Rich Dad Lessons: Decide what kind of investor you want to be

Based on Kiyosaki’s work

Rich Dad's Lessons: Decide what kind of investor you want to beAccording to Robert Kiyosaki, there is an additional classification for the types of investors related to a specific investment or business: A, B, and C.

The type C investors are those people who simply don’t understand the investment or business and sometimes even they are not interested in learning.

When a poor person is a type C investor for all investments and businesses, the options to get rich are: get a job with the Government, marry someone rich, or win the lottery (or maybe inherit a fortune).

The type B investors are those people who have a very basic knowledge about the investment or business but, anyway, they are always supported by financial advisers. They always are looking for the answers they need in order to achieve good financial results.

When people are not really interested in the numbers or financial control, the best thing that they can do is to be surrounded by the best financial advisers. The problem here is that it is very difficult to identify the good advisors if you have no enough knowledge about the investment or business.

Many people that invest in stock market are type B investors and although, in few cases, they can achieve good yields by giving their money to the advisers, most of the times these people are only average investors that become happy when the market go up but they get scared when the market go down. In general, these types of investors cannot make money in a specific market going down, due to their lack of knowledge.

The type A investors are those who look for problems in the investment or business and develop solutions to them. They see these problems as opportunities to earn excellent financial returns.

The differentiating factors of the type A investors are the knowledge and the financial education. These people have solid financial bases and besides that, they have had positive and negative experiences that make them sophisticated enough to invest and manage their money.

Nobody can know everything. Therefore, depending on the field, we can be type A, B or C investors. We can be all the types of investors at the same time, depending on the investment or business type. If you want to become a great investor, then you only need a field where you can become a type A investor. In all the other ones, the financial advisers could help you (you are a type B investor) or simply you can ignore them because they are not your specialty (you are a type C investor) although the necessary condition is you are always willing to learn and expand your context.

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Speedlinking (Internet Money): Fake Steve Blog, The Rubicon Project and more…

Some interesting links on my preferred sites and other stumbled webs:

* The Secret Diary of Steve Jobs: Have you heard the fake Steve Job’s story? If not, you can start to see the blog. And below we have the story on video. It is really inspirational.

* The Rubicon Project: This project (on beta stage) will be a solution to optimize the ads spaces in our websites or blogs. It centralizes all the ad networks that we are affiliated with (for instance: Google Adsense) by using an interface with some tools that you can try in order to help to increase the revenues. You can register yourself and become a beta tester (if they approve it).

* 8 lottery winners who lost their millions: Your time and your mind are your two most important resources. Even more than the money. If you still have doubts, read what happens with people getting money quickly without a prepared mind.

* Blogtrepreneur.com Is For Sale: If you want to begin to make money online or you are interested in acquiring an established website in order to make it grow, you should look at this offer. This blog is for sale and its owner wants low five figures.

* SEO Tools - AdSense Preview: If you are interested in using Google Adsense, you can use this quick tool to see if you will get relevant ads before placing them. If you don’t get relevant ads, then you probably have to do some adjustments in the content.

* Free Camtasia Studio: Camtasia is an excellent tool to make video by capturing the computer screen output (video screen capture or screencasting). It is ideal for on-line courses or demos. Maybe the software is not cheap, but we can have a free version for our first steps.

* Pingdom: An excellent option for all those who want to monitor their websites uptime in a professional and very reliable way. The prices are really accessible (from $9.95/month).

* Video speedlinking:
The story about the fake Steve Jobs blog. Dan Lyons gave this conference while he was visiting at Google’s Mountain View headquarters to discuss his book, “Options: The Secret Life of Steve Jobs”.

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BlogRush: Getting traffic to your blog in a cooperative way

BlogRush: Getting traffic to your blog in a cooperative waySince some weeks ago, I have listened a lot of good comments about BlogRush by the amount of traffic that could be generated by this.

Basically, BlogRush is a widget you can install in your blog by using Javascript code as usual (previously you must sign up for a free account and your blog will be reviewed). Once your blog is approved, this widget will display some titles on your blog with links to other blogs related to your topic. But, at the same time, you will earn a credit per pageview generated on your blog (a page loaded). And each credit will allow to your latest post title to be shown 1 time on other blogs with the widget.

In addition, you can refer people to Blogrush and the traffic generated by your referred blogs will allow more credits to your site, and more impressions of your latest post. So, as more credits you have, the possibility to get more traffic to your site is bigger, because people can click on your latest post title coming directly to your post.

If you are interested, please visit the BlogRush site (I recommend you see the video first).

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Rich Dad Lessons: Know the difference between risk and risky

Based on Kiyosaki’s work

Rich Dad's Lessons: Know the difference between risk and riskyThere is an incongruous thing in a lot of people’s lives: they think that the world of investments is risky because they can lose money, but at the same time they cling to the security of an employment by thinking that their bosses, the companies or the Government will always look after their well-being, as if that was not really risky.

Putting our financial future in a third party’s hands is really risky. Making investments to acquire assets is not necessarily risky. Of course, provided the investments we make are acquiring assets. And previously, we have defined the assets as those investments that put money in your pocket every month. Why should be risky something that puts money in your pocket every month?

Another thing is the risk. Logically, the investments have an associated level of risk. There are not completely safe investments, but that is only a technical aspect and the smart investors are conscious of this. However, the smart investors make the investments although those have risk because at the end of the day the investments are not risky for them, and that is because their financial intelligence is enough to have a great chance to make money.

The point is: in investment world, risk is not the same as something risky. The risk is an implicit technical factor on the investment market and it is the same for all people who make the investment. On the other hand, the risky thing is not the investment itself, the risky thing, in most cases, is the investor who doesn’t have enough education, experience or cash flow.

Therefore, to reduce the risky situations, we don’t need to avoid the risk of the investments… what we should do is to get ready, increase our financial education and go step by step into the investment world to acquire experience.

Of course, sometimes we’ll lose money, but eventually, due to our financial education we will win more than we lose. And when that happens, we will begin to manage an interesting cash flow and we won’t need to think about RISKY investments anymore, although the investment RISK will always be a factor in the investment evaluation.

Again, remember: risk is not the same thing as risky.

Acquiring assets is not risky. The risky thing is the lack of financial education. The risky thing is don’t have enough control over our life by trusting blindly in stock brokers, the economy, the politicians or the labor market.

The biggest risk is ignorance. And it applies to all matters, not only for the finances and investments.

If you don’t know much about the world of finances and investments, start to reduce the ignorance by acquiring financial education. As your financial IQ increases you will realize those financial threats were excuses for your ignorance.

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