Thursday, February 11, 2010

Rich Dad's Guide to Investing

For rich dad ,it is not enough just to invest , you should know the Basic rule of investing.I believe this excerpts will help you Know ,where and How to Invest.


Basic Rule Number One
“Investment basic rule number one,” said rich dad, “is to always know what
kind of income you are working for.

For years, rich dad had always said to Mike and me that there were three
different kinds of income:
Earned Income: income generally derived from a job or some form
of labor. In its most common form, it is income from a paycheck. It
is also the highest-taxed income, so it is the hardest income with
which to build wealth. When you say to a child, “Get a good job,”
you are advising the child to work for earned income.

Portfolio Income: income generally derived from paper assets such
as stocks, bonds, mutual funds, etc.
Portfolio income is by far the
most popular form of investment income, simply because paper
assets are so much easier to manage and maintain than any others.

Passive Income: income generally derived from real estate. It can
also be income derived from royalties from patents or license
agreements. Yet approximately 80% of the time, passive income is
from real estate.

which type of income do you Have , and are working for.