Infinity.You.Soul

Infinity.You.Soul

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Friday 25 May 2018

Broken Window Syndrome

May 25, 2018 0
Broken Window Syndrome

How A Theory Of Crime And Policing Was Born, And Went Terribly Wrong?

In 1969, Philip Zimbardo, a psychologist from Stanford University, ran an interesting field study. He abandoned two cars in two very different places: one in a mostly poor, crime-ridden section of New York City, and the other in a fairly affluent neighborhood of Palo Alto, Calif. Both cars were left without license plates and parked with their hoods up.

After just 10 minutes, passersby in New York City began vandalizing the car. First they stripped it for parts. Then the random destruction began. Windows were smashed. The car was destroyed. But in Palo Alto, the other car remained untouched for more than a week.

Finally, Zimbardo did something unusual: He took a sledgehammer and gave the California car a smash. After that, passersby quickly ripped it apart, just as they'd done in New York.

This field study was a simple demonstration of how something that is clearly neglected can quickly become a target for vandals. But it eventually morphed into something far more than that. It became the basis for one of the most influential theories of crime and policing in America: "broken windows."

Thirteen years after the Zimbardo study, criminologists George L. Kelling and James Q. Wilson wrote an article for The Atlantic. They were fascinated by what had happened to Zimbardo's abandoned cars and thought the findings could be applied on a larger scale, to entire communities.

"The idea [is] that once disorder begins, it doesn't matter what the neighborhood is, things can begin to get out of control," Kelling tells Hidden Brain.

In the article, Kelling and Wilson suggested that a broken window or other visible signs of disorder or decay — think loitering, graffiti, prostitution or drug use — can send the signal that a neighborhood is uncared for. So, they thought, if police departments addressed those problems, maybe the bigger crimes wouldn't happen.

"It's to the point now where I wonder if we should back away from the metaphor of broken windows. We didn't know how powerful it was going to be. It simplified, it was easy to communicate, a lot of people got it as a result of the metaphor. It was attractive for a long time. But as you know, metaphors can wear out and become stale."

George Kelling
"Once you begin to deal with the small problems in neighborhoods, you begin to empower those neighborhoods," says Kelling. "People claim their public spaces, and the store owners extend their concerns to what happened on the streets. Communities get strengthened once order is restored or maintained, and it is that dynamic that helps to prevent crime."

Kelling and Wilson proposed that police departments change their focus. Instead of channeling most resources into solving major crimes, they should instead try to clean up the streets and maintain order — such as keeping people from smoking pot in public and cracking down on subway fare beaters.

The argument came at an opportune time, says Columbia University law professor Bernard Harcourt.

"This was a period of high crime, and high incarceration, and it seemed there was no way out of that dynamic. It seemed as if there was no way out of just filling prisons to address the crime problem."



                                                    

An Idea Moves From The Ivory Tower To The Streets
As policymakers were scrambling for answers, a new mayor in New York City came to power offering a solution.

Rudy Giuliani won election in 1993, promising to reduce crime and clean up the streets. Very quickly, he adopted broken windows as his mantra. It was one of those rare ideas that appealed to both sides of the aisle.

Conservatives liked the policy because it meant restoring order. Liberals liked it, Harcourt says, because it seemed like an enlightened way to prevent crime: "It seemed like a magical solution. It allowed everybody to find a way in their own mind to get rid of the panhandler, the guy sleeping on the street, the prostitute, the drugs, the litter, and it allowed liberals to do that while still feeling self-righteous and good about themselves."

Giuliani and his new police commissioner, William Bratton, focused first on cleaning up the subway system, where 250,000 people a day weren't paying their fare. They sent hundreds of police officers into the subways to crack down on turnstile jumpers and vandals.

Very quickly, they found confirmation for their theory. Going after petty crime led the police to violent criminals, says Kelling: "Not all fare beaters were criminals, but a lot of criminals were fare beaters. It turns out serious criminals are pretty busy. They commit minor offenses as well as major offenses."


The policy was quickly scaled up from the subway to the entire city of New York.
Police ramped up misdemeanor arrests for things like smoking marijuana in public, spraying graffiti and selling loose cigarettes. And almost instantly, they were able to trumpet their success. Crime was falling. The murder rate plummeted. It seemed like a miracle.

