6. PAY YOUR BROKERS WELL

The power of good advice.

 I often see people posting a sign in front of their house that says, "For Sale by Owner." Or I see on TV today many people claiming to be "Discount Brokers."

My rich dad taught me to take the opposite tack. He believed in paying professionals well, and I have adopted that policy also.

Why? Because if, and I do mean if, the people are professionals, their services should make you money. And the more money they make, the more money you make.

We live in the Information Age.

Information is priceless. A good broker should provide you with information as well as take the time to educate you.

What you pay a broker is tiny in comparison with what kind of money you can make because of the information they provide.

A good broker saves you time in addition to making you money.

A broker is your eyes and ears to the market. They're there every day so you do not have to be.

Also, people who sell their house on their own must not value their time much. Why would I want to save a few bucks when I could use that time to make more money or spend it with those I love?

What I find funny is that so many poor and middle class people insist on tipping restaurant help 15 to 20 percent even for bad service and complain about paying a broker 3 to 7 percent.

They enjoy tipping people in the expense column and stiffing people in the asset column. That is not financially intelligent.

All brokers are not created equal. Unfortunately, most brokers are only salespeople.

As in the fairy tale, you kiss a lot of frogs to find one prince.

Just remember the old saying, "Never ask an encyclopedia salesperson if you need an encyclopedia."

When I interview any paid professional, I first find out how much property or stocks they personally own and what percentage they pay in taxes.

Find a broker who has your best interests at heart. Many brokers will spend the time educating you, and they could be the best asset you find. Just be fair, and most of them will be fair to you. If all you can think about is cutting their commissions, then why should they want to be around you?

It's just simple logic.

one of the management skills is the management of people. Many people only manage people they feel smarter than and they have power over, such as subordinates in a work situation. Many middle managers remain middle managers, failing to get promoted because they know how to work with people below them, but not with people above them.

The real skill is to manage and pay well the people who are smarter than you in some technical area.

That is why companies have a board of directors. You should have one, too. And that is financial intelligence.