If you run a corporation or plan to someday, develop your financial IQ.
from Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
Running a corporation is a guaranteed way to make you rich, as long as you follow the above steps.
How to Apply This
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Learn financial literacy, aka accounting.
Learn to read and understand financial statements, so you can identify the strengths and weaknesses of any business. -
Understand markets.
Know the science behind supply and demand, so you can use it to your advantage. -
Invest.
Look at the current market—does your investment make sense or not? In a market where everyone is selling, it’s best to invest, as you will be able to invest for cheap. In time, when prices go up, you can collect your profits. -
Learn the law—especially the laws about taxes and lawsuits.
A corporation earns, spends everything it can, and is taxed on anything left—this is a legal tax loophole you can use to pay fewer taxes and make more money. For example, set car payments and insurance as company expenses. Or, have a vacation in Hawaii that doubles as a board meeting.
It is also important that you do your research on how having a corporation protects you from lawsuits—after all, we live in a litigious society!
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