Robert Kiyosaki Blog

Financial Education Portal inspired by Robert Kiyosaki


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...

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Robert Kiyosaki Overview

Robert Kiyosaki is many things; an author of self-help books, an investor, a business man, as well as a motivational speaker. Without doubting though, Robert Kiyosaki is known best as the bestselling author of a series titled Rich Dad, Poor Dad . Robert Kiyosaki has become one of the leading voices in educating people in the area of developing their own personal finances. With twenty-six books in the Rich Dad series, Robert Kiyosaki has sold more than twenty-seven million books worldwide. His works have been translated in fifty-one different languages for markets in a hundred-and-one various countries across the world, eventually leading him to countless bestsellers lists across Asia, Australia, Europe, Mexico, and South America. Robert Kiyosaki’s first book Rich Dad, Poor Dad was a sensational hit from the get go and has been on the New York Times best sellers list for six years as of November 2007. The sequel to Rich Dad, Poor Dad, Rich Dad’s Cashflow Quadrant also landed on New York Times best sellers as did a third book titled Rich Dad’s Guide to Investing. These three books were concurrently on top ten bestsellers for The Wall Street Journal, Business Week, USA Today, and The New York Times, which all just happen to report to Publisher’s Weekly. In reviewing publications of 2005, Publisher’s Weekly applauded Robert Kiyosaki and Rich Dad, Poor Dad for performing way beyond a publisher’s expectation. Robert Kiyosaki was also inducted in’s Hall of Fame in 2005, coming in the top twenty-five, at number twenty-three, just edging out the likes of such literary geniuses such as Tom Clancy and William Shakespeare (!). With all these accomplishments Robert Kiyosaki has become one of the most successful writers of motivational books of a financial nature. The purpose and mission of Robert Kiyosaki is aimed to help people achieve economic success and stability. Robert Kiyosaki has a certain style in motivating, and his attitude towards money is defiant and pro-active. These values have found its way into his many books of the Rich Dad, Poor Dad series, and in their deliverance has helped many people understand how to make money work for them. Applying these learnt skills, which develops into financial literacy, and as Robert Kiyosaki believes, will create an understanding of how to use money in the real world. Concepts and attitudes, along with definitions of words such as wealth and assets, determines how somebody handles money, and the way Robert Kiyosaki understands it, if somebody has the right attitude and defines such key words properly than anyone will be on the right track in achieving financial success. Robert Kiyosaki stresses this point...

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The Biggest Scam Ever

~ Robert Kiyosaki ~ On the cover of the October 19, 2009 issue of “Time” magazine ran this headline: “Why It’s Time to Retire the 401(k).” The cover picture was ominous, showing a 401(k) sinking like the Titanic. I recommend reading this entire article, especially if you do have a 401(k). My concern is that the flaws of this retirement plan will grow into personal tragedies as the first of approximately 75 million baby boomers retire, leading to the biggest stock market crash in history. But in spite of the apparent problems with the 401(k) plan, the darlings of financial media continue to tout its benefits. The same month “Time” ran its article, “More” magazine’s financial guru, Jean Chatzky, wrote an article about using low-interest savings to pay off high-interest credit cards. In the article she states, “There’s no better guaranteed return on your money (except, perhaps, a 401(k) match).” Countering Jean’s wisdom of “no better guaranteed return,” the “Time” article stated, “At the end of 1998, the average 401(k) balance was $47,004. By the end of 2008, the average balance was down to $45,519.” If that is a great guaranteed return, I’m glad I don’t have a 401(k). The “Time” article pointed out that $100 in 1998, after inflation, was worth about $73 in 2008, a loss of $27 after ten years. So whom do you believe…”Time” or “More” magazine? If you are unsure as to whom (and what) to believe, the “Time” article made two more statements worth considering. They are: 1. “The older you are the riskier a 401(k) gets.” 2. “Forty-four percent of all Americans are in danger of going broke in their post-work years.”   Now, I can hear some of you saying, “But the stock market is going back up. Green shoots are appearing. Everything is fine. The crash was just a correction.” For those optimists among you: I wish that all of your dreams come true and you live happily ever after. I do not criticize the 401(k) plans just to criticize. I write because I am concerned. Let’s say “Time” magazine’s estimates are correct. Let’s say 44 percent of all Americans will go bankrupt after retirement. For approximately 75 million baby-boomers preparing to retire, that means 33.8 million of them will go bust once they stop working. To me, this is disturbing. While many think the financial crisis is over, I believe the worst is yet to come. In spite of the green shoots in the stock market, the fundamentals of the U.S. government are worsening. I doubt Social Security can afford the avalanche of retiring baby boomers. The Social Security fund...

