Monday, December 28, 2015

Shop for bargains in investments says Robert Kiyosaki

Ordinary people shop for bargains in cars, clothes, etc., in order to save money. Rich people always are looking for bargains in assets to become richer. I personally just bought a hotel and a 600-unit real estate

Robert Kiyosaki is a Japanese American investor and author of popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.

Monday, December 21, 2015

Team work can make you unstoppable

The reason why employees and self-employed people often lose against business owners and investors is because they are individuals playing against a whole team.

Robert Kiyosaki is a Japanese American investor and author of popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.

Tuesday, December 15, 2015

You should try and learn from your failures

Setbacks often leave us reeling since they’re often unexpected and can involve high emotion. And when emotion goes up, intelligence goes down. I try to step back, calm my emotions and ask myself: 
What’s the lesson here ?  What can I learn from this ?  How can I be better prepared in the future ?

Robert Kiyosaki is a Japanese American investor and author of popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.

Monday, December 7, 2015

Successful business owners give more job responsibilities to employees

Mastering the self in order to master your future

There is no thing special about being an entrepreneur. In fact, anyone can be one. In my neighborhood, two little kids started a lemonade stand. They’re entrepreneurs. I have a gentleman that comes and does my yard work once a week. He’s an entrepreneur. The same goes for a number of contractors that I use as consultants with my business. They’re entrepreneurs too.

The problem for most of these folks is not becoming an entrepreneur it’s moving past being self-employed.

Every entrepreneur has to start somewhere. I also started as self-employed. But I quickly learned that if I wanted to truly grow myself and my business, something had to change.

To go from myself to having hundreds of employees, I had to have different skills.

The skill of selling

First, I had to learn how to sell better. I knew that if I learned how to sell, I could learn the skills I needed to grow my business revenue.

In order to hone this skill, I took a job with Xerox, which forced me to grow as a salesperson or get fired. I didn’t take the job to climb the corporate ladder. I worked to learn. I also took the time to volunteer for a local charity, making cold calls to raise money. I hated it, but I knew I needed it. My ability to sell today is a direct result of those investments in myself as a young man.
The skill of leading

Second, I knew that once I grew my company, I’d have to hire employees. It’s hard enough to manage yourself, let alone others. One of the hardest growth periods for an entrepreneur is learning how to lead, manage, and multiply other people. Once you master this skill, however, you can grow exponentially.

The trap many entrepreneurs fall into is thinking they are the expert on everything and that they have to do everything. They do not trust others with their business. The truth is that you are probably not an expert at all, and you can’t possibly do everything.

More than likely, you have one or two skills you excel in and that you should be focusing on. Building a team of experts is how a true entrepreneur grows his or her self and the business. Having a staff you can trust and that are bought into what you are doing allows them to work in your business as you work on your business. As rich dad said, “Business and investing are team sports.”

Fortunately for me, my rich dad invested in me, teaching me many important leadership lessons. This convinced me of the importance of having a mentor and a coach.

The skill of self-mastery

But the most important skill I had to learn was self-mastery.

The lack of this skill is the #1 reason why entrepreneurs fail. Self-mastery means learning how to control your fear, emotions, doubts, body, mind, and soul. If you can learn how to master these things—to control yourself—you can control the world.

Every time I lost my temper with an employee, I lost. Every time I let fear set in when my cash flow statement didn’t look promising, I lost. Every time I got into the downward spiral of working in my business rather than on it, I lost.

Most entrepreneurs have certain triggers that cause them to literally lose it, that “it” being self-control. For many, it’s money. When the money runs out, the fear kicks in and the limbic part of the brain takes over. Then they do insane things. It’s no different than the caveman running for his life from the saber-toothed tiger. You stop thinking and become reactionary.

But we’re made up of body, mind, emotions, and spirit. In order to learn how to master yourself, you must feed those things. Exercise, learn, rest, and meditate or pray. Taking the time to do those types of actions will help you to develop this most valuable skill.

But most of all, practice the opposite of fear, which is belief. In every situation, if you feel yourself losing control, stop, breathe, and think, “What do I believe?” Act accordingly and you’ll do just fine.

Monday, November 30, 2015

Rules for money have changed | Corporate bankruptcy is NOT personal bankruptcy

You cannot follow your parents' rules of money. The old rules were you go to school, you get a job, you work hard, you save money and you invest for the long term in the stock market.

Savers are losers. And many parents are still telling their kids to save money. Why would you save money when every central bank is printing money ? 

When I was a millennial, I could get 15 percent interest on my money. Today, I'm lucky to get one percent. I'm a debtor. I borrow because I'm in real estate. So I'm getting money at 2.5 percent. I just recently refinanced $300 million at 2.5 percent. So debtors are winning and savers are losing.

Wednesday, November 25, 2015

Practise, take risks and learn from failures to be the best you can be

Many years ago, once I decided that I wanted to be a teacher and a speaker, I began to practice. I made sure that I took as many opportunities to speak in front of others as I could. Along the way, I made many mistakes, but it was those mistakes that made me successful.

What dialing for dollars taught me

Let me share a story to illustrate this point. Earlier in my career, when I took a job at Xerox in order to learn how to sell, I discovered that Xerox wasn’t as interested in my learning as they were in my producing. They wanted me to sell, not learn. In fact, if I didn’t sell, they would fire me.

The work environment at Xerox was a product of our modern school system, in which those who are successful are the ones who memorize information and avoid as many failures as possible.

In order to get better at sales, I knew I needed to practice. Much like I spent five days a week in high school practicing football so that I could shine during a game once a week, I needed to do repetitions and learn from what I did wrong, as well as what I did right in sales.

So, I volunteered for a charity in the evenings, dialing for dollars. Cold calling was hard, but thankfully, the charity was in such dire need of volunteers they didn’t care if I was failing or not. They were just happy to have me sitting and calling.

