Have you ever heard from the Rich Dad Summit ? This summit was setup by Robert Kiyosaki. He is the author of the book Rich Dad Poor dad. A book that changed my thinking about money forever…

The Rich Dad Summit was a 2-day 100% Online event in December designed specifically for people who want to make more money and learn to create systems to have their money make more money…

You could learn how to:

The tactics and strategies you could discover can be implemented immediately – even the very same day! There are two sides to success : Method + Mindset. You need to learn new methods to make more money and have the mindset to act upon it. Otherwise your learning doesn’t matter as you don’t execute.

Here are my key learnings from this 2 day virtual online event. In this blogpost you will read my key learnings from DAY 1 (session 1 – 9). In next weekend Sunday blogpost you can read my key learnings from DAY 2 (session 10 – 17)

If you want to watch the replay of this event on YOUTUBE, scroll below to the final conclusions to find the URL.

Key Learnings from Day 1

The first day there were 9 Presentations. In the presentation Secrets to building Long-Term wealth Robert asks the question “What is your mission?”. Do you want to keep on working and be a slave for paycheck? He believes it is also hard to determine an actual value on Bitcoin today. It is based on Speculation and Hype. The US Dollar will eventually go to zero. But nevertheless he would rather have money in bitcoin than dollars in the longterm.

The stock market is high because it’s in a bubble. It’s all about price discovery. The middle class is going to take hit yet again. If you want to avoid money losses, you need to invest in financial education. Financial freedom is the goal. All of us are programmed to be an employee. How can you change yourself to a Self employed entrepreneur and then move to a Business Owner ? Can you then move on to an Investor? Can you change your mindset? This is the Cashflow Quadrant.

You can make money in each quadrant but it is all about what makes you happy. Figure out what is your passion and what you enjoy doing each day ! Invest based on your interests and skills. Do always research and look for opportunities. Gold and silver will always exist and are therefor good investments.

In the session Diving into the Cashflow Quadrant Andy Tanner highlights that the rich operate differently. There are 4 basic ways to earn money. The first one is being an employee. For example an NBA basketball player enjoys playing his sports and earning money. Secondly you can earn your money as a self employed business such as a plumber, doctor or musician like Madonna. Third you can have a business which owns a system. They have leaders who run the business. An example is Henry Ford who run the automobile company. They can also sell their business. Last you have the Investors who make their money work for them.

The school teaches you to be in the E & S Quadrant. Most people in the E&S quadrant work for their liabilities such as a house mortgage, monthly bills, …all their expenses. Wealth is defined by how long you can live without going to work. How many months can you survive?  A Business Owner receives dividend and cash flow from his business ownership. Warren Buffett is a great example who is a business owner and investor. Great investors like to buy stuff in a smart way. All those assets such as real estate, commodities, paper assets, companies paying dividends,.. are great assets to invest in. Reflect on where you are and chose the life & financial path where you feel happy. Map out your path if you want change going forward. Be sure that you will encounter obstacles to conquer. Nothing goes easy in life.

Educate yourself when you want to invest in a specific asset class and decide which Quadrant type you want to be.

In session 3 “The difference Between Creating a Job & Being an Entrepreneur” Jeremy Bellotti explains the difference between “being self employed” and “being a Business Owner” where you have a system with people working for you. For example, Rosalee worked 8 years as a nurse in a hospital in the Philipinnes and transformed into a business entrepreneur changing her life.  After several months, she had a 40k sales month. She is now retired nurse and created financial freedom for her family. A system can be automated and scaled and is not dependent from you as an individual. You can also buy yourself into a business. There are many opportunities to get started as a business owner.

But it takes courage to get started. Make sure that your efforts result in a passive income.

In session 4 “The Best Online& Offline Business Opportunities” Andrew Lantz starts with three possible start options to get into the Business Owner Quadrant. Number 1 is to buy an existing business. Look for a good deal and the best deals come often from death, divorce, disease or retirement. Find the true reason why the business is being sold. There are 2 websites BizBuySell or Flippa where you can find a business for sale. Flippa is where you can buy a website. You can expect to go through lots of offers. Do your due diligence. Most people start their own businesses. Possibilities are endless. You are either producing goods, offer a service or retail already manufactured products.

Hot industries are Health & Fitness, Elderly Services, Technology, Travel (experiences), Education, Marketing and Home Services. Many of the best business opportunities today are online. Digital Marketing agencies help companies to get more leads. Companies pay a substantial amount for SEO, Social Media or other marketing services. The Pros of starting such a business are the low startup costs, strong demand from companies and the quick results you can achieve. Another opportunity is freelance writing or graphic design or video editing,…You can promote yourself and find projects on websites like Fiverr, Craigslist, Upwork,… Blogging is another opportunity as you can monetize with ad networks, selling products and guest blog posts. The challenge is that a blog is slow to monetize. Ecommerce is another possibility. You can create a e-shop selling products from China and open a store with Shopify. You can grow rapidly and it is easy to start.

Another opportunitiy is coaching & consulting. There are a lot of potential markets there. Just pick the one where you have the most passion for.

