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Of course, there are few Warren Buffett’s but the good news is that none of us need to be that stellar. Sure he’s patient, deliberate, and thoughtful but he also has guts (he invests billions at a time and takes big stakes in his investments)! And most would certainly say he is brilliant. One example of the sort Kiyosaki is talking about who you might not initially think fits the bill is Warren Buffett. This factor, whatever it is labeled, ultimately decides one’s future much more than school grades do. I have heard it called many things guts, chutzpah, balls, audacity, bravado, cunning, daring, tenacity, and brilliance. In the real world outside of academics, something more than just grades is required. Once we leave school, most of us know that it is not so much a matter of college degrees or good grades that count. Lesson 5: Often in the real world, it’s not the smart who get ahead but the bold. This seems like a better way to lower taxes. Personally, I prefer his other advice for lowering taxes (later in the book): work to reduce earned income (which is taxed at the highest rates) and increase investment income (which can either deduct expenses before being taxed or is taxed at lower, capital gains rates). It seems a bit scammy to me even if it may be technically correct and allowed by law. Kiyosaki doesn’t follow the traditional definition of net worth, but defines wealth this way: If you can earn a lot and spend little, you can create a huge gap that will fund a boatload of investing - which will make you wealthy. He’s also very adamant about keeping expenses low, which is something I like. It’s not that he says to abandon your career, he just advocates using career income for the right purposes, to invest in assets and not spend it all on consumer products. I think Kiyosaki gets an anti-job label from some that’s not deserved. Keep expenses low, reduce liabilities, and diligently build a base of solid assets. Keep your daytime job, but start buying real assets, not liabilities or personal effects that have no real value once you get them home. Lesson 3: The rich focus on their asset columns while everyone else focuses on their income statements.
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He lists a personal residence as a liability, not an asset, because it has many associated costs with it. Anything that has value, produces income or appreciates, and has a ready market.