“The main reason people struggle financially is because they have spent years in school but learned nothing about money. The result is that people learn to work for money. . . but never learn to have money work for them.” Robert Kiyosaki
The #1 New York Times Bestseller “Rich Dad, Poor Dad” is a story about the money lessons that Robert Kiyosaki learned from his two dads, his biological father, who was his poor dad, and his best friend’s father, who was his rich dad. Poor dad was a Ph.D. and held a very important government position, but he never had enough money at the end of the month and he died broke. Rich dad dropped out of school at the age of 13 and went on to become one of the wealthiest men in Hawaii.
“Rich Dad, Poor Dad” is a must-read for anyone looking to develop a rich person’s financial programming and mindset. The first important lesson this book teaches is the following: Don’t work hard for money; instead, have money work hard for you.
Kiyosaki explains in his book that there are three types of income:
• Earned income
• Passive income
• Portfolio income
Poor dad taught his son Robert to go to school, study hard, and get good grades so that he could find a secure job that would pay him a good salary and give him excellent benefits. That is, he advised him to work for earned income, or to work for money. However, there are several problems with this strategy. First, income streams from a salary are linear: you only get paid once for your effort. If you stop showing up for work, you stop getting a paycheck. It’s like being on a treadmill. Second, earned income is confined to the amount of time that you work, and time is a limited resource. Therefore, there’s a limit to how much earned income you can make. And third, earned income pays the most taxes.
Passive income is income that does not require your direct involvement. You make a strong initial effort to get this type of income started, but then you do minimal work thereafter to keep it going. It can be income derived from royalties–for example, you write a book–, from patents–you invent something–, income derived from real estate, and so on. Brian Lee at geniustypes.com swears by bulk candy vending machines to create passive income. There are many ways to create passive income and the key is to be on the look-out for passive income producing opportunities.
Portfolio income is generally derived from paper assets such as stocks, bonds and mutual funds. Bill Gates is one of the four richest men in the world because of portfolio income, not earned income. That is, he’s rich because of the stock that he owns, not because of the salary he earns. One of the many benefits of portfolio income is that paper assets are easier to maintain than other types of assets.
Another way to think of passive and portfolio income is as residual income.
With residual income you work hard once, and it unleashes a steady flow of income for months or even years. You get paid over and over again for the same effort. That is, you get paid multiple times for every hour of work and the stream of income continues to flow whether you’re there or not. Therefore, you can spend your time doing things other than working for money. In addition, how much money you make is not determined by how many hours you work, but by how many residual streams of income you create.
Rich dad would say to Robert: “The key to becoming wealthy is the ability to convert earned income into passive income and/or portfolio income as quickly as possible.” Start looking for opportunities to create passive and portfolio income and develop a disciplined, well-planned strategy for your money.
For more information on creating a wealth mindset and other tips and resources on creating your optimal life, visit http://www.younique.co.il/lp.php
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Can you imagine an explorer risking his life diving deep below the ocean to a shipwreck in order to find… dollar bills? Probably not. Throughout the centuries precious metals have become the insurance policy for currency.
In a world where central banks and governments can create money out of thin air with a few keystrokes, the need to hold on to something of intrinsic value is more essential than ever. That is why Robert Kiyosaki decided to create this unique Rich Dad silver round – so that you can own real silver, as well as a piece of Rich Dad history.
Only 8,888 of these rounds were created – once they’re gone, they’re gone.
The obverse (heads) features the Rich Dad CASHFLOW Quadrant, which reflects Rich Dad’s dedicated belief that financial education is a process that requires growth into new and transformational ways of thinking about money and investing.
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Watch the video starring the one and only Robert Kiyosaki and in it he speaks about Network Marketing and the 2 main reasons you should have for starting in this industry. I’ll let you know in this article what those 2 reasons are and why it’s fundamental to understand them if you want any success in your MLM home business.
Why Do Most People Fail?
Most people fail because they have no experience of business ownership, we’ve been programmed and trained to work at jobs and when you come to the tables with the skills you learned at your job it’s that much harder to get things moving.
Most people join to make money-an emotional decision. The truth is most people don’t have the patience and willingness to learn new skills, skills that are mandatory if you want success.
When someone joins just to make money their emotions are attached to the money they envisioned so when they aren’t instantly gratified or don’t make money in the first few months they quit.
It’s these people that give the industry a bad reputation spreading stories of how network marketing is a pyramid scam.
Addressing The Myth
Unlike traditional corporate systems there’s room at the top for everyone. When people don’t get to the top they say it’s a pyramid scam.
A traditional corporate system is a pyramid too, however in the corporate system there is only room for one person. In a Network marketing business there is room for everyone.
The pyramids are laid out differently. In Robert Kiyosaki’s video he explains that one pyramid has it’s base on the ground and one has it’s base in the air, this means that anyone can join as a business owner.
The 2 Reason’s You Must Have For Joining
1. To help yourself
2. To help other’s
Reason number 1 means that you come to the business to help change your core value’s to make the transition from an employee to business owner
Reason number 2 means that you join the business to help other’s make that very same shift.
Your Business Is An Asset
If you read any of Robert Kiyosaki’s writings on Network Marketing you’ll learn that most people join this business to make money for themselves. They forget that in Network Marketing you’re in business for yourself but not by yourself.
You must treat this business like an asset on the other hand you must treat the people who join you in business like an asset also. although it is a business you can’t forget the NETWORK part of it all.
This is a people business and always will be. Help enough people and you WILL reap the rewards.
You can make this work for you only if you help other’s. If you learn how to network with people and learn how to attract your future business partner’s to you a new set of rules will open up to you when it comes to your income level.
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