Essential Qualities of an Entrepreneur: Brand

Essential Qualities of an Entrepreneur: Brand

Posted on: Tuesday, December 20, 2011|Written by: Robert Kiyosaki

In some ways, it’s fitting that I sit down to write about a brand as an essential quality of an entrepreneur this morning. All across the headlines are blazing the news of the death of Kim Jong Il at the age of 70 years old.

Interesting among the more standard news stories about the Kim’s reign — and the devastation it caused his country and his people — is an article in The Wall Street Journal on the mythic nature of Kim created by his propaganda machine.

According to the article, there are two filters through which Kim was viewed.

To his people, Kim is a “peerless leader, master of all knowledge and gifted athlete”— or at least gives the appearance as so — with huge banners and paintings showing his likeness all over the country of North Korea and carefully constructed photo ops and news stories painting him as such. Newscasters, announcing his death on television, we’re in tears as they reported the news.

To the world, Kim is a brutal dictator with a bizarre love of gray jumpsuits. He oversaw a country that declined from a communist regime over decades into one of the poorest and most brutal dictatorships in the world, imprisoning millions, killing untold numbers of his own people, and pushing scores of North Koreans into abject poverty and starvation.

But these are all perceptions, as no one really “knew” Kim. Very few world leaders actually met with him, and his own people only heard his voice once, in 1992, on a broadcast where he said, “Glory to the people’s heroic military.”

Eventually, however, as it does for everyone, the truth gets out. And that brings me to branding.

Over the last couple weeks, I’ve briefly shared some thoughts on the essential qualities of an entrepreneur, based out of the book, Midas Touch, by Donald Trump and me.

So far, I’ve written on strength of character and F.O.C.U.S. This week, I want to talk about the importance of a brand.

The Importance of Brand for An Entrepreneur

Many people think a brand is what you make, which is not true. What you make is simply a commodity. A brand is what communicates who you are as a person or a company and informs what you make.

A brand is different than a commodity. For instance, Coca-cola is a brand. Store-“brand” soda is a commodity — not a really a brand. Nobody collects Safeway-brand cola merchandise — and no one builds museums to celebrate the history of Kroger soda. They do for Coke though, because it is a brand — and one that people love.

A brand is important for an entrepreneur because it helps people instantly know what you stand for. For me, my brand is taking complex financial information and making it easy and fun to learn. My company represents that brand, and people trust me and my brand. My brand is authentic.

And that’s why today’s news is so interesting, because it communicates a universal truth about branding.

Kim Jong Il had a brand (we all do to a greater or lesser degree, and many refer to is as a reputation). To us, it’s clear that his brand was a brutal dictator. But we don’t really know, yet, what his brand was in his own country. He worked hard to pass himself off as a great man and leader to be revered and who cared for his people and country against a world out to get them. But I’ll wager that most North Koreans don’t buy that brand. Why? Because the reality of their lives as they starve and face persecution don’t measure up to that brand.

His brand is not authentic. It is a veneer held together by fear. Now that he’s dead, it will most likely unravel. News sources are indicating as much, with most world leaders predicting a huge and possibly violent power struggle on the horizon.

That is an important lesson in branding — your brand must be authentic, or you’ll eventually be found out. You can be successful by some measure with a brand that is not authentic, but eventually that lie will be found out and what you’ve built will come crashing down. Rather than shoot for a period of success by creating a false brand, a true entrepreneur seeks to build a legacy by creating a true brand.

And a true brand comes from doing what you love and building a great company that desires to share that love.

For me, I love to see people’s lives changed by financial education, just as my life was.

My company exists for that sole reason, and it’s reflected in my brand. I don’t need a propaganda machine to communicate that. My actions and the products of my company represent that, my employees live that, and my customers attest to that.

If you plan on being an entrepreneur, as I hope many of you are, I would challenge you to begin the process of self-discovery for both you and your company. Who are you, really? What are you passionate about? What defines you and your company?

Once you have discovered the answers to those questions, build your company around them and live them truly. Only then will you have a true and authentic brand, and only then will people look and you and say, “Yes, I know and love that brand.”

Don’t think you can fake it. Because you can’t. Eventually, everyone’s true brand comes out—just as it will for Kim Jong Il in North Korea.

FOCUS – “follow one course until successful!”

