Robert Kiyosaki Blog

Financial Education Portal inspired by Robert Kiyosaki

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Thirtysomething and Strapped: What to Do?

A new survey of young workers published by the AFL-CIO suggests many Americans under 35 can’t manage the basic financial building blocks of an adult life. The union calls the last ten years a “lost decade” for these young people during which many fell short on critical responsibilities like getting their own place, finding a stable job with benefits and saving money for emergencies. About 31% of survey respondents said they made enough money to pay their bills and set some money aside, and seven out of 10 respondents said they did not have enough money saved to cover two months’ worth of living expenses. Parents of these young workers know how far they are from making it on their own; one in three is living at home. “Along almost every metric, people under 35 are doing much worse than they were 10 years ago,” says Jennifer Jannon, 29, a regional director for Working America, the ALF-CIO’s community organization for non-union workers. “People are literally putting off starting their adult lives because of the conditions they’re facing economically,” Jannon says. She says the results should not be interpreted as laziness. “Young people are really yearning to move out on their own [and] to start their adult lives,” she says. “[But], they can’t find the type of work that supports an adult life.” Some take issue with the suggestion that the current job market is more difficult for young workers than for their counterparts over 35. “It’s easier for younger people because they have less experience, and they don’t cost as much,” says Robin Ryan, a career counselor and the author of “60 Seconds And You’re Hired.” “If you’re over 40, a lot of employers see you as expensive,” Ryan says. Employers may also assume younger workers are more tech-savvy and can more quickly adapt to a changing workplace, she says. Regardless of who’s to blame, the result for young workers will be a substantial loss of potential wealth over their lifetimes. A person who’s able to save $2,000 a year between ages 22 and 30 will retire with more money than a person who saves the same amount over a longer period from ages 30 to 60, says Thomas Holland, a partner at the wealth advisory firm Global Vision Advisors. It’s crucial that those seven out of 10 young workers who don’t have enough savings to last two months start saving right away. “Though the economy may be poor, what I find is that if you don’t establish savings habits early in your career, it’s not likely that at some golden age you’ll learn to save,” Holland says. Here...

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5 Strategies to Lower Your Rent Now

When it comes to lowering their monthly housing payments in the down economy, renters have homeowners beat. Refinancing a mortgage requires plenty of paperwork, a stellar credit score and weeks of effort. But property owners faced with profit-sucking vacancies and cash-strapped tenants are increasingly willing to negotiate. According to a recent survey from rental property marketplace Rent.com, 68% of landlords reported lowering rents or giving one or more months free to retain tenants. Try these five strategies to cut your bill: Research the market Learning what other people in your building and neighborhood are paying for comparable properties can help you figure out whether you’re overpaying, and how much room you have to negotiate, says Steven Cohen, the president of consulting firm The Negotiation Skills Company, which helps clients negotiate for better deals. Ask other renters what they pay, check similar property listings on Craigslist, and get a local comparison on RentoMeter.com. Cohen’s daughter Abigail tried that tip and found that others in her neighborhood on New York’s Upper West Side were paying an average 20% less than she was for a studio apartment. She brought those figures to her landlord and ended up with a new lease this summer for $1,550 instead of $1,850 — an 18% discount. Play up qualifications “If you aren’t a good tenant, you won’t have a strong case,” says Peggy Abkemeier, the president of Rent.com. “The landlord may not want to make concessions to get you or keep you in the unit.” Point out that you’ve always paid on time, have kept the property in great shape and haven’t had any complaints from neighbors. Renters hunting for a new place have less leverage here, but they can benefit from a reference from a previous landlord. Take on a roommate Obviously, the more people sharing your space the less rent you’ll pay. But landlords may also offer a break to fill under-housed units. When Eric Woodbury and two friends were apartment hunting in Medford, Mass., in July, one property manager offered them a three-bedroom unit for $2,000, or roughly $667 apiece. Or they could move into a $2,200 four-bedroom where one tenant was already in place, cutting the per-person rent to $550. “That was a big selling point for us,” he says. Look beyond rent If your landlord stands firm on the monthly rent, ask about other possibilities to cut costs. For example, you might negotiate for more utilities to be included or a discount on extras like storage space or parking. Rent.com found 38% of landlords were willing to reduce security deposits, and 8% relaxed pet policies (which typically include an extra security...

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Check out Rich Dad World and Powerpack!

Powerful tool for Rich Dad followers. Check it out!Share With a Friend | Rich Dad PowerPack Shared via AddThis See the original post here: Check out Rich Dad World and Powerpack! Share and...