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HELOC: Home Equity Line of Credit FAQ

A HELOC, or a home equity line of credit, is set up to have a maximum draw limit rather than just a set dollar amount in the form of a lump sum like a home equity loan. Similar to a home equity loan, a home equity line uses your home as security. This line of credit is set up to a certain amount decided between you and your lender (generally 80% of the market value on the home in question minus any fees currently owed upon it) that can be drawn out in a set amount of time. A HELOC, in simple terms, is a recommended alternative to a home equity loan for those with ongoing projects. So, you are in desperate need of cash, got projects to fund, mouths to feed, bills to pay, and so you decide to drop by the bank and get a loan. First option you are presented with when offering your home as collateral is whether to go with a home equity loan or a HELOC, or simply a home equity line. In most cases a HELOC will probably be your better choice, simply because when you need the cash, you have it, and when you don’t, don’t worry about it. Sounds simple enough, and for those in need, a HELOC is a welcome alternative to many other loan choices because you won’t have a lot of money just sitting around that you have to pay interest on. The easiest way to describe how a HELOC is a superior loan alternative is safety. With a HELOC you obtain safety in both terms of being more likely to handle your payments as well as safety from yourself. When the money isn’t just dumped into your pocket all at once you are less likely to waste it and end up in trouble. A HELOC generally has low settlement cost rates (on a $150,000 line of credit it would be around $1000 compared to $2500-5000 for a home equity loan of the same amount). While other fees associated with a HELOC tend to be more expensive, overall a HELOC doesn’t cost that much more that a standard home equity loan. In addition, the idea of saving you from, well, you, plays an important role as well. If you just receive all the money up front and it’s just sitting there, you are going to be tempted to spend it on things you don’t need. Obviously this situation can come back to hurt you. However, in a HELOC, since the money isn’t just sitting in the bank but is rather drawn out when you need it, you...

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Lawmakers to Obama: 79.99% Credit Card Calls for Rate Action

As soon as word got out, it didn’t take long for lawmakers to seize upon the highest credit card rate around — an offer being tested by First Premier Bank, a subprime card issuer, with a mind-boggling APR of 79.99 percent. Moreover, much to the disdain of House Democrats pushing for a rate cap, the action by First Premier takes advantage of an apparently unforeseen loophole in credit card reform laws set to take full effect in February.  The First Premier card normally offers a minimum of $256 in fees for the first year for a credit line of $250.  When the Credit CARD Act of 2009 becomes enforceable Feb. 22, the cap on such fees will be 25 percent of a card’s credit line.  In recently mailed notices for its pre-approved card, First Premier offers a fee matching that same limit – $75 in the first year for a credit line of $300. Along with the fee, a 79.99 percent interest rate is offered. Reform laws do not set caps on interest rates. It only places restrictions on when and how rates should be imposed, but no limits. First Premier has said that the offer is being tested, and does not know if it will be continued. First Premier said it needed to “price our product based on the risk associated with this market” in a statement to the Associated Press. Rep. Dennis Cardoza, D-California, today lashed out at First Premier’s card offer in a letter to Pres. Barack Obama and California Senators Barbara Boxer and Dianne Feinstein. Cardoza is asking them to support a bill sponsored by Rep. Louise Slaughter, D-New York, chairwoman of the House Committee on Rules. Slaughter and Rep. John Tierney, D-Massachusetts, that would cap credit card interest rates at 16 percent, and penalty fees at $15. “First Premier Bank, a subprime credit card issuer, is skirting new regulations intended to curb abusive practices in the industry,” Cardoza said. “It’s a strategy other subprime card issuers could start adopting to get around the new rules.” First Premier’s website says that credit cards are serviced by Premier Bankcard. The company, based in Sioux Falls, South Dakota, says Premier Bankcard is the 10th largest issuer of MasterCard and Visa cards in the country, with more than 3.5 million customers. “Our representatives have done a lot to take care of Wall Street, how about doing something to help real people. Almost everyone has a horror story regarding credit card companies, and it’s time to protect consumers from this immoral and predatory industry,” wrote Cardoza. Under the bill introduced by Slaughter and Tierney, the Truth in Lending Act...

