479. Become a good Investor

Keep your earned money secure by converting it into property and shares that will become assets to return income to you. It is your responsibility to determine whether your securities become assets or liabilities. This is called Risk Assessment. Be a good investor not a risky one. There are no risky investments, only risky investors.Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not!

468. On Being a Lender

"Neither a lender nor a borrower be." - William Shakespeare. This is advice that is a little over-simplified. If someone asks you gor a loan, examine what it is for. If the project looks like a winner and the person has a good track record, offer them a convertible loan. (No, this is not a loan for a sports car !).

A convertible loan is a properly legally binding loan agreement with repayment schedules and details all worked out and forming part of the agreement.

If the project is successful and profitable, you have the option to convert the debt (to you) into equity (shares) in the project and this will give you a share in the profits.

Two things to remember about convertible loans are that you should make sure that your equity is made up of VOTING shares, and that the loan is SECURED against their property, so that you will still get paid if anything goes wrong. This degree of due dilligence will sort out the wheat from the chaff.

416. Physical Security

Keep the security of your home strong. Fit dead bolts, 5-lever locks, anti-ram hinges and whatever new physical barriers that come on the market from time to time. Keep your alarm system serviced, armed and up to date. Fit video surveillance systems. Conduct a review of your security arrangements every 6 months.

329. Handling Cash

When you start to do business with banks, make sure that you do not get into regular habits of lodging money that can be readily identified by criminals. Do not set up patterns that can be observed. Do not go at the same time each day, or the same day each week. Never use the same branch twice in a row. Never carry the cash for lodgment outside your clothing. Do not be obvious. Do not let people know what you are doing.

88. The Purpose of Your Financial Education - Your Financial I.Q.

Your financial education is a tool box that allows you to convert the maximum possible percentage of the money you earn by working at your profession into capital that will provide you with life-long wealth and security.

The purpose of educating yourself financially is to raise your Financial I.Q.

Financial I.Q. is not about how much money you make but about how much you keep and for how long and how hard it works for you.

You know that your Financial I.Q. is increasing when your money is buying you more freedom, happiness, health, fun and choices in life than before. The reason people say that money is power is that it gives you more choices.

Remember, the more you NEED money, the less power you have. You have power over money - never become a slave to it.

It is a grave mistake too, to ever think of yourself as poor. If you have no money, you are merely broke. Being broke is temporary, being poor is eternal. Remember this because it is a very important distinction.

Never say "I can't afford it." Rather, you should ask yourself "How can I afford it?" This has the effect of forcing your mind to focus on the solution, not the problem an to think for its self. The other way leads the mind to accept the statement and give up trying.