Wednesday, January 27, 2016

Robert Kiyosaki 5 talking points

1. Life and religion
“I’m not really religious but I read books on Buddhism, and it says ‘life is a practice,’ so I practice everyday. The advice I have is to take time to analyze what you are doing.”

2. Bargains - Rich vs Poor 
“What most people do is to go to work and then they try to save money then shop for bargains everyday. That’s practicing to be a poor person everyday. But the rich person practices what the poor person is practicing. The rich person is always looking for bargains, in assets. Most of them look for bargains in real estate and things like that. I’m looking for bargains that make me rich but the poor are looking for bargains just to save money.”

3. Challenges
“I haven’t faced my biggest challenge yet. And the reason I say that is because I want bigger challenges. While some want to be comfortable, I want challenges.. I kind of take my time to figure out my next challenge. I dont want to do the same thing. I also don’t want to retire, it’s too exciting right now. I’m still looking for my next challenge. That’s why i’m successful, I want challenge not comfort.”

4. Failure and successes
“Another thing I’ve found beneficial is that failure makes you successful.. In school, what they teach you is that when you make a mistake, you’re stupid. Yet, if you look at real life, the most successful people fail the most. In retrospect, my biggest failures are my biggest successes. Failure has the power to lead you to success. But also, failure has the power to keep you down, break your spirit. The most important thing is to protect your spirit so you can stand back up again. I purposely take on another challenge; make more mistakes, because by making more mistakes, I get smarter.”

5. Technology is important to modern business
“I’m not tech savvy at all but I’ve got to be in business. I’ve hired my new president and he said, regardless of what business you have, you have to be in technology or you’re out of business. Interesting enough, I make more in a week than what I used to in two or three months because technology has a huge leverage.”

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, January 25, 2016

Cashflow: Rich vs Poor people

One of the biggest indicators of financial intelligence is cash flow. But, it’s not just cash flow that counts, but how you get that cash flow.

The first step in knowing how you obtain your cash flow is to understand your personal financial statement. Once you have an understanding of where you are financially, it’s crucial that you create a plan to become more financially secure and healthy. And that means starting with a budget.

In my experience, there are three ways that people budget. And the way you budget has a lot to say about your financial mindset.

Budgeting like the poor

Those with a poor mindset often don’t use a budget. If they do, however, they use a very simple one. Why? Because they own no assets and no passive income.

For those that budget with a poor mindset, they simply track their earned income (i.e., salary) and their expenses each month. What ever is left over, which is often nothing or less, is used for savings in case they run into a rainy day.

For those with a poor mindset, a budget serves as a tool to make sure you’re not spending too much, but it is not a catalyst for financial insight, inspiration, or growth.

Budgeting like the middle class

Those in the middle class often have more income than expenses (as long they have that high paying job!). They might have a few investments, but they are not a daily focus. Instead, they contribute to a 401(k) they rarely pay attention to and maybe own a house.

The middle class use a budget as a tool to understand how much money they will have left over each month. They then reward themselves for having extra money, which they often use as “discretionary spending”. More often than not, they splurge on vacations, cars, electronics, or something that brings them pleasure—what I call doodads. In the process, they create liabilities but don’t invest in assets.

For those with a middle-class mindset, a budget serves as a tool to make sure you spend less than you make, but also know how much “fun” money can be spent. Yet the source of that money is always earned income from a salary rather than passive income from investments.
Robert and Kim Kiyosaki

Budgeting like the rich

The rich don’t look at a budget as a way of comparing their income and expenses. Rather they look at it as a way to prepare for creating more money. In short, they ask, “How can I make more money?” rather than say, “I don’t have enough money?” (the poor) or, “How much extra money can I spend?” (the middle class).

If there are doodads that the rich want to enjoy, they don’t look at their existing income to determine if they can purchase them. Instead, they ask how much more they’ll need to make to cover the expense. Then they find investments and assets to cover the new expenses.

In essence, the first expense in a budget is the expense of investing. That then creates passive income that covers the “fun” stuff in the budget later. In the process, the rich create more money and attain more assets. Their cash flow covers their expense. It all stems from their mindset towards budgets.

Kim and I have budgeted like this for years, and it is a fundamental key to our financial success. If you can master changing your budget mindset, you can master your money.

Wednesday, January 20, 2016

Technology has helped grow our business even bigger

Regardless of what business you’re in, you have to be in technology. I recently hired a new company president who is 39 years old and he grew up in technology. Whatever business we’re in, we need to be in technology. I’ve spent millions of dollars to make my old company into a new, technologically updated company and our revenues have grown bigger ever since.

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, January 18, 2016

The smart Chinese are busy making new friends and investing

All of us Japanese, Chinese, Filipinos and others went to Hawaii as slaves or workers in the pineapple and sugar plantations. The novelist James Michener wrote about this. I remember seeing this picture before of the early Japanese going to school, but the smart Chinese married the Hawaiian girl and bought the lands. 

It’s almost the same thing with my country, the US: our politicians are leading us into wars like the loss before in Vietnam, then the Middle East. While the US is bombing or making wars, the smart Chinese are making friends and doing business. Look, they’re now building a big road between Peru and Argentina; they’re also building a new canal across Nicaragua to cut short the travel time for commerce. The Chinese are doing smart things, while the US is not doing smart things.

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, January 13, 2016

You can be wealthy by re-using existing ideas

On December 31, 1879, Thomas Edison did his first public demonstration of the incandescent light bulb.

