Rich Dad Poor Dad Author (Sharon Lechter) Teaches Why You Must Buy Assets and Avoid Buying Liabilities to Build Wealth

Show Notes

Are you putting your money in the right places? On this episode of the Thrivetime Show, Sharon Lechter is talking with Clay Clark about investing in assets that help you gain wealth and not in liabilities.

  1. Assets feed you, liability eats you
  2. Sharon, I had heard you talk about the vital importance of buying assets, why are you passionate about buying assets, and how is an asset different from a liability from your perspective?
    1. Assets are things that put money in your pocket and liabilities take money out. Assets feed you and liabilities eat you. You do not want to look at your house as a bank account. People have too much bad debt.
  3. Types of assets:
    1. Intellectual assets
    2. Businesses
    3. Real estate
      1. Fix and flip
      2. Long-term buy and hold
    4. Rental Real estate
    5. Licensing
    6. Franchising
  4. What are all of the kinds of assets that are out there our listeners should be buying?
  5. It’s amazing today, but the majority of the assets owned by Fortune 500 companies are intellectual properties and they are not hard assets, how is this different from how it used to be?
Business Coach | Ask Clay & Z Anything

Audio Transcription

Welcome back to the conversation. My name is Clay Clark and I’m a business coach who is interviewing one of my heroes today. Sharon Lechter is the bestselling author of the Rich Dad poor dad series. A lot of people don’t recognize that. I don’t think they know the whole story. If you get a chance to do some research online, you’ll, you’ll see it. But she served as the c e o of the rich dad. Poor Dad accompany the rich dad series for over 10 years where she released 14 books with Robert Kiyosaki. And some of you might be saying, well, we’re at the puck idea. Come from Robert Kiyosaki wanted to create a board game. And uh, and he pitched the idea to somebody at the, the, the, the idea got to her and she recommended we need to have a brochure, explains why the game matters, why people should play the board game, how it will help people to gain financial literacy in that brochure started to grow and grow and grow into what is now called rich dad poor dad.

Then from her own home, she sold over 1 million copies of the book. She went on to sell $23 million copies of the book with Robert Kiyosaki and we’re serving as the, the, the pitch man and, and the face of the franchise. After exiting that venture, the Napoleon Hill Foundation picked her up and asked her if she could read a refreshing and bring, breathed some life into Napoleon Hill’s manuscript for outwitting the devil, which she did. Then she teamed up with the Napoleon Hill Foundation again to release thinking, grow rich three feet from gold in think and grow rich for women, as, as if that wasn’t enough. In 2009, Sharon was appointed to the national CPA financial literacy commission as a national spokesperson. This is the council that served both President George Bush and President Obama. Sharon today has a team of over 5,000 people around the world that help her with her various entrepreneurial business coach projects and assets and on this particular part of our thrive time.

Show a interview this from this particular podcast. We’re asking Sharon about the importance of buying assets, the importance of buying assets that the God people get this part wrong. It’s so important. If you’re going to build a successful portfolio per portfolio, if you’re going to build some net worth, if you’re gonna, start to build your snowball. You have to focus on always buying assets and never buying liabilities. You absolutely have to buy assets and avoid liabilities. Why? What kind of has that should I buy? That’s where Sharon comes in, thrive nation. Without any further ado, back to our exclusive interview with Ms Dot Sharon Lechter from the rich dad poor dad series.

One of the things that you write about in your books is the importance of as you start to grow that company, you want to focus on exclusively on buying assets whenever possible, buying assets and avoiding liabilities at all cost. Can you explain to listeners an example of maybe some of the assets that you have? Maybe the category types with all that because I think you can expose a lot of our listeners to the types of assets that are out there that people maybe aren’t familiar with and just kinda give us assets. One, oh, what’s an asset? What’s not an asset? Just give us that. That asset one. Oh one.

Well, for those of you familiar with the Rich Dad, poor dad we talked about assets are things that put money in your pocket, liability to the things. Take money out of your pocket. Assets, feed you, liabilities eat you at the end of the day. That’s true. You’ve got, for instance in when you talk about real estate, rich depth for that, we talk about your house as night or asset because it doesn’t make you money. It’s something you have to pay for, and so we want you to create enough assets that are feeding you assets, that are generating income, that can pay, that. You can have the house you want, but don’t look at your house as your bank account. You want your. You want to have those businesses. You want to build businesses. You want to have real estate. Obviously people have intellectual property. Intellectual property is the greatest way to build assets because that comes from your mind.

Writing Books. I’m solving problems, serving needs. When you come up with something unique and have the opportunity to protect it, that’s a patent met. Something that can be earned you money for years and years and years through licensing. If you don’t want to build your own business or business coach around it, license it to someone else, and those assets continue to build and grow and continue making you money when you’re sleeping and that’s the thing, and when they talk about rental real estate, they talk about it being Melmac, mailbox money. It takes a lot of energy upfront to find the properties and get them done. Then you have a management company. Then doesn’t, it’s not quite as much a headache, is it on long term basis? Now in real estate there’s different types of real estate investments or fix and flip that takes a lot more energy and that’s really not passive income.