Paradoxically, the more I failed as a volunteer—and learned from those failures—the more successful I became as a salesman at Xerox.

This highlights an important principle: mistakes are more important than answers. Why? Because the answers always emerge from the mistakes. Sure you can memorize answers, however, that fades fast. When you discover an answer from perseverance through failure, that answer stays with you forever.

At the end of the day, successful people are those who practice, practice, practice; fail, fail, fail; and eventually succeed as a result.

I’m reminded again of the famous Michael Jordan quote, “I've missed more than 9,000 shots in my career. I’ve lost almost 300 games. 26 times I've been trusted to take the game winning shot and missed. I’ve failed over and over and over again in my life. And that is why I succeed."

The million dollar questions

So the questions I have for you today are, “Where do you want to go?” and “What are you practicing?” If those two things aren’t aligned, it’s time to make a change.

Monday, November 16, 2015

5 point test to see if you can be a successful business owner

These days it seems like everyone wants to be an entrepreneur. If so many people want to own a business, why is it that so few do? 

The answer is simple. It's hard. I firmly believe that anyone can be an entrepreneur, but most people won't put in the time, energy, and commitment it takes to be successful at the ownership level.

And that's OK. Not everyone needs to be a business owner. But if you're wondering whether the entrepreneurship game is for you, consider the following five statements. If you say yes to any of these, you might want to reconsider.

If, however, you read these five statements and don't feel that they represent you, then maybe it's time to take the leap.

-    You don't have thick skin. It seems that as soon as you announce you are starting a business everyone is an expert in starting a business. Not everyone will love your idea or product, and they won't be afraid to tell you. I'm not saying you shouldn't listen to criticism, but you have to be able to take the punches and not take everything personally.

-    You don't like being "connected." As an entrepreneur, there really isn't such a thing as "disconnecting" from the world, not in the beginning anyway. You'll be living and breathing your new company while trying to educate everyone about your business. You'll be constantly thinking about how to improve things, reduce costs, and sell more. There is no such thing as a 9-to-5 work schedule when you're an entrepreneur.

-    You need to be praised for your efforts. If you're an employee, you're probably used to getting constant feedback about your performance, task and project completion. A lot of employees are even used to their bosses telling them how great they are - even if they know they aren't. This is not the case for an entrepreneur. You won't hear any of that unless you tell yourself. Your praise comes in the form of making money. And it's going to be a while before you really get the praise you're looking for.

-    You need someone to give you motivation. Similar to needing praise, if you need external motivation, you shouldn't be an entrepreneur either. When you wake up in the morning as an entrepreneur, there isn't someone standing in your kitchen ready to give you that day's tasks. It's all on you.

-    You're only comfortable wearing one hat. There are people I know that are only comfortable being an accountant, or a writer, or an event planner, These people are only comfortable doing one thing and, as such, should never be an entrepreneur. As an entrepreneur, especially a solopreneur, you are often putting on different hats, making a multitude of decisions and you need to be confident in doing so.

Here's the good news. Even if you said yes to one or more of these, you can make a change. I'm a firm believer that anyone can change his or her mindset. All you need is the determination and a little help along the way.

But if you want to be an entrepreneur, change you must. No better time to start than today.


Wednesday, November 4, 2015

Working hard part time in your own business can be better than working extra in a regular job

In order to grow as a business owner you can't simply gain new knowledge but also shed certain thinking as well.

In today’s world, there are many people who want to change their circumstances by becoming an entrepreneur. Unfortunately, many of these people are unable to make the shift from an employee to a business owner.

Why? Because old thinking gets in the way.

The good news is that it’s never too late to change your thinking. The bad news is that sometimes some of the hardest things to change are old ideas. Some of the ones that need to change have been handed down from generation to generation. They are very powerful ideas to break. But break them, you must.

The following are three ways of thinking that every entrepreneur must change.

-    Be a good, hardworking person

The reality today is that the people who physically work the hardest are paid the least and taxed the most. I am not saying not to work hard. All I am saying is that we need to constantly challenge our older thoughts and maybe rethink new ones. For instance, consider working hard in a part-time business for yourself instead of working overtime for your employer.

-    The idle rich are lazy

The reality is that the less you are involved physically in your work, the greater your chances are of becoming very rich. Again, I am not saying to not work hard. I am suggesting that today, we all need to learn to make money mentally, not just physically.

Those who make the most money work the least physically. They work the least because they work for passive income and portfolio income rather than ordinary earned income – the highest taxed income.

In my mind, today’s idle rich are not lazy. It is just that their money is working harder than they are. If you want to be a successful entrepreneur, you need to learn how to make money mentally rather than physically.

-    Go to school and get a job

In the Industrial Age, people retired at the age of 65 because they were often too worn out to lift tires and put engines into a car on the assembly line. Today, you are technically obsolete and ready for retirement every 18 months, which is how fast information and technology are doubling.

Now, more than ever, rich dad’s statement is relevant, “School smarts are important, but so are street smarts.” We are a self-learning society, not a society that learns from its parents or from its schools. Kids are teaching their parents how to use the latest technology, not the other way around. And tech companies are looking for high-tech kids more than middle-aged executives with college degrees.

To stay ahead of the obsolescence curve, continual learning from school, as well as the street, is vital. When I speak to young people, I advise them to think like professional athletes as well as college professors. Professional athletes know their careers will be over as soon as younger athletes can beat them. College professors know that they will become more valuable the older they get if they continue to study. Both points of view are important today.

Wednesday, October 28, 2015

Turn words into action and implement them

Rich dad believed in the power of words. He believed that our words had the power to shape our reality because they revealed what we thought and believed about the world.

