Monday, June 27, 2016

Brexit shows the importance to having and acting on a vision

Last week, I woke up to find the citizens of Britain voted, by a count of 52% to 48%, to exit the European Union (EU). England is the most financially and politically important member in the EU and the first country ever to leave the EU.

Welcome to an uncharted future.

The weeks leading up to the vote had most analysts guessing wrong about which way the vote would go. Along with voting to leave the EU, the vote also meant England will be getting a new prime minister, since David Cameron resigned in the wake of the vote.

In my opinion, the only known fact is that this will create an increase in volatility.

What does the Brexit have to do with you if you do not live in England? The economy is a global force. To be unaware of it’s movements is to be gambling with your future no matter what business you are in. Brexit is a huge action in this global power that needs to be taken into account.

To survive the effects of the global economy one must be able to predict the future. Although rich dad did not see himself as a prophet, he did work diligently to improve his ability to see the future. Rich dad told me that, “If you want to be a rich business owner or investor, you need to understand the story of Noah and the ark.”

As he trained his son and me to be business owners and investors who could also see the future, he would often say, “Do you realize how much faith it took for Noah to go to his family and say, ‘God told me there is a great flood coming, so we need to build an ark?’”

Predicting the future is a loser’s game. It’s easy to be wrong and nearly impossible to be completely right. The hard part about predicting the future is actually following through on the actions that agree with your predictions. There is always more neigh sayers than believers.

Rich dad asked, “Can you imagine what Noah’s wife, kids, and investors must have said to him? They might have said, ‘But Noah, this is a desert we live in. It does not rain here. In fact, we are in the middle of a drought. Are you sure God told you to build an ark? It’s going to be tough to raise capital for a boat-building company in the middle of a desert. Wouldn’t building a hotel, spa, and golf course make more sense than an ark?’”

In teaching us the importance of having a vision of the future, rich dad would often say, “Always remember that Noah had vision. But more than vision, he had the faith and courage to take action on his vision. Many people have vision, but not everyone has the sustainable faith and courage as Noah did—the faith and courage to take action on their vision—so their vision of the future is the same as their vision of today.” In other words, people without faith, courage, and vision often do not see the changes that are coming, until it is too late.

Nowadays, with the economy being a global force, just predicting the future is incredibly difficult. There are commodities that influence stocks and vice-versa. There is real estate and corporations larger than countries to consider. As I said, it is a loser’s game.

Just because something is difficult doesn’t mean you don’t try. It means you try harder. You find someone you trust and listen to them. Then you look at the facts and see if you agree with the interpretation. You study and discuss and gain as much knowledge as possible so that you can make the right decisions and actions for your future.

A new flood is coming. It’s not water but it is very dangerous to you and your family’s future. Brexit is proof of this coming flood. It is the first crack in a massive dam. Protect your future from disaster.

This Brexit disaster should be a wake-up call for people. Global economies are not bulletproof.

There are 5 points I’d like you to consider 
1. Remember to be vigilant and point out some of the warning signs that rich dad said we needed to pay attention to.

2. To see the world today with a true financial perspective.

3. To ask yourself if you’re truly ready for the future.

4. To offer some ideas on what you can do to prepare for the most uncertain financial times in the recent future.

5. Finally, to let you know that you will probably be better off financially, if you actively prepare.

In other words, if you plan now, take action, and prepare, your financial future may be much brighter. Being proactive, educated, and prepared is much better than the financial strategy most people have when it comes to their investments—the passive strategy of “buy, hold, and pray”.

The story of Noah and the ark is a great story of a great prophet with tremendous vision, faith, and courage. 

Monday, June 20, 2016

Online selling: Physical vs Digital items

When it comes to being a digital entrepreneur, you have many options in terms of what you can sell. Many people’s idea of a digital entrepreneur is someone who sells online courses, books, and consulting services. But that’s only one side of the coin. Yes, there are a lot of people selling digital products, but there is an equal number of people successfully selling physical products, from their home, with no manufacturing experience necessary.

Most people likely think of online selling as digital products because they don’t consider big online retailers such as Amazon.com as entrepreneurs but rather as huge monolithic companies. How could you compete against that? The good news is you don’t have to.

What if you could replace your income by starting an online business that sold physical products on Amazon.com? What if I told you that it wouldn’t even take that much time out of your week? Later this month, we’ll cover how you can do this through a dead simple and effective system created by Brad Degraw.

Why selling digital products might not be for you

First off, let’s talk about selling digital products. These are tempting. It’s a great thought to be able to produce a book or a course and sell it online. Certainly that’s a product, but the reality is that it is very difficult to do. Unless you are already a great writer or thinker, have an existing platform with authority, and a large email list to market to, you will be facing an uphill battle.

Also, building the type of platform it takes to sell digital products is time consuming. You have to be active on social media, speak frequently, blog, and network. It’s a lot of fun if you are inclined to do it, but it’s a lot of hard work and long hours—and it can take years to build.

The reality is that there is only a small percentage of people out there who can make a lot of money selling information and expertise.

Why anyone can sell physical products for profit online

Physical products are much easier for the average person to sell and profit from online. All you really need is to implement a very simple system and know how to find the right market and choose the right product. Once you do that, thanks to the Internet, it’s easier than ever to find a manufacturer to work with. Then, it’s a matter of listing and optimizing your product online. Later this month, we’ll show you how to do that effectively with Brad’s system.