This is one of the greatest reads in a while! This post is a short summary of one of the chapter’s covered in Robert Kiyosaki’s and Donald Trump’s latest book, “Midas Touch.” I strongly recommend you pick up the book if you want to be a business owner or entrepreneur on any level. I love what he has to say about the information age that we all live in! – Joshua Gamen

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Essential Qualities of an Entrepreneur: F.O.C.U.S.

I recently released my newest book, The Midas Touch: Why Some Entrepreneurs Get Rich and Others Don’t, with my good friend, Donald Trump. This is a book on entrepreneurship for entrepreneurs—something both Donald and I are extremely passionate about.

The reason Donald and I wrote this book is because we’ve learned the hard way that there are five, essential qualities entrepreneurs need to have in order to succeed. These qualities aren’t a guarantee for success, but not having them is a guarantee for failure. And we want you to succeed.

So, over the next few weeks, I’ll briefly share some thoughts on each quality. For more on each quality, I encourage you to purchase a copy of Midas Touch.

Last week, I wrote on the number one essential quality of an entrepreneur—strength of character. This week, I’m writing on essential quality #2—F.O.C.U.S.

Today, we live in a world of instant gratification.

When I was a kid, we had only a handful of channels on the television. If you wanted to know something, you had to go to the library and spend some time to look it up. If you wanted to know how someone was doing, you had to write them a letter – or if you had the money, call them long distance. And if you needed directions, you had to stop at a gas station to ask.

The world has changed since then. Now, there are thousands of channels on TV and most people can’t stay on one for more than a few minutes. If you want to know something, you look it up on Wikipedia in seconds through your computer or phone. If you want to know how all your friends are doing, you spend a few minutes on Facebook. If you want to talk to them, you text them – or six or seven of them – right away and all day long. And if you want directions, you hit a little map button on your phone.

This instant gratification is a result of living in the Information Age, which is a double-edged sword because living in the Information Age gives more people more opportunity than ever in history to become rich, but it also makes it harder to become rich because we’re all suffering from ADD.

Today, we live in a world that finds it hard to focus.

Because there is so much information at our finger tips, our minds, especially young people’s minds, are conditioned to move from one stimuli to the next. It is rare these days to focus on one thing for a sustained period of time.

If you want to be a successful entrepreneur, however, you have to learn to F.O.C.U.S. Simply, this means Following One Course of action Until Successful. This takes time and effort – and, as we talked about last week, strength of character.

For many entrepreneurs, it takes years to master a business sector or asset class. It takes the dedication of studying hard, building your financial education, cultivating relationships, and learning from mistakes. And during those years, you’re looking at many long days, putting in lots of hours for little-to-no pay.

The difference between wannabe entrepreneurs and successful ones = F.O.C.U.S.

At the end of the day, the difference between a successful entrepreneur and a wannabe entrepreneur is F.O.C.U.S. Many wannabe entrepreneurs are looking to get rich quick. So, when one avenue doesn’t pan out, they move onto the next. The problem is they are never successful because they never put in the time and effort required to be so.

Rich Dad has never been about getting rich quick.

We’ve always been about a lifelong journey of financial education.

No one is born an entrepreneur. You become an entrepreneur over many years of learning, hard work, and F.O.C.U.S.

 

Written by: Robert “Rich Dad” Kiyosaki

Bailout: The name of the game

It is absolutely madness. Yesterday was a huge injection of dollars into the global financial system by central banks. It seems fiat currencies are swirling the drain now.. Look for precious metals to surge again and listen for new talk of a one world currency..It’s only a matter of time. However, as Robert says, “The people who understand that they must increase their financial education, save themselves and not rely on the rich, or the government, survive and thrive in times of crisis”

So increase your financial education which will lead to increase in cash flow. Rely on God and your faith, not the rich or the government, and thrive in these times of oppertunity! – Joshua Gamen

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In my book, Conspiracy of the Rich: The 8 New Rules of Money, I write that bailouts are the name of the game. This means that the ultra rich will never suffer like the middle class and poor do in financial crisis. The institutions that are deemed “too big to fail” will always be bailed out. This also means that sometimes big institutions prefer financial crisis because they know they will be bailed out, and they also know they can make a lot of money from those bailouts.

This week, a bombshell hit on the lending practices of the Federal Reserve to the largest banks in the world during the peak of the financial crisis. As Bloomberg reports in an article entitled, “Secret Fed Loans Gave Banks Undisclosed $13B,”

“The amount of money the central bank parceled out was surprising even to Gary H. Stern, president of the Federal Reserve Bank of Minneapolis from 1985 to 2009, who says he ’wasn’t aware of the magnitude.’ It dwarfed the Treasury Department’s better-known $700 billion Troubled Asset Relief Program, or TARP. Add up guarantees and lending limits, and the Fed had committed $7.77 trillion as of March 2009 to rescuing the financial system, more than half the value of everything produced in the U.S. that year.”