Rich dad was echoing what Gandhi once said, “Your beliefs become your thoughts, your thoughts become your words, your words become your actions, your actions become your habits, your habits become your values, your values become your destiny.”

The question I have for you today is, “How are your words representing your thoughts and beliefs, and how are they informing your destiny?”

I believe one of the most powerful ways to shape our destiny is to tell our story and listen to others tell their story—both about themselves and about us.

Here’s an example: One person says, “Someday I’ll be an entrepreneur.” Another person says, “I am an entrepreneur.”

Even if each person’s circumstances were the same, which one would you think has the most likely chance to succeed?

My money would be on the person declaring him or her self as an entrepreneur than on the person hoping to be one someday. Why?  Because as Gandhi says, “Your words become your actions.” If you declare yourself to be something, as long as it’s within your natural ability and power, you will more than likely be taking action to be that very thing, even if the world hasn’t quite caught up to you yet.

How words can shape our reality

Take the example we can probably all relate to: getting in shape. Many people have the intention of going to the gym and getting in shape. Some might even say, “I want to get in shape.” But it’s when we go around telling people we are getting in shape that we have to take action.

And here’s the magic in those words. By saying you are getting in shape, you must take the action of going to the gym (or face the ridicule of those you told!). At first it’s hard, but pretty soon that action becomes a habit, one you couldn’t imagine missing each day. As you get into the habit of working out, you begin to value a healthy lifestyle. You eat better. You stop smoking. You get more sleep. And as your values change, so does your destiny, going from an unhealthy and short life to a longer, healthier life. It all started with your words.

If you want to be an entrepreneur, start today by using words that you know will spur you into action. I guarantee that if you do, those words will become actions, then habits, then values, and then a changed destiny.

Monday, October 26, 2015

Rich women and men understand assets vs liabilities

Suze Orman is a self made millionaire who has financial intelligence
It's not about how much money you make. It's about how much money you keep.

Money without financial intelligence is money soon gone. You must know the difference between an asset and a liability, and buy assets. If you want to be rich, this is all you need to know.

Most people struggle financially because they do not know the difference between an asset and a liability. An asset puts money in my pocket. A liability takes money out of my pocket.

Monday, October 19, 2015

Control your expenses to get rich

When I say the word "expenses," what kinds of feelings arise in you? Many people feel a sense of anxiety, or they may feel a little bit of fear. Certainly most people aren't comfortable with the idea of expenses. Why is that?

For most people, expenses are things that take away our money. They are obligations rather than opportunities. For some, they are the things that put them in the red month after month.

But there are different ways to look at expenses.

Rich dad often said, "It is through the expense column that the rich person sees the other side of the coin. Most people only see expenses as bad, events that make you poor. When you can see that expenses can make you richer, the other side of the coin begins to appear to you."

He also said, "Seeing through the expense column is like going through the looking glass as Alice did in Alice and Wonderland."

When I was young, rich dad taught me how to utilize the expense column to make myself richer.

"By having a plan to be rich and understanding the tax laws and corporate laws, I can use my expense column to get rich," he said to me. "The average person uses their expense column to become poor. If you want to be rich and stay rich, you must have control of your expenses."

Ways the expense column makes you richer

The reason most people become poorer through the expense column is because they spend their money on liabilities that take money out of their pocket-things like expensive cars, vacations, clothes, and more.

The rich buy these things as well, but they also buy things that make them money-assets that pay for their liabilities.

When Kim and I were first married, we committed to making our investing an expense in our budget. Each month, we paid ourselves through our expense column the money we needed to save up for and purchase assets that would provide us cash flow. This was an example of an expense that made us rich. Not only did the asset generate income, but it also was passive income that is taxed the lowest, so it also saved us money in taxes.

Another way our expenses make us richer is by purchasing as much as we legally can through our businesses-things like eating out, travel, phones and computers, and more. All of these things that we need, and that almost everyone needs, can be purchased by our business against our income. The result is we pay much lower taxes.

A final example of how the expense column can make you richer is real estate and depreciation. Each year, for all our rental properties, the IRS allows us to take a portion of our property and write it off as depreciation. It is an expense that is really income because it costs us nothing but saves us money in taxes.

High expenses > high income

If you understand these examples, then you will understand why rich dad-and Kim and I-wanted low income and high expenses. That is our way of getting rich.

"Most people eventually lose their money and go broke because they continue to think like a poor person, and poor people want high income and low expenses. If you don't make the switch in your head, you will always live in fear of losing money and will try to be cheap and frugal, rather than be financially intelligent and become richer and richer. Once you can understand why a rich person would want high expenses and low income, you will begin to see the other side of the coin."

Monday, October 12, 2015

Technology as a tool to help business grow

It used to be that in order to build a million dollar business, you needed to invest in a lot of overhead, such as a building, inventory, and employees. But today, you no longer need to make these kinds of investments to be successful.

As Elaine Pofeldt wrote for Forbes magazine:

    According to new statistics released by the U.S. Census Bureau, there were 30,174 "nonemployer" firms that brought in $1 million to $2,499,999 in 2013. That's up from 29,494 in 2012 and 26,744 in 2011. And there are many more nonemployer businesses getting close to the $1 million mark. In 2013, there were 221,815 bringing in $500,000 to $999,999, a number that held steady since 2012.

Nowadays, a solopreneur can create a big business making millions of dollars. And the solopreneur can do it using systems right on his or her laptop. The solopreneur can send automated emails, sell from his or her store, post marketing campaigns, send and receive shipments, and find new customers-all without doing a thing. The system does it all for them.

But, when it comes to technology, sometimes it can be hard to know where to start. The following are ten essential tools you can use as a solopreneur to drive your business to success.

