Only Invest Your Money In Industries and Skills You Are Very Familiar With Or You’ll Lose Your Money A millionaire who made his money in real estate should not be giving me advice about the shoe industry. I apply a test of high relevancy, credibility, and results to who I listen to. Lately, I’ve become more and more stringent with who’s advice I listen to. They will listen to anyone who sounds successful or looks rich or is on a fairly famous podcast or has made at least 6 figures. A lot of successful people do listen to advice, but it’s not as stringent as it should. Sounds simple but you’d be surprised how many people listen to anyone’s advice. Find an expert at business or jewelry who has made a lot of money (and can prove it). What does this guy know about either of these things? NOTHING! That’s why he’s a tailor. Guess what happened? Need I say more?Īn example would be listening to advice from the tailor on jewelry or business. He also tried investing his money in the shield business with a man who worked as a cloth maker (and clearly didn’t know a thing about the shield industry). He was scammed and brought back fake jewels. The book illustrates this with a story of the main character investing his money with foreign jewel traders that promised to bring back rare jewels for cheap. Be careful of any other advice that comes your way. Only take advice from the best people in a field. If you invest foolishly, your money is as good as gone. If you invest with people who tell you what you want to hear but know close to nothing about the industry, they will lose the money. Why? Because if you invest in investments that sound too good to be true, they usually are. This law is a less frequently voiced law of wealth and business but so crucial. “Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.” Only Take Advice From People Skilled In That Field He slowly worked up to bigger and bigger businesses until he became the richest man in the world. He split the profits 50/50 with the restaurant owners. He eventually worked his way up to buying pinball machines and setting them up in restaurants. He bought soda in a store and sold it to people in the summer for multiple times the price. Warren Buffett did this ever since he was a baby. Usually, it’s on something that they’re skilled at or can understand: a basketball player might spend it on basketball lessons, a programmer might spend it on an exclusive programming in-person training, a businessman might spend it on a small business that will make him more money. What are the smart people doing? They’re taking every dollar they save and spending that on something that will make them MORE money. You’re making someone else rich by doing that. These include houses, cars, boats, clothing, watches, jewelry, or any merchandise. Most people are using that money on things that rust, rot, or deteriorate to a net worth of zero. Everyday, his mission is to capture more soldiers and get those soldiers to work to capture even more soldiers. He imagines every dollar like little soldiers. Kevin O’Leary of Shark Tank explains this well. This is probably one of the golden truths of wealth creation that is voiced in many classics like Rich Dad Poor Dad.
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I know secretly that they will not get rich if they make more money (like they often complain and wish for) because they will just spend more and return down to zero in the bank account. This is one of my pet peeves that annoys me most. Most young people I meet have openly admitted that they spend every bit of what they make every paycheck. Sounds so obvious but common sense isn’t so common.
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Here are the top lessons I learned from the book: 1. He scolds the young man when he makes mistakes, but eventually the boy gets rich. This wealthy man slowly teaches him the rules to wealth, which are timeless and that anyone can apply. Basically, a young man asks a rich person to mentor him. It’s a parable (a story with lessons in it, like the Bible). The book tells a story set in Babylon during ancient times. What You Earn Is Not Yours To Keep Until You Invest It Properly You Will Lose Money If You Let Greed Cloud Your Judgement
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Put Away 10% of your Earnings and You Won’t Even Notice A Difference in Quality of Living You Will Lose Money If You Put It To Foolish Use Work To Achieve A Consistent Cash Flow Instead.