Profitability 

Executive Global: How would you define the main asset classes that investors should explore in 2021? 

Sharon Lechter: Diversification across asset categories is essential. Asset categories include Businesses, Real Estate, Paper Assets and Intellectual Property. Buy, build or create income producing assets that become economic engines for you.

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EG: Why is it so important in these financially troubles times, to focus on building assets instead of income?  

SL: You can exchange time for money or choose to invest your time to buy, build or create income producing assets. However, there are only so many hours in a day and so many days in a week. When you exchange time for money…YOU are your only asset. By Investing your time in buying building and creating income producing assets, those assets will become economic engines operating even when you are sleeping. Focusing on assets provides long term wealth…and the ability to win your time back. 
   

EG: How would you define financial freedom and what are the most effective ways people can get out of the 'rat race' and onto the fast track?
 

SL: Financial Freedom is when the income from your assets exceeds your monthly expenses. It does not have to be millions of dollars. It means that you have bought, built or created assets that have become economic engines working for you so you can get your time back. Financial freedom gives you your time back.

 
EG: Your co-author Robert Kiyosaki, often refers to the problem of a lack of financial education in schools. If you could revamp the entire American education system, how would you do it, and why?

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SL: The education system needs to teach financial education. You hear the phrase, “The rich get richer and the poor get poorer!”. This is because children learn about money at home. If we truly want every child to have equal opportunity for success, we will insist that they are taught financial education and entrepreneurial education in our school systems so that they will be prepared for the financial world they face. The gift of financial education is the gift of a lifetime.
 

EG: There were some startling predictions made in Rich Dad's Prophecy (2000) and many of your other books. What do you see looming on the economic horizon within the next 5-10 years? 

SL:  In the next 5-10 years there will be corrections in every economic model. To best prepare yourself, diversify across asset classes.  

EG: And how can people apply some of your principles of financial literacy to weather the economic storm?

SL: The first step is to figure out where you truly are financially today. Even if the picture is bleak you will feel empowered just be taking the action. Reduce your expenses or increase your income. Start investing in assets that can grow both in value as well as in income. It is not WHAT you do for your paycheck that is important, it is what you do WITH your paycheck that determines your financial success. In 2021 there has been a dramatic increase in new business start-ups. Find the right mentor who can assist you in building a business (even if it is part time). Then build a business that can replace your salary.

EG: 2020 has been a disruptive year for many. How may 'living in a world without a paycheck', enable a shift in mindset with relation to time, wealth and self-actualisation?

SL:  The impact of the pandemic has forced many people to re-evaluate what they need as well as what they want. It truly has been a global reset. Many people were stopped in their tracks financially and had to make severe adjustments in how they live. For the lucky ones, they discovered a new way to find happiness in their daily lives as well as what was truly important to them. This new reality will help them be better prepared for the future.

EG: Why does a high financial IQ, practically make profitability an inevitability?

SL:  When it comes to money, You either control your money, or it controls you. When you take the time to learn about money and how to create assets you are adding value. The greatest businesses solve problems and serves needs. When you add value to the world, you are rewarded spiritually and financially.   EG