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First Premier Bank Charges 80% Credit Card Interest

NEW YORK — It’s no mistake. This credit card’s interest rate is 79.9 percent. The bloated APR is how First Premier Bank, a subprime credit card issuer, is skirting new regulations intended to curb abusive practices in the industry. It’s a strategy other subprime card issuers could start adopting to get around the new rules. Typically, the First Premier card comes with a minimum of $256 in fees in the first year for a credit line of $250. Starting in February, however, a new law will cap such fees at 25 percent of a card’s credit line. In a recent mailing for a preapproved card, First Premier lowers fees to just that limit — $75 in the first year for a credit line of $300. But the new law doesn’t set a cap on interest rates. Hence the 79.9 APR, up from the previous 9.9 percent. “It’s the highest on the market. It’s the highest we’ve ever seen,” said Anuj Shahani, an analyst with Synovate, a research firm that tracks credit card mailings. The terms are eyebrow raising, but First Premier targets people with bad credit who likely can’t get approved for cards elsewhere. It’s a group that tends to lean heavily on credit too, meaning they’ll likely incur steep financing charges. So for a $300 balance, a cardholder would pay $20 a month in interest. First Premier said the 79.9 APR offer is a test and that it’s too early to tell whether it will be continued, according to an e-mailed statement. To comply with the new law, the bank said it will no longer offer the card that has $256 in first-year fees as of Feb. 21, 2010. However, customers will still be able to use their existing cards. According to First Premier’s Web site, the credit cards are issued by its sister organization Premier Bankcard. The company, based in Sioux Falls, S.D., says Premier Bankcard is the 10th largest issuer of MasterCard and Visa cards in the country, with more than 3.5 million customers. In a mailing sent to prospective customers in October with the revamped terms, First Premier writes “…you might have less-than-perfect credit and we’re OK with that.” The letter notes that an online application or phone call is still required, but guarantees a 60-second status confirmation. The letter also states there are no hidden fees that aren’t disclosed in the attached form. That’s where the 79.9 percent interest rate and $75 annual fee are listed. There’s also $29 penalty if you pay late or go over your credit limit. The credit limit is $300. The bank did not say how many people were...

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Robert Kiyosaki Interviewed on AlJazeera

I am sure most of you don’t watch AlJazeera especially those who are in the States. So if you have missed, here is an interview with Robert Kiyosaki on AlJazeera with Riz Khan.     What’s your opinion on the education system of your country? Does it prepare you to be successful businessman or good employee? I think in almost all countries in the world, it’s the latter. Please share your thoughts on this in the comments...

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Entrepreneurship – A Panacea For Job Insecurity?

By Louis Lim, Business Correspondent In view of the current economic difficulties facing many, people ought to be more ware of what’s happening in the world and how what’s happening can adversely affect their financial securities and lives; if it has not done so already! It is not a well known secret that one can avoid being a financial casualty by simply acquiring a set of skills different from what we are usually programmed from young to have. The latter has to do with being enslaved to a job or business controlled by others; the other being about having skills to generate an income independent of any circumstance or other people. Anyone depending solely on a job for a living would be almost completely lost if he loses his job. The unfortunate fact is that since the Multi-Nationals Companies began institutionalizing the treatment of employees as just another business resource, albeit commodity, the age of life-long employment seizes. Financial results associated with satisfying shareholders’ expectations became the main reason for a business enterprise. Coupled with the practice of achieving short term objectives and the need to maintain share prices, retrenching workers became a normal business practice. Words like ‘downsizing’ and ‘business rationalizing’ became common business parlance. This dehumanizing of business enterprises, prevalent throughout 18th and 19th century industrializing Britain was revived and practice by American businesses. The new reality in a capitalist environment anywhere means a worker is subject to his job being taken away any day. More importantly, this means also that the individual worker must realize quickly the insecurity of a job. What then is a worker to do to secure himself? Off course there are skills like being a doctor or dentist and others which are not down sizable. However, most workers are dispensable! Men are, however, born with an innate creativity which can be described as entrepreneurial but this has historically been replaced by skills which are intended for us to work for someone else. The result is that only the top five per cent or so of employees can acquire financially independence (with high salaries) while the rest remained dependent and vulnerable all their lives. To acquire these forgotten skills would require a change in mindset from one of being a worker (a worker’s mindset) to that of being a boss (an entrepreneurial mindset). The latter entails having a ‘Possibilities Mindset” which would enable one to know how to garner resources and knowledge and, to apply them to secure one’s own financial objectives. Henry Ford, the car genius, once said that ‘money is not a man’s security; he is his own security’. What he...

