Monday, June 29, 2015

Educate yourself on Tax laws to become richer

The sophisticated investor has learned about the tax laws, either through formal study or by asking questions and listening to good advisors. The right side of the CASHFLOW Quadrant provides certain tax advantages that the sophisticated investor uses thoughtfully to minimize taxes paid and to increase tax deferrals wherever possible.

For instance, in the United States, people on the B (business) and I (investor) side of the quadrant enjoy many tax advantages that those on the E (employee) and S (self-employed) side do not.

Much of the sophisticated investor’s income is in the form of passive and portfolio income, so they do not have to pay social insurance taxes like social security and Medicare on that money.

They can use tax laws to defer tax payments, sometimes indefinitely.

They can pay for expenses with pre-tax dollars and be taxed only on the net income.

These and many other advantages give the sophisticated investor a huge head start over those investing in the E and S quadrants.


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, June 25, 2015

Poor vs Middle class vs Rich


The poor spend every penny they make and own no assets. It is simply money in and money out.

The middle class accumulates more debt as they become more successful. A pay raise qualifies them to borrow more money from the bank so that they can buy things like cars, vacations, boats, and more. As their income increases, so does their personal debt. That is what we call the rat race.

The rich have assets that work for them. They have gained control over their expenses and focus on acquiring or building assets. Their businesses pay most of their expenses, and they have a few, if any, personal liabilities.

Sophisticated investors focus their time and energy on buying assets that put money in their pockets—not chasing liabilities that take money out. It’s just that simple.


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, June 24, 2015

School teaches kids how to be employees


Most of us were taught in school to become employees. There was only one right answer, and making mistakes was horrible. We were not taught financial literacy in school. Once you leave school, it takes a lot of work and time to change your thinking and to become financially literate.

A sophisticated investor knows that there are multiple right answers to any given situation, that the best learning comes through making mistakes, and that financial literacy is essential to be successful. They do not become flustered when they make a mistake. 

Rather they have control over themselves to learn from and get better from mistakes. They know their own financial statement, and they understand how each financial decision they make will ultimately impact their financial statement.


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, June 23, 2015

Investing with ideas vs money

"I'm often asked how to start investing with little or no money. Please hear this as this is the hardest thing for people to understand: you do Not invest with money! You invest with your mind! No matter what the field, your biggest asset is your mind. Once you have knowledge, you find deals, find your team and use other people's money. You sell the deal and your team to get investment 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.

Monday, June 22, 2015

Politics focused on short term results


"As capitalism falters, the rich move their money out of the country, violence increases, and politicians promising prosperity are elected." 


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, June 17, 2015

Robert Kiyosaki on why he is a capitalist

As many of you know, I grew up with two different dads. My poor dad, my natural father, was the head of the Hawaii education system. He was staunchly unionist, as were all the members of my family who worked in public education and the government.

My rich dad, my best friend’s dad, was a successful, self-made businessman who owned hotels in Hawaii. He was very much against the unions because of the abuses he saw and because he believed they were anti-capitalist.

As a child, I heard both sides of the story, and I was able to understand the arguments both my rich dad and my poor dad gave for their positions. Though I loved my poor dad and respected him as a wonderful person, I eventually could not agree with him on unions. I sided with my rich dad, and the rest was history.

But today, I want to share a simple story that I think perfectly highlights why I am a capitalist and not a unionist.

Many years ago, an employee of my rich dad’s named Bobby decided that the workers at rich dad’s hotel should be unionized. For months he worked tirelessly to organize the employees, preaching the “merits” of being in a union. Bobby’s work was so effective that eventually he was able to call a meeting for a vote on whether or not the employees would go on strike and unionize.

The night of the vote, I was with rich dad, ready to help and do whatever was needed to keep the hotel running should his hundreds of employees walk off the job. The atmosphere was tense, to say the least.

In the end, the votes were cast, and the final tally was a defeat for Bobby. The workers had not decided to unionize, and business resumed as normal—or as normal as it could be after so much tension.