Additionally,

“The Fed didn’t tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn’t mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. And no one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates, Bloomberg Markets magazine reports in its January issue.”

Big gets bigger.

Everyone knew that the name of the game is bailouts for institutions that are too big to fail, and while news agencies have been talking about the gargantuan $7.7 billion in commitments by the Fed to save the economy, the details released this week through the Freedom of Information Act show what we’ve known all along – the rich will say anything to protect their ass-ets and build their balance sheets.

For instance, in November of 2008, Bank of America’s CEO, Kenneth Lewis said that his bank was “one of the strongest and most stable banks in the world.” On that same day, Bank of America owed $86 billion to the Federal Reserve in emergency loan money.

Jamie Dimon, CEO of JP Morgan Chase, told his shareholders in 2010 that he only borrowed from the Fed to encourage others to borrow from the Fed. In reality, the bank borrowed twice its cash holdings from the Fed, and on one day in February 2009, borrowed a colossal $48 billion – one year after the creation of the Fed’s emergency lending program.

All in all, the big six banks comprised of JPMorgan, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley accounted for 63 percent of all daily average lending by the Fed to banks and financial institutions, receiving over $160 billion in TARP funds and borrowing around $460 billion from the Fed.

During that time, “Total assets held by the six biggest U.S. banks increased 39 percent to $9.5 trillion on Sept. 30, 2011, from $6.8 trillion on the same day in 2006, according to Fed data.”

Additionally, the Fed helped prop up both Bear Sterns and Wachovia with emergency loans as they were being gobbled up by JPMorgan and Wells Fargo respectively. The Fed transferred $50 billion in secret loans to Wachovia to prevent financial collapse until Wells Fargo could seal the deal, and they sent $30 billion in secret loans to Bear Sterns so that JPMorgan could wrap up that deal—all while providing $29 billion in financing to JPMorgan to fund the deal.

Essentially, the Fed protected the bigger banks and helped them grow even bigger by keeping brain-dead banks on financial life support long enough to graft them into the bodies of bigger financial institutions like a financial Frankenstein.

This was all done in secret, and without the knowledge of the American people and the Congress.

The safety net.

This type of behavior is reckless because it creates a false safety net. The big banks and the ultra rich know they will be bailed out and so they take even greater risks, putting the economy at even greater risk, and playing games with your money.

As Professor Oliver Williamson says, “The banks that were too big got even bigger, and the problems that we had to begin with are magnified in the process. The big banks have incentives to take risks they wouldn’t take if they didn’t have government support. It’s a serious burden on the rest of the economy.”

Of course, this should come as no surprise, as the Fed doesn’t exist to protect the middle class and the poor. Rather, it exists to protect banks and the ultra rich. Something they’ve shown they can do well, efficiently, and without government knowledge or intervention.

Learn the rules of the rich with a financial education

All this is to show what I’ve been saying for many years, you can’t rely on the government to save you, and your definitely can’t rely on the Fed. The government doesn’t even know what’s going on in our financial policy and the Fed hides those details in order to help their friends on Wall Street…after all, the people who run the Fed used to work there, and probably will again someday. You don’t bite the hand that feeds.

If you want to avoid getting wiped out by the next financial crisis, you must understand the rules of the rich and play by those rules. With a new presidential election heating up this year, I’m sure you’ll hear many calls for hope and change on both sides. Many people will believe that their candidate will make a difference and that this will be the time things will change.

The reality is that nothing has changed in decades. The rich take care of the rich and grow richer. The poor and the middle class grow poorer. And the people who understand that they must increase their financial education, save themselves and not rely on the rich, or the government, survive and thrive in times of crisis.

Take charge of your financial future so that you can live large when hard times come.

Written by: Robert Kiyosaki

Is Gold Money? And what are the effects of the debt ceiling controversy with gold and money?

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Is gold money?

That’s a good question and one that Rep. Ron Paul asked Fed Chairman Ben Bernanke last week at a hearing on the US economic outlook and monetary policy.

Bernanke’s answer: “No.”

Rep. Paul followed up with another good question. “Why do central banks hold gold?”

Bernanke’s befuddled answer: “It’s tradition.”

