0. Quick Tips: Study Financial Statement
I recommend watching in the following order:
I recommend to watch this one for basic understanding and you may skip the rest for later.
The following are videos about Garret Gunderson and Robert Kiyosaki distiguishing between poor, middle class, and rich.
3. The Poor
4. The Middle Class
5. The Rich
As I said, I haven't reach this stage yet. What I wrote currently is what I heard and I'm fighting to reach this stage. Once I reach this stage, I will add my experiences.
D. BusinessBusiness is a generally known term to create an asset. Starting a business is very difficult but once it's matured, money will flow to you without doing anything. For example, you have a company and all you need to do is watch over your employees working for the company. Example popular business is building real estates and renting them, building factory to mass produce products, building a restaurant and sell your cuisines, buying cars and rent them, etc. For a business to grow big, you must invest all your wealth and most of the time wealth that is beyond what you have. Another important thing in business are taxes.
E. Debt / LoanWhat is wealth that is beyond your amount? Debt / Loan. The poor drown in debt, the middle class free themselves from debt, while the rich exploits debt. If you can't handle what the rich does that is discipline in focusing your assets first (like overspending in luxuries and pleasures), then get out of debt and stay middle class or debt will eat you alive and you will become poor.
F. Cash FlowThe rich masters the six key words of financial statement: (1) income, (2) expense, (3) asset, (4) liabilitiy, (5) cash, (6) flow. Finally, after mastering every other words, the rich masters cash flow.
6. My Controversial View of Wealth