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From: Mike .

Hope And Answers
From: Steve McKnight
Date: 26 Jan 2001
Time: 10:52:47


I recently did an audio recording covering my thoughts on the concept of money. I just want to share a few of the things I talked about with the forum and also quickly touch on an earlier post by the Uncle.

Just before I begin just let me recap on my qualifications, not to brag, but to provide some background into the comments I'm about to make.

I'm a qualified chartered accountant which means I've been to Uni and completed intense post graduate study while working full time. All in all I have worked on large multi-national companies right down to the mums and dads. I've seen a lot since I started working in accounting (11 years ago) and I feel this experience has shaped the person that I am.

FALSE HOPE? ===========

I feel a lot of people haven't quite identified the contradiction in Kiyosaki's work. One on hand he talks about acquiring passive income and on the other hand he talks about how important it is to 'mind your own business'.

Beginners just seem to think the path to riches begins by acquiring passive income and then sitting on the beach (or a government office chair if that's what turns you on) forever. This just isn't true. It's the dream painted to sell to the middle class Kiyosaki says is most disadvantaged. This is like a cruel joke in some ways - run a seminar to tell the middle class how hard done by they are and then sting them big bucks on the backend. Nevertheless, I'm learning that people want this, as they kind of see it like a lotto ticket. They don't buy a tape, book or game - they buy hope. But in the same token, what more can Kiyosaki do other than offer his thoughts about success? Action is up to the individual.

I purchased Robert's lotto ticket in May 1999 and am pleased to say that with my training and experience I was able to achieve great results, the sort of results which have forged a reputation as someone who's successful. But I'm probably the exception to the rule. as the hope only lasts for so long before inaction turns to despair, which seems to be what a 'new generation' of wealth providers here in Australia selling -ve geared properties 'off the plan' prey upon.

TURNING HOPE INTO ACTION =========================

How does someone turn hope into action? What I did was commit to the difficult process of change by moving away from my core professional skills (I was once recognised as a technical guru) and develop areas of weakness. This is difficult because we all struggle to rationalise something which seems risky. I resolved in my mind to try because if the worst thing happened, I just go back to when I already was - working as an accountant.

You see, most people are already at rock bottom, and to fail will just mean that you go back to where you are. No, I'm not talking about quitting your job and investing full time - that is stupid and dangerous. I'm suggesting you look into freeing up some time and then using that time to do something other than watching the cricket.

You have to want to change more than anything else, which at the beginning takes 90% effort for 10% return.

All the positive posts on this forum suggest this is the common theme among people. The Wife says she's just a 'mummy', but no, I bet if I asked her she'd identify a point where she decided to embrace change and is now the better for it. Geoff1 seems to indicate that he resented his government job so much that change became a necessity. So too with me, I couldn't keep going in accounting because, although I was good at it, I hated doing it.

Change becomes more urgent as you understand that money is infinite and time is finite. Yes, I'm saying there is unlimited wealth but only limited time. What price would you put on your last hour alive? How much are you getting paid per hour at work? Is there a difference? Why?

PASSIVE INCOME ===============

Passive income doesn't buy the appearance of wealth. It buys time. When your time becomes priceless then the need for change becomes so urgent that you become determined to succeed.

There is no such thing as a get rich quick scheme and a lot of my seminar will cold hard facts to dispel all the myths which surround wraps. There will be no hope pills for sale, no bootcamps, no magic solutions. Why? Because there is none - never has been, never will be.

ACQUIRING PASSIVE INCOME =========================

The method you choose to obtain passive income isn't the important issue. It's how you do it that counts. The real secret is to understand that people create profit, not inanimate objects. That is what the wrap process has taught me. Houses are just bricks and sticks - people pay.

In all the real estate literature I've found to date there has been little, if any, discussion about finding people. Rather, the idea seems to first buy the right property and then right tenant will come along.

No, where I'm different is that I have a people before profit outlook. Without this there is a strong chance that the human emotions of greed and fear will overcome financial commonsense.

UNCLE'S POST ============

This is what Les identified as my strength. I offer people hope, but not some flimsy idea of getting rich quick. Instead I've decided that I can change the world by providing win-win outcomes for people who would otherwise probably never own a home.

The way I do this is with the vendor finance concept. Does that mean vendor finance has made me rich? No. I'm wealthy because I understand money is infinite and time is finite. Choosing to use my time to help people has made me successful. Embracing change has made me successful. My wife and business partner enable me to remain successful.

In summary, everyone has an answer. Jan S. has an answer, Robert K. has an answer, John B. has an answer, The Uncle has an answer, Geoff1 has an answer - even Steve McKnight has an answer. But the real benefit to you is to first ask a question. The Wife, of all people, seems to advocate this solution in nearly all her posts - do what is right for you. Don't listen to answers without questions. Ask questions.

I want you to be successful too. Hopefully this post has taken you a step closer to that goal.


Steve McKnight
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Reply: 1
From: Mike .

Re: Hope And Answers
From: Sim'
Date: 26 Jan 2001
Time: 12:54:38

Amen !

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Reply: 1.1
From: Mike .

Re: Hope And Answers
From: Sandy
Date: 27 Jan 2001
Time: 06:42:34

Your post was most informative and this is why I subscribe to your newsletter - it's the positive and encouraging actions and comments you write that make me (to quote) "Just Do it".

I have seen people respond to positive comments and get their backs up against the negative ones (which do have their place). However I can guarantee humans prefer and respond to kind positive words and get further in life with this attitude. Keep up the good work and you will reach the top.
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