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According to the creator of the game Cashflow, Robert T Kiyosaki, his Rich Dad underlined 7 basics of investing.

1. Investment Basic Rule Number 1

“Is always to know what kind of income you’re working for.”

There were 3 different kinds of income.

i. Earned Income: It is an income from your job or labor. Commonly known as your salary income. If you’re an employee, or even you have your own business but you’re working in your business, basically you’re pursuing for earned income. Most people only have this type of income, because they only think to get a job / profession and most likely that is what they know to do for their whole life because of the lesson learned from school system.

ii. Portfolio Income: Income generally come from paper assets such as stocks, unit trust funds and other things. Portfolio income is the most popular form of investment because it is easier to manage & maintain than any others.

iii. Passive Income: Mainly come from real estate. Royalties or any business that your work on it. It is an income where you don’t have to work everyday after you have created it.

Do you only have 1 source of income or more?

2. Investment Basic Rule Number 2

“Is to convert earned income into passive or portfolio income as efficiently as possible.”

Thus, you must know how to put your hard earned income every month into paper assets or real estate for example. That is why it is very important to know between assets and liabilities. If you failed to do it, it shows that you don’t build your wealth foundation.

Have you know a proper way how to do it?

If you want to know the other 5 basics more, do come to our Cashflow 101 Workshop and please register online here. In the workshop you will learn more by playing the game Cashflow 101 and learn how to implement all the investing basics in the game. Or you could find it in Rich Dad’s Guide to Investing: What the Rich Invest In that the Poor and Middle Class Do Not.

Take action now!

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