Rich strategy = Do the opposite of the poor Majority

The rich are the minority which means the mainstream media a guiding the majority. Their is a simple rule to follow to be rich. Do the opposite of what the majority is doing smartly.
You can use this simple trick, when your hairdresser think of buying a condo, sell your condo.
Since the beginning of 2005, the late majority of Canadian are jumping into the house market when the rich where starting to move out. Now, the majority is starting to freak because they start realizing the market was overpriced which means it will soon be the right timing to buy, not sell.

the main indicator the bubble will burst is:

• Slow down of sale speed (seller obstinacy)
• Increase bank down payment

You might say: increase bank down payment??? Yes.
As an example, in Canada, the down payment is 20% for a second building.
Most of the banks now ask 25-30% down payment. The math is simple, even if you pay the market price the bank takes no risk. If the bank ask more then 20%, it means you are paying more then the real value which means you have to put more down payment to reduce the bank risk.

Example:
- Triplex = 500K
- standard down payment = 20% (100k)
- Bank evaluation = 400K
- Risk = 100K no warranty
- Bank new down payment = 100K + 25%*100K  = 125K (25% of 500K)

Why it is over valued: simple economics. Value is drive by increase of population & salary.
Quebec province has the worst number is both.

What is another big difference between the rich an poor:



Poor are optimizing capital gain first. Rich are optimizing cash-flow. If your real-estate investment is base only on capital gain, yes you are fucked and you think like a poor. Smart rich people are optimizing cashflow then capital gain.
For patient people, they will be lot of opportunity ahead, why?

• Most real-estate investor will start selling
• Buyer majority will stay out of real-estate (decrease demand)
• Majority will go back to stocks (think it is less risky; decrease demand further)
• Seller will run out of money ;) due to bad economic condition
• Canadian dollar is going down....natural resource value is going doing (US oil dependency is down  & Why Iran Nuclear threat is no more an issue?

Its the same as the idea to buy when everyone is selling and sell when everyone buys ;)

Want to better train your kids for life?

Standard education system is designed to train Employees which is why it is focusing only on Linguistic Intelligence and Logical Intelligence (good execution worker). As you will notice, standard intelligence segmentation is forgetting multi-language and financial education to ensure you stay even more locked in the E quadrant.

In order to ensure E people stay in E quadrant, the system of the rich reinforce insecurity by training our kids that failure is bad instead of a failure is great to learn (you must read "The Flinch by Julien Smith")
e
Now, how can you better train your kids?

• Intelligence education: make them realize all types of intelligence
• You can buy this book to your kid (<5$) Rich Dad, Poor Dad for Teens
• Ensure they have a Financial education
• Help your kids learn the others types of intelligence
• Turn them into investor not money saver
• Ensure your kids see failure as a great way to learn and not fall in the security pattern
• Ensure your kids are expose and learn other language
• Travel to open their mind to the world of opportunity not fear
• Spend more time to talk with them and encourage questions

You don't have to fall in the E trap of trying to send your kids to rich school, your kids won't learn much more and he won't have time anymore to better learn all the other types of intelligence. 

How to finance your transition to the B quadrant?

If you are in the rat race, you have probably have RSP.  RSP are savings and investing in it make sure you will stay in the rat race until you retire. Now, how can you finance your transition to the Business cashflow quadrant?



Quite your job and finance your transition with your RSP. RSP with their long term goal insure the financial market can take risk with your money. Its way smarter to withdraw your saving when you are young and making little money to finance your transition with low income tax rate then withdrawing it when its value will have evaporated throw inflation or been stolen by the financial market orchestrated crashes's.
If you are in the transition, you might worry on how to transform your RSP in cashflow or withdraw it. Speeding the transition will give your the solution (to kill two birds with one stone). 


RSP: your transition SAVIOR  to the rich quadrant

Happiness and burnout

Here is the "Flow Model": what makes you happy?

