

    hard to motivate kids in school today. They know that professional success

    is no longer solely linked to academic success, as it once was.

    Because students leave school without financial skills, millions of

    educated people pursue their profession successfully, but later find

    themselves struggling financially. They work harder but don’t get ahead.

    What is missing from their education is not how to make money, but how to

    manage money. It’s called financial aptitude—what you do with the money

    once you make it, how to keep people from taking it from you, how to keep

    it longer, and how to make that money work hard for you. Most people

    don’t understand why they struggle financially because they don’t

    understand cash flow. A person can be highly educated, professionally

    successful, and financially illiterate. These people often work harder than

    they need to because they learned how to work hard, but not how to have

    their money work hard for them.

    How the Quest for a Financial Dream Turns into a Financial

    Nightmare

    The classic story of hardworking people has a set pattern. Recently

    married, the happy, highly educated young couple moves into one of their

    cramped rented apartments. Immediately, they realize that they are saving

    money because two can live as cheaply as one.

    The problem is the apartment is cramped. They decide to save money to

    buy their dream home so they can have kids. They now have two incomes,

    and they begin to focus on their careers. Their incomes begin to increase.

    As their incomes go up, their expenses go up as well. $100,000 $100,000 $3 million $400 million $10,000 $80 million $320 million $600 million $100 million $400 million $320 million $36 billion $600 million $600 million $1 billion $60 million $100 million $1 billion $3.7 million $100,000 $500 $500 $78 million $3 million $1 million $475 million $25 million $15 million $600,000 crypto btc nigeria turkey ekpoma benin lagos emuhi asaba turkey ihumudumu ujoelen to express southafrica

  30. The number-one expense for most people is taxes. Many people think

    it’s income tax, but for most Americans, their highest tax is Social Security.

    As an employee, it appears as if the Social Security tax combined with the

    Medicare tax rate is roughly 7.5 percent, but it’s really 15 percent since the

    employer must match the Social Security amount. In essence, it is money

    the employer can’t pay you. On top of that, you still have to pay income tax

    on the amount deducted from your wages for Social Security tax, income

    you never received because it went directly to Social Security through

    withholding.

    Going back to the young couple, as a result of their incomes increasing,

    they decide to buy the house of their dreams. Once in their house, they have

    a new tax, called property tax. Then they buy a new car, new furniture, and

    new appliances to match their new house. All of a sudden, they wake up

    and their liabilities column is full of mortgage and credit-card debt. Their

    liabilities go up.
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    and they work harder. The process repeats itself: Higher incomes cause

    higher taxes, also called “bracket creep.” A credit card comes in the mail.

    They use it and max it out. A loan company calls and says their greatest

    “asset,” their home, has appreciated in value. Because their credit is so

    good, the company offers a bill-consolidation loan and tells them the

    intelligent thing to do is clear off the high-interest consumer debt by paying

    off their credit card. And besides, interest on their home is a tax deduction.

    They go for it, and pay off those high-interest credit cards. They breathe a

    sigh of relief. Their credit cards are paid off. They’ve now folded their

    consumer debt into their home mortgage. Their payments go down because

    they extend their debt over 30 years. It is the smart thing to do.

    Their neighbor calls to invite them to go shopping. The Memorial Day

    sale is on. They promise themselves they’ll just window shop, but they take

    a credit card, just in case.

    I run into this young couple all the time. Their names change, but their

    financial dilemma is the same. They come to one of my talks to hear what I

    have to say. They ask me, “Can you tell us how to make more money?”

    They don’t understand that their trouble is really how they choose to

    spend the money they do have. It is caused by financial illiteracy and not

    understanding the difference between an asset and a liability.

    More money seldom solves someone’s money problems. Intelligence

    solves problems. There is a saying a friend of mine says over and over to

    people in debt: “If you find you have dug yourself into a hole… stop

    digging.”

    As a child, my dad often told us that the Japanese were aware of three

    powers: the power of the sword, the jewel, and the mirror.

    The sword symbolizes the power of weapons. America has spent

    trillions of dollars on weapons and, because of this, is a powerful military

    presence in the world.

