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Property Investing – The Secret Path To Wealth January 12, 2009

Posted by minnesotarealty in MN Realty.
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Taxes are a necessary evil in our society, and for many it seems natural to grouse about having to pay a large percentage of our earnings to the government while those who have more money seem to be bearing less of the burden than they ought. It’s certainly disheartening that it works this way – as the fortunate shirk their obligations through legal loopholes, the rest have to pick up their slack. It’s frustrating and unfair, and there’s no question that many of the complaints against the upper class are quite legitimate.

Unfortunately, simply recognizing injustices and complaining about them isn’t sufficient to change the ways of the world. The rich will inevitably have money and therefore power, and they will use this power to stack the deck in their favor, particularly when it comes to using tax breaks to keep their money. They will claim that there simply isn’t enough money for everyone to get what they need, all the while cutting corners and keeping their spoils for themselves. This extends to elected officials as well – how many poor politicians have you heard of?

In order to not be one of the many who are getting the short end of the stick, you’re going to have to step up and take the advantage for yourself. It’s true – you can get tax breaks like the rich do. You simply need to know how, and put forth the effort to get them.

Robert Kiyosaki, author of the “Rich Dad, Poor Dad” books, makes the sensible suggestion that those who are not rich but would like to be should watch what the rich do, and then do the same. You don’t really need to watch too closely, however, to learn the open secret of the wealthy – that secret is real estate.

In his book “Cash Flow Quadrant,” Kiyosaki says “One of the reasons I chose to work predominantly in the B and I quadrants are the tax advantages,” The aforementioned “quadrant” is an invention of “Rich Dad,” a diagram consisting on a square divided into quarters, each representing the different ways in which different people relate to money. It’s an unavoidable fact that an individual’s personal philosophy and perspective on the world will affect the way in which he or she behaves with money, and this behavior will,, in turn, decide his or her ultimate financial success or failure.

According to Robert Kiyosaki, the real money is in the business and investment quadrants of the Cash Flow Quadrant.

You know the saying, “If you can’t beat ’em, join ’em.” That is good advice, especially if the guys you want to beat are the rich. It’s actually great news that they are getting so many tax breaks. That means that, when you become one of them, you will get those same tax breaks, IF you know how.

The path to riches is actually very simple; all you’ve got to do is start investing, or join the ‘I’ quadrant. If you have a high-paying job, you may be able to do this without leaving the ‘E’ (employee) or ‘S’ (self-employed) quadrants, but Robert Kiyosaki advises that you move into the ‘B’ or business quadrant, devising a system that will make you money regardless of whether you are putting time into it or not.

So, invest – invest in apartments, condos, vacation homes, whatever suits your fancy. This is the true, time-tested road to wealth.

Realtor and Author Alexandria P. Anderson uses the Plymouth Real Estate Listings to help her MN realty clients find Plymouth Condos in Minnesota.