8 New Rules of money

1. 8 New Rules of money Abdurrahman lekki

2. The monkey trap

3. Cash flow quadrant

4. Rule #1 – Money is Knowledge Robert said we do not need money to make money. As long as we have the right knowledge, we can make money with it. In other words, we should improve our financial literacy. He quoted the example of shorting shares, we must first know that it exists and we can make money when stock price goes down. Next step is to know how to do it. Instead of believing in everything that a investment product salesman, we be financially literate to make our own investment decisions.

5. Rule #2 – Learn how to use debt • We need to differentiate between good debt and bad debt. Good debt puts money in our pockets and bad debt take away money from us. Hence, taking up good debts is a form of leverage, putting more money into our pockets. At the same time, we must avoid bad debts. Our bad debts make other people richer.

6. Rule #3 – Learn how to control cash flow • We must constantly be aware about the world’s cash flow. It can be done by observing 3 things. • 1) Observe where workers are moving to.2) Where are jobs created?3) Which asset is money exchanged for? Stocks/bonds/commodities  • The value of assets rise whenever money flows to them. Hence, monitor where cash is flowing.

7. Rule #4 – Prepare for bad times • and you will only know good times • Robert gave the account of the famous story of Prophet Yusuf and Firaun. Yusuf’s dream and interpretation of 7 bad years convinced the Pharoah to prepare for the famine. This alone made Egypt the most powerful country. If we are able to deal with financial crisis, we will be very profitable in good times.

8. Rule #5 – The need for speed • We need to accelerate the amount of money earned. The rate of money earned should follow an exponential scale instead of a linear relationship. In other words, we should avoid getting paid by time, exchanging an hour for a fixed amount of money. We only have 24 hours per day. We should have the type of income that is able to increase in folds so that money can flow to us as quickly as possible.

9. Rule #6 – Learn the language of money • Robert says, “money begins with words, and words are free.” Our thinking shapes our behaviour, and our behaviour and responses determine our results. To change the results, we need to change the root, which is our thinking. The rich thinks differently from the average and the poor. The rich thinks in abundance while the average and the poor think in lack. So is the cup half-filled or half-empty?

10. Rule #7 – Life is a team sport Choose your team carefully • People are good in different things. We need to tapped into resources of the experts to help us in our life and businesses. We need lawyers, accountants, financial advisers and more. It is important to assemble a team of experts where we can call upon when we need them. They must be trustworthy and have a good understanding of ourselves as well as our plans to offer tailored advice. ”Team” is part of Robert’s B-I triangle.

11. Rule #8 OPM • Since money is becoming worth-less and less, learn to print your own • Money is worth less due to inflation. We must grow our money faster than the rate of inflation. One way is to “print” money like the banks. Banks collect interest by lending our money. We should also use other people’s money to invest and profit from the capital.

12. Cash flow revisited

13. Passive income vehicles • Real Estate • Paper Assets • Automated Business • Intellectual Property • Network marketing

14. Power of 5

15. AbdurRahmanLekki • www.abdurrahmanlekki.com • E mail: alekki@yahoo.com • Twitter: @a_lekki • FB: abdurrahman.lekki • Phone: 08072690325 • BB Pin: 28271372