    The jewel symbolizes the power of money. There is some degree of

    truth to the saying, “Remember the golden rule. He who has the gold makes

    the rules.”

    The mirror symbolizes the power of self-knowledge. This self knowledge, according to Japanese legend, was the most treasured of the

    three.

    All too often, the poor and middle class allow the power of money to

    control them. By simply getting up and working harder, failing to ask

    themselves if what they do makes sense, they shoot themselves in the foot

    as they leave for work every morning. By not fully understanding money,

    the vast majority of people allow its awesome power to control them.

    If they used the power of the mirror, they would have asked themselves,

    “Does this make sense?” All too often, instead of trusting their inner

    wisdom, that genius inside, most people follow the crowd. They do things

  31. because everybody else does them. They conform, rather than question.

    Often, they mindlessly repeat what they have been told: “Diversify.” “Your

    home is an asset.” “Your home is your biggest investment.” “You get a tax

    break for going into greater debt.” “Get a safe job.” “Don’t make mistakes.”

    “Don’t take risks.”

    It is said that the fear of public speaking is a fear greater than death for

    most people. According to psychiatrists, the fear of public speaking is

    caused by the fear of ostracism, the fear of standing out, the fear of

    criticism, the fear of ridicule, and the fear of being an outcast. The fear of

    being different prevents most people from seeking new ways to solve their

    problems.

    That is why my educated dad said the Japanese valued the power of the

    mirror the most, for it is only when we look into it that we find truth. Fear is

    the main reason that people say, “Play it safe.” That goes for anything, be it

    sports, relationships, careers, or money.

    A person can be highly educated, professionally successful, and

    financially illiterate.

    It is that same fear, the fear of ostracism, that causes people to conform

    to, and not question, commonly accepted opinions or popular trends: “Your

    home is an asset.” “Get a bill-consolidation loan, and get out of debt.”

    “Work harder.” “It’s a promotion.” “Someday I’ll be a vice president.”

    “Save money.” “When I get a raise, I’ll buy us a bigger house.” “Mutual

    funds are safe.”

    Many financial problems are caused by trying to keep up with the

    Joneses. Occasionally, we all need to look in the mirror and be true to our

    inner wisdom rather than our fears.

    By the time Mike and I were 16 years old, we began to have problems

    in school. We were not bad kids. We just began to separate from the crowd.

    We worked for Mike’s dad after school and on weekends. Mike and I often

    spent hours after work just sitting at a table with his dad while he held

    meetings with his bankers, attorneys, accountants, brokers, investors,

    managers, and employees. Here was a man who had left school at 13 who

    was now directing, instructing, ordering, and asking questions of educated

    people. They came at his beck and call, and cringed when he didn’t approve

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    Here was a man who had not gone along with the crowd. He was a man

    who did his own thinking and detested the words, “We have to do it this

    way because that’s the way everyone else does it.” He also hated the word

    “can’t.” If you wanted him to do something, just say, “I don’t think you can

    do it.”

    Mike and I learned more sitting in on his meetings than we did in all our

    years of school, college included. Mike’s dad was not book-smart, but he

    was financially educated and successful as a result. He told us over and

    over again, “An intelligent person hires people who are more intelligent

    than he is.” So Mike and I had the benefit of spending hours listening to and

    learning from intelligent people.

    But because of this, Mike and I couldn’t go along with the standard

    dogma our teachers preached, and that caused problems. Whenever the

    teacher said, “If you don’t get good grades, you won’t do well in the real

    world,” Mike and I just raised our eyebrows. When we were told to follow

    set procedures and not deviate from the rules, we could see how school

    discouraged creativity. We started to understand why our rich dad told us

    that schools were designed to produce good employees, instead of

    employers. Occasionally, Mike or I would ask our teachers how what we

    studied was applicable in the real world, or why we never studied money

    and how it worked. To the latter question, we often got the answer that

    money was not important, that if we excelled in our education, the money

    would follow. The more we knew about the power of money, the more

    distant we grew from the teachers and our classmates.