You can watch the humorous exchange below:

Why gold is not money…yet

A writer, R.A., in The Economist speaks to this exchange and reminds us that gold isn’t technically money anymore since you can’t take it to the store and use it to buy goods.

The writer goes on to say, “But while gold is not money, it shares a very important characteristic with money: its value (apart from limited industrial uses) is derived from the market’s perception that it has value. This is the nugget of truth in Mr [sic] Paul’s comments.”

Fiat money works the same way. Dollars have value because people have deemed them to have value. But as the writer in The Economist points out, dollars can be printed easily and at will, devaluing them quickly. Gold on the other hand has an intrinsic scarcity to it.

“But that’s precisely the way that fiat money works. People believe the flimsy pieces of paper we call dollar bills are worth some basket of real goods only because everyone else believes the same thing. The crucial difference in the perception of value is that new gold can only be obtained at great difficulty while new bills can be produced by the truckload at virtually no marginal cost.”

Presently, the reason that gold isn’t money in the way most people think of money is because people still think that paper dollars are money.

The writer concludes that dollars will always be money going forward because people have decided to be content with them with money. And regarding gold? The writer says, “What I don’t understand is the argument for gold that falls back on the mystical, 6,000-year old Law of Economics that shiny yellow metal is somehow special.”

All currency goes to zero

Though the writer seems to think it’s an impossibility, indulge me for a second. What happens when people no longer want to accept paper dollars as money? What happens if the Fed prints so many dollars, because it’s so simple and an infinite amount can be printed, that no one cares to use them as money any longer? Then what will be money?

Throughout monetary history, all fiat currencies—currencies that are given value solely based on an authority’s claim of value—have fallen to zero. The writer in The Economist conveniently forgets to share this fact.

And throughout history, societies have always resorted back to gold as money. As the writer in The Economist points out, this has gone on for 6,000 years. The writer can call this mystical if desired, but I call it a hell of a track record.

The dollar is toast

As I wrote about last week (“Time Ticks Away”), the US is currently in a battle over the debt ceiling. If the US defaults on its debt, the dollar will be toast, and savers will be losers.

If the US defaults on its debt, many people will wish they’d saved some of the money known as gold. Because just like has happened many times over the last 6,000 years, people will turn to it as the repository of value again.

But perhaps the US will fix its debt problems. If so, then the dollar will live on—for a time. But like all fiat currencies before it, the dollar will eventually fall to zero. No matter what, the dollar is toast. It just could be later rather than sooner.

Real money

At Rich Dad, we say Knowledge is the New Money. This is because wealth is attained by your ability to understand what is happening in the markets and to act accordingly. This means that if the dollar is tanking, you have enough knowledge to invest in things that hedge against the dollar—like gold.

Conversely, if the dollar is skyrocketing, you have enough knowledge to understand that gold will probably go down in value.

At the end of the day, it’s your knowledge—and your ability to apply it—that makes you rich…not dollars and not gold.

Times are certainly uncertain. I encourage you to continue your financial education. Start collecting real money—financial knowledge. Increase your knowledge, and you’ll increase your wealth.

Written by: Robert Kiyosaki

http://www.youtube-nocookie.com/v/vE_BPZbRCbg?version=3&hl=en_US

So simple a cave man could get it!! The difference between an ASSET and a LIABILITY

This is a quick yet insightful post, written by Marty Boardman.

Marty is the Chief Financial Officer for Rising Sun Capital Group, LLC, a real estate investment firm based in Gilbert, AZ, just a few miles away from my real estate office in Tempe. His firm purchases homes at the courthouse steps and public REO auctions. They have two exit strategies, either fix and flip or seller financing.

If there is one thing you teach yourself about money, or more important, that you teach your kids about money, let it be the difference between an asset and a liability. It’s not a complicated difference. One makes you money(asset) and one costs you money(liability).

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It’s time for me to come clean.  I love to shop.  Not for clothes or jewelry.  That would mean immediate revocation of my man card.  No, I like to browse for gizmos, gadgets and toys.  High tech or low tech, it doesn’t matter.

On Sundays I sit at my kitchen table flipping through the slick glossy newspaper ads.  This week Best Buy has a sale on LED TVs.  Target has the movie Tombstone on blu-ray for $10 off.  And Dick’s Sporting Goods has that gas camping grill I’ve been wanting.

Then there’s Home Depot.  I can find something I want on almost every aisle.  Chase lounge chairs.  A belt sander.  And how can I live without this decorative metal ant sculpture for my backyard?

