Robert Kiyosaki Blog

Transferring your credit card balance, or balances, to a lower interest rate card can save you money.

The process is a tricky one — there are a lot of possible fees, penalties and ‘catches’ to beware of lest this move actually end up costing you money.

It is also getting harder to do. Credit card companies are try to stop losing customers, and they are also trying not to gain customers who are only there to take advantage of introductory rates before they move on again.

This is one credit card move that absolutely demands you read — and understand — all of the fine print. Different card companies handle it in different ways and have a wide range of fine print containing a myriad of rules.

But just because hopping from one card company to another is harder than it used to be rates for balance transfers, but there are low fixed rates offered for balance transfers (that’s the card company’s way of getting you to bring your balance and stay).

Key numbers

If you do not transfer to a fixed rate (or even if you do because fixed — the rate you are getting, how long it lasts and what it jumps to when that rate is over. With a fixed rate you may not know when it will change, but there will at least be a guaranteed period before it can change.

After you have those numbers, check out all of the related costs:

• Does either company charge a fee for moving the balance?
• Is that fee a flat sum or a percentage?
• Does your old card company charge you another fee for terminating your account?
• What fees and rates does the new company charge for new customers?
• Will both card companies notify you when the transfer is done?
• Under what circumstances can the new company change the introductory rate it gives you for your balance transfer?

Beware of ‘tiered’ arrangements. These will let you transfer a balance and give you some sort of interest amnesty or super low rate for a period, and then there may be another rate or arrangement for some more time, then a third (or even a fourth) rate. The trap here is that you may start with a great arrangement and slowly find your deal getting worse and worse.

Different rates

There may also be different rates for purchases you make with your new card. For example you may transfer with no interest for three months on your transferred balance and any new purchases. Then for three months you may have different, but not too bad, rates for what’s left of the balance but a higher rate for new purchases In the third and sometimes fourth tiers both rates could rise to the point where you don’t have a good deal any more.

So make sure you know how you intend to pay off your transferred debt.

If you are sure you can pay it off during that interest payment holiday or super teaser rate it may be a good deal. If you’re not sure, think again. If you know it won’t happen, go to your calculator and work on different scenarios. You may find that if you haven’t paid off enough of the transferred balance in, say a year, you’re actually moving into a worse deal.

Some card company’s limit how much you can transfer or how many times you can transfer a balance. Make sure you use your calculator because the more complex the transfer arrangements the more chances the movement might not be as beneficial as your at first thought.

One thing is surprisingly commonly overlooked in balance transfers — are there fees? Not only might the new card company charge you, but your old one might charge you a fee for the transfer and even a penalty fee for closing the account. They may also charge you more money to manage any money you leave behind with them if you don’t transfer your total balance. Check it out, be sure!

Also be clear just how long the whole process will take, when you stop paying on the old card and start paying on the new. You don’t want to find you’re paying for a balance in two places at the same time, however briefly.

Make very sure too that you know under what circumstances your new card company can change the rate your transfer is being charged. Sometimes a late payment, or maybe some other obscure transgression, will automatically end your deal and bounce you into a stratospheric rate. Know every circumstance under which they can do this.

Here is the original post:
Balance Transfers

With a record-high number of Americans collecting unemployment benefits, job seekers are being forced into heated competition for openings. Indeed, the number of people who have been unemployed for 27 weeks or longer has leapt to 3.2 million from 1.3 million at the start of the recession. The pressure is proving too much for some: Last month there were nearly 700,000 Americans that the Labor Department counted as discouraged workers–folks who have given up on looking for work because they don’t believe they’ll find it.

If you are unemployed and you think you’ve tried everything–sent hundreds of resumes and gone to numerous networking events, talked to every person you know and lots of people you didn’t know. If you’ve worked on improving your resume, and cleaning up your cover letter — and you still haven’t been able to find work, then don’t count yourself out. You still may have some options.