    My highly educated dad never pressured me about my grades, but we

    did begin to argue about money. By the time I was 16, I probably had a far

    better foundation with money than both my parents. I could keep books, I

    listened to tax accountants, corporate attorneys, bankers, real estate brokers,

    investors, and so forth. By contrast, my dad talked to other teachers.

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  36. As I have said, some people hate the game, some love it, and others

    miss the point. This woman missed a valuable opportunity to learn

    something. In the opening round, she drew a “doodad” card with the boat

    on it. At first she was happy. “Oh, I’ve got a boat.” Then, as her friend tried

    to explain how the numbers worked on her income statement and balance

    sheet, she got frustrated because she had never liked math. The rest of her

    table waited while her friend continued explaining the relationship between

    the income statement, balance sheet, and monthly cash flow. Suddenly,

    when she realized how the numbers worked, it dawned on her that her boat

    was eating her alive. Later on in the game, she was also downsized and had

    a child. It was a horrible game for her.

    After the class, her friend came by and told me that she was upset. She

    had come to the class to learn about investing and did not like the idea that

    it took so long to play a silly game.

    Her friend attempted to tell her to look within herself to see if the game

    reflected her in any way. With that suggestion, the woman demanded her

    money back. She said that the very idea that a game could be a reflection of

    her was ridiculous. Her money was promptly refunded, and she left.

    Since 1984, I have made millions simply by doing what the school

    system does not do. In school, most teachers lecture. I hated lectures as a

    student. I was soon bored, and my mind would drift.

    In 1984, I began teaching via games and simulations, and I still rely on

    these tools today. I always encourage adult students to look at games as

    reflecting back to them what they know and what they need to learn. Most

    importantly, games reflect behavior. They are instant feedback systems.

    Instead of the teacher lecturing you, the game is giving you a personalized

    lecture, one that is custom-made just for you.

    The friend of the woman who left later called to give me an update. She

    said her friend was fine and had calmed down. In her cooling-off period,

    she could see some slight relationship between the game and her life.

    Although she and her husband did not own a boat, they did own everything

    else imaginable. bitcoin crypto She was angry after their divorce, both because he had run

    off with a younger woman and because, after twenty years of marriage, they

    had accumulated little in the way of assets. There was virtually nothing for

    them to split. Their twenty years of married life had been incredible fun, but

    all they had accumulated was a ton of doodads.

    Games reflect behavior. They are instant feedback systems.

    She realized that her anger at doing the numbers—the income statement

    and balance sheet—came from her embarrassment about not understanding

    them. She had believed that finances were the man’s job. She maintained

    the house and did the entertaining, and he handled the finances. She was

    now quite certain, that in the last five years of their marriage, he had hidden

    money from her. She was angry at herself for not being more aware of

    where the money was going, as well as for not knowing about the other

    woman.

    Just like a board game, the world is always providing us with instant

    feedback. We could learn a lot if we tuned in more. One day not long ago, I

    complained to my wife that the cleaners must have shrunk my pants. My

    wife gently smiled and poked me in the stomach to inform me that the pants

    had not shrunk. Something else had expanded—me!

    The CASHFLOW game was designed to give every player personal

    feedback. Its purpose is to give you options. If you draw the boat card and it

    puts you into debt, the question is: “Now what can you do? How many

    different financial options can you come up with?” That is the purpose of

    the game: to teach players to think and create new and various financial

    options. Thousands of people throughout the world have played this game.

    The players who get out of the Rat Race the quickest are the people who

    understand numbers and have creative financial minds. They recognize

    different financial options. Rich people are often creative and take

    calculated risks. People who take the longest are people who are not

    familiar with numbers and often do not understand the power of investing.

    Some people playing CASHFLOW gain lots of money in the game, but

    they don’t know what to do with it. Even though they have money,

    everyone else seems to be getting ahead of them. And that is true in real

    life. There are a lot of people who have a lot of money and do not get ahead

    financially.