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How to make money from property

Making money through property investing by generating a passive income is a sweet proposition for anyone. It is a rich man who doesn’t dream of making money without having to lift a finger for it, and the poor man who fools himself into thinking it is possible. Talk to any successful property investor and you are bound to get the same story; that in order to create a passive income, you’ll have to work damn hard to achieve it. Lisa Dudson, co-author of Create Wealth, a bestselling book on property investment, says many who go into in real estate suffer from a delusion that there is easy money to be made in housing. “The whole passive income thing is a bit over-used and under-estimated, really, because nothing is free in this world – you have to work for it,” Dudson says bluntly. A successful property investor, financial planner and entrepreneur, Dudson knows of what she speaks. The tough talking 40-year-old Aucklander has sweated her way to financial freedom, and along the way advised hundred of clients and readers how to do it right in real estate. Dudson says very few ever get to the stage of achieving a genuinely passive income, where rental revenues are creating positive cashflow instead of being used to finance debt. Why? Time for one. “It doesn’t happen in five minutes; it sometimes takes 25 years,” she says. Patience aside, making a profit in property takes sound planning, strategy, wise counsel and firm financial foundations. These four areas are the focus of talks that Dudson gives to property investors when she is invited to speak on the subject. She’s a regular on the lecture circuit. Dudson drives home the same message for clients, most of whom she sees after the damage has been done. “I’ve seen a lot people this year that have $3 million to $4 million worth of property, but they also have 95 per cent debt on it. They’re just sitting on diddly- squat at the end of the day, because if they sold it all today, they’d probably have zero in this market.” Dudson says investors who blunder into property without a proper game plan are setting themselves up for disaster. “They’re building up all these properties and buying all these things, but it’s not actually delivering a hell of a lot to their bottom line. Then they say they’d like to retire in five years and I say, ‘Well, how the hell are you going to do that!’ They haven’t actually given it any thought. They’re not sure what they are trying to achieve.” If property investment requires air- tight...

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Women Business Owners Holding Their Own

Kim discusses an article from the National Association of Woman Business Owners. This article talks about women business owners in the market and how the current economy has affected them and their businesses. Excerpted from:Women Business Owners Holding Their Own Share and...

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Is the worst over?

A recent article by Robert Kiyosaki entitled Preparing for the Worst caught my eye.  After all, isn’t this sound financial advice for all of us?  That’s why we Fools have things like emergency funds. The article, however, wasn’t about wills, life insurance, or anything like that (which is what I was expecting based on the title), but rather a list of reasons why Kiyosaki thinks that “The worst is yet to come” in the stock market.  Unfortunately, however, Kiyosaki doesn’t tell us how to go about preparing for it. I’ll have to admit that while some of his reasoning as to why we may have more tough times ahead in the market (and I don’t profess to know one way or the other the way the market’s headed over the short or even intermediate term) seems plausible on the surface, I think he misses the mark in a few places. 1. I believe the stock market is being manipulated. I suspect the government, banks, and Wall Street are doing everything they can to keep the market from crashing. Our leaders know that nothing makes the world feel better than a raging bull market. Government’s hand has been a very heavy one in the economy lately.  Everything from bailouts of companies like AIG and GM to the Cash for Clunkers program is evidence of this.  Maniplating the stock market?  I’m not so sure.  Manipulating the economy (which has an impact on the stock market)?  Absolutely.  I wish the manipulation were related only to the stock market and not to the economy as a whole, because I fear that the long-term ramififications of many of the government’s recent actions may place an unnecessary drag on the economy for a long time to come. 2. In my view, this global crisis has been caused by the Federal Reserve Bank, the U.S. Treasury, Wall Street, and the central banks of the world. They caused the problem, profited excessively in doing so, and now profit by being asked to fix the problem. While each of the above entities certainly had a hand in creating the mess, laying this problem solely at the feet of financial istitutions is a bit like blaming McDonald’s and Burger King for America’s growing obesity problem.  We gladly borrowed all that money and took out loans for all kinds of stuff despite a lot of good financial advice that’s readily available to us that urged us not to take on too much debt (you know, at places like this Fool.com outfit I keep hearing about) just like we gladly and willingly wolf down Big Macs and Whoppers despite all of the information out...

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Preparing for the Worst

~ Robert Kiyosaki ~ “Is the crisis over?” is a question I am often asked. “Is the economy coming back?” My reply is, “I don’t think so. I would prepare for the worst.” Like most people, I wish for a better future for all of us. Life is better when people are working, happy, and spending money. The stock market has been going up since March 9, 2009. Talk of “green shoots” fill the air. Yet, in spite of the more positive news, I continue to recommend that people prepare for the worst. The following are some of my reasons: 1. I believe the stock market is being manipulated. I suspect the government, banks, and Wall Street are doing everything they can to keep the market from crashing. Our leaders know that nothing makes the world feel better than a raging bull market. Do I have any proof that the market is being manipulated? No. I just smell a rat, or a pack of rats. I believe greed, self-interest, arrogance, and fear control the financial markets. I suspect those in charge will do anything to keep us all from panicking… and I don’t blame them. A global panic would be ugly and dangerous. 2. In my view, this global crisis has been caused by the Federal Reserve Bank, the U.S. Treasury, Wall Street, and the central banks of the world. They caused the problem, profited excessively in doing so, and now profit by being asked to fix the problem. Every time I hear a politician mention the word stimulus, my mind flashes back to high school biology class, when I touched battery wires to a dead frog to make it twitch. Today, you and I are the dead frogs. Pretty soon the dead frog will be fried frog. In the 1980s, our government’s hot money stimulus was measured only in the millions of dollars. By the 1990s, the government had to ramp the stimulus voltage into the billions in order to get the frog to twitch. Today the frog has jumper cables with trillions in high-voltage hot money pouring through the lines. While most us feel better when we have more high-voltage money in our hands, none of us feel good about higher taxes, increasing national debt, and rising inflation for the long term. Another old saying goes, “Sometimes the cure is worse than the disease.” I say the government stimulus cure is killing us frogs. 3. Old frogs don’t hop. Another reason I am cautious about the future is that the Western world has a growing number of old frogs. Between 1970 and 2000, the economy responded to bailouts and...