I need help.  I’m weak – a victim of the consumer culture.

They say the first step towards solving a problem is admitting that you have one.  Okay, now what?

The truth is I came to the realization that I’m a shopaholic about a year ago.  It’s been a long winding road but I’m finally on the mend thanks to this 3-step recovery process:

  1. I stay out of any store selling merchandise that requires electrical or battery power.
  2. I leave my wallet at home.
  3. Before I buy anything I ask myself – will this cost me money or make me money?

Step 3 of the recovery process is the most important.  I came up with it after reading the book Rich Kid, Poor Kid by Robert Kiyosaki.  In it he explains how an asset is something that makes you money.  A liability is something that costs you money.  So simple a child could understand this concept right?

Well, I guess I’m still a kid at heart because it took me 39 years to figure out.

Now I shop for cash flow producing real estate – at the courthouse steps and on the multiple listing service.  The fix and flip business I operate with my business partner is generating enough revenue for us to purchase 3-4 rental properties this year.

I’m proud to say that I’ve finally turned the corner with my liability addiction.  Although I still have the occasional relapse.  I recently bought a Motorola Xoom tablet.  Sure it’s a toy.  But I justified the expense because it will help me make money.  Last week I used it on the 6th hole of the golf course to place a bid on a house going to auction.

I guess I forgot to mention that I’m also a golfaholic.  Unfortunately, there’s no known cure for that.

By: Marty Boardman

What is Freedom? – Rich Dad’s Take

Below you will read an amazing post written by Rich Dad Poor Dad author Robert Kiyosaki.

A great way to invest for many is cash flowing real estate. This is knowledge that can build true wealth. It combines the elements that Rich Dad talks about that are big wealth stealers for the masses, and turns them into money machines. Retirement(funds you use to fund your investments, used with proper leverage of good debt to provide cash flow.) – Inflation(land should generally keep up with inflation along with other commodoties like oil, silver, gold,e tc.) – Taxes(Real estate has AMAZING tax advantages) – Debt(good debt used for positive cash flow-worth repeating 🙂

-Joshua Gayman

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Written By: Robert Kiyosaki

http://www.richdad.com/Resources/Rich-Dad-Blog/July-2011/What-is-Freedom-.aspx#LeaveComment

Yesterday, most Americans celebrated freedom by wearing red, white, and blue, barbequing meat, drinking too much beer, and blowing things up.

As a Vietnam Veteran, I fought to uphold the ideals of freedom, including Capitalism. And I’ve spent most of my adult life educating people how to become financially free, which I believe is the basis for almost all other freedoms. I believe freedom is definitely something to celebrate—and to fight for.

Freedom is under attack

For much of its history, America is a country that has valued free markets, allowed people to pursue their interests, and created opportunity for anyone, without too much government intervention.

Today, freedom is under attack by a massive public debt and trade imbalance, a recession that won’t go away, stagnant wage growth, high unemployment, and a looming retirement crisis.

Freedom is not security

Often, in times of distress, people give up their freedoms in exchange for what they think is security. It’s telling that many despots and dictators throughout history have come to power in times of economic crisis.

Ironically, many people don’t understand that freedom often means less security. It means having the ability to take risks and the understanding that our decisions have consequences that we must face—and rewards that we can enjoy.

I don’t know where the world will be in ten years. My hunch is that we’ll be worse off, not better. If our leaders continue to ignore the problems in the world instead of fix them, many people will be poorer and less free—and a few will be richer and have more control.

Enemies of freedom

Some enemies of freedom are high taxes, inflation, and bad debt. All of these things are big problems in the US and around the world. Because of our bad debts, most governments are faced with the choice of raising taxes or printing more money, both of which hurt the middle-class and the poor.

As our financial problems grow, many people will be content to give governments more power and control—and more money from their paychecks. Others will not be content, try to fight, but have very little ability to change things and still end up paying higher taxes and suffering from the effects of inflation because they’ll lack the financial knowledge to fight them effectively.

Financial freedom is key

Kim and I founded the Rich Dad Company because we believe in freedom and fighting for it. It is our belief that knowledge is the ultimate weapon in the battle for freedom—and financial knowledge, the knowledge most lacking around the world, is the most important part of the arsenal.

You can make the choice to be informed and to move ahead. Although the conspiracy of the rich seeks to keep financial knowledge limited in order to consolidate money and power into their hands, the reality is that you can play by the rules of the rich and enjoy the freedoms that they enjoy.

