The Beginning Of The Alchemy

The start of a journey is always exciting. I am very excited about beginning this blog. I hope you are too. I also hope that you are in a place that is very similar to mine. If you know anything about my other blog about breaking into the Media Art field, you would know I am a struggling college graduate desperate for experience and even more desperate for money. I do not own my own home - I do not have well paying job (under $20,000) - I have over $20,000 in college loans - Thousands in credit cards - and all the great things that come along with these ideas like nagging bill collectors and threatening to sue me for payment. To say the least I am very poor, If you are in a situation like mine, great - study with me. If you are an experienced investor with something to add to my experience, I welcome your knowledge. If the topic of earning money has any interest to you, please feel free to say anything even if you think my ideas are completely stupid.  Please comment, please help me learn and please succeed with me.

The title of the blog, Asset Alchemist, was derived from a specific chapter in a Robert Kiyosaki book. The title of the book is Rich Dad's "Guide to Investing: What the Rich Invest In, That the Poor and Middle Class Do Not!". The chapter was entitled "The 90/10 Riddle". In this chapter Robert discusses the basic idea of solving the 90/10 riddle. The 90/10 Riddle is based on the idea of 10% of the people owning 90% of the wealth. The riddle is how to get from 90% of the people to 10% of the wealth. 

During the discussion of The 90/10 Riddle, Kiyosaki uses a conversation he had with a college class he taught at a business school. He asked a student what his plans for obtaining great wealth were. The student said after graduation he was planning on getting a job that paid a salary of $150,000.00 and setting aside $20,000.00 each year for investments. Kiyosaki explained that in order to be rich he would have to create assets. Buying assets is one way of obtaining assets but something is not an asset unless the process is there of turning it into an asset. Let me give you the balance/income sheet Kiyosaki uses in his books.

The idea is to create enough assets in your asset column that you're making a profit. Once it is profit, it goes into your income column. Then you should buy other assets with the new income. Since the tax breaks are for the rich, you should start a business that continually multiply its wealth. With that basic idea in mind, the question then becomes "How do I create assets?"

The most common way of obtaining assets is by buying them. With that strategy alone, it will take you a very long time to become a part of the 10%. However, the fast track to obtaining a VIP pass to the 10% is by creating an asset. By taking an idea and turning it into a huge asset. By being a a Asset Alchemist. 

An example of someone being an Asset Alchemist would be Mark Zuckerberg, the creator of Facebook., or Bill Gates, the creator of Windows. There's other types of Asset Alchemist which create a different type of asset is someone like the members of The Beatles which created assets that still pay them today. So, I will leave you with the billion dollar question:

How do you create assets?.....