Robert Kiyosaki Blog

Financial Education Portal inspired by Robert Kiyosaki

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Business Ideas – 3 Lessons from Robert Kiyosaki

My name is Evan Carmichael and I believe that the fastest and most effective way to build a business is to model the strategies of people who have already done what you’re trying to do. I call it Modeling the Masters. Today we’re going to look at how a Vietnam veteran failed with two separate businesses but was determined to become a successful entrepreneur and not have to work for someone else. He would eventually become one of the most successful business writers of all time. This is the story of Rich Dad Poor Dad creator Robert Kiyosaki and the top 3 lessons that you can learn from his success. “The size of your success is measured by the strength of your desire; the size of your dream; and how you handle disappointment along the way.” – Robert Kiyosaki Robert Kiyosaki (born April 8, 1947) is an American investor, businessman, self-help author, motivational speaker, and financial literacy activist best known for his “Rich Dad Poor Dad” book series. After serving in the Marine Corps as a helicopter gunship pilot during the Vietnam War, Robert Kiyosaki returned home to work as a salesman for Xerox. Not wanting to work for someone else for the rest of his life, Robert Kiyosaki had dreams of starting his own business. After unsuccessful stints selling Velcro wallets and T-shirts for heavy metal rock bands, Robert Kiyosaki began promoting the personal growth … Share and...

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Rich Dad’s Robert Kiyosaki: Sacred Cow of Money (2) – Get A Job

Rich Dad’s Robert Kiyosaki Sacred Cow of Money (2) The second sacred cow of money is to get a job. The problem with this is, having a job pay make you pay more taxes. For the self-employed, not only do they pay the tax which the employee pay, they also pay other taxes such as social security taxes and medical taxes, etc. This make them the highest tax payer. Time out session Cashflow Quadrant (E, S, B, I) – Employee has a job – Self-employed own a job – Business owner has other people working for them – Investor has money working for them E and S got punished for making mistake or they lose their job, B and I get richer from their mistake because they learn from their mistake. Furthermore, there is no safe secure job anymore due to globalization and competition from India and China. It is getting more risker to have a job. Moreover, if you have a job, you only one client, that is your employer. If you lose that client, you are gone. Now a day, there are so many people losing their job. Some of them even went back to school to learn new skills, so that they can get another job that won’t compete with their children. Most of us think that we have no choice but a job because we are surrounded by employees, that’s why we grow up thinking that the only option we have is to get a job The tax laws are in favor for the entrepreneur and investor, they are not in favor for the employee or self-employed. Because the government wants entrepreneur and investor to create more jobs … Share and...

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Business Plan Basics

Chapter 3: Business Plan Basics Winning business plans map out the major W’s of your proposed business – the who, what, when, why and where – to help you figure out that all important H – how. Who are the major players? Who are the owners, personnel, advisors, customers, competition, even the target audience for the plan itself? What do you want to achieve? What is your sustainable advantage? What do you offer? What do you produce? When did (will) the business start? When do you want to meet particular goals? Why are you in business? Why would customers want your product or service? Where is the business located? Where is the target audience? Where do new opportunities lie? And finally, how do you get from where you are now to where you want to be? Ideally, a business plan is the intersection of everything inside the business (costs, products, services, personnel, etc.) and everything outside the business (competition, market trends, political forces, etc.) Forces inside the company meet those outside the company and a business plan is born.  Many entrepreneurs put too much emphasis on the inside forces and ignore the outside. No business is an island; no company operates in a vacuum. Even as you are tackling all the tiny details that need to be included in your plan, be sure to keep a grip on the big picture.  A winning business plan outlines goals, clearly communicates strategies and establishes plans for both the best and worst case scenarios (as well as any and all scenarios in between) that might befall your company. Seasoned entrepreneurs and investors know to expect the unexpected and at the same time anticipate the challenges inherent in each particular business.  In great business plans, you not only sell your business concept, you sell yourself. Your entrepreneurial spirit and passion are critical factors to a potential investor. Communicating your team’s experience, abilities and track record will take you even farther. The key is showing how your experience and abilities will support your business and help it to excel.  A good business plan can help you determine what you need to make your business a success – from personnel to financing, location to advertising. But to truly make your company succeed, you must pay attention to what you find during plan preparation. Don’t do the plan, figure out you need $300,000 and then try to wing it on $150,000. Be realistic in your planning, then be just as realistic in following the plan.  The hardest part of crafting a good business plan (or even a bad one, for that matter) is overcoming inertia. Most...