The media loved the story, and Giuliani cruised to re-election in 1997. George Kelling and a colleague did follow-up research on broken windows policing and found what they believed was clear evidence of its success. In neighborhoods where there was a sharp increase in misdemeanor arrests — suggesting broken windows policing was in force — there was also a sharp decline in crime.

By 2001, broken windows had become one of Giuliani's greatest accomplishments. In his farewell address, he emphasized the beautiful and simple idea behind the success.

"The broken windows theory replaced the idea that we were too busy to pay attention to street-level prostitution, too busy to pay attention to panhandling, too busy to pay attention to graffiti," he said. "Well, you can't be too busy to pay attention to those things, because those are the things that underlie the problems of crime that you have in your society."

Source - Copied.

Sunday 20 May 2018

A note on SIP (Systematic Investment Plan)

May 20, 2018 0
A note on SIP (Systematic Investment Plan)

SIP (Systematic Investment Plan) is a vehicle for your retirement, children's education, children's marriage as a wealth creation process.

Many people in different business do not like to discuss or promote personal Savings rate, but the simple fact is the path to financial security and wealth creation is navigated most effectively by embracing the key principle and few basic discipline.

These tools are not often discussed by those who would much prefer you spend, spend, spend so our economy can grow but all too American style of living will simply lead us down the path of increased debt and often running in place if not worse than that in terms of building wealth. What are the keys for generating real wealth creation?

"Wealth is not acquired through addition. It is acquired through multiplication".

Very few fortunes have been made by adding up paychecks and overtime. Nor are they made through a huge one-time killing in the markets. Unfortunately, this is the path that many investors try to follow are most important in achieving wealth:
1. The number of year that an individual has been consistently savings and investing
2. The proportion of funds, on average, allocated to higher returns investments

Simply stated, if your goal is to accumulate a significant amount of wealth during your lifetime, you must first save something, and then exercise some amount of control over one of two factors: the time horizon over which you compound your wealth and your long-term rate of returns.

SIP are one of the best way of Accumulation of wealth, please find below a write up about how SIP's can generate real wealth.

Systematic Investment Plan (SIP) is a vehicle offered by mutual funds to help investors save regularly and achieve their goals. It is just like a recurring deposit with the post office or bank where you put in a small amount every month, except the amount is invested in a mutual fund.

The minimum amount to be invested can be as small as Rs. 100. When the Market price of shares fall, the investor benefits by purchasing more units; and is protected by purchasing less when the price rises. Thus the average cost of units is always closer to the lower end.) {NAV: Net Asset Value, or the price of one unit of a fund. Can be computed as follows: NAV = [ market value of all the investments in the fund + current assets + deposits - liabilities] divided by the number of units outstanding.}

If the Goal is Rs. 10,00,00,000/- (Rupees Ten Cores) then @ 15% CAGR return the following should be your monthly SIP
1. Rs. 14,400 for 30 years
2. Rs. 30,830 for 25 Years
3. Rs. 66,790 for 20 years
4. Rs. 1,49,590 for 15 years
5. Rs. 3,63,350 for 10 Year

If some had invested Rs. 10,000 per month in Franklin India Prima Fund from December 1993 till date i.e (21.5 Years) it would be 258 months thus the principal invested would be Rs. 27,10,000 the value today would be Rs. 5,82,83,126.95 (A CAGR of 22.68%)

If some had invested Rs. 10,000 per month in Reliance Growth Fund from Dec 1995 till date i.e. (20.5 years) it would be 247 months thus the Principal Invested would be Rs. 24,70,000 the value today would be Rs. 4,94,76,102.21 (A CAGR of 24.60%)

If Some had invested Rs. 10,000 per month in HDFC Equity Fund from Jan 1995 till date i.e. almost (21 years) it would be 258 months thus the Principal invested would be Rs. 25,80,000 the value would be Rs. 4,85,19,365.78 (A CAGR of 22.98%)
Reliance Small Cap Fund ended week at 46.571 delivering 37.5% Cagr over 5 Years.