Google Analytics (Free)

Every successful solopreneur business should have a great website, but that's not enough. You also need to know what your website visitors are doing. By using Google Analytics, you can get the insights you need to know what is and isn't working on your website-as well as what your potential customers are finding most valuable.

Buffer (Free and paid)

In today's marketing world, social media is an essential part of success. But who has time to be online posting things all the time? And how do you know if it's really working? Buffer boasts itself as "the best way to drive traffic, increase fan engagement, and save time on social media." Through Buffer, you can schedule posts on your computer or mobile device to automatically go out on the major social networks and access in-depth analytics on how your posts are performing. It's easy to use and frees your time up significantly.

QuickBooks (Paid)

Solid accounting and books are key to business success. QuickBooks allows you to quickly and efficiently keep your accounting up to date, clean, and actionable-all without hiring a bookkeeper. And come tax time, these clean books will help you save a lot of time, money, and stress. And QuickBooks is now online, so you can record expenses and more while you're on the go through the cloud.

Infusionsoft (Paid)

It used to be that you needed a staff of experts to keep your sales and marketing machine running. Infusionsoft is a Customer Relationship Management (CRM) and marketing automation platform built specifically for small businesses that can be your sales and marketing administration staff 24/7. Keep track of your customer interactions, know who's ready to buy and who's not, and create email campaigns that are personalized and go out automatically based on how customers and potential customers interact with your offerings.

Asana (Free and paid)

Solopreneurs are notorious for having a lot on their plate. It's essential that for your own projects and projects you're working on with clients and contractors that you have a solid project management tool. Asana is that tool-"with tasks, projects, conversations and dashboards, Asana enables teams to move work from start to finish." And as a cloud-based application you can manage your work from anywhere and at anytime, including your mobile phone.

LeadPages (Paid)

An essential part of building an online business is building your email list and creating different campaigns and offerings to drive business. LeadPages makes that super simple, allowing you to build templated landing pages and utilize opt-in forms for list subscriptions. It works with your existing website easily and can help you quickly build an online selling machine without the need for a developer.
Harvest (Paid)

If part of your business involves service, it's essential that you can track your time and costs, as well as invoice your clients accurately and efficiently. Harvest allows you to track time via your desktop or on your phone, monitor progress on projects and make forecasts, and to invoice you clients with a click of a button. And it has a number of integrations, including with Asana and QuickBooks.

Dropbox (Free and paid)

Online business moves at the speed of light. You can't afford to keep your documents in one place. You need access to them all the time, wherever you go. Dropbox is a centralized, cloud-based document storage system that allows you to access your files and documents 24/7. As changes are made in one place, they are updated in Dropbox and applied on every device you use to access Dropbox. No more calling up your assistant to pull that contract.

FreshDesk (Free and paid)

Any business that doesn't give swift and excellent customer service is a business that will go out of business. FreshDesk is a helpdesk and customer support platform that helps you keep your customers happy by making sure every issue they have is solved and accounted for. With a host of tools that can be accessed via your computer and your mobile phone, you are able to always help your customers out in quick order.

Square (Paid)

Of course none of these tools help you out unless you can get paid. That's where Square comes in. With Square you can process payments online and on your phone for any transaction.

Bonus round: Zapier (Free and paid)

Life gets even easier when all your apps and tools work together online. Zapier makes that happen. As they state on their website, "Connect the apps you use, automate tasks, get more out of your data." With hundreds of "Zaps", Zapier connects your apps to automate all sorts of processes-saving you time and money.

Wednesday, October 7, 2015

Be humble to learn more and achieve success

“One of the great things about being willing to try new things and make mistakes is that making mistakes keeps you humble. People who are humble learn more than people who are arrogant.”

Robert Kiyosaki is a Japanese American investor and author of popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.

Monday, October 5, 2015

Robert Kiyosaki conference in Manila on November 30, 2015

Robert Kiyosaki, author of popular book Rich Dad, Poor Dad, will be in Manila, Philippines on November 30, 2015 for a 1-day conference, joined by 7 other personal finance gurus who will share their know-hows on how to fast track and manage your wealth.

The conference will run at the SMX Convention Center, Mall of Asia, Pasay City from 9 am to 8 pm. From here, participants can learn about:

    -The importance of financial education
    -Why right now is your best opportunity to start a successful business
    -How good debt is easy to get and can make you rich
    -Raise venture capital to fund your dream
    -The skills you must know for business, sales, and entrepreneurial success
    -What holds back the average person from achieving more in life
    -How to transition from an employee mindset to a business owner mindset
    -The good, the bad, and the great opportunities to thrive in 2016
    -What you will need to capitalize on global volatility in 2016
    -Generate multiple streams of income before the crash in 2016

Kiyosaki's book, the New York Times bestseller Rich Dad Poor Dad, has said to have challenged and changed the way millions of people around the world think about money.

He forecasts that a global market crash in 2016 would be worse than the 2008 economic crash, which could wipe out the poor and the middle class, but would make the rich richer.

Wednesday, September 30, 2015

Action vs Words | Robert Kiyosaki

“Talk is cheap. Learn to listen with your eyes. Actions do speak louder than words. Watch what a person does more than what he says.”

Robert Kiyosaki is a Japanese American investor and author of popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.

Monday, September 28, 2015

Understand how 401K works properly

A 401(k) is meant to help you invest for retirement, but how much do you keep?

Here at The Rich Dad Company we spend a lot of time bashing the idea of a 401(k) and its international counterparts. We also tell people that in order to find financial success they need to learn the difference between an asset and a liability.

An asset puts money into your pocket (cash flow), while a liability takes money out of your pocket. Buy assets, not liabilities and you will be successful. Right?

Well… maybe we’ve gone too simple.
What Are You Working For?

