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 him...it'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.



via  www.richdad.com/Resources/Rich-Dad-Financial-Education-Blog/August-2015/six-reasons-why-its-easier-than-ever-for-anyone.aspx


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.