Returns in FD in 5 Years.
Investment - 1 Lac
Returns - 7.5%
Worth after 5 Years - 143,562 Rs

Returns in above fund in 5 Years.
Investment - 1 Lac
Returns 37.5%
Worth after 5 Years - 487,924 Rs

Importance of Wealth Creation

May 20, 2018 0
Importance of Wealth Creation

Much is said and done about creating wealth so as to enjoy a good future. Many have tried and failed in this process and many are still struggling. So, WHAT is this wealth creation all about?

Wealth Creation is a method of accumulating income generating assets over a long period of time.
According to Wikipedia – Wealth means, the abundance of valuable resources or material possessions; basically this means that you are wealthy if you have a lot of something that others value.

WHY is there a need to create wealth?
The answer is very simple – we all aim to create wealth to fulfil some or all of our desires and goals in the long term. Wealth is created for various reasons like a happy and comfortable retirement, Education and marriage of children, Health care emergencies, buying a house or going for foreign trips, or may be to handle a crisis situation. Hence to meet these goals or expenses one needs to religiously set aside a sum to create wealth in long term.

Finally, the big question is HOW do we create wealth?
EARN – First step towards wealth creation is earning money.
SAVE – then we come to the most obvious part – Saving. If we do not save a stipulated portion of our earnings, then we would never be able to create wealth for ourselves. In order to create wealth, we need to cut down our present consumption to meet future contingencies.

Any person should be well aware of his present net worth and his financial goals. It makes the task wealth creation easier, as to how much we have and what more is required.

 
The next step being eradicating any debts, because unless and until we clear our liabilities we won't be able to enjoy the freedom of utilising our assets.

 
Post this step begins the actual journey of wealth creation. The more knowledgeable we are and the more information we collect about the financial markets we shall be able to employ our resources to optimise returns. But just gathering information will be of zero use if we do not save and invest accordingly. Planning and implementation of plans is required to create wealth. And along with this we should leverage opportunities that come along, it means turning situation into our favour with minimal efforts.

 
And finally protecting our wealth by way of sensible and logical actions like investing in high income generating options without capital erosion. Balancing the portfolio and re-balancing it time to time.

 
Though the whole thing seems easy, it is not. Choosing the correct investment avenues, investing in it continuously over a long and balancing the portfolio time to time makes the whole process a very difficult job. Add to it the following reasons and you almost give up the whole process. Let us see why creating wealth is not a child's task:

Reasons 1: Uncertainty of continued earnings
A government employee, who is not forced to face the uncertainties of job change, layoffs retrenchments, termination etc., enjoys his position till compulsory retirements. But then only a handful of Indians enjoy a Government job while others are in the private sector where continued employment is one company is not guaranteed.

There is another section of investors who are self-employed like businessmen or professionals. The fear of cyclical or uncertain earnings always looms over them. Some may be fortunate enough to generate equal and handsome earnings for themselves throughout life, but this is rarely true. Economics conditions, Political state of affairs, industry scenarios and global markets are some of the many reasons which affect the certainty of regular income flows.

 
Reasons 2: Investor may not be able to contribute the desired sum every month through the investment period
As we grow, our expenses grow with us. When a moan is single his earning seems to be quite large but when he gets married and has kids that same earnings takes care of the entire family. Food, shelter, health, education is some of the expenses that eats away the majority of the income. Other than the basic necessities, growing aspirations and lifestyle changes calls for a huge expense.

People now go in for plush apartments, big cars, hi-fi mobiles and gadgets, eating out, foreign tours etc. and break their investments to meet these expenses or may not be able to save as much as desired and required.

Another big reason is that inflation affects us all. The prices of goods and services are ever increasing but out spending power is not in line with the increasing inflation rate, hence even though we continue to earn regular income but inflation may not allow us to invest regularly.

 
                                                    

Reasons 3: Lack of knowledge in investing
Each one of us has different levels of risk tolerance. Some of us may be very aggressive and some of us may be quite conservative when it comes to choosing asset classes for investments. But to maximise our returns, apart from personal appeal towards investment vehicles we should try to rationally understand what suites us best.