    Play CASHFLOW Classic on the web at http://www.richdad.com

    What did you learn about your true behavior from playing the

    game

    Limiting your options is the same as hanging on to old ideas. I have a

    friend from high school who now works at three jobs. Years ago, he was the

    richest of all my classmates. When the local sugar plantation closed, the

    company he worked for went down with the plantation. In his mind, he had

    but one option, and that was the old option: Work hard. The problem was

    that he couldn’t find an equivalent job that recognized his seniority from the

    old company. As a result, he is overqualified for the jobs he currently has,

    so his salary is lower. He now works three jobs to earn enough to survive.

    I have watched people playing CASHFLOW complain that the right

    opportunity cards are not coming their way. So they sit there. I know people

    who do that in real life. They wait for the right opportunity.

  37. I have watched people get the right opportunity card and then not have

    enough money. Then they complain that they would have gotten out of the

    Rat Race if they had had more money. So they sit there. I know people in

    real life who do that also. They see all the great deals, but they have no

    money.

    And I have seen people pull a great opportunity card, read it out loud,

    and have no idea that it is a great opportunity. They have the money, the

    time is right, they have the card, but they can’t see the opportunity staring

    them in the face. They fail to see how it fits into their financial plan for

    escaping the Rat Race. And I know more people like that than all the others

    combined. Most people have an opportunity of a lifetime flash right in front

    of them, and they fail to see it. bitcoin btc crypto A year later, they find out about it, after

    everyone else got rich.

    Financial intelligence is simply having more options. If the

    opportunities aren’t coming your way, what else can you do to improve

    your financial position? If an opportunity lands in your lap and you have no

    money and the bank won’t talk to you, what else can you do to get the

    opportunity to work in your favor? If your hunch is wrong, and what you’ve

    been counting on doesn’t happen, how can you turn a lemon into millions?

    That is financial intelligence. It is not so much what happens, but how many

    different financial solutions you can think of to turn a lemon into millions.

    It is how creative you are in solving financial problems.

    Most people only know one solution: Work hard, save, and borrow. So

    why would you want to increase your financial intelligence? Because you

    want to be the kind of person who creates your own luck. You take

    whatever happens and make it better. Few people realize that luck is

    created, just as money is. And if you want to be luckier and create money

    instead of working hard, then your financial intelligence is important. If you

    are the kind of person who is waiting for the right thing to happen, you

    might wait for a long time. It’s like waiting for all the traffic lights to be

    green for five miles before you’ll start your trip.

    As young boys, Mike and I were constantly told by my rich dad that

    “money is not real.” Rich dad occasionally reminded us of how close we

    came to the secret of money on that first day we got together and began

    “making money” out of plaster of paris. “The poor and middle class work

    for money,” he would say. “The rich make money. The more real you think

    money is, the harder you will work for it. If you can grasp the idea that

    money is not real, you will grow richer faster.”

    “What is it?” was a question Mike and I often came back with. “What is

    money if it is not real?”

    “What we agree it is,” was all rich dad would say.

    The single most powerful asset we all have is our mind. If it is trained

    well, it can create enormous wealth seemingly instantaneously. An

    untrained mind can also create extreme poverty that can crush a family for

    generations.

    In the Information Age, money is increasing exponentially. A few

    individuals are getting ridiculously rich from nothing, just ideas and

    agreements. If you ask many people who trade stocks or other investments

    for a living, they see it done all the time. Often, millions can be made

    instantaneously from nothing. And by nothing, I mean no money was

    exchanged. It is done via agreement: a hand signal in a trading pit, a blip on

    a trader’s screen in Lisbon from a trader’s screen in Toronto and back to

    Lisbon, a call to my broker to buy and a moment later to sell. Money did

    not change hands. Agreements did.

    The single most powerful asset we all have is our mind. If it is

    trained well, it can create enormous wealth.

    So why develop your financial genius? Only you can answer that. I can

    tell you why I have been developing this area of my intelligence. I do it

    because I want to make money fast. Not because I need to, but because I

    want to. It is a fascinating learning process. I develop my financial IQ

    because I want to participate in the fastest game and biggest game in the

    world. And in my own small way, I would like to be part of this

    unprecedented evolution of humanity, the era where humans work purely

    with their minds and not with their bodies. Besides, it is where the action is.

    It is what is happening. It’s hip. It’s scary. And it’s fun.