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younique Gold Tribe – younique Business Opportunity with Gold & Silver

younique Gold & Silver – A Business Opportunity for building gold and silver reserves and earn a monthly residual income, month after month. Learn more at younique Gold Tribe – gold and silver business opportunity Share and...

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Bad News For The Fed and IRS – Conspiracy of the Rich

Bad News For The Fed and IRS This month, Utah became the first state in the country to legalize gold and silver coins as currency. So what does this mean to you, me, the Fed, IRS, and the world? To understand the significance of Utah’s actions, you need to understand the definition of the word “currency.” As strange as it may seem, governments determine what they think money is. For most of us, money or currency is the paper in our wallets. It only has value because governments have the power to declare paper to be money. In 1933, President Franklin Roosevelt made owning gold illegal. The president declared that money now was paper. The key to this scheme working, is the government only accepts its own “paper” as money. You cannot pay your taxes with gold or silver…only official government paper. To make sure we only used “paper” the government imposed a very high capital gains tax of 28% on gold and silver. That means, if you bought gold or silver for let’s say $10 and it increased in value by $10, the government would tax you $2.80 for your gains, even if you held the gold or silver for several years. A 28% tax is nearly 100% higher than long-term capital gains tax of 15% in the US. For example, if I bought a stock for $10, held it for a year, and sold it for $20, my tax would be $1.50 on my gains. One reason why I like real estate, better than paper assets or gold and silver, is I can be taxed 0% on my gains. In fact, if I use the tax laws correctly, I receive money back from the government. In other words, rather than be taxed for $10 gains, I often receive additional money, a payment from the government rewarding me for making money. For example, not only do I receive my $10 gain, I receive an additional $2 from the government for doing what the government wants me to do. Please read my latest book Unfair Advantage – The Power of Financial Education to better understand how entrepreneurs and real estate investors use the tax law to receive payments from the government. In this book, my tax accountant and Rich Dad Advisor, Tom Wheelwright does a better job of explaining this tax strategy. He explains that real estate is one of the few investments where not only can you legally escape tax on your gains and your cash flow (rents), you can actually receive tax deductions against your other taxable income. So if you have $10 of cash flow from...

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Good Debt Vs. Bad Debt!

If I were to borrow money from a bank to invest in a property, I would incur a debt. Is this debt considered to be a good debt or bad debt? Well that really depends on who is paying off the debt. Based on the Rich Dad’s series by Robert Kiyosaki, a good debt is a debt where someone else is paying off for me while a bad debt is a debt where I need to pay off myself. For example, if I were to rent out my property to someone, then I would be collecting rental income. This collected rental income could be used to pay off my mortgage loan. In this sense, I was the one who had borrowed the money but my tenant would be the one paying off my debt. However, if I had failed to rent out my property to anyone, then I would not be having any rental income. In other words, I would need to pay off the mortgage loan myself. Then this mortgage loan would be considered to be a bad debt. If my property were rented out, then the debt would be a good debt. If my property failed to rent out, then the debt would be a bad debt. Depending on whether I had any tenant, my debt could be switching to and from bad debt to good debt in a given period of time. Thus, a good debt may not stay as a good debt indefinitely while a bad debt may not stay as a bad debt forever. With this new understanding, there are two things that I can do to strengthen and protect my financial position. Firstly, I can identify all my bad debts and try to convert them into good debts. For example, if I were to own a car but I rarely used it. I could rent it out to earn rental income. This rental income would be used for covering my car loan. In this way, I had converted a bad debt to a good debt. If I failed to find someone to rent my car, I would try to settle my bad debt as soon as possible. Using the previous example, my car loan is a bad debt because every month I would need to service the loan repayment. Since I rarely used the car, then it may make sense for me to sell it off and pay off my bad debt. Secondly, I need to do proper financial planning for all my good debts since there is a danger of a good debt becoming bad debt at any point of time. Based...