Today, novel (and bright) ideas are often represented by a light bulb. But the reality is that the light bulb wasn't Edison's idea. As Wikipedia explains, "Many earlier inventors had previously devised incandescent lamps, including Alessandro Volta's demonstration of a glowing wire in 1800 and inventions by Henry Woodward and Mathew Evans. Others who developed early and commercially impractical incandescent electric lamps included Humphry Davy, James Bowman Lindsay, Moses G. Farmer, William E. Sawyer, Joseph Swan and Heinrich Göbel."

Many of these early light bulbs weren't functional for commercial use. Edison's genius was to discover the commercial application of the light bulb for the masses-and to find a way to make the light bulb commercially viable. When he revealed his light bulb for the first time, he said, "We will make electricity so cheap that only rich will burn candles." That was his driving force, and the rest was history.
Do you need a light bulb idea?

Today, many want-to-be entrepreneurs fall into the trap of thinking they need a new or novel idea, something the market has never seen. This is false thinking that holds many people back.

Great ideas do not need to be new or unique. They just have to be better. Many of the most financially successful people are not necessarily people who have creative ideas. Many of them often just copy other people's ideas and turn the idea into millions or even billions of dollars.

Getting rich off others' ideas

For example, fashion designers watch young kids to see what new fashions they are wearing, and then they mass-produce those fashions.

Bill Gates did not invent the operating system that made him one of the richest men in the world. He simply bought the system from the computer programmers who did invent it and then licensed their product to IBM. simply took Sam Walton's idea for Walmart and put it on the Internet. Jeff Bezos became rich much more quickly than Sam did.

In other words, who says you need to have creative ideas to be rich? Usually, only those who are still poor.

So, what is the secret then for these entrepreneurs who take others good ideas and make millions? What separates them from the people who had the good ideas in the first place? Simply put, they understood how business works.
Systems make you rich

As a young man, rich dad gave me insight into how to make any idea an asset by applying the right framework. That framework is what I call the B-I Triangle.

The B-I Triangle is a system and a model for building a successful business, and products or ideas are the smallest components of the triangle. When the components of the triangle are strong and working in harmony, nearly any idea or product can be successful.

So, if you want to be a successful entrepreneur and have been chasing down the fabled great idea, I encourage you to stop and instead start focusing on learning all you can about the components of the B-I Triangle. Then, you won't need your own light bulb, you'll just need to see the opportunities others' great ideas present.

Monday, January 11, 2016

Rich vs Poor thinking and anticipating changes

Imagine you’re a player in a game. In this game, you’re put on a field without knowing any of the rules. Plus, the person running the game can change those rules at anytime without warning. Just when you think you’re figuring things out, you have to learn a whole new way to play.

Now, ask, would you stand much of a chance of winning that game?

The answer is, of course, no. Most likely you’re thinking that sounds like a horrible game—one that you’d probably never play. But here’s the problem: it’s a game you play every day.

It’s the game called money.

In this game, the game masters—politicians and central banks—are always changing the rules. Whether by increasing interest rates, quantitative easing, daisy chains, or more, they’re always pulling levers. The middle class and the poor are always playing catch up. The rich are always one step ahead.

Growing up, I had two dads. My poor dad, my natural father, was a passive player in the game of money, always one step behind. My rich dad, my best friend’s father, was an informed player in the game, always anticipating the next move.

In 1955, my poor dad kept saying, “Go to school, get good grades, and find a safe and secure job.” My rich dad, on the other hand, kept saying, “Mind your own business.”

My poor dad didn’t think investing was important. He would say, “The business and the government are responsible for your retirement and medical needs. A retirement plan is part of your benefit package, and you’re entitled to it.” My rich dad would say, “Mind your own business.”

My poor dad believed in being a good, hardworking man. He would say, “Find a job and work your way up the ladder. Remember that companies do not like people who move around a lot. Companies reward people for seniority and loyalty.” My rich dad said, “Mind your own business.”

My rich dad believed you must constantly challenge your ideas. My poor dad believed strongly that his education was valuable and the most important thing. He believed in the idea of right answers and wrong answers.

My rich dad believed that the world is always changing, and we need to continually keep learning. Rich dad didn’t believe in right or wrong answers. He believed in old and new answers.

Today, going to school and getting good grades more often results in crippling debt rather than a secure job. Today, no one expects the government or a business to take care of their retirement and health benefits for life. Today, companies lay people off all the time. They don’t reward loyalty and seniority, and the only way to climb the ladder is to always hop on a new one and hope it’s a rung higher.

Today, my poor dad’s rules are old rules, but my rich dad’s rule still remains, “Mind your own business.”

I don’t know what tomorrow will bring. No one does. But I do know one thing. If you want to be successful in life and win at the game of money, you need to “mind your own business” by continually learning and adapting. Anything less is a road map to failure.

So, how are you going to play?

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, January 6, 2016

Robert Kiyosaki fears for Donald Trump's life

Among our presidential candidates in the US, Donald Trump is the only candidate who can handle trade. We in the US have had bad trade agreements, which Trump will and can renegotiate. If the Mexicans don’t build a wall, he’ll renegotiate our trade agreement with them. Trump is a good and talented entrepreneur, although he’s kind of a rude guy. I also fear for his life. Donald Trump is a great guy, and he’s the most qualified leader to become the next president of the US. He’s very smart, straightforward.

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, January 4, 2016

Donald Trump wants a challenge and so should you

Ordinary people want comfort in life; I want challenges. That is the reason I don’t want to retire, because doing business is so exciting. 

My friend and book co-author Donald Trump, we both agree on this: ‘Retire and you expire.’ Look at Trump, he doesn’t need to run for president of the United States, but what he wants is the challenge.