The day after the vote, my rich dad called Bobby to his office. 
“Bobby,” he said. “I don’t like you.”
Bobby thought he knew what was next. He was certain the words, “You’re fired,” would be the next thing out of rich dad’s mouth. They were not.

Instead, rich dad said, “But even though I don’t like you, I never knew you had so much leadership ability. It took a lot of work to organize all those people and have them follow you like that. So, I’m promoting you. You’re now over the entire staff.”



I learned that night that Bobby, a unionist, was blinded by entitlement while my rich dad, a capitalist, clearly saw opportunity.

That is why I’m a capitalist. I believe the world is full of opportunity, none of which I’m entitled to, all of which I can pursue.



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, June 15, 2015

Damon John lists Rich Dad Poor Dad book as one of his favorites

Question: You have listed Robert Kiyosaki's "Rich Dad, Poor Dad" as one of your favorite books. What have you learned from it?

Answer by Damon John [Founder and CEO of FUBU clothing empire]: 
The fundamental lesson to it is it's not how much you make, it's how much you save. You should go after small opportunities that have the potential to grow into large opportunities. That educated me on the tool of 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.

Thursday, June 11, 2015

Successful people vs Negative people


“Successful people ask questions. They seek new teachers. They’re always learning.” 


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, June 10, 2015

Reaching a bigger audience leads to more financial success

For me, I make more money when I focus on serving more people. For example, I write a book — rather than hold small meetings or talk with small groups — to serve more people. If I write a good book and it serves a lot of people, I make 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.

Monday, June 8, 2015

Robert Kiyosaki thinks market will crash in 2016

In 2002, I predicted in my book Rich Dad’s Prophecy, that the biggest stock market crash in U.S. history would happen sometime around 2016. I also predicted that there would be a smaller crash before that, sometime around 2007 and that terrorism would increase. While I don’t know whether my prediction of the biggest crash in U.S. history will come true in 2016, the other two predictions have already happened. I hope the big crash doesn’t occur because if it does, a lot of good people will lose a lot of money.

But I do know that markets do crash. I also know that even Fed Chair Janet Yellen thinks that the stock market is overvalued today.

Markets also go up. The key is to be prepared for any market, whether up or down.

Unfortunately, most people are not prepared. Most people put money in a 401(k) and send out a hope and a prayer. This kind of thinking will put you in the poor house.

Last week on The Rich Dad Radio Show, I talked with Matthew Kerkhoff of Dow Theory Letters and Rich Dad Advisor Andy Tanner about how to make money in any market, especially if your primary investments are in a 401(k).


The following are five insights drawn from that discussion.

1. Know your position
The sad reality is that most people don’t even know what their retirement money is invested in. The money gets pulled out of a check, goes to a magical place called a managed investment account, and is moved around by a wizard called a financial manager.

The first step to success in any market is obvious enough, but too often ignored. Know what your money is invested in!


2. Know how you’ll perform
Once you understand what your money is invested in, you need to understand how those investments will perform in a given market. For instance, if interest rates are hiked substantially, as the Fed seems to be prepping for, there’s a good chance that stocks and bonds will fall—and these make up most investors’ retirement accounts.

Therefore, in such a market, it may be time to invest in real estate before interest rates go higher.


3. Get educated
This means that you can’t just take advice about the market, you have to educate yourself so you can see what’s coming and have time to prepare.

If you don’t plan on investing in financial education, then by all means, keep your money in your 401(k) and let it sit there. It’s safer than moving money without the knowledge of how or why. But if you want to be prepared to make money in any market, you need to understand how to make that money work for you.

A great place to start is by reading Dow Theory Letters, Andy Tanner’s Blog, and the Rich Dad Blog.


4. Slowly pare back your risk
With the proper education, you can see better where the markets are going, how your current asset mix will perform in the coming markets, and how much risk you have. This allows you to make the proper adjustments to minimize your risk and take positions that will perform well whether the market is going up or down. And it leads us to the final point.