In order to be happy, you have to be challenged according to your skills.
Now, in our society focusing on efficiency, skilled people in search for happiness are more likely to fall in burnout.  


In order to not fall in the burnout pattern, you have to move to the B quadrant: learn to be a leader to leverage others.

In order to be a leader you should:

1. HOW TO IMPROVE YOURSELF
2. HOW TO UNDERSTAND YOURSELF BETTER
3. HOW TO UNDERSTAND OTHERS BETTER
4. HOW TO IMPROVE OTHERS
   
   
   
   

Wondering why some people have so much energy to achieve their dreams?

• Are you wondering why some people have so much energy to achieve their dreams?
• Are you wondering why happy people are successful?
• Are you wondering why successful people have so much energy?
• Are you wondering why so people have so much confident?

-ITS IS BECAUSE THEY ARE AFTER THEIR DREAMS
-ITS BECAUSE FREEDOM IS A INTERNAL POWERFUL ENERGY SOURCE
-ITS BECAUSE FREEDOM IS DRIVING THEM NOT SECURITY


Why free people are rich?

Because there is no freedom if you are not financially free...

Why you will fail to leave the rat quadrant, except if you...

You are stuck in the rat race but don't know how to to initiate the transition to your freedom. 

Here is my suggestions:

1. Get empowered and get your Why
1. TED talk (20 mins): Why you will fail to have a great career: Larry Smith
2. TED talk (15 mins) Amy Cuddy:Your body language shapes who you are 
3. Reading (1hr) The Flinch (free on amazon) learn to control your fear/need for security
4. Hour of power by Anthony Robins -> ritual
5. Decision model book= Making of Model of why p71-> to determine futur/know your why, first know your past  
2. Why you need financial education: rich dad poor dad
3. Increase your financial IQ http://www.amazon.com/Rich-Dads-Increase-Your-Financial/dp/0446509361 (only used hard cover available)
4. Understand who you are with the cashflow Quadrants (Employee, Self-Employer, Investor, Business) :Robert Kiyosaki Explains The Cash Flow Quadrant - YouTube (10$ for amazon ebook)
5. Are you ready?
1. Why you will fail to leave the rat quadrant, except if you...
2. The red line self rat trap
6. Get to your roots to find the project (the how) you should be working on (why): If you were financially free or had 2 Millions $, what will you do? How is the 

Why paying your mortgage is a good cashflow strategy?

There is 2 way to increase your cashflow:

• Increase your income
• Reduce your spending

If you don't have good cashflow investment strategy, paying your mortgage is a good one and especially now due to low interest rate. Paying your mortgage is a way to reduce your spending or a way to make your money work for you (making sure your spending on assets is a priority in your budget.   

Having no/little mortgage is a good start to freedom.

Question: Yes but I should rather buy RSP?
Answer: Yes if you want to stay in the Employee quadrant and make sure your employee salary is locking you in that slavery quadrant.

Question: Yes but my mortgage is high?
Answer: Increase your monthly payment slowly. In most banks, you are allow to double your monthly payment without additional fees and do a 15% down payment every year.

 

Once your mortgage is payed, leave your monthly payment as an expense to invest in another asset. 

How to have energy to work for you as a Employee?

reminder:

E = Employee (have a job)

S = Self employee (own a job)

B = Business (own a system that works for you)

I  = Investor (make your money work for you)

As a E, you are working for other. If you don't have energy for your family or to move to S/B or I, start by stopping drinking coffee at work. 

Why? Coffee at work make sure all your energy is moved to your working job hours. Basically, taking away your energy to work for you and your family.

Question: I am too tire?

Answer: Do sport

Question: but I need time

Answer: go to work on your bike

At the end, you will need less sleep, spend less time in traffic, be less stressed, be more efficient at work and more important free time to work for you on your cashflow.

Question: When I will work for me, can I start drinking coffee again?
Answer: It is up to you but you won't need it, freedom is an endless energy source.