 

In Session 5 “The Fastest Way to Start a Business – The X Factor” Anik Singal started with 100$ his business and 6 years later he had 4 million $ on his bankaccount at the age of 26. The key to his succes was the X factor. The X factor is having the right model or system which is reliable, predictable, measurable and that supports exponential growth. One important factor for succes is email marketing – the secret weapon for growth online. Why email marketing ? There are 144,8 billion emails sent every day. In email marketing for every 1$ spent, the average ROI is 44,25$.

How do the poor spend their money ? They spend money on stuff like video games, TVs, latest iPhone,… things that make them happy …temporarly. The middle class spends their money on things that make them look rich and on liabilities such a big house, car,… The rich spend their money on assets that give them a passive income.

An asset is an email list that you can create and generate a revenue stream from.  Step 1 is to create traffic and Step 2 is to make an Opt-in page with a special free gift like an E-book or something else. Step 3 is to provide a Thank YOU page. But you can also implement step 4 and automate the messages where you broadcast new products and/or services. Remember to invest with intention.

The rest of the presentation is marketing for the 5 day training session of the company LURN and help you start build your own business.

In session 6 “Assets vs Liabilities” Andrew Lantz starts with the definition of ASSETS. An Asset is anything that you acquire that puts money in your pocket. Hard assets are tangible such as real estate, stocks, precious metals, appreciating currencies and profitable businesses. Soft assets are brand, patent, reputation, relationships, skills and Financial Intelligence. Invest in your financial intelligence as you learn something you can use long term. Liabilities lose value over time. Examples are high interest debt, paper money, big car loan, over-leveraged mortgage, taxes,…There are also “Soft Liabilities” that take aay from your health, happiness and productivity. Negative friends/family memebers, toxic beliefs or poor nutrition can damage your physical and mental health. The BASIC FORMULA FOR WEALTH is to invest in Assets and minimize Liabilities.

In session 7 “Demystifying the Stock Market” Andy Tanner explains a little bit about himself and he wrote 2 books (401(k)aos & Stock Market Cash Flow). His presentation is about “What should you study?” , Myths & Lies, and Cash Flow. Always start with buying assets instead of liabilities. You need to create a Passive Income greater than your expenses. This is a skill that is NOT taught at school !

There are 4 Asset classes. Paper assets are very scaleable, agile and liquid. Some people like Donald Trump only invest in real estate. Others such as Mark Cuban do a mix. Find out what asset you want to invest in. In paper assets you have bonds, stocks and the derivative markets. In the derivative markets is where Warren Buffett likes to play. There are 2 things you need to master when investing in the stock market : Fundamental analysis (knowing the value of a company) , technical analysis (reading and interpreting stock charts). This is information gathering. What do you do with this infornation? You take action and take a position in a stock. With proper risk management you change your portfolio and create a plan B or C. Andy explains basic fundamental analysis for a person, government or company.

How does Warren Buffett do it ? He looks at the intrinsic value and a company’s fundamentals. So the pillar 1 is FUNDAMENTAL ANALYSIS. The pillar 2 is Technical Analysis.  This practice is applied by George Soros. Then Andy explains an options trade (buying a put option) on the company with the ticker X. He also explains the investment case where Warren Buffett buys Coca Cola for an agreed put option price of 35 (a discounted price from the 39$). The pillar 3 is Cash Flow. Learn how to generate income from stock options. There are multiple income generating strategies. The pillar 4 is risk management. Learn what is your risk management.

Andy also runs a website Cash Flow Academy. He has different online courses. For example he can teach the 4 pillars of Investing. He also has a a mentorship class on how to execute the 4 pillars. Take a look at it. He ends his session with the words ” Most people are poor because they haven’t learned how to generate money…”.

In session 8 “An Email List as an Asset?” Anik Singal states that there’s proof that the global economy will collapse. There are 5 Proof points that no one can argue. There are 5 ways to protect from the Crash.

 1. Invest in Gold or Silver

2. Leverage Debt…but you need credit (also risky)

3. Tax codes

4. Spend Less to Save more

5. Global Entrepreneur : there’s always the internet to create a business..

The rest of the presentation is marketing for his coaching class to start an online Clickbank business and become a  global entrepreneur.

In session 9 “Building Your Success Team” Jeremy Bellotti summarizes factors that can take you from an Employee to a Business Owner. Create a team around you that helps you to succeed. Fill the knowledge gaps with coaching and learning new skills. At the end you can achieve your freedom.

Final conclusion

Why did I invest time watching this ? It’s all about investing time in financial education & wealth building. It is also about investing in personal guidance & leadership. What did we learn from those 9 sessions ? The most interesting sessions are session 4 “The Best Online& Offline Business Opportunities” and session 7 “Demystifying the Stock Market”. 

I have read the Cashflow Quadrant and it is one of the books in my book library. I know the difference between assets and liabilities but I realize that the majority of the middle class does not know the difference. It is all about financial literacy. Anik Singal runs a training company to setup online businesses with Clickbank. Everyone can sell a product there and affiliates can promote your product and earn money as affiliate.

The Basic Formula for building wealth is SPOT ON ! Invest in assets that pay you money. That is why I invest in dividend paying stocks and learn about income generating options investing strategies. Next week you can read our summary and key learnings from Day 2 with the following topics.

The YOUTUBE URL Linke for the FIRST day of RichDadSummit event can be found here.

Thanks for reading this blogpost. As always we end with a quote.