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How Inflation Makes Saving Money Almost Pointless

Image by Getty Images via @daylife One of the most dangerous lies in all of finance and economics is the implied myth that inflation somehow “destroys” wealth. It doesn’t. Inflation doesn’t hurt everyone equally — inflation helps some and hurts others. Inflation is actually one of the biggest reasons large corporations are so powerful in society. The government and big banks use inflation to force people to spend their money and go into as much debt as they can afford. But how does it all work? Before we answer that, let’s first look at a parable. Some things are best learned in a story format, and inflation is one of those. The Saver and the Slave: An Inflation Story There were once two men who were neighbors. Their names were “Jack” and “John”. Jack was a saver. He spent his entire life saving every penny he could get his hands on. He saved money with coupons, saved money by buying stuff only in off-seasons, saved money by spending as little as he could, etc. He was a saver. By the time he was 45, he had saved exactly $100,000. John was a spender. He spent every dime he ever earned. Back in his 20s, he even took out a $100,000 loan, and bought two houses with it. He never used coupons, never looked at prices before buying anything, and wore nicer clothes. During this time, inflation started to hit in. Inflation was fairly high. By the time Jack and John were 45, inflation destroyed 90% of the value of the US dollar. For Jack, this was disastrous. He spent his whole life saving $100,000, and suddenly it was worth only 10% of what it should have been worth. This means that rather than having 100k it was as though he only had 10k. Not enough to even buy a house. For John, this was perfect. He spent his whole life spending his money, so he didn’t see his money lose value. He took out a 100k loan, but his loan was only like he had a 10k loan now — and he still has two houses. John ended up selling one house, paying off the loan, and walking away with a free house, and 90k. Inflation Destroys Debt and Dollars Inflation doesn’t destroy wealth — inflation destroys dollars. This means if you’re in debt, inflation makes your debt less and less. If inflation is 10%, it’s like your debt is getting 10% smaller every year. If you’re a saver, inflation makes your savings 10% smaller every year. Every year people in debt see their net worth increase because of inflation....

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Conspiracy of the Rich: The 8 New Rules of Money

Conspiracy of the Rich is a new book in development by Robert Kiyosaki, the bestselling author of Rich Dad Poor Dad, that has traditionally bucked convention and undoubtedly will yet again with this new work in progress. In this book he challenges conventional wisdom about finance, and teaches readers how to adapt to money’s new rules in today’s economic turmoil. Rich Dad’s Conspiracy of the Rich: The 8 New Rules of Money Share and...

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Robert Kiyosaki – Live Interviews

This is a montage of Robert Kiyosaki appearing on; CNN, KTLA, TODAY, The Early Show, FOX News and many others. He talks about debt, education, predictions, and also talks with Donald Trump. Robert Kiyosaki and Donald Trump – Why We Want You to be Rich: Two Men – One Message Why We Want You to be Rich: Two Men – One Message Share and...

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Robert Kiyosaki – Buy or Sell Gold?

Image by hto2008 via Flickr Buy or Sell Gold? The latest Wall Street Journal is filled with stories about financial planners advising clients to either sell their gold or not buy anymore. Naturally, you’re probably asking, “Should I buy or sell gold?” My answer is that it depends. My gold buying career began in 1972 while I was a pilot in Vietnam, when gold was about $85 an ounce. When it passed $750 an ounce from 1979 to 1980, I was forced to sell, not because I wanted to, but because I needed to pay off some bills. In the 1980’s, when Kim and I were flat broke, we bought a little gold and a little silver on a regular basis. When gold dropped below $400 on its way down from $850, I bought gold at $400, thinking it was a good price. Then it dropped to $375. I felt stupid, saying to myself, “I should have waited.” So, I bought at $375 and it dropped again. Still feeling stupid, I bought more gold. When gold went below $300 around the year 2000, I bought as much as I could afford. In 1996, with gold and silver so low in price, a group of investors and me purchased a silver mine in South America and a gold mine in China. We nearly went broke bringing both mines to market in Canada. The silver mine was sold to another silver company and the Chinese gold mind went public through an IPO on the Canadian Exchange. I regret selling that silver mine. I should’ve held on to it but the cash was tight and the offer too good to refuse. In 2000, Rich Dad Poor Dad was still a self-published, obscure book. We had no income from the book or our games. Oprah hadn’t called yet to get me on her program. Our primary investments at the time were larger apartment houses and one commercial property. Cash was tight in 2000, but with gold and silver at such low prices, we cut corners on food and luxuries and bought as many gold and silver coins we could afford. In 2001, after Rich Dad Poor Dad took off, Ron Insana interviewed me on the financial TV channel, CNBC. He asked me what I was investing in and I told him gold. He thought gold was a strange investment but listened to my arguments politely. Generally, paper asset investors like Ron Insana, don’t invest in gold, silver, or real estate. If they do invest in hard assets, they invest via paper assets through gold mining shares, ETFs (Exchange Traded Funds), and REITs (Real...

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