We’ve received questions such as: Doesn’t a 401(k) make money and put it into your pocket? Isn’t a 401(k) an asset? All we have to do is buy assets that put money in our pocket so why the hate?

To answer those questions, let’s ask ourselves if a 401(k) puts money into our pockets. A typical 401(k) plan takes 80 percent of the profits. The investor may receive 20 percent of the profits, if they are lucky. Don’t believe us? Ask John Bogle. Yes. John Bogle, Founder of Vanguard Investments.

The investor puts up 100 percent of the money and takes 100 percent of the risk. The 401(k) plan puts up zero percent of the money and takes zero percent of the risk. The fund makes money through fees, even if you lose money.

Generally speaking in a bull market, a 401(k) does put money in your pocket – but only 20%. So if you had $10,000 in your 401(k) and it made 5%, then your 401(k) made a profit of $500 - you only get $100 (before taxes).

Now we have to understand that taxes work against you with a 401(k). Long-term capital gains are taxed at a lower rate of around 15%. Great! The only problem is the 401(k) treats any gains as ordinary income. Ordinary income is taxed at the highest rate, sometimes as high as 35%. And if you want to take the money out early, you’ll have to pay an additional 10% penalty tax.

In real investment assets, tax law is written to your advantage, not taxing you at every turn.

It gets worse. It turns out that when it's calculated correctly, without government creativity, inflation increases faster than any 401(k). That means money is leaving your pocket!

It’s difficult to really call a 401(k) an asset, even by the financial industry’s definition. If you look at a 401(k) using Rich Dad’s definition of an asset - something that continually puts money in your pocket whether you work or not – then it’s downright laughable. That’s not even factoring you can’t touch that money until you’re 59 ½-years-old without an additional 10% penalty.

The mutual fund industry has done a masterful job making it nearly impossible to determine whether or not your 401(k) is an asset. But it doesn’t really matter. We’ve seen that even if it is making you some money, it’s not enough to justify the risk.

Risks? Oh… you did not know?

With a 401(k), you have no insurance if there is a stock-market crash. To drive a car, you must have insurance in case there is a crash. When one invests in real estate, one has insurance in case of fire or other losses. Yet with a 401(k), you have no insurance to prevent losses from market crashes.

So, let’s ask the question again, “Is your 401(k) an asset?”


Friday, September 25, 2015

Live in the present | Robert Kiyosaki

"Your success yesterday means nothing. It's what you do TODAY that shapes your tomorrow"

Robert Kiyosaki is a Japanese American investor and author of popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.

Wednesday, September 23, 2015

Yes you can cashflow with stocks

One of the things that makes The Rich Dad Company so different from other financial educators is that we do not tell you what to buy or what to invest in. Instead we teach why an opportunity is good and we show you how many different things there are to invest in.

Real estate may be a good fit for many investors but it’s not a great fit for all investors. Stocks may make a lot of sense to most people, but certainly not all. A good investment vehicle (stocks, real estate, business, commodities) needs to fit with your lifestyle, your personality, and your philosophies. There is no investment vehicle that is one size fits all.
What Are You Working For?

Most people believe that stock investing is at odds with the Rich Dad philosophy of investing for cash flow. The reason people believe this is because they think stocks are simply buying low and selling high. An educated stock investor knows how to cash flow with the stock market, not just invest for capital gains.

Cash flow is better than capital gains for three reasons:

    -It is resilient from market swings and market chaos.
    -It brings money into your pocket on a regular basis (not imaginary “paper wealth” such as net worth)
    -It is generally taxed at a lower rate.

We’ll go over two ways that you can invest in stocks and follow the Rich Dad philosophy of cash flow. The first method of Dividends is pretty direct. The second method of Covered Calls requires quite a bit more financial education.


So if you were to buy stocks that pay regular dividends, then you are purchasing assets that add to your cash flow. With enough assets like this, you can eventually have the income to do whatever you like, right now or in retirement.

Covered Call Cash Flow

The covered call strategy is not for the uneducated. This is going to get a bit crazy. But once you get it, it’s very exciting! Now, let’s explain cash flowing a covered call (a stock option):

A stock option is a promise by someone to sell a certain stock at an agreed-upon price until a certain date. In return for this promise, he receives a premium as income. This premium is not just based on the movement of the stock price, but on the movement of time.

Stock options can be confusing so I’m going to use an example as it relates to real estate.

Let’s suppose that you are a landlord who owns a house. You find a family to buy the house, but they don’t want to buy it outright today. Instead, they decide to lease the house for three years with the option to purchase the house at an agreed-upon price at the end of the lease term.

While you are waiting for the lease to expire, you are earning money on the movement of time (rent).

As the owner of a lease-to-own house, you will make money no matter what happens. It doesn’t matter if the value of the house increases or decreases. If the house increases in value beyond the agreed-upon price, the family got a good deal but you still got what you wanted since you set the price.

If the house goes down in value, the family will likely not buy the house at the end of the lease and you get to keep the house.

Now you can go out and lease-to-own the house again. Rinse. Repeat.

While not exactly the same (you don’t receive payments during the term of the option contract), you now have a general idea of how a stock option works:

    -You own Stock XYZ
    -You sell an Option to buy Stock XYZ after a predetermined amount of time at an agreed-upon price
    -At the expiration of the term, you receive the option premium.
    -You either sell Stock XYZ at the agreed price or you retain ownership

Cash Flow from Selling a Covered Call Option

Now let’s shift from real estate examples into actual ways we can use this cash-flow strategy to make real money with options in the markets. This is especially useful in difficult markets where buy-and-hold investors are suffering from crazy up-and-down conditions.

Let’s have Rich Dad Advisor on stocks, Andy Tanner, explain a covered call option:

As mentioned earlier, an option is a promise by someone to sell a certain stock at an agreed-upon price until a certain date. In return for this promise, he receives a premium as income. This premium is not just based on the movement of the stock price, but on the movement of time.