5. Buy in pairs
Professional investors always buy in pairs. One position is for growth, and the other is for protection. So for instance, if you’re heavily invested in the stock market and paper assets, you want to take an insurance stake in precious metals or commodities. If you buy real estate, you want to also buy insurance for that real estate. The list can go on and on. This of course takes financial education, but the investment is worth it.

Thursday, June 4, 2015

Speak from your heart and your actions will reflect it

The world economy is in trouble. The world needs jobs. And the world needs entrepreneurs. Governments cannot create real jobs. The world needs entrepreneurs because only real entrepreneurs can create real and sustainable jobs and real, lasting prosperity.

Simply put, when our government creates jobs our taxes increase. When taxes increase, life becomes more expensive, people suffer, our economy suffers, and our country grows weaker. When entrepreneurs create jobs, those jobs generate taxes, our debt goes down, we export, and our country grows stronger.

I believe that the men and women of the armed services have the unique skills and training to be great entrepreneurs. You can be a great entrepreneur too, just learn the lessons of leadership. I think a great place to learn leadership is the military.

Words and the Entrepreneur

When I left the military and joined the corporate world, I was shocked to hear people repeatedly saying, “I can’t.” And “I might.” They used words like “I’ll try” and “I might” or “I hope”. Those words are forbidden in the Marine Corps. Those words are forbidden in the Rich Dad offices too.

Words are powerful. They can build your spirit or they can destroy your spirit.

In the military, the words leaders speak are spiritual words, coming from the heart and originating in their souls. Military education begins by teaching everyone to speak spiritual words, words like mission, courage, duty, honor, service, and code.

People who speak words that come from their souls inspire their spirit and become great warriors, entrepreneurs, and leaders in all walks of life.



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, June 3, 2015

Military promotes success and learning culture

 All of you who have served in the military know that the military branches are educational organizations. Everyone, from enlisted men and women to senior officers, are constantly learning. The military is a culture of education—from day one.

This is not true in the civilian business world. I remember being disgusted when I went to corporate “educational” events where people came to party or play golf, rather than learn.

To become a successful entrepreneur, I strongly suggest you take the military’s culture of constant education and constant training to heart and instill that culture in your business. It may take awhile, since most civilians without military experience may have gone to school, but most have not worked in a culture of constant education and training.

If you can instill this culture inside your company, your company will be lead from the inside by the people who actually make the business run, not executives who lead from the outside.



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, June 1, 2015

Leadership in Corporate world vs Military

Entering the corporate world in 1974 was quite a shock. I had been in a military environment for nine years: four at the Academy and five in the Marine Corps. It took me about a year to comprehend the difference between the corporate environment and the military environment— as well as the differences in leadership styles.

Most people are surprised to learn that the corporate environment is much more rigid. This is because the corporate world does not set out to create leaders who can think under pressure. Corporate environments want to create robots who will simply follow, no matter what the situation.

The military creates leaders. One man cannot guide all the many facets of a military organization. Instead, the military creates leaders and then trusts those leaders to do what is best for the mission.

Imagine the power of your business if you focused on creating leaders rather than robots.

In the military, a culture of leadership begins when a new recruit enters boot camp, or a future officer enters officer candidate school or a service academy. The military culture is infused into each person, morning and night, whether an enlisted man or woman or an officer candidate. If the new recruit does not fit into the culture, they are washed out.

When the military promotes its new leaders, the new leaders come from within, not from the outside. They come from the ranks. In other words, the Marine Corps would never have a Commandant who was not a Marine.

This is possible because the military has an active interest in creating and growing leaders.

In the civilian world, leadership often comes from the outside. A new employee is given a brief interview, shown to their desk, and expected to do the job.

When a new CEO is hired in the corporate world, they are often hired from the outside rather than promoted from within. Rarely have they been infused with the culture of the organization they are expected to lead. In many cases, the only thing the leaders and the employees have in common is that they all work for the same company.

Today, as an entrepreneur running my own businesses, I focus on internal leadership. For example, because The Rich Dad Company is an education company, we have a company culture that respects education and learning. Every week, the entire company reads, studies, and discusses articles or subjects that keeps us in touch, up to date, and aware of financial events affecting our customers, our families, and our world.