  38. During this depressed market, Kim and I were able to do six of these

    simple transactions in our spare time. While the bulk of our money was in

    larger properties and the stock market, we were able to create more than

    $190,000 in assets (notes at 10 percent interest) in those six “buy, create,

    and sell” transactions. That comes to approximately $19,000 a year income,

    much of it sheltered through our private corporation. Much of that $19,000

    a year goes to pay for our company cars, gas, trips, insurance, dinners with

    clients, and other things. By the time the government gets a chance to tax

    that income, it’s been spent on legally allowed pre-tax expenses. This was a simple example of how money is invented, created, and

    protected using financial intelligence.

    Ask yourself: How long would it take to save $190,000? Would the

    bank pay you 10 percent interest on your money? And the promissory note

    is good for 30 years. I hope they never pay me the $190,000. I have to pay a

    tax if they pay me the principal, and besides, $19,000 paid over 30 years is

    a little over $500,000 in income.

    I have people ask what happens cryto bitcoin btc if the person doesn’t pay. That does

    happen, and it’s good news. That $60,000 home could be taken back and resold for $70,000, and another $2,500 collected as a loan-processing fee. It

    would still be a zero-down transaction in the mind of the new buyer. And

    the process would go on.

    The first time I sold the house, I paid back the $2,000, so technically, I

    have no money in the transaction. My return on investment (ROI) is

    infinity. It’s an example of no money making a lot of money.

    In the second transaction, when re-sold, I would have put $2,000 in my

    pocket and re-extended the loan to 30 years. What would my ROI be if I got

    paid money to make money? I do not know, but it sure beats saving $100 a

    month, which actually starts out as $150 because it’s after-tax income for 40 years earning low interest. And again, you’re taxed on the interest. That is

    not too intelligent. It may be safe, but it’s not smart.

    A few years later, as the Phoenix real estate market strengthened, those

    houses we sold for $60,000 became worth $110,000. Foreclosure

    opportunities were still available, but became rare. It cost a valuable asset,

    my time, to go out looking for them. Thousands of buyers were looking for

    the few available deals. The market had changed. It was time to move on

    and look for other opportunities to put in the asset column.

    “You can’t do that here.” “That is against the law.” “You’re lying.” I

    hear those comments much more often than “Can you show me how to do

    that?” The math is simple. You do not need algebra or calculus. And the

    escrow company handles the legal transaction and the servicing of the

    payments. I have no roofs to fix or toilets to unplug because the owners do

    that. It’s their house. Occasionally someone does not pay. And that is

    wonderful because there are late fees, or they move out and the property is

    sold again. The court system handles that.

    And it may not work in your area. The market conditions may be

    different. But the example illustrates how a simple financial process can

    create hundreds of thousands of dollars, with little money and low risk. It is

    an example of money being only an agreement. Anyone with a high school

    education can do it.

    Yet most people won’t. Most people listen to the standard advice of

    “Work hard and save money.”

    For about 30 hours of work, approximately $190,000 was created in the

    asset column, and no taxes were paid.

    Which one sounds harder to you?

    1. Work hard. Pay 50% in taxes. Save what is left.

    Your savings then earn 5%, which is also taxed.

    OR

    2. Take the time to develop your financial intelligence

    Harness the power of your brain and the asset column.

    If you use option number one, be sure to factor in how much time it

    takes you to save $190,000. Time is one of your greatest assets.

    Now you may understand why I silently shake my head when I hear

    parents say, “My child is doing well in school and receiving a good

    education.” It may be good, but is it adequate?

    I know the above investment strategy is a small one. It is used to

    illustrate how small can grow into big. Again, my success reflects the

    importance of a strong financial foundation, which starts with a strong

    financial education.

    I have said it before, but it’s worth repeating. Financial intelligence is

    made up of these four main technical skills:

    1. Accounting

    Accounting is financial literacy, or the ability to read numbers.

    This is a vital skill if you want to build businesses or

    investments.

    2. Investing

    Investing is the science of money making money.

    3. Understanding markets

    Understanding markets is the science of supply and demand

    Alexander Graham Bell gave the market what it wanted. So did

    Bill Gates. A $75,000 house offered for $60,000 that cost

    $20,000 was also the result of seizing an opportunity created by

    the market. Somebody was buying, and someone was selling.