Today, the day after the celebration of freedom in America, I encourage you to ask, “What is Freedom for me?” Is it more time with your family? Is it the ability to travel around the world? Is it building a great business and helping others financially?

Freedom is different for everyone, but I’ve learned that one of the keys to achieving our definition of freedom is to be financially free. I encourage you to increase your financial education and knowledge, to learn to play by the rules of the rich.

For many with a low financial IQ, times ahead will be tough as taxes, inflation, and debt steal their freedoms away by taking away time from their family, diminishing quality of life, and making life more expensive. As freedom diminishes for many, it will be those with a high financial IQ and who understand how to use things like taxes, inflation, and debt to get richer that will become freer.

 

Competition Towards Disaster

By Joshua Gamen

An article in the Wall Street Journal this last week titled “Fed Officials Mull Inflation as a Fix,” talks about the Fed reversing over 3 decades worth of monetary policy to fix this fragile economy and contribute to a recovery that is not happening like they had hoped for.

*(Monetary Policy is simply the regulation of the money supply and interest rates to control inflation and stabilize interest rates.)

The Fed is hoping that by lifting inflation, they will push “real” interest rates(nominal rates minus inflation) down. This would encourage consumers and businesses to save less and spend or invest more.

SAVING SUCKS

Robert Kiyosaki claims that savers are losers, and what is going on strongly supports his stand on the issue. It is absolutely insane to think that you can get ahead by simply saving dollars when the Fed is willing to speed up the printing presses to get more dollars into circulation, purposefully causing more inflation. As many know, President Nixon took the US off of the gold standard in 1971, severing the tie of our dollar to the gold standard. So for over 3 decades, the Fed has tried to keep inflation low. More dollars in circulation means the value per dollar in the existing supply goes down.

The point that the Fed is even considering inflation as an economic fix shows that they have given up on the dollar. And the world is catching on.(See value of precious metals vs value of US dollar.)

Last week, the dollar dropped to a 15-year low against the Yen. Investors on Wall Street are betting on the Yen, believing that the Fed will sacrifice our dollar to help economic growth.(Shown by a 72% increase on pro-yen votes.)

WHY WOULD THEY DO THIS?!?!?!

By weakening our dollar through inflation, US exports would become cheaper, creating export-lead growth. The dilemma with this is that EVERY nation is looking for export-lead growth, and they too, are willing to sacrifice their currencies to make it happen. China is keeping theirs artificially depressed to try and stay ahead in export wars. Thus, the US is trying to get China to let their currency appreciate, and trying to get the IMF(International Monetary Fund) to rally behind them on this. This competition is causing a race by the currencies towards disaster.

SO…????

My point is that the dollar is EXTREMELY dangerous now. All I hear is people talking about ways to cut back to save more. This is touted as a “responsible” economic strategy. The known financial voices are cheering that the people are being “wise with their money again.”(How’s that working out for anyone?…. :\ ..

I am saying this – Saving dollars is not smart. Financially, it’s actually quite ignorant. If you think saving dollars is a good idea, you are ignoring the fact that the Fed is doing everything they can to make the dollar weaker – by raising inflation in hopes of stimulating growth to the economy, and push us all into more debt.

(I know I am getting to get a lot of arguments on this here, so do your research and verify with facts what I am saying.)

GOOD DEBT VS BAD DEBT

Debt is money’s reality these days. Our economy only grows now if you and I are spending more, and more, and more. It is actually the interest on our loans that the ultra-rich are now after. (They already have everything else from us.)

Debt can, however, be good OR bad.  Good debt puts money in your pocket, bad debt is money that takes more money out of your pocket. (IE: Going into debt using leverage to buy an asset like rental property which puts money in your pocket after paying the mortgage, taxes, management, and maintenance is good debt. The tenant pays the debt down, and you get the asset, plus a little(or a lot) of spending money each month. Plus, you get the appreciation(If there is any). Bad debt would be taking out a credit card to take a vacation. This only takes money out of your pocket, and for a long time.(Thanks to interest payments.)

GOOD NEWS

There is always a good perspective that can be sought out. With all of this stuff going on, there is an abundance of opportunity. With all of the depreciation that is going on, there is a huge opportunity to acquire assets(something that puts money in your pocket) at rock bottom prices. This won’t last forever. The Fed will find a way to create inflation(sounds like they’re already working on this). When inflation hits(and it’s inevitable), savers will become losers and debtors will win.