As a teacher, I’ve seen how hard it is for many people to grasp the ideas of time decay and cash flow in the stock market. I know it certainly took some time for the light to come on for me. So a few years ago I made a small trade just for the purpose of teaching. I chose to hold a stock for a long time regardless of the fluctuation in its value, just as many real-estate investors hold their rental property regardless of fluctuations in the price.

To show my students the similarities between stock investors selling options and real estate investors collecting rent, I bought an Exchange Traded Fund (ETF) and held it for a year. It’s not my usual practice to hold stocks that long, let alone buy anything that is heading down. But my goal was to prove that it is possible for a falling stock to generate income just as a house that is declining in value can still generate rent. This is not hypothetical. This is an actual series of very small trades I did during the subprime meltdown of 2008.

My first step was to buy 500 shares in an exchange-traded fund called the Spyder Trust (SPY), which mimics the S&P 500. This was very important because the SPY simply mimics the S&P 500. I was going to hold it for a year, come what may. After buying it, I watched it closely to see if it going up, down, or sideways.

Since I owned the shares, I was positioned to be the seller of an option instead of the option buyer.

After buying 500 shares of the SPY exchange traded fund, I then sold five, one-month call option contracts on SPY at a premium of $2.15. I promised the buyer that he could buy the Spy for $154 (which was more than I paid for the SPY) at any time before the expiration date.

The stock could now go in one of three directions:

    -If the stock went up and he wanted to buy at $154, I would have made money since I bought it at a lower price.
    -If the stock went sideways and stayed below $154, the option would expire worthless, and I would have kept my $2.15 (multiplied by 500) premium in cash flow. This is just like a house where the value remains the same. I would still be getting that rent as income.
    -If the stock went down, the option would expire worthless, and I would keep my $2.15 premium (multiplied by 500).

You can see that I have set up a scenario where no matter what happened, I would generate income from an asset I had purchased. To me, this was a very attractive way to generate my own income. I bought 500 shares and then I sold those options. That’s five one-month contracts of 100 shares, each at a premium of $2.15. When you do the math, you’ll see that I created an income of $1,075, less the brokerage fee, so I received a net $1,061.

Even though the stock was falling in value, I continued to sell options on my shares of the SPY month in and month out for a whole year. Why? Because I am not much different than a real estate investor who sees the value of his rental house decline for a season. He is receiving his rent each month and I am also receiving my income every month from options. This income flows in even as we both wait for the underlying value of the assets to bounce back. I get to keep the stock while the time decay is bringing in cash.

This shows you how to own stock assets and generate an income from them.

True cash-flow investing is when the underlying asset, whether it’s a house or a stock, can go down but cash flow stays fairly consistent.

As we said earlier, most people think that stock investing is at odds with the Rich Dad philosophy of investing for cash flow.

If they’re thinking of most people’s idea of stock investing – buy, hold, and pray – then yes. However, an educated stock investor knows how to cash flow with the stock market and knows the rewards of cash flowing the stock market.


Monday, September 14, 2015

Robert Kiyosaki on 401K, Taxes, Terrorism, Stock Market,

Robert Kiyosaki explains why the 401K is flawed and is basically a tax on employees. Also Kiyosaki jokes that nowadays suing is the easiest way to make money and which is why he keeps protection against people abusing the legal system.

Wednesday, September 9, 2015

Tax laws favors Business Owners and not Employees | Robert Kiyosaki

Business owners speak on their experiences of Tax, Financial Education and why getting a Job may limit your opportunities.

Robert Kiyosaki is a Japanese American investor and author of popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.

Tuesday, September 8, 2015

Global economies collapsing

The global economy is in a collapse right now and Wall Street is manipulated. The Fed as well as U.S. Treasury keep propping it up.

Robert Kiyosaki is a Japanese American investor and author of popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.

Thursday, August 27, 2015

Keep up with changes and innovations

“I find so many people struggling, often working harder, simply because they cling to old ideas. They want things to be the way they were; they resist change. Old ideas are their biggest liability. It is a liability simply because they fail to realize that while that idea or way of doing something was an asset yesterday, yesterday is gone.” - Robert Kiyosaki

Robert Kiyosaki is a Japanese American investor and author of popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.

Tuesday, August 25, 2015

Yes even Rich people can go Bankrupt

Ever hear someone say, “Once I have a lot of money, all my money problems will be over"?

People with this attitude don’t understand that having more money doesn’t solve your money problems. It just brings new problems. That is why you’ll often see athletes who come from a poor background have money problems even though they make millions of dollars a year. It’s also why many lottery winners go broke. They don’t know what to do with the money once they have it.

The following are six reasons why rich people still go broke:

1. People who grow up without money have no idea how to handle it.

Too much money is often as big a problem as not enough money. If a person is not trained to handle large sums of money or does not have a proper financial education or advisors, they will either stash the money away in the bank or just lose it. As my rich dad said, “Money does not make you rich. Financial education does.”

2. When people come into money, the emotional euphoria is like a drug that boosts your spirits

Rich dad said, “When the ‘money high’ hits, people feel more intelligent, when in fact they are becoming more stupid. They think they own the world and immediately go out and start spending money like King Tut with tombs of gold.”

As the old adage goes, “Money burns holes in pockets”…and in fortunes.

3. The hardest thing for many people is to say no to people they love when they ask to borrow money

I have seen many families and friendships break up when one person suddenly becomes rich. As rich dad said, “A very important skill in becoming rich is to develop the ability to say no to yourself and to the people you love.” The people who become rich and start buying big homes and boats are not able to say no to themselves let alone to their loved ones. They end up further in debt, just because they suddenly have a lot of money.