The advantage of physical products

An obvious advantage of selling physical products over digital products is that you don’t have to be an expert or have a huge platform online to make a great profit. As long as you can find a product that meets a need, you can optimize your listing online to be found easily by those searching for it. And since they’re not buying your expertise but rather a physical product they need, the path to purchase is much quicker and easier.

A second advantage is that you can sell common products that people need to order frequently. For example, there is a whole market of pet owners who work all day, love their pets, but who also love a fresh smelling house. When they get home, they don’t want to be stuck smelling dog all night. So, they order pet deodorizer. You can actually work with manufacturers to buy this product white label and sell as your own, maybe with a few tweaks such as different scents that others don’t provide. By meeting this need, the pet owners, if they like your product, will buy it frequently. This is much different than something like an eBook or an online course. Once it’s purchased, the customer is done with that product. They may buy more products you offer, but not the same one generally. With physical products, you can have the same customer for the same product potentially for life. It keeps selling itself.

A final advantage, and one that many people don’t think of often, is that each purchase is contained. An unfortunate reality of digital products is that they are easily copied and shared. As such, you fight two battles. On one hand, you have to be on the lookout for people stealing your ideas and passing them off as their own for profit. On the other hand, many people will simply email your PDFs, passwords, and such to friends, family members, and colleagues without thinking about the fact that they’re robbing you of a sale. With physical products, there are no copies to give away. Either they order it and keep it, causing their acquaintances to want to order too, or they give it away and then make another order.

Monday, June 13, 2016

I'm shocked by what Donald Trump is saying these days because in real life he is a perfect gentleman




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 9, 2016

Leverage your investment with good debt can grow your profits infinitely

The rich use good debt to grow their worth, and they invest in cash flowing assets using Other People’s Money (OPM)—both the bank’s and investors.

OPM is a fundamental concept of Rich Dad and a sign of high financial intelligence. By using both good debt and OPM, you can dramatically increase your Return on Investment (ROI)—and you can even achieve infinite returns.

Good debt is a type of OPM. The downside to debt is that you can generally only borrow a certain percentage of an asset’s purchase price. In keeping with our real estate example from my previous post on good debt, that is generally around 70 to 80 percent of the purchase price.

Because of this, you have two choices when you find a worthy investment: use your own money or use other people’s money. Provided you structure the deal well, the more you can use other people’s money, the higher your return will be.

Many people think it’s a fantasy world that people would just give you money to invest, but that couldn’t be further from the truth. The reality is that most people don’t have time to find good deals. Instead, they rely on people with the proper financial education, skill set, and drive to bring deals to them.

My real estate advisor, Ken McElroy, has perfected using OPM. His company, MC Companies, buys apartment buildings. He does all the hard work of finding deals, doing the due diligence, negotiating with owners and lenders, and handling management. In return, people line up hoping to invest their money with him.

Today, Ken does big deals that require a certain type of investor. Not just anyone can invest with Ken. But he started with small deals, like the ones I’m writing about today and worked his way up to big deals.
The Power of Good Debt

Here’s an example of why using good debt is a powerful investment tool for the rich.

Using the bank to leverage my investments, I can leverage my money. The bank would lend $80,000 for each property, and I would divide my $100,000 into twenty $5,000 segments, using OPM to raise the other $15,000 needed for each property. Again, at 5 percent interest, the payment on the loans would be around $500 per month. Let’s assume that we’ll pay a little more for our investors’s money and give them 7 percent interest. The money owed to them would be a little less than $100 per month—but we’ll go with $100 to make it simple. So, our total costs would be about $600 per month.

That means we’ll have a cash flow of about $200 per month, which we’ll split with our investors 50/50. We’ll pocket $100 per month, or $1,200 per year, and our investors will pocket $100 per month, or $1,200 per year.

Adding up the total return for all 20 deals, that’s $24,000 per year cash flow, a return of 24 percent. Not only am I making 6 percent more per year than if I just used my money, but I also have ownership in 20 assets instead of just 5. Later I can refinance these properties, pay off my investors, get my investment back, and continue to receive cash flow from the 20 properties—an infinite return.

Again, I’m using very simple math here. In real life, the numbers are more complicated and much larger. But the principles are the same. Investing with OPM takes a high level of financial intelligence. But both Ken McElroy and I both started small and worked into the big apartment deals we do today. You can do the same.

Be diligent. Continue to increase your financial education. Work hard. And master the fundamentals of good debt and OPM, and you will become wealthy.



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 7, 2016

Poor use debt to make themselves poorer

The poor and middle class use debt to generally buy liabilities like a car or a vacation. Even the things they consider to be investments, such as their own personal home, are not assets. Why? Because the very simple definition of an asset is that it puts money into your pocket. A liability takes money out. A personal home only takes money out of your pocket.

This method of using bad debt to attain things that generally lose value over time keeps most people financially enslaved to debt for most of their lives. And when they do finally decide to get off the drug of bad debt, they often spend years working harder and harder to pay it off. It’s a lot of lost time and opportunity.



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 6, 2016

Not all debts are created equal

Bad debt takes money out of your pocket, and good debt puts money into your pocket.

A credit card is often bad debt because people use it to buy depreciating items like big screen TVs, cars, and vacations. Conversely, a loan for an investment property that you rent out can be good debt if the asset’s cash flow covers the debt payment and puts money in your pocket.




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.