Robert Kiyosaki Blog

Financial Education Portal inspired by Robert Kiyosaki

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Program helps kids manage money, debt

It’s a late weekday afternoon and best-selling author Sharon Lechter is once again giving financial advice. Today, her target audience is quite different from the adults who purchased the “Rich Dad Poor Dad” books she co-authored with fellow Valley resident Robert Kiyosaki. This group consists of a half-dozen young teenagers at a Phoenix branch of the Boys & Girls Clubs, and the audience is one Lechter hopes to appeal to with YOUTHpreneur, part of her new business that teaches children how to be entrepreneurs. “I have a passion for financial literacy for families and children,” said Lechter, who left the Rich Dad Company in 2007 after disagreements with Kiyosaki and now runs Pay Your Family First. “What is happening with today’s kids is they don’t understand delayed gratification. . . . Kids want it before they even think about working for it.” Lechter’s focus on children comes at a time when national studies show high-school and college students are plunging themselves into deep credit-card debt and having easier access to credit. Meanwhile, President Barack Obama last week threw his support behind a consumer-friendly credit-card law that eliminates tricky fine print, sudden rate increases and late fees. The YOUTHpreneur program teaches children how to make money through gumball sales, and she’s teamed with local branches of the Boys & Girls Clubs and Fry’s Food Stores. Through the program, children learn about sales and profits by operating a candy machine at a Fry’s store. “It was a good experience. We learned about business,” said Michael Clark, a 14-year-old from Greenway Middle School in Phoenix. “We had fun doing it, and we made some money for the Boys & Girls Club. So, it was all good.” Lechter, of Paradise Valley, has taught the YOUTHpreneur program to about 70 children at six different Boys & Girls Clubs branches during the past year, and she’s selling the program on her Web site, youthpreneur.net. She said working with kids brought her career full circle as the certified public accountant began focusing on financial education when her oldest son, Phillip, went off to college. She said she thought she had taught her son to manage money, but as a freshman at Arizona State University, he quickly dug himself into a $2,500 credit-card debt. “I was so upset, but I was more angry at myself than him,” Lechter said. “We didn’t bail him out. It took him about five years to get himself on track.” The lesson apparently stuck because Phillip Lechter now is president of her new company, and he said the business would focus on entrepreneurship, financial education and money tips for teens and parents....

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Smart Money Moves for Young Investors

At a conference on financial literacy on Apr. 20 in Chicago, Federal Reserve Chairman Ben Bernanke said it was time for Americans to learn to manage their money. Ramit Sethi couldn’t agree more. The 26-year old personal finance guru has made it his mission to help Americans do just that and he tries to make it as simple as possible. In his new book, I Will Teach You to Be Rich, and on his blog of the same name, Sethi shows twentysomethings how they can automate their financial decision-making and learn how not to overanalyze. This is especially true when it comes to investing. He says money should be automatically diverted to investment accounts, then automatically invested and rebalanced, according to a set calendar. Sethi met with BusinessWeek’s Ben Levisohn on Apr. 17 to discuss how fearful investors can get started in this vexing environment. You’re only 26. How did you start investing? When I was in high school, I applied for a number of scholarships because my parents told me we had to. The first scholarship, for $2,000, was written to me and I invested it in the stock market. This was back in 2000. I lost a lot of money. I still have some of those stocks. One is worth 90% in total. I probably lost 99% of that money. That was a great eye-opener. It made me realize that just because you see a stock on TV that does not mean you should invest in it. Just because you’re wearing clothes from Gap doesn’t mean it’s a good investment. That’s when my eyes started to open. But if you ask most people, “hey, what investments do you have,” they say, “you mean stocks?” Which causes me to throw my hands up in the air. So you’re not a big believer in buying individual stocks. How should people invest? I want to reduce choice and encourage people to invest. For most, a target date fund is perfect. That’s the 85% solution. It’s not perfect, but it’s good enough. There’s no need for people to rebalance by themselves. The fact that we have 60- to 70-year olds losing 50% of their money speaks volumes that just because you should rebalance your investments, it doesn’t mean you will. Just like you should practice safe sex does not mean you will. But what if investors want a little more control? If you really want to tweak it, if you’re a type-A nerd and you’re reading about all different asset allocations, then let me show you how to do this. Here’s a recommendation: the Swensen model, by Yale’s Chief Investment Officer...

