Why you have to make money work for you?
Rich Dad or money is frequently mentioned as the root of all evil. Rich Dad or rich people would state that a lack of money is the root of all evil. The poor usually forbid discussions about money during social events, because of humiliation associated with the present situation. When you forbid talking about money, you are putting your head to sleep. You don’t constrain your brain to work and think of a solution for your bad financial condition.
The Rich Dad says “Money works for me, I don’t work for money”.
He wants to give you the chance to figure out how money works and how to have it work for you. So, if you want to be an expert, you need to kill fear.
According to the rich dad, fear is the first feeling when the subject of cash is talked about. It makes most of us keep our jobs since we dread of not having the capacity to pay the bills or having enough cash. Greed is the second; once we have more cash, we increase our spending. If you don’t want to be a slave to your money, you need to consider it logically, not through fear or greed.
When you stroll down the street and see your friend driving his new Porsche, it is typical to desire what he has. But, frequently the desire is killed by the mindset: “It’s too expensive.” Instead of thinking it’s too expensive, the rich man would think: “How can I afford it?” Your mindset will cause your subconscious to act and move you in the direction of your desires. It is the same as the contrast between the man who goes to the gym each day, and the man who always sit in front of the TV. The man who goes to the gym gets fit, the man in front of the TV gets fat. It is critical to exercise your mind, and it may mean the difference between being rich and poor.
Types of Investments
The most widely recognized terms that are identified with various sorts of investment:
- Bond: A debt instrument, a bond is a loan that you are providing for a government or a company in return for a pre-set interest rate paid routinely for a specified term. The bond pays interest (a coupon payment) while it’s active and terminates on a particular date, and after that, the total face value of the bond is paid to the investor. If you purchase the bond when it is first issued, the face or par value you get when the bond matures will be the amount of cash you paid for it when you made the purchase.
- Stock: A sort of investment that gives you partial ownership of a publicly traded company.
- Mutual Fund: This is an investment vehicle that enables you to put your cash in a professionally-managed portfolio of assets that is dependent on the specific fund; it could contain a variety of stocks, bonds, and other financial instruments.
- Money market account: This is a kind of savings account that provides a competitive rate of interest (genuine rate) in return for larger-than-normal deposits
- Exchange-Traded Fund (ETF): ETFs are funds. They are often regarded as baskets or portfolios of securities. When you buy an ETF, you are acquiring shares of the overall fund instead of actual shares of the individual underlying investment.
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