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Chapter 7 Notes
Robert's Topics > Chapter 7 Notes > New Rule of Money #6...
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Robert - 5/12/2009 1:59:02 AM
New Rule of Money #6...

New Rule of Money #6...



What does the New Rule of Money #6 – ‘Learn the Language of Money' mean to you? Read the Chapter

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aussieTycoon - 5/12/2009 2:22:06 AM
cash flow - yes please
I am guilty of focusing on investing for capital gains in real-estate. I know in Australia it was very difficult to find cash flow property near the capital cities with high interest rates.

My strategy was to find good property close to the CBD (Central Business District) with the potential to improve and renovate.

Lucky for me i have not sold any of these properties, and with the great falls in interest rates, these places are now cash flow. Its not much, but i can see what a difference it has made to me personally, having free cash to put into other ventures (like gold and silver).

In the future, cash flow is all i will be looking for. Its so simple but yet i missed it, thank you for hitting the hammer on the nail.
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phishtube - 5/12/2009 3:18:51 AM
<h2>Four Green Houses</h2>
Robert,

I read Rich Dad Poor Dad in 2001. I was 25 years old and fresh our of college. It made so much sense to me, but anyone I talked to about it thought I was crazy. I immediately stopped looking for a job and started my own business. I bought my first home in 2004...

It was a 4-unit apartment building. My wife said, "Let's get a house for us then you can get an investment property". I explained to her over and over the concept of "cash flow" and showed her how we wouldn't be able to afford to do it that way because we wouldn't have enough cash flow to afford both.

We bought it with no money down, the seller holding 20% for our down payment and the greedy mortgage broker pushed our ARM loan through using a No Doc program. I knew being in an ARM was sketchy because we wouldn't be able to control the cash flow of the property, so after establishing ourselves as good borrowers we refinanced in 2005 at a lower, FIXED interest rate. Our cash flow today is $1,500 net per month.

I bought my wife her own house last year (2008), after watching the housing market crash for two years. The income from our first home pays for the one we live in. Because of our cash flow we haven't had to pay for our own housing expenses since 2004!

It is so easy to see what is going to happen if you know the language of money.
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buzzardking - 5/12/2009 4:45:19 AM
Language of Money
We think in language, and therefore we cannot conceptualize what we have no language to describe. This is why knowing the language of money, and having command of that language, is the way we learn the concepts of what money really is and how it works. It is how we can come to make our own financial decisions instead of being led by "experts" or blindly following conventional advice. It is how we can transcend the mindset of, "I'm not smart enough to do this; it's beyond my understanding". If you learn the language, then you can gain understanding and control your own outcomes.
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foxhound67 - 5/12/2009 7:00:50 AM
Language
Kia Ora Robert,

easy. if you talk about it it becomes what you are. so if you talk poor then you will be poor. talk the language of money then you will be in the money (to use an options trading term).

so I must be doing something wrong since I do talk about it a lot.

too much some say.
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Dacesita - 5/12/2009 8:51:38 AM
language of money
it means to me a life shift to an absolute different level.
I changed all of my friends. I had to. I got better ones. One of my best friends is going this road along with me.
I found that I have nothing common with people who's vocabulary consist of "job", "weekend" (this is when they live), "vacation", "crisis", "job promotion", "benefits", "bailout" and similar.

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seanze14 - 5/12/2009 9:53:48 AM
Language
Learning the language to me is learning to understand and use more advanced vehicles for your investing. Learning the language of money gives you options.

The less of the language you know the lesser you can do, and with money the poorer you will be. Just like the english language, if you only know a few words your going to right a pretty average story, but if you understand more words you can right a much better one and be a great writer.

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edrickdon - 5/12/2009 10:52:33 AM
Learn the Language of Money
I recall how my language was at school - I was really good in Math, and I guess my world revolved around it until my graduation from BS Mathematics course, and even until my job in 2 companies - as an Actuarial Specialist and Risk Officer. I even cannot forget the way one of my friends in school called me back then "Mr. X + Y", referring to variables commonly used in discussion in Algebra.

Truly, my language has become me back then. And as Sharon Lechter said in one of the Rich Dad programs, I have to do the difficult task of "unlearning what school has taught me" and learning the Language of Money.

Now I'm trying to learn these business and investing terms from plenty of resources. Seems overwhelming, but I know that these will help me attain financial freedom... and become rich!
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Limonero666 - 5/12/2009 12:37:41 PM
The Language of Showbusiness.

It is like in Showbusiness, where I am.
Many people THINK THEY KNOW IT because they watch "Idol" and "US got talent" and THEY WANT to be there!! Maybe they can sing and dance..

...but you hear in the language if they actually HAS BEEN IN THE BUSINESS (and on which level...).

When you are a "Showbusiness-insider" you start using words and phrases that No-One else do.

So if you wanna be in Showbusiness... do not sing on the audition...Start TALKING and the sing your BEST REFRAIN:-)

Because they want people that has been "inside" and know how it works, The Deal, The Real Shit;-)






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dlsmith29 - 5/12/2009 1:20:34 PM
fluency
We need to know the verbiage, jargon and vocabulary of finance. These power brokers may speak in a code that is meaningful to the few who understand and can respond. If I do not understand what the terms mean, then I can not respond in a responsible manner.
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