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Top 7 lessons I learned from playing Rich Dad’s Cashflow 101 game

1. Simplify and get out of the rat race faster I noticed that whenever I played the cashflow 101 game and was able to choose a “simple” profession like a truck driver for example, I was able to get out of the rat race faster.  As a truck driver, although my salary was low, my monthly expenses were also very low. Because I had  low monthly expenses, I already had a positive cashflow and all I needed to do was just get those passive income generating deals. After each payday, I had more money to invest, and with just a few passive income generating deals, I had enough passive income that exceeded my monthly expenses, and I was able to get out of the rat race faster. In real life, I am applying the same strategy by reducing my monthly expenses by leading a simple life. This was also described by Bo Sanchez in his book “Simplify and Live the Good Life ” and T. Harv Eker in his book “Secrets of the Millionaire Mind”. My family and I lead simple lives, which explains my very low target monthlypassive income which is why I know I am going to get out of the rat race in real life very soon! 2. Start with small deals first, and the big deals will follow In the beginning of the game, I always chose small deals even if they produced little cashflow. Later on, when the market presents good opportunities, I was able to sell or “flip” these small deals and then I used the profit to buy the bigger deals that produced greater cashflow, allowing me to get out of the rat race. In real life, I am also following the same path. I focus on single family homes or properties which may produce little cashflow at  the very least, but can actually generate significant profits if “flipped” or sold through “rent-to-own”. I can then use the profit later when they are enough to get bigger deals that can produce bigger positive cashflow. 3. Over-leverage often leads to bankruptcy During the game, we often encounter great deals that produce a lot of positive cashflow but require a big downpayment and it is tempting to borrow money from the bank just to be able to buy those great deals. However, there is such a thing as becoming over-leveraged which can produce negative cashflow situations because of the high monthly payments for those loans. Even if one’spassive income is enough to cover the monthly payments for those loans, imagine if something happened and the monthly income of one’s investment properties were affected, suddenly...

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6 Strategies To Get Rich

In my pursuit for further educating myself when it comes to achieving financial freedom, I enrolled myself in a free online coaching in the Rich Dad Poor Dad lessons of Robert Kiyosaki. In one of the chapters of the e-learning that I’ve been reading, Robert Kiyosaki suggested the Rich Dads Get Rich Strategies in which he used to get out of the rat race and become a business owner and investor. I would like to share it all to you my readers so we can also use it to achieve financial freedom just like what Robert Kiyosaki did: STRATEGY 1: Become financially literate. The number 1 strategy to get rich is to become financially literate. Financial literacy is not always taught in schools. It requires proficiency in several areas: economic history, accounting, taxes, investing and building businesses. These are difficult subjects but don’t let the difficulty scare you. Becoming financially literate has nothing to do with how far you got in school. It doesn’t matter whether you’re a failure in school, a jeepney driver, a janitor, or an executive of the company. What matters most is that you’re willing to educate yourself. One of the things that I learned about financial literacy is on cash flow patterns. Based on these cashflow patterns, you would be able to determine if you belong to poor, middle class or rich persons. Kiyosaki compared people with average financial intelligence vs. people with advanced financial intelligence: People with average financial intelligence know only: Bad debt, which is they try to pay it off. Bad losses, which is why they think losing money is bad. Bad expenses, which is why they hate paying bills. Taxes they pay, which is why they say that taxes are unfair. Climbing the corporate ladder instead of owning the ladder. Buying shares of a company rather than selling shares of a company they own Investing only in mutual funds or picking only blue-chip stocks People with advanced financial intelligence know the difference between: Good debt and bad debt Good losses and bad losses Good expenses and bad expenses Tax payments and tax incentives Corporations you work for and corporations you own How to build a business, how to fix a business, and how to take a business public The advantages and disadvantages of various investment vehicles: paper securities, real estate properties, and businesses STRATEGY 2: Work to Learn Most people focus on working for pay that rewards them in the short term; over the long term, this strategy can be disastrous because it doesn’t build up enough assets for a stress-free retirement. You’re not sure if your employer will be...

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