Unfair Advantage In most cases, the do-it-yourselfer has very little, if any, formal financial education. After all, if they can do it themselves, why should they learn anything? INCOME STATEMENT If they do attend a course or two, it is often in a narrow subject Income area. For example, if they like stock trading, they will focus only on stock trading. The same is true for the small real estate investor. At the age of nine, when rich dad began my financial education Expenses with the game of Monopoly, he wanted me to have a bigger picture of the world of investing. The following are some of the basic big-picture asset classes he wanted me to spend my life learning. They are: BALANCE SHEET Assets
Business Real Estate Paper Assets Commodities
As more people realize the need to invest, millions of them will become small Level-4 investors in all four categories. After the 2007 market crash, millions of people have become entrepreneurs, starting small businesses, and many are investing in real estate while prices are low. Most, however, are trying their hand at stock trading and stock picking. As the dollar declines in value, millions of people are beginning to save gold and silver instead of dollars. Obviously, those who also invest in their ongoing financial education, taking classes regularly and hiring a coach to enhance their performance, will outpace those who just do it on their own. With a sound financial education, a few of the Level-4 investors will climb to the next level, the Level-5 investor, the capitalist.
by Rich Dad, Robert Kiyosaki