But in India very few people understand their investment objectives. This is simply because of lack of awareness and education. Though equity mutual funds provide good returns, they associate fear with equity investments. It is not their fault; due to lack of knowledge many investors have lost their lifetime earnings in the stock markets.

Majority of people who put money in stock markets are not investors. They deal in equities to make windfall income and are basically guided and dependant on tips and news which they get from their friends, colleagues or brokers. The fear of capital erosion prevents most people from investing in stock markets. But this is not true; if the investments are done in a systematic manner then this would not happen. These wrong investments could never generate good returns and thus have an adverse effect on the wealth creation process.

 
Reasons 4: The investor becomes impatient and gets allured or perturbed
Why do most of us go for fixed interest bearing options? The simple reason being that we can see money getting added to our capital throughout the investment period though the returns are small.

But this is not true for Mutual Funds or equity investments. Due to inherent nature of stock market, the market volatility would several times take out investments through a roller coaster ride, even though the past returns indicate the ride finally ends on upward slope in the long term. But whenever markets go down we get panicky and sell out investments at a loss and whenever it has already peaked we try entering.

But the great Warren Buffet has rightly said – "Be greedy when others are fearful and be fearful when other are greedy." This statement may help most of us if we invest in equities particularly when the markets may not look good.

Control over fear and greed is very essential for a long term wealth creation.

The Sensex has increased by over twenty five times from June 1990 to the present Using information from April 1979 onwards, the long-run rate of return on the S& P BSE SENSEX works out to be 18.6% per annum". This is despite the volatile nature of the equity markets that we are aware of. But still, our fickle nature works to our disadvantage and we fall prey to the short term gains and losses.

 
Reasons 5: Interim withdrawal of funds by the investor
Finding a disciplined investor is hard. It is quite natural for any of us to get attracted towards money and that too if we see that in our accounts. The attraction to splurge on the trendy gadgets often take away a major portion of savings and puts a dent on our long-term corpus.

We start investing and if we see that we have built up a considerable corpus we tend to forget that goal for which the corpus was created. The goals of creating wealth should be clear and precise and that's why distributors/ advisors advise a goal -oriented savings approach for a financially free future. To get the desired corpus we should not disturb this goal-oriented and disciplined savings process but, alas, we often do and then we create a hue and cry over the inefficacy of our savings when the fault is ours!

 
Conclusion
It is difficult to create wealth but not impossible. "To gain something we have to lose something' goes a famous saying and it is so true. We have to overcome the above mentioned reasons if we are serious about creating wealth. We should overcome our own fear and greed to build our much-desired wealth castle. We were not born with a silver spoon, but we can definitely earn it through a dedicated investment approach free from the above hindrances. Keep upgrading your skills and knowledge to ensure that your earnings grow.

BE DEDICATED AND DISCIPLINED TOWARDS YOUR INVESTMENTS.

6 Steps to Building Great Client Relationships

May 20, 2018 0
6 Steps to Building Great Client Relationships

A prospect comes and sit right in front of you and you feel you're doing a great job of converting him as a client by telling him about your financial acumen, fund picking capabilities and how you've made great money for your existing clients. But it worries you that he still seems to be frequently going into a 'power-saver mode'.

Every advisor faces this dilemma especially in the early years of his profession. The natural impulse is to impress with all the superlatives about your information & knowledge prowess as a financial advisor. But the client doesn't seem to care about them. What is it that client cares about? A Good Healthy Trustworthy Relationship!

So how does relationship start, continue and strengthen over time?
Its simply like developing a friendship with somebody you instantly liked. Here are 6 tips to building a long lasting relationship with clients;

1. Put yourself in the client's shoes – See where it pinches and what is the most financially logical thing to do to ameliorate it. Clients want to talk to someone who attempts to understand their situation and genuinely empathises with them.

 
2. Admit that you don't know some things – Who said that you're the next Warren Buffet? Probably only you believe so – the client neither assumes nor wants that. 'You are human and not a robo-advisor' is a plus point and not minus. Read Patrick Lencioni's 'Getting Naked' first.

 
3. Aim to educate the clients without intimidating them – Clients want to know where we're taking them and why. They don't want to be Ph.D. in financial management but they aren't naïve or stupid too. Tell them financial things in simple words and don't intimidate them with jargons – the more complex how you convey it to them, the further away they move from you. Nobody wants such planner.