Here are some alternatives for the beleaguered job hunter:

Start your own business. Economic downturns and lousy job markets can prompt some workers toward entrepreneurship. Tight credit is a hallmark of this downturn, however, so capital-intensive businesses will be more difficult to launch. Good news for the jobless: Some states offer help for the unemployed to become entrepreneurs. Residents of states including Maine, New Jersey, and Pennsylvania, may be able to enroll in their state’s self-employment assistance program. To qualify, you’ll need to be eligible for unemployment benefits, and you’ll likely need to meet a couple of additional criteria, such as being likely to exhaust your benefits. You’ll also need a viable business plan. These programs pay out the same amount of money as you would have received through traditional unemployment, but generally also provide help in developing a business plan and financial assistance for training courses. One note: A program may require that enrollees be collecting unemployment for a limited period of time. Pennsylvania limits it to those who have been receiving benefits for no more than 10 weeks.

Do an unpaid internship. Most adults shake their heads at this option because they can’t afford to work for free. But if you’re already unemployed and your days are taken up with job searching, an internship can take up some of those hours without derailing your job applications. Katy Piotrowski, author of The Career Coward’s Guide to Career Advancement, recommends doing an internship at a smaller business that may be glad for your help. Approach the company with an offer to work a specific number of hours each week and arrange to split your time doing work that uses skills you already have–to their benefit–and work that trains you in new skills–to yours. It’s a low-risk offer for the company and a good way to improve your resume and skills while you look for paid work. Plus, Piotrowski says, a number of her clients who have done this have been offered full-time jobs at the companies. The trick is to treat the internship as seriously as you would a paid job.

Change direction. It may be time to totally rehab your work talents and build skills that are more in-demand and marketable. Research is crucial if you’re going to try something new. Career Voyages, a website set up by both the Labor and Education Departments, has tools for finding information about various careers. Perhaps most useful is their map of the most in-demand occupations for each state. Click on links associated with the occupations and you’ll find options on charting a path toward a new career, including possibilities for registered apprenticeships, information on community colleges, or details on obtaining necessary certifications.

Keep in mind that just because a career is “in demand” doesn’t mean it’s necessarily going to be the right fit for you. Michael Duggan, a counselor and professor at the College of Dupage in Glenn Ellyn, Ill., says job seekers need to consider not only the careers that are in demand but what work would be consistent with their skills and interests. Unemployed workers will often want the quickest training program the school can provide, Duggan says, but it’s important to take the time to understand all the options so time isn’t wasted in the wrong program.

Find non-traditional income–but beware. If you have exhausted your unemployment benefits, your financial worries are running high. You might consider renting a room in your home or selling items on eBay. If you can paint homes, walk dogs, fix bicycles, or design websites, then you should consider finding non-traditional ways to build income. The goal is to get creative with part of your time, although your job search should continue to take up most of your time.

Keep in mind that whatever efforts you make to boost your income, danger is lurking online. Job scams are everywhere–phishing for your personal information, trying to get you to pay for career advice, even setting you up with interviews that are really sales pitches. Many of these scams pitch work-at-home options. Before you leap on any unusual opportunity, check it out with the Better Business Bureau.

By Liz Wolgemuth

View original here:
4 Last-Ditch Strategies If You Just Can’t Find a Job

~Robert Kiyosaki

The other day, my wife and I were shopping for a new car. We stopped by the Cadillac dealership because we wanted to see the new Escalade Hybrid. The lot was filled with new cars. There were at least 10 salespeople ready to help us, but there were only two customers: us. I felt bad for those salespeople and the staff. I wish I could say we purchased a new car, but we didn’t.

Many people blame the automakers for the problems that they are facing–and they are to blame, but not completely. As entrepreneurs, we can all learn at least three big lessons from the auto industry mess:

1. Leaders should be on the same compensation plan as the sales staff. If Detroit’s leaders were paid only for the number of cars sold, they might be better businesspeople. Instead, the leaders have megasalaries, private jets, midweek golf outings and benefits suited for royalty–all unrelated to sales or company health. These corporate leaders have been stealing from the company, workers and investors who gave them so much. To be a great entrepreneur, be a leader who works for those who work for you. As the head of my company, I work for my customers and my workers. If my company is not profitable, I should not get paid.
2.  Leaders listen to the customer. Never forget: It was the customer that wanted the big SUVs and trucks. An entrepreneur needs to have a crystal ball and prepare for changes in the customer before the customer changes. As my company’s leader, I have been preparing for this economic downturn for years. As some of you know, I have spoken out against the financial planning industry, mutual funds and the financial gurus who recommend them. Instead, I have been an advocate of personal financial education and have built my company around it. Today, my company’s sales have increased as more and more people realize that a well-diversified portfolio of mutual funds is not a safe investment and investing in a financial education might offer a better return.
3. Politicians reward incompetence. Many of the politicians the Big Three automakers were begging for money are the very politicians who protected the inefficient industry. It was the politicians who protected the unions and high wages. Most entrepreneurs do not have the benefits of high-paid lobbyists and friends in high places. I realize President Obama promises change. But never forget: He is a politician, not an entrepreneur. Getting elected takes more than just money. That is why entrepreneurs need to watch what politicians do–more than what they say.