4. The person with money suddenly becomes an “investor,” but without financial education and experience

When people have money, they automatically think they are financially savvy, even if they never had money before and just got lucky. When you get rich, you suddenly have people banging down your door to get you involved in their “sure-fire” investments. But just because you qualify for big investments doesn’t mean you know anything about investing. A lot of financially-ignorant rich people lose their shorts—and fortunes—to bad investments.

5. The fear of losing increases

Many times a person with a poor person’s outlook on money has lived a life being terrified of being poor. So when the sudden wealth hits, the fear of being poor does not diminish. In fact, it increases. As my friend who is a psychologist says, “You get your fear.” If you act as if you’re always in danger of losing your money, chances are you will.

6. The person does not know the difference between good and bad expenses

Rich dad said, “The main reason I create assets is that I can increase my good expenses; the average person has mainly bad expenses.” This difference in good expenses and bad expenses was one of rich dad’s most important reasons for creating assets. He did so because the assets he created could buy other assets. Most people spend their riches on liabilities—things that take money out of their pocket—but the wise rich person spends money on assets that produce the ability to buy other assets (and some fun things too).

If you want to grow rich and stay rich, the number one thing you need is financial intelligence. That is your most important asset. Invest in that and everything else will fall into place.

Robert Kiyosaki is a Japanese American investor and author of popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.

Thursday, August 20, 2015

Money games can teach you a lot of financial matters

In 1996, my educational board game, CASHFLOW, was submitted to a group of instructors at a prominent university for their feedback. Their verbal reply was, “We do not play games in school and we are not interested in teaching young people about money. They have more important subjects to learn."

This reply came despite the growing mountain of evidence that we learn best by doing, such as playing games, rather than by listening and reading (lectures and books). 

We knew we had come full circle when Thunderbird School of Global Management utilizedRich Dad Poor Dad, CASHFLOW Quadrant, and the CASHFLOW games in its curriculum for their entrepreneurship program. The very prestigious university is internationally recognized for its educational programs.

We’ve become committed to the power of games to change people’s financial lives. We spent a lot of time and resources to make CASHFLOW into a digital online game that anyone can play for free.

Robert Kiyosaki is a Japanese American investor and author of popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.

Tuesday, August 18, 2015

Robert Kiyosaki praises Donald Trump

He [Donald Trump] is an entrepreneur -- probably one of the most famous and influential entrepreneurs today. I met him in 2004 and we have always shared the same concerns .... the middle class is getting crushed.

I've spent years with him. He tells it like it is. I just want somebody to be straight right now. He doesn't BS. You don't have to read through the tea leaves. I would support him [for a presidential run] but I'm concerned about's a nasty job. What we have to do to save this economy would not be popular. We have too many people on the government lunch-wagon.

Robert Kiyosaki is a Japanese American investor and author of popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.

Monday, August 17, 2015

Robert Kiyosaki sets goal of making $1 billion

After achieving my goal of making my first $1 million, I began thinking about setting the next goal. I knew I could go on to make $10 million doing things much the same way. However, $1 billion would require new skills and a whole new way of thinking.

That is why I set the goal of $1 billion, despite much personal doubt. Once I had the nerve to set the goal, I began to learn how others had made it. If I had not set the goal, I would not have embarked on the journey of learning. Once I committed to the goal, my mindset changed, and that alone was extremely valuable.

While I am not a billionaire yet like the young men and women on the list above, I strive to be one, and I do so by following their formula. I have founded many businesses that others invest in, and have even taken a few of them to IPO on smaller stock exchanges, such as Canadian stock exchanges.

Even if I do not achieve my goal of making $1 billion, I will have gained much more from the change in mindset it required than if I had never set the goal in the first place.

Are you the next billionaire? Only one person can answer that question—you. But with the right team, right leader, a bold and innovative new product, and most important, the right mindset, anything is possible.

Robert Kiyosaki is a Japanese American investor and author of popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.

Friday, August 14, 2015

Who wins in employee vs owner #QUOTE

"Workers work hard enough to not be fired, and owners pay just enough so that workers won’t quit."

Robert Kiyosaki is a Japanese American investor and author of popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.

Wednesday, August 12, 2015

Making money: Rich vs Poor

In Rich Dad Poor Dad, I wrote about how at the age of nine I began making my own money by melting down lead toothpaste tubes and forging lead coins in plaster-of-paris molds. My poor dad told me what the word “counterfeiting” meant. My first business opened and closed on the same day.

My rich dad, on the other hand, told me that I was very close to the ultimate formula for wealth: to print or invest your own money—legally. And that is what the ultimate investor does. In other words, why work hard for money when you can print your own?

In Rich Dad Poor Dad, rich dad’s lesson #5 is: “The rich invent money.” Rich dad taught me to invent my own money with real estate or with small companies. That technical skill is the domain of inside and ultimate investors.

Robert Kiyosaki is a Japanese American investor and author of popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.

Monday, August 10, 2015

Leverage the internet to make you rich

The media today is filled with articles talking about the growing income gap between the rich and the poor. Income inequality is all the rage, fueling the campaign of Bernie Sanders and giving birth to thousands of articles with stats like these found in “Economic Inequality: It’s Far Worse Than You Think ,” published in Scientific American:
"The average American believes that the richest fifth own 59% of the wealth and that the bottom 40% own 9%. The reality is strikingly different. The top 20% of US households own more than 84% of the wealth, and the bottom 40% combine for a paltry 0.3%. The Walton family, for example, has more wealth than 42% of American families combined."

This is no surprise to me. For years I’ve been predicting that the middle class is toast and that the rich will get richer while the poor get poorer. Rather than get angry, however, I decided long ago to get smart about money and investing.