 
4. Listen to the clients – Generally, planners are in a hurry to 'say their piece'. Their monologue starts at the very first opportunity. The client doesn't get to say much in front of the all-knowing Planner. Such relationships are generally doomed from the start.

 
5. Clients want solutions and not products – Few clients do initially talk about portfolio returns and product choices and market movements. They do so due to their previous experience. Actually, they care about how their financial problems can be solved by you. You address it from the beginning and you'll find the jigsaw puzzle falling in place by itself.

 
6. For God's sake, keep in touch and provide good service – Nothing irks people more than being taken for granted. Pay them back with good service for the trust they have in you. And they will pay with furthermore trust and years of patronage.

Thursday 17 May 2018

Bottled Water In Your Car Is Dangerous

May 17, 2018 0
A friend of ours became very sick after drinking water left in a car overnight and she was ill for a couple of months.

No matter how many times you get this E-mail, please send it on!!!!

Bottled water in your car is very dangerous!

On the Ellen show, Sheryl Crow said that this is what caused her breast cancer. It has been identified as the most common cause of the high levels of dioxin in breast cancer tissue.

Sheryl Crow's oncologist told her: women should not drink bottled water that has been left in a car. The heat reacts with the chemicals in the plastic of the bottle which releases dioxin into the water. Dioxin is a toxin increasingly found in breast cancer tissue.

So please be careful and do not drink bottled water that has been left in a car.

Pass this on to all the women in your life. This information is the kind we need to know that just might save us!

Use a stainless steel canteen or a glass bottle instead of plastic!

LET EVERYONE KNOW PLEASE!
This information is also being circulated at Walter Reed Army Medical Center.
No plastic containers in microwaves.
No plastic water bottles in freezers.
No plastic wrap in microwaves.
Dioxin chemical causes cancer, especially breast cancer.
Dioxins are highly poisonous to cells in our bodies.
Don't freeze plastic bottles with water in them as this releases dioxins from the plastic.
Recently the Wellness Program Manager at Castle Hospital, was on a TV program to explain this health hazard.
He talked about dioxins and how bad they are for us. He said that we should not be heating food in the microwave using plastic containers.

This especially applies to foods that contain fat.
He said that the combination of fat, high heat and plastic releases dioxin into the food.
Instead, he recommends using glass, such as Pyrex or ceramic containers for heating food.
You get the same result, but without the dioxin.

So, such things as TV dinners, instant soups, etc., should be removed from their containers and heated in something else.
Paper isn't bad but you don't know what is in the paper. It's safer to use tempered glass, such as Pyrex, etc.
He reminded us that a while ago some of the fast food restaurants moved away from the styrene foam containers to paper. The dioxin problem is one of the reasons.

Also, he pointed out that plastic wrap, such as Cling film, is just as dangerous when placed over foods to be cooked in the microwave.
As the food is nuked, the high heat causes poisonous toxins to actually melt out of the plastic wrap and drip into the food.
Cover food with a paper towel instead.

This is an article that should be sent to anyone important in your life.

Six Basic Rules of Investing

May 17, 2018 0
Six Basic Rules of Investing

How to put your extra money to work for you
One of the things I love most about my work is seeing people move from the left side of the CASHFLOW Quadrant to the right side of the quadrant.

The process of moving from being an employee or self-employed to a business owner or sophisticated investor is a bit like that of a caterpillar turning into a beautiful butterfly. It takes time, and often requires a total transformation in mindset and behavior.

One of these behavior changes is understanding what to do when you have more money suddenly at your disposal. Whether it's from an inheritance, a raise or bonus, or some other source, the temptation for those on the left side of the quadrant can be to, at best, follow conventional advice about money, or, at worse, to spend it on liabilities like cars or vacations.

Such conventional advice could be to increase your contributions to your 401(k) or to continue to live below your means. I've written a lot about both these topics, and it should come as no surprise that I don't condone either of them.

If you're facing a windfall in new money, now is the perfect time to put into place the rich dad fundamental: invest in cash-flowing assets . But in order to do that, you need to understand some basic rules of investing. Here are six of them to master, taught to me by my rich dad.