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Negotiating A Debt Settlement

It’s a common scenario in the debt-collection world: you find yourself saddled with credit card debts or medical bills you can’t get out from under. When a debt-collection agency comes calling, it will pull out all the scare tactics needed to put you on the defensive – and make you to pay up, no matter what your hardship. The truth, however, is that while bill collectors are full of bluster, they lack real legal muscle. What does this mean for you? Options. Whether you negotiate for yourself or opt to hire a professional debt negotiator, there are more options than you might think for surviving this experience without sacrificing your financial future. Even if you owe a lot, a creditor will almost always settle for something over nothing when it comes to payment of outstanding debt. So take your time, recognize that you do have some power, and use it wisely. Negotiating With Collectors Negotiating your own debt settlement is a viable option for many people. Here are some tips to consider for dealing with creditors. Prioritize your bills. No matter what a debt collector insists, that unpaid credit card bill is probably not your No.1 priority this month. Always consider the fundamentals – rent or mortgage, feeding yourself and your kids – before you start handing money over. There’s no point trying to appease one creditor if it means putting yourself in the bad graces of others, or jeopardizing your ability to keep earning more. Keep records of each interaction. Note the date and the details of every phone call (and in general, avoid the phone in favor of written communication). Copy and save any letters you receive or send out and, when you’ve come to a payment agreement, be sure to outline it on paper, sign it and save copies, just like a contract or formal agreement. Never send money until you have a written agreement in hand. Drive a hard bargain. Estimate how much you can actually afford to pay, and offer less (a relatively common baseline is 25% of your actual debt, though this does vary). Don’t be surprised to get angry or outright rude phone calls and threatening letters. No matter what a debt collector says, keep cool and stay focused on the negotiation. The more in control you appear, the more likely you are to achieve your desired outcome. Hiring a Debt Negotiator If confronting your lender isn’t your style, you might want to hire a debt negotiator; just know going in what each side can expect from the partnership. Make your selection arefully.   Be cautious, especially of those telephone calls or emails that arrive out of the blue from...

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8 Ways To Help Family Members In Financial Trouble

What do you do when a family member becomes unemployed? Or suffers an unexpected injury and can’t work or has insufficient insurance to cover mounting medical bills? How do you respond when you learn a loved one can’t pay their bills? Let’s take a look at a few options you can consider to help your family members in trouble – without hurting yourself financially. 1. Give a cash gift. If your loved one is having a short-term cash flow problem, you may want to give an outright financial gift. Decide how much you can afford to give, without putting yourself in financial jeopardy, and then either give the maximum amount you can afford all at once (and let your loved one know that’s the case) or perhaps give smaller gifts on a periodic or regular basis until the situation is resolved. Make sure it’s clearly understood that the money is a gift, not a loan to be repaid, so you don’t create an awkward situation for the gift recipient. If you’re considering giving them a substantial sum of money, you’ll need to keep an eye on the annual gift exclusion set each year by the Internal Revenue Service (IRS). 2. Make a personal loan. Your family member may approach you and ask for a short-term loan. Talk frankly, clearly write out the terms of the loan on paper, and have both parties sign it. This helps both parties be clear on the financial arrangement they’re entering into. Some loan details you’ll want to include are: the amount of the loan whether the loan will be one lump-sum payment, or if it will be divided and paid out in installments upon meeting certain conditions (i.e. securing another job, paying down existing debt, etc.) the interest rate you will charge for making the loan and how it will be calculated (i.e. compound or simple interest) payment due dates (including the date of full repayment or final installment due) a recourse if he or she doesn’t make loan payments on time or in full (i.e. increasing interest charges, ceasing any further loan payments, taking legal action, etc.) If you are going to lend more than $10,000 and/or you’re going to charge an interest rate that is substantially different than the going rate for most borrowers, you may want to talk to a tax professional. There can be unique tax implications for low interest loans among family members. If you’re worried about potentially straining your relationship by having to administer the loan (i.e. collect payments or call when the payment is late), consider using a service, such as Prosper.com or VirginMoney.com. These companies can draw...

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Is Network Marketing a Pyramid Scheme or a Scam?

Is network marketing a pyramid scheme or a scam? Robert Kiyosaki and Donald Trump promote Network Marketing as a way to gain the needed skills to becoming wealthy.   Share and...

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