Mindset
The rich use their mistakes as a way to learn. True or false?
True.
What does each quadrant stand for?
B-big business/business owner
I- investor
S-self employed
E-employee
What are the three classes
Poor, middle, and rich/upper class, middle class, and lower class.
What are stocks?
Stocks are when you buy part of a company.
Are liability's good?
No.
The mindset of the rich and the middle class have similar mindsets. True or false?
False.
A nurse belongs in which quadrant?
E-employee
The middle think that their house is an asset. True or false?
True
What is a loan?
Money borrowed.
What is a liability?
Something that takes money out of your pocket every month.
How do the middle class think?
They think they are educated well and are proud of themselves they think they are "successful" but are really doing horrible.
What side of the cashflow quadrant do people pay less in taxes?
The right side
The rich think that it takes money to make money. True or false?
False.
Dept definition.
Money owed.
Give an example of a liability.
Houses, cars, dept., tax, and mortgage.
What mindset do the rich have?
One that is educated, encouraging, motivated, and greedy but a good kind of greedy.
A rich old lady opens up a nice shop on South Beach Florida she then hires people to work their. What quadrant is she in?
B- big business. When you have a big business you are hiring people to work for you.
After a guy hears that investing in real estate makes a lot of money he hires someone to do the work for him. Was that a good idea?
No, because he has no knowledge of it and is making other people do the work for him. This person may not even be well educated but you wouldn't know because you're not.
What is an asset? Give me three examples.
Bonds, stocks, and real estate.
If I were to buy a house and rent it out to someone would that be an asset or a liability?
Depends, if your spending more then you make then it's a liability. But if you are making more then you spent it's and asset.
How do you train your brain to have a better mindset?
Study, read, make mistakes and learn from them, hang out with bad people, and hang out with good people, and ask for feedback.
Which side of the quadrant is better?
Trick question! None of them are better than the other. One just pays less in taxes. But you should have a great understanding on each quadrant.
How do the rich get richer?
By upgrading their financial intelligence and being on the right side of the cashflow quadrant. They also know the difference between an asset and a liability. And know how to pay less in taxes.
What is passive income?
Passive income is income derived from real estate.
How many liability's should you have?
Well you need a house and you kind of need a car so I would say 2 maximum but aim for 0.