Chapter 13 postscript

How do you pay for your kid's college with $7,000? As the writing of this book is about to go to press, I would like to share with readers one last line of thought. The main reason for me to write this book is to share with readers some of my insights on financial quotient.In my opinion, improving financial intelligence can be used to solve some basic problems in life.Without financial training, we tend to live our lives in the standard pattern of working hard, saving, borrowing, and paying lots of taxes and bills, but today we need better behavior patterns. I would like to give one final example of the financial problems facing many young families today.How can you afford to educate your kids and retire comfortably?This example is used to illustrate how to use financial intelligence instead of hard work to achieve the same goal.

A classmate of mine was worried because it was so hard saving money for four kids to go to college.He invested $300 a month in mutual funds, accumulating a .twenty thousand dollars.But he needs $400,000 to put his four kids through college.He needs to save that amount over 12 years, since his oldest child is six years old. The year was 1991, and the real estate market in Phoenix was depressed, and people were selling their properties.I suggested to my classmate that he could use some of the money invested in mutual funds to buy a property, and the idea struck him, so we started discussing the possibility.His main concern is that the bank won't give him a loan to buy another house because his pitch is too big.I assured him that there were other avenues of financing the property sale besides the bank.

It took us two weeks to find a house that met all our requirements.With so many homes to choose from, the buying process was fun and we ended up finding a 3 bedroom, 2 living room house in a prime neighborhood.The homeowner hopes to trade in the sale within days because he and his entire family are relocating to California.There's a new job waiting for him there. Landlord price ten.Twenty thousand dollars, but we only offer seven.Ninety thousand dollars, but he accepted it immediately.The property deal was based on a so-called unrestricted loan, meaning even a homeless person could buy without a bank's approval.The homeowner's debt is seven.$20,000, so my classmate only had to pay $7,000, the difference between the sale price of the house and the owner's debt, to get the property.Once the owner moved out of the house, my classmate rented it out, and after all expenses paid, including mortgage interest, he was still getting $125 a month.

His plan was to hold the property for twelve years and use the $125 monthly proceeds to repay the principal on the loan to pay off the mortgage as quickly as possible.We expect that in twelve years, the majority of the mortgage will be repaid.By the time his first child is in college, he'll probably be netting $800 a month, and if the price is right then, he can sell the house for a handsome income. In 1994, the real estate market in Phoenix took a turn for the better. His tenant liked the house very much after living there for a period of time, so he wanted to bid seven.$60,000 bought the house.He came to ask me again, and I naturally advocated selling the property in a 1031 tax-deferred transaction.

All of a sudden, he had about $80,000 to operate with.I called a friend in Austin, Texas, and she immediately transferred the tax-free funds into a small limited partnership warehouse company she formed.So my classmate started receiving investment income of a little less than $1,000 a month after three months.He put the money back into the college mutual fund, which is now growing in value faster. In 1996, the small warehouse was sold, and he received about $330,000 in proceeds from the sale.That money was then funneled into another project and brought him $3,000 a month, which in turn went into the college mutual fund.He is now very confident that the $400,000 can be easily raised, and the initial investment of this step is only $7,000 and a little financial intelligence.He will be able to easily pay for the education he needs for his children, and he can also invest the assets of the fund into his company to pay for his retirement in the future.Thanks to this successful investment strategy, he will be able to retire early to do some of the things he wants to do.

Thank you for reading this book, and I hope it provides some helpful insights into using the power of money to work for you.Today, we need to improve our financial intelligence, if only to survive.The idea that only work can create money is the idea of ​​a financially immature person.That doesn't mean they're not smart, it's just that they haven't learned how to make money. Money is a mind, if you want more money, just change your mind.Any self-made man always starts from a small business under the guidance of a certain idea, and then continues to grow.The same is true for investment. You only need to invest a little money at first, and you can make a large amount in the end.I've met a lot of people who have spent their entire lives looking for a big business, or trying to raise a lot of money to do a big business, but to me, that's the stupid way to do it.I have seen too many unsophisticated investors put a lot of their capital into a trade and lose most of it very quickly, they may be good employees but not good investors.

Education and wisdom about money is very important.Start early, buy a good book, attend some useful seminars, and then put it into practice, starting small and building up.It took me less than six years to turn $5,000 in cash into a million-dollar asset and generate $5,000 in monthly cash flow, but I still learn like a kid.I encourage you to learn, because it is not difficult, in fact, it will be very easy once you are on the right track. I think I've made my point, now it's up to your head to decide what to do with your hands.Money is a thought and there is a great book called Think and Grow Rich instead of Work Hard and Grow Rich.Let money do the hard work for you and your life will be easier and happier take action!

God has given each of us two great gifts: thought and time.It is your turn to use these two gifts to do what you want to do.With every dollar bill that flows into your hands, you and only you have the power to determine your own future.Spend it stupidly and you choose poverty. Spend it on debt and you'll be in the middle class. Invest in your mind and learn how to acquire assets and wealth will be your goal and your future.The choice is yours.Every day, with every dollar, you are making a choice whether to be rich, poor, or middle class. By choosing to share this knowledge with your children, you are choosing to prepare them for the world to come, knowing that there is no one better suited than you to unlock your child's IQ.

Your future and that of your children will be determined by the choices you make today, not tomorrow. We sincerely hope that you will use this great gift from heaven to earn a lot of wealth and gain more happiness. Robert. T．Sharon Kiyosaki. L．Leichter