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Mortgage Crisis Fuels Scams

I have been laid off for seven months and am having trouble making my mortgage payments. I’ve seen a lot of ads from companies that offer to help with mortgage restructuring. Are they legitimate? Maybe. Maybe not. Crooks respond to headlines and trends. When it became apparent that many Americans were having trouble paying their mortgages, the scam artists seized the opportunity to offer their own form of “help.” But instead of getting homeowners out of mortgage trouble, these crooks take your money and run — or may even take your home. You may find them by reading a compelling ad or receiving a convincing phone call. Their tactics are varied and clever. Sometimes they search through the government’s public foreclosure documents and send you a personalized letter offering to help you save your home. The scam artists may offer to negotiate with your lender — then run off with your money instead. In some of the worst cases, they may deceive you by claiming the documents you’re signing are to restructure the terms of your existing mortgage, but instead you unwittingly transfer the title of your house to the scam artists. Another ploy is to ask you to surrender the title and remain in the home as a renter, then buy it back over several years — but the contracts include outrageous buyback terms that make it nearly impossible for you to get your house back. Or they offer to find a buyer for your home and share the profits with you, but only if you sign over the deed and move out. Beware of companies or individuals that charge a fee to enroll you in a government program to help you with your mortgage. You can do that yourself for free. Some may be out to steal your money; others are looking to gather important information to steal your identity. Housing-related scams have become such a big problem that federal and state agencies started working together to crack down on the crooks. The Federal Trade Commission recently surveyed online and print advertising for mortgage-foreclosure rescue operations and identified 71 separate companies running suspicious ads, and states have brought more than 150 enforcement actions against mortgage-rescue companies. The FTC recently warned homeowners to avoid businesses that: Guarantee to stop the foreclosure process — no matter what your circumstances. Advise you not to contact your lender, lawyer, or credit or housing counselor. Collect a fee before providing any services. Accept payment only by cashier’s check or wire transfer. Encourage you to lease your home so you can buy it back over time. Tell you to make your mortgage payments...

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Three Scenarios for the Economy’s Path

There is no doubt where the economy is now. “By any measure, this downturn represents by far the deepest global recession since the Great Depression,” the International Monetary Fund declared. But there’s more than the usual uncertainty about where it is going. The key is the U.S. Even though its slice of the world economy is smaller than it once was, it’s still huge. The U.S. led the world into the abyss, and it will lead the world economy out of it. But how fast and when? The alphabet can help to imagine the possibilities and the path of the economy. There’s the letter V: the kind of quick rebound that usually follows a deep recession. Or U: a longer recession and slow recovery. There is L: years of painfully slow growth. And W: a temporary upturn as the economy feels the jolt of fiscal stimulus that quickly wears off. Finally, there’s the big D, not the shape but another Great Depression. With history a guide, consider three starkly different scenarios. The V The late Victor Zarnowitz, a student of the business cycle, had a rule: “Deep recessions are almost always followed by steep recoveries.” The mild recession of the early 1990s and early 2000s were followed by mild recoveries. But the U.S. economy grew faster than a 6% pace in the four quarters after the deep 1973-75 recession and faster than a 7.75% pace after the even deeper 1980-82 downturn. “In deep recessions,” says Michael Mussa of the Peterson Institute for International Economics, “there is usually a growing sense of gloom as the recession deepens.” Then the forces that triggered recession — say, plunging home prices — abate. The adrenaline of tax cuts and government spending kicks in. With inventories so lean, the slightest uptick in demand prompts a sharp increase in production, and the natural dynamism of capitalism reasserts itself. “Experience suggests all of this should work, and I believe it will,” Mr. Mussa predicts. Governments have administered huge doses of fiscal and monetary stimulus. Home-building and car-buying are so low they can’t fall much further. Many consumers shy away from buying because they’re frightened, not broke, and that state of mind can change quickly and liberate pent-up demand. But the Federal Reserve caused the deep recessions of the 1970s and 1980s when it put its foot on the brake to stop inflation; it ended them when it let up. This time, Fed has its foot to the floor and the economy is still slowing. And so much stock-market and housing wealth has evaporated that a quick turn in consumer spirits seems unlikely. Plus, the repair of...

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Robert Kiyosaki on Network Marketing

From : YouTube :: Tag // homebusinessAuthor: MarkGallowayNetwork Keywords: Robert Kiyosaki network marketing law of attraction business building entrepreneur lifepath Added: May 6, 2009 Go here to see the original: Robert Kiyosaki on Network...

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Quickplan D.I.Y

Quickplan D.I.Y, a free on-line business plan course, is launched. It brings the tools, support and knowledge needed to design and launch new businesses. When used by existing firms, it will provide new insights. “Everybody needs a new set of skills,” says Peter Mehit, co-founder. “The changes to our economy will be structural. It’s critical that people learn how to evaluate a business idea and then launch and run it, because the world is going to look very different a few years from now.” The company believes that acquiring these business skills is a prerequisite for prosperity in the new reality. The course contains eight instructional videos, a MS Word business plan template and a MS Excel financial model template, available at the company’s web site. The program is also offered on DVD at a nominal charge for those living in low bandwidth areas, having limited computer access or who just want to have the program in video format. The program, which has been taught to hundreds of students, business owners and entreprenuers, takes users through how to figure out if a business idea will be profitable, the reasons for a business plan, building pro forma cash flow models, doing market research and pulling the written narrative together. The company also offers support for the D.I.Y. course as well as guided development courses. “Whether the program is used to write a complete business plan or not, the fundamentals discussed are important for anyone that needs to create their livelihood,” says Mehit. “I heard someone say ‘this is bad as it’s going to be’. The fact is, nobody knows what’s next. You have to become your own rainmaker” For more information about Quickplan D.I.Y., visit www.wbpllc.com/quickplan/. Source:Quickplan...