Big Lessons from the Big Three

Life is like a game of chances. You can win or you can lose. Everyday, we are faced with challenges, which can either lead us to become a winner or a loser. Learning financial literacy is essential to increase your chances of winning the game of life. Consequently, it is best to play the cash flow game to gauge how well did you grasp the concepts in winning the game of money.

Recently, I watched another video again of Robert Kiyosaki as now he talks about the so-called Game of Money where he described the four quarters of financial life dividing it into 10-year horizons and asked, “at which age will you win the game of money?”

Let’s view the four quarters of life with some inputs so that we know how will we win the game of money and retire as young as we can be.

1st Quarter (25-35 years old) – By this age, you’re probably done with your college education. Most of us start our careers when we land on our first quarter of life. We want a high-paying job, buy a car, have our credit cards and enjoy life. While many of us just want to enjoy life after graduation, it is advisable for us to:

Savings should be our top priority. When you receive your paycheck, take out a certain amount and deposit it in a savings account. Once you accumulated enough savings, transfer the bulk of it into a higher yielding deposit account. Compound interest will help it to earn more interest.

Get Insurance. Get insurance especially if you now have family and kids to support with at this age. The higher and the healthier you are, the cheaper insurance costs will be.

Learn Investment Options. Think of investment options where you can invest your extra cash. You can invest it in stocks, mutual funds, real estate, bonds, etc. Start to educate yourself financially.

2nd Quarter (35-45 years old) – By this age, you are probably at the top of your career and definitely earning much more. But this quarter may also be the time when you’re starting to have your own family so that also means higher expenses. It is advisable to:

Plan for children’s future. You are now working not just for yourself but also for your children. Plan for your children’s future by getting an educational plan or open a time deposit that’s under your children’s name and deposit an amount into it regularly.

Make sure you have enough for your emergency fund. Emergency fund is amount totally dedicated to emergency expenses such as health problems, etc. A good amount would be equal to six months up to 1 year of your monthly income. Place it in an easy accessible type of investment so that when your need arises, you can easily withdraw it.

Have a business. By this age, you could have probably known a lot of networks from friends, colleagues, acquaintances, etc. And since you’re earning much higher, then you could start your own business. Gauge yourself on what business you should start. Examine your passions and skills in choosing the right business for you.

Half Time – Kiyosaki referred after the 2nd Quarter as half time because you are in the middle before retirement. It’s also called as “mid-life crisis”. It is now time to examine yourself. You are not getting any younger anymore. Have you had enough savings to cover for your future? What did you accomplished in your life?

3rd Quarter (45-55 years old) – By this age, you are probably on top of you career, possibly a manager or vice president of the company. You could be earning more and your children may be in their college years or are already working. Retirement is just around the corner waiting for you. In this quarter of life, it is advisable to:

Allocate much of your income to investment capital. Review your investment portfolio and ask yourself if you need to transfer your funds into a higher earning investment scheme. Just be sure to have a through due diligence before you transfer your funds.

4th Quarter (55-65 years old) – By this age, your children may well be on their own now with their respective families already. You are now at the age where you can retire. You may choose to still be employed but it should not be on stressful work as you are now prone to health problems brought about by old age, which means higher health care expenses. In this age, it is advisable to:

Protect your capital. Try to preserve your capital so that you can live with on its interest. And make sure to make your last will in order.

Over Time – Kiyosaki referred after the 4th quarter as over time. If you haven’t had any accomplished things when it comes to your financial future, then that would be a great problem because sooner or later you would be “out of time” and the game of money will be “game over”.