Then there’s the longterm cashflow play where you buy and hold and you’ve got rental. You’ve got tenants that are paying your rent and that debt to buy those properties as good debt, as long as what they’re paying you in rent exceeds all the related expenses and your monthly mortgage payment. You’re getting cashflow positive and that’s something that is an asset, is good debt. And so each category of debt have any to look at it and say, how is this going to help me move forward? Is this going to generate an asset for me? Is this going to sustain an asset? And um, you know, at the end of the day, most people we talk about work life balance was really not work. Life balances, depth life balance. People have too much bad debt and is keeping them from living the life they deserve.

Shirin, I, I know that you’re celebrating your 32nd birthday, I believe tomorrow, but in your younger days when you were like 21, 22 there. I’m just going off the photos. Sharon, I think you’re 32. Thirty three. We have. Did you ever make a mistake? Couple of years,

yeah, a couple of times.

Did you ever make a mistake where you thought to yourself, I bought this to produce passive income and it was the biggest, most epic failure. I mean, have you ever had a situation like that happen and if so, how did you recover from it?

I’m surprised you didn’t even ask that question with a straight face. Yes, of course there. I don’t know anyone that hasn’t had a colossal failure and it’s something that I’m from falling hills set out of every person that comes with seed of an equal or greater benefit. The worst business coach mistake of my life was when I left public accounting and went with a client to another company, but that are not done that I wouldn’t have met my husband Michael Lechter and we’re now at 38 years of marriage. So yes, it was the worst business mistake, but it created, helped me meet and create the best life decision. So each and every one of us, we have our ups and downs. How we get through them are very important and everyone listening to this has probably had something stopped them in their tracks and we can say, why me, why me?

And something that is really hard to get over. I started to retire because we, we lost her youngest son five years ago. And um, I mean it was, it was the worst thing that could possibly happen to anyone. I would never wish it on anyone. And things that used to upset me don’t upset me anymore because you talk about reality and you’re not supposed to outlive your children. And yeah, I kept continued working. I stayed busy because I built a level of success, but it was like I was on autopilot. I wasn’t really feeling good about living life. I wasn’t really feeling good about what I was doing. And um, that’s when I shared with you earlier last year, I actually started thinking maybe I should just retire and I got it. A little pushback from my family and my friends and many of my clients and I realized that I, I’m here to continue to give and I want to serve and I want to help people take control of their financial lives.

And I think I even got a little nudge from my son above saying, get over it and you have more to do. But each one of us, we have those things that are, can be considered setbacks or content can be considered absolute devastation. And we’re still here and you’re here for a reason. There’s more free to do. There are more people out there waiting to learn from you, to be inspired by you. And so understand that that depth of despair is not long term. You can get out of it and you can let the people around you support you and keep your head above water while you gain your footing again and know that there’s more free to do.

That was the New York Times best selling author and CPA, Sharon Lechter. My name is Clay Clark and we thank you so much for investing part of your day to tune in to our podcast and, uh, there’s hundreds of thousands of you and all I want to do is reward those of you who have subscribed to our podcast by giving you a free ticket to our next in person. Thrive time show business coach workshop. The tickets are normally $250. There are two days long. They go from 7:00 AM to three PM, 7:00 AM to 3:00 PM there, two days there, a Friday and a Saturday. We cover marketing, sales, branding, search engine optimization. You can ask questions. There’s a 45 minute sprint and there’s a 15 minute question and answer time and shop at the time of the recording of this podcast. We’re getting ready for another one just around the corner. And why is it, why is it such a powerful learning tool? And you had thousands of people either record a youtube video review or write us an objective review. But why is it so important for, for everybody to attend this workshop at least once during your lifetime?

This is one of the only places that you’re ever going to go where somebody is going to teach you actionable steps, things that you can literally go home and begin to implement immediately that will move the needle for your business. They’re not vague esoteric ideas. It is literally, this is how you optimize your google, my business location, the map on Google. This is how you write a sales script. This is how you hire and fire. This is how you do the things and you can go home and implement them right away.

Now, chuck, we’ve had thousands of people attend and many have left us a kind video review or lifted objective review on Google. Um, but we want to give all the listeners a free ticket simply by doing what they’ve already done in most cases. So if you’ve already subscribed to our podcast or you’ve already written us a review on Google, we want to say thank you, so all you have to do is just take a screenshot of the itunes review you left or the Google review you left and send us proof that you did it to [email protected]. And we’ll send you the two free tickets with your only cost being the workbook, which is $27. It’s worth it. Now if you say to yourself, I have not done that, how do I do it? Chip, how does somebody leave an itunes review?

So first of all, you can just open up an internet windows, search browser and Google search, thrive time show, and the word itunes. Okay? It’s going to pop up as a result for itunes. And you’ll want to open that thing up. You just click subscribe, then click rate and review, and then screenshot that thing and email it to [email protected]. And we will get you two free tickets.

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