Basic investing rule #1: Know what kind of income you're working for
Most people think only of making money. They don't realize that there are different kinds of money to work for. For years, rich dad drilled into me that there are three kinds of income:

Ordinary earned income: Generally earned from a job via a paycheck. It's the highest-taxed income, and thus, the hardest to build wealth with due to high taxes and the fact that you're trading time for money. Your ability to earn is based on how long you can work. Portfolio income: Generally derived from paper assets such as stocks, bonds, and mutual funds. It is the second-highest taxed income, and is moderately hard to build wealth with due to low returns.

Passive income: Generally derived from real estate, royalties, and distributions. It is the lowest-taxed income, with many tax benefits, and is the easiest income to build wealth with thanks to its combination of low taxes and potentially infinite returns . Rich dad said, "If you want to be rich, work for passive income."

 
Basic investing rule #2: Convert ordinary income into passive income
Most people start their life out by making ordinary earned income as an employee. The path to building wealth then starts with understanding that there are other types of income and then converting your earned income into the other types of income as efficiently as possible.

To illustrate this, rich dad drew a simple diagram:
"That, in a nutshell," said rich dad, "is all an investor is supposed to do. It's as basic as it can get." This is why when someone gets a raise, I don't tell them to put it in a 401(k) or to live below their means, which essentially means saving. Rather I tell them to pay themselves first and invest that money in cash-flowing assets. In short, convert your pay raise into passive income.

 
Basic investing rule #3: The investor is the asset or liability
Many people think investing is risky. The reality, however, is that it's the investor who is risky. The investor is the asset or liability. "I have seen investors lose money when everyone else is making it," said rich dad. "In fact, a good investor loves to follow behind a risky investor because that is where the real investment bargains can be found!"

If you want to move from being a risky investor to a good investor, first invest in your financial education. As part of your education—because nothing beats real-life experience— start small with your investments, learn from your mistakes, and then make bigger and bigger investments.

You can also play games that simulate investing, like our free CASHFLOW Online , in order to build your financial intelligence.

 
                                                    

Basic investing rule #4: Be prepared
Most people try to predict what and when things will happen. But a true investor is prepared for anything to happen. "If you are not prepared with education, experience, or extra cash, a good opportunity will pass you by," said rich dad.

Rich dad went on to say that it was most important not to predict what will happen but to instead focus on what you want, to keep your eyes open to what is happening, and to respond to opportunity. This is done through continual education and application.

 
Basic investing rule #5: Good deals attract money
One of my big concerns as a beginning investor was how I would raise money if I found a good deal. Rich dad reminded me that my job was to stay focused on the opportunities in front of me, to be prepared.

"If you are prepared, which means you have education and experience," said rich dad, "and you find a good deal, the money will find you or you will find the money."

Rich dad's point was that getting the money was the easy part. The hard part was finding a great deal that attracted the money—which is why so many people are ready to give money to a good investor. I call this OPM, a.k.a., Other People's Money, and it's worth learning more about.

 
Basic investing rule #6: Learn to evaluate risk and reward
As you become a successful investor, you must learn to evaluate risk and reward. Rich dad used the example of a nephew building a burger stand.

"If you had a nephew with an idea for a burger stand, and he needed $25,000, would that be a good investment?" "No," I answered. "There is too much risk for too little reward." "Very good," said rich dad, "but what if I told you that this nephew has been working for a major burger chain for the past 15 years, has been a vice-president of every important aspect in the business, and is ready to go out on his own and build a worldwide burger chain?

And what if you could buy 5 percent of the company with a mere $25,000? Would that be of interest to you?" "Yes," I said. "Definitely, because there is more reward for the same amount of risk."

Learning and mastering the rules of investing takes a life-long investment in financial education. But these basics will get you started. Where you go from here is up to you.

Entrepreneurship Lessons From Billion Dollar Company

May 17, 2018 0
3 Entrepreneurship Lessons from the Billion-Dollar Company Rejected by Shark Tank

Rich dad always said, "Never take no for an answer."