We don’t want to retire old. As much as we could, we want to retire young so that we can still enjoy the things that we want. How could we enjoy it if we are already old with a lot of health problems associated with old age?

Personally, just like what Kiyosaki did retiring at the age of 47, I also want to win the game of money and retire on the second quarter of life. I want to enjoy life as early as I could without having to worry on going or having to work. And that is the very essence of financial freedom.

View original post here:
Game of Money – Four Quarters of Life

What tips do you have for building long-term relationships with the people who can help a business and investments grow?

You have to be a great leader. It’s something I’m learning. I never stop learning to be a leader. I can’t say I am a great leader. I desire. I strive. I improve my leadership skills.

There’s a great book called “The Starfish and the Spider,” and it’s a great book on leadership. It’s a very simple read. They’re two different leadership styles. In other words, you cut the spider’s head off, the whole animal dies. You can cut a starfish up in a thousand pieces and get a thousand starfish. That’s the difference. I am a starship style. I am not a spider style. It’s a great book on leadership, and I’m consistent in my leadership.

Looking back over the years, is there anything you would have done differently to be more successful today?

I don’t regret anything I’ve done because everything I’ve done has been a learning experience. I never stop learning. I make mistakes constantly. Today, with the economy as hard as it is, I would just say a tough economy means I have to get smarter. That’s all it means. I don’t judge it as good or bad.

Other than being on “Oprah,” what marketing and promotional activities have been successful for you?

Every product I design has a viral component to it. In other words, I don’t have formal sales people working for me or my company. So if a product is viral, and that means if someone recommends your book to someone else, it was designed into the book and my board game.

In other words, I have people teaching people or people selling for me. And in today’s over-cluttered, over-communicated world, the person you’re going to listen to the most is a friend who says, “Hey, I read a great book, or here’s a great product I recommend.” It is the most powerful form of marketing there is. It’s also the oldest form of marketing there is.

Who are some other people that you look up to and have guided your career along the years?

Well, I have partners who I respect tremendously. I only do business with people I respect. You look at all of our company, and my advisors are real advisors. They are not financial planners. They are not celebrities. They are people hitting the trenches every single day.

Another thing too, I don’t have to know anything. I just have to know who knows. The reason I say that is I’m coming out with a new book called “The Conspiracy of the Rich” which is a Web book, and it’s for free.

Well, why am I doing this? Because I know it’s going to make me money. I don’t have to be the smartest person on Earth. I just have to know who is smart, who has ethics, who has integrity and who shares the same values I do.

What is your top advice for the entrepreneurs out there, and people who just have a good business idea, who are afraid to move forward?

I will say it again. Have them read the book “Before You Quit Your Job.” You’ve got to take advice from people who’ve done what you want to do. The point is, if you’re going to be successful at anything in life, you’ve got to spend time with people who practice what they preach. If you’re afraid, you’re probably hanging out with other cowards.

So in this economy, if we’re going into a depression, you better have Plan B ready to go. Don’t hope the economy is going to come back. Don’t hope Obama is going to save you…because they’re not. They can’t. You’ve got to save yourself. This is not a time to be afraid. This is a time to be brave. This is a time to become smarter. Not to become Chicken Little with the sky falling. And if you can do that, you’ll be an entrepreneur. If you can’t do that, you’re finished. This is the time to learn.

I think everyone sees the professional business side of you. Maybe you’d like to share some of the things you like to do in your free time?

Well, I hate to say this. Business is my game. It’s more than a hobby to me. It’s my life. And I’ve always surrounded myself with the best people…my greatest pleasure in life is hanging out with really smart people who are part of business and business teams.

What I cannot stand is illegal, immoral and unethical acts. I’m ripped to shreds constantly in the blogs. And I just have to be true to me. I know my accountants and my attorney wouldn’t be around me if I was a crook. Do you see what I’m saying? If you’re a crook accountant, you’ll hang out with a crook business leader.

Is there anything else you would like to share that we haven’t touched on that may help some of the entrepreneurs out there?

You are the company you keep. And if you improve, then the people around you will improve. It’s a very easy measurement. And what that comes up to is instead of trying to change the world, just change yourself.

Read more from the original source:
Brief tips from Robert Kiyosaki