Today, I believe it’s easier than ever to get rich, if you’re financially smart. Here are six reasons why:

1.    The Internet is making a world of customers available to most of us.

2.   The Internet is creating more businesses beyond the Internet. Just as Henry Ford created more business because his mass-produced cars had a ripple effect, the Internet will likewise magnify its effect. The Internet makes it possible for 7 billion of us to become a Henry Ford or Bill Gates.

3.    In the past, the rich and the powerful controlled the media. Now with the Internet, each of us has the power to access different media sites.

4.    New inventions breed more new inventions. An explosion of new technology will make other areas of our lives better. Each new technological change will allow more people to develop more new and innovative products.

5.    As more people become prosperous, they will want to invest more and more money into new start-up businesses, not only to help new business, but also to share in the profits. Today, it is hard for most people to grasp the reality that there are literally tens of billions of dollars looking for new, innovative companies to invest in every year.

6.    It does not have to be high tech to be a new product. Starbucks made a lot of people rich with just a cup of coffee, and McDonald’s became the largest holder of real estate with just a hamburger and fries.


Robert Kiyosaki is a Japanese American investor and author of popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.

Wednesday, August 5, 2015

Start small to make money in real estate

When it comes to real estate, I believe that 1) you “make your money” when you buy a property (one that’s perhaps undervalued, a distress sale or presents an opportunity that you see for turning the seller’s problems—poor management, for example—into your profit potential) not when you sell it; and 2) you’re acquiring an asset by leveraging the cash you do have and using the bank’s money to mitigate your risk in a real estate investment that’s tangible, insurable, and in many cases appreciable.

A real estate investment can—and in my investment playbook, must—deliver a steady stream of cash flow income, which is how you can grow your wealth using both cash flow and potential capital gains.

So, where does the downpayment money come from and how do you get a loan?

You could pool cash resources with friends or family who face the same challenges you do in terms of pulling together a downpayment or getting approved for a loan. (I’d suggest having simple legal agreements in place and a clear exit strategy for your investment). And, if you can show a banker your plan for the property—why it’s undervalued or mismanaged—or that you already have tenants for the property that will give you a small but positive cash flow—you can use your brainpower as an asset that you can, literally, “take to the bank.”

Perhaps you can find a well-priced duplex in your market and become both a tenant and landlord. If you have a friend (or an aging relative who would like to live near you) you can go to the bank armed with your new tenant’s lease in hand and a plan that will demonstrate your cash flow and your smarts as both an investor and a businessperson. The same would be true for a small office building or commercial space.

My advice would be to start small and learn as you go and apply what you learn to become smarter. We all make mistakes and it’s pretty likely you will, too. Starting small means small mistakes. Mistakes are how we learn and the only real mistakes are not learning from the ones we make.

Monday, August 3, 2015

Robert Kiyosak: Buy vs Rent house

When it comes to our houses (our personal residences) I take my rich dad’s definitions of asset and liability pretty literally. I say, “your house is not an asset” to remind myself that the home that I live in (even if I own it free and clear) still costs me money every month for utilities, taxes, insurance, maintenance, etc.

Each person needs to determine whether buying or renting—at any age—is the right choice. Especially since once that home is sold (ideally) for more than what you owe on it, it could become an asset. But that’s a capital gains play and, for me, falls into speculation or gambling versus investing. When I look at my house I see it as the roof over my head that we all need and a place that my wife Kim and I enjoy and call home. I don’t view it as an “investment,” although, when all is said and done, it may well be an investment.

That said: We all want a wonderful place to live and it will cost money whether we own or rent. If you own a home you’re both the landlord and the tenant of that property. Hopefully you bought it “right” (i.e. not at the height of the real estate market boom and at a mortgage rate that works in your situation) and you’re taking good care of your (and the bank’s) asset. When it does come time to sell, you may find that your house did become an asset. On the other side of the coin, if you’re renting, you’re supporting the growth of someone else’s asset. Please know that I’m not advocating one over the other, since that decision depends on many factors. The important thing is to be able to look at a house from both sides of the coin and ask yourself, “What’s right for me?”

Robert Kiyosaki is a Japanese American investor and author of popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.

Thursday, July 30, 2015

You dont have to work hard to be successful

Rich dad told me, “Your dad believes in hard work as the means of making money. Once you master the art of building B-I Triangles, you will find that the less you work, the more money you will make and the more valuable what you are building becomes.”

At first I didn’t understand what rich dad meant, but after a number of years of practice, I understood it more fully.

Today, I meet people who work hard building a career, working their way up the corporate ladder, or building a practice based upon their reputation. These people generally come from the E (employee) and S (self-employed) quadrants of the CASHFLOW Quadrant.

In order for me to become rich, I needed to learn to build and put together systems that could work without me. After I built my first B-I Triangle and sold it, I realized what rich dad meant by the less I work, the more money I will make. He called that thinking, “Solving the B-I Triangle riddle.”

I have found the difference between those in the E and S quadrants and those in the B (business owner) and I (investor) quadrants is that the E and S people are often too hands-on.

They fall into the classic error that it’s more important to work in your business than on your business. By getting bogged down in day-to-day details, they never work on the business to take it to the next level. They don’t trust that anyone can do a better job than them, and they don’t trust a system that can run without them. They are the barrier to their own success.

Rich dad used to say, “The key to success is laziness. The more hands-on you are, the less money you can make.” Rather than being hands-on and working hard, successful people find innovative ways to do more with less—and they empower their teams to be successful for them.

If you are going to be the kind of person who creates assets that buy other assets, you need to find ways of doing less so that you can make more and build more.

If you are a person who is addicted to hard work, or what rich dad called, “Staying busy in your busyness and not building anything,” then I would suggest learning more on how working less can make you more money.

Robert Kiyosaki is a Japanese American investor and author of popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.