In 2013, an entrepreneur named Jamie Siminoff appeared on the show "Shark Tank" to pitch his new product, "DoorBot." The product was a smart doorbell that allowed you to see who was at your door via an app on your phone and talk to them, even if you were away from the house. Siminoff's ask from the sharks was $700,000 for a 10% stake in the company. Unfortunately, the sharks passed on the product and sent Siminoff packing.

For most people, that would have been the end of the road. After a failure like that, they would have quit and moved on to something else, perhaps even gone back to an old job. But that's not what Siminoff did.

Rather than take no for an answer, he believed so much in his idea and his product that he continued searching for investors, eventually rebranding the product to be called "Ring" and building his company to over $100 million in sales and over 1,000 employees. Recently, Amazon bought Ring for $1 billion. Yes, you read that right. By the time Amazon came along, the company was worth an estimated $760 million and had raised $209 million in financing . Siminoff's story gives three valuable lessons that all entrepreneurs need to embrace.

Lesson 1: Don't take no for an answer
I resonate with Siminoff's story. Many people do not know this, but when I first wrote "Rich Dad Poor Dad," no one would publish it. In 1997, I pitched the book to multiple agents and publishers, but they all told me to move on and that the book would never sell. Instead of listening to the naysayers, I believed in my idea and my dream to help people gain financial independence so much that I took matters into my own hands. By lining up as many interviews as I could and using the media for free publicity, I was able to sell enough books to get on the New York Times Bestseller list.

In 2000, my big break came as I got on Oprah's show and sold my book to Warner Business Books. The rest was history as the book has gone on to sell over 30 million copies and be published in 51 languages. My original printing was 1,000 copies.

I share both this story and Siminoff's story because they illustrate an important lesson that every aspiring and even seasoned entrepreneur needs to hear: you cannot let others tell you no. Only you know when it is time to move on from an idea or a dream to start something else. If people do not see what you see, then move on and keep working. If you do, most times the breaks will come.

 
Lesson #2: There is money out there
One of the best lessons that my rich dad taught me was to see the world as one of abundance. For my rich dad, there was always money out there. Your job was to find it.

It would have been easy for Siminoff to conclude that since the sharks didn't want to invest in his product that no one would. After all, the sharks are some of the smartest business people and investors around. If they didn't want to invest, who would? Siminoff didn't let them define his reality. Instead, he simply went on to the next investor to give his pitch, eventually raising $209 million in financing before Amazon came along with their big wallets.

I've seen this happen over and over again in my entrepreneurial and investing career. In 2008, Rich Dad Advisor Ken McElroy was finding amazing apartment deal after amazing apartment deal. The financial markets were crashing and the cost of real estate was dropping. Even more, the only institutional loans you could get at the time were Freddie and Fannie loans. It was prime time to invest in the multi-housing market. The only problem was no one wanted invest their equity.

Most people were scared. Undaunted, Ken and his partners kept pitching. I was one of those investors who said yes. Today, all of us who said yes are all much richer because Ken kept pitching. The money is always out there. Whether it's raising money for a real estate deal or pushing a product you believe in, you have to keep asking for the money you need from investors. It won't be easy, but it's worth the work. Which leads me to my third lesson.

 
                                                    

Lesson #3: There are no overnight successes
Siminoff pitched DoorBot in 2013. Five years later, after a ton of hard work building his business, Amazon came along and bought it. I published my book in 1997, and it wasn't until the year 2000 that it finally caught on. Ken McElroy researched and bought many apartment properties in 2008 and started realizing the fruits of those efforts many years later after the economy improved. None of these stories are get-rich-quick stories. They do not represent overnight success.

The path to successful entrepreneurship is one of steady commitment and hard work. But the good news is you're working for yourself. I meet many people who think that Rich Dad teaches you how to get rich quick. Nothing could be further from the truth. Rather, our mission is to teach people how to think differently about money. This often means starting small and working hard, just like my wife Kim did. Her first investment was a small house in Portland, Oregon.

Today, she owns thousands of apartments. Between then and now is thousands upon thousands of hours of pounding the pavement, failures, successes, and a lot of fun.

If you have a dream, I encourage you to do the hard work it takes to make it a reality. It will always be worth it.