    4. The law

    The law is the awareness of accounting corporate, state and

    federal regulations. I recommend playing by the rules.

  39. This was a simple example of how money is invented, created, and

    protected using financial intelligence.

    Ask yourself: How long would it take to save $190,000? Would the

    bank pay you 10 percent interest on your money? And the promissory note

    is good for 30 years. I hope they never pay me the $190,000. I have to pay a

    tax if they pay me the principal, and besides, $19,000 paid over 30 years is

    a little over $500,000 in income.

    I have people ask what happens if the person doesn’t pay. That does

    happen, and it’s good news. That $60,000 home could be taken back and resold for $70,000, and another $2,500 collected as a loan-processing fee. It

    would still be a zero-down transaction in the mind of the new buyer. And

    the process would go on.

    The first time I sold the house, I paid back the $2,000, so technically, I

    have no money in the transaction. My return on investment (ROI) is

    infinity. It’s an example of no money making a lot btc bitcoin crypto of money.

    In the second transaction, when re-sold, I would have put $2,000 in my

    pocket and re-extended the loan to 30 years. What would my ROI be if I got

    paid money to make money? I do not know, but it sure beats saving $100 a

    month, which actually starts out as $150 because it’s after-tax income for 40 years earning low interest. And again, you’re taxed on the interest. That is

    not too intelligent. It may be safe, but it’s not smart.

    A few years later, as the Phoenix real estate market strengthened, those

    houses we sold for $60,000 became worth $110,000. Foreclosure

    opportunities were still available, but became rare. It cost a valuable asset,

    my time, to go out looking for them. Thousands of buyers were looking for

    the few available deals. The market had changed. It was time to move on

    and look for other opportunities to put in the asset column.

    “You can’t do that here.” “That is against the law.” “You’re lying.” I

    hear those comments much more often than “Can you show me how to do

    that?” The math is simple. You do not need algebra or calculus. And the

    escrow company handles the legal transaction and the servicing of the

    payments. I have no roofs to fix or toilets to unplug because the owners do

    that. It’s their house. Occasionally someone does not pay. And that is

    wonderful because there are late fees, or they move out and the property is

    sold again. The court system handles that.

    And it may not work in your area. The market conditions may be

    different. But the example illustrates how a simple financial process can

    create hundreds of thousands of dollars, with little money and low risk. It is

    an example of money being only an agreement. Anyone with a high school

    education can do it.

    Yet most people won’t. Most people listen to the standard advice of

    “Work hard and save money.”

    For about 30 hours of work, approximately $190,000 was created in the

    asset column, and no taxes were paid.

    Which one sounds harder to you?

    1. Work hard. Pay 50% in taxes. Save what is left.

    Your savings then earn 5%, which is also taxed.

    OR

    2. Take the time to develop your financial intelligence

    Harness the power of your brain and the asset column.

    If you use option number one, be sure to factor in how much time it

    takes you to save $190,000. Time is one of your greatest assets.

    Now you may understand why I silently shake my head when I hear

    parents say, “My child is doing well in school and receiving a good

    education.” It may be good, but is it adequate?

    I know the above investment strategy is a small one. It is used to

    illustrate how small can grow into big. Again, my success reflects the

    importance of a strong financial foundation, which starts with a strong

    financial education.

    I have said it before, but it’s worth repeating. Financial intelligence is

    made up of these four main technical skills:

    1. Accounting

    Accounting is financial literacy, or the ability to read numbers.

    This is a vital skill if you want to build businesses or

    investments.

    2. Investing

    Investing is the science of money making money.

    3. Understanding markets

    Understanding markets is the science of supply and demand

    Alexander Graham Bell gave the market what it wanted. So did

    Bill Gates. A $75,000 house offered for $60,000 that cost

    $20,000 was also the result of seizing an opportunity created by

    the market. Somebody was buying, and someone was selling.

    4. The law

    The law is the awareness of accounting corporate, state and

    federal regulations. I recommend playing by the rules.

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