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Raise Your Income Using Robert Kiyosaki’s Formula of Investing With Controls

First, think like an investor, not an accountant or an attorney. That simply means seeing the true value of something rather than just considering the original price. If you can see what someone else can’t — like how existing zoning will limit or expand what can be done with acreage – you can identify low or no risk investments. Also, you must have an entrepreneurial spirit and a love for that lifestyle. Investing isn’t for those with a “saver’s” mentality as making money and attaining wealth are about mind control — how you view an opportunity and what you are willing to spend in order to step up the value are key. So says Robert Kiyosaki, author of The New York Times best seller Rich Dad, Poor Dad. He explains that the more you invest with control, the more profits go up and risk goes down. In large part, this is a matter of ownership and power over outcome, something you can’t get by participating in a mutual fund or buying stocks and bonds. Six Critical Controls According to Kiyosaki there are six critical controls to help you manage your financial statement for an investment; they are: • income • expenses • assets • liabilities • financial training or management • insurance Financial Training Although listed as number five, the most important of these is financial training as without it you can’t control the other five elements. Unfortunately, this is not something we learn at school but, luckily, in today’s global and web-based world there are many options for gaining the learning you need to become an expert at investing with control. Controlling Income With respect to the other critical areas Kiyosaki identified, controlling income is about making sure there is some and that you have a say on how much that will be. Think about owning rental properties where you can set the monthly fees versus opening a savings account where the bank controls how much interest you’ll receive. Controlling Expenses With expenses, the old adage is definitely true; you often have to spend money to make money. The point is to do it as necessary and wisely, whether it’s upgrading rental property by painting the apartments or increasing the advertising budget to see more of a product you make. Controlling Assets To do this, you need to be able to shift the gears in your head so that you’re seeing all the possibilities for making money and measuring them against expenses. Kiyosaki again uses real estate as an example: consider a piece of land that could be used for varied purposes, some at no additional cost. However,...

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Target… Attack… Dominate!…

From : YouTube :: Tag // moneyAuthor: cvaughnsuccess Keywords: mlm prizefighter formula network marketing market traverus travel ytb world ventures prepaid legal money cash cashflow leads traffic chris vaughn training system pro mlmleadsystempro norbert brian finale robert kiyosaki tony robbins rich dad attraction automated affiliate programs business opportunity free Added: April 20, 2009 View post:Target… Attack…...

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Can you handle the pressure?

“You have to withstand pressure, if you can’t handle pressure you can’t be a great or successful entrepreneur” — Donald Trump 4 Techniques we use to Withstand Pressure. 1. Focus on what you can control. There’s no reason to waste precious energy on things you can’t control. 2. In your mind don’t project into the future the worst case scenario and then worry about it. We all do this and it’s so stupid. Try projecting into the future the end result of what you want and focus on that. Make a mental shift and you’ll feel and attract way better things. 3. Keep moving forward, keep pressing on and Never Quit!!!. I know you’ve heard this before, but what does this really mean? It means get mad, get determined, get razor focused and blow through the obstacles and the solution will reveal itself. 4. Read inspirational success stories of people you admire, you’ll realize that you’re not the only one going through hell right now and there is a light at the end of the tunnel. We all have high pressure situations in life and the more successful we become the more pressure we’ll have to withstand, it comes with the territory. When my mind starts the slippery slope of worry I remember this quote I once read. “Don’t worry, it will probably never happen” How true it is… What methods do you use to handle pressure? Please leave a comment below. Here is the original: Can you handle the...

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Couples should learn investing together

Your wife clips coupons to make ends meet, while you think now is the time for you to buy that big screen TV. He said couples argue a lot about money. “When it comes to money, nobody ever agrees. And in my family, my wife calls me Imelda Marcos because I like shop and buy clothes,” says financial expert and “Rich Dad, Poor Dad” author Robert Kiyosaki. But his wife Kim likes to make money. “But we have this agreement: I can spend whatever I want as long as I make the money first. So that means, invest my money.” His example was a recent car purchase. “Like when I wanted a new Porsche, I had to go buy a piece of real estate and the piece real estate bought my Porsche for me. So my liabilities buy my assets. That’s a rule in our family. Now you may not be able to do that, but Kiyosaki said you and your mate should learn about money together by reading books and attending seminars. He said that allows you to have calm, rational discussions about your finances. “I would rather spend my time learning how to, not only make my money, but leverage my money to make more money so I don’t have to clip coupons or never do I ever have to say I can’t afford something.” Kiyosaki said most couples don’t take the time to learn all they can about money. “Most people invest money. But they don’t invest any time in education and unfortunately then couples fight. You know the number one cause of divorce is money. It damages families and all this. Yet they won’t invest anytime in going to the library and getting a book and studying it together.” Here’s how the money discussions go in Kiyosaki’s family: “My wife and I often read articles together. We go to seminars together and we talk about money like mature individuals. We don’t fight about money, but unfortunately, that’s what most people do.” Credit:Couples should learn investing...

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