Robert Kiyosaki Blog

Financial Education Portal inspired by Robert Kiyosaki


What you don?t know can hurt your kids

~ by Pocahontas ~ I’m a teacher by trade…so let’s take it back to school for a second, ladies, shall we? Raise your hand if you were ever told any of these things growing up: “Get a good education and a college degree.” “Work hard and move up the ladder.” “Save your money in the bank because investing is too risky.” “Get a good job with benefits and a pension.” Now do any of you whose hands are up know people have done all these things but are still struggling financially? Here’s a better question…do you think this is what the Rockerfellers or the Rothschilds are teaching their children?  Since my sistahs are without question some of the most astute women in the world, obviously you can surmise the answer to that is a resounding, “No”. Granted we all believe in the value of a first-rate education, but just because you have X many degrees and/or letters after your name does that really guarantee your financial success? As I said, my sistahs today are savvy enough to recognize that the wealthy are giving their kids something most people are not…and that is the “REAL” keys to financial freedom (after all, aren’t “they” the ones able to play golf at 9 am on weekdays while the rest of us grit our teeth through rush hour to go to a J-O-B? Clearly, they know something many of us do not).   So what IS it that they teach their kids? They tell them to own their own business so they can be in total control of their time and their income. Easier said than done, you think? Well, ask yourself this, “Can you honestly say you’d want your little one to grown up and do the job you’re currently doing?” Actually, do you own your job to be able to pass it down to your kids even if you wanted to after your retire from it like you could a business? Truth be told, most people would rather be the boss than answer to one, but they just have no clue how to make that happen. So allow me to share a few books with you that might give your “entrepreneurial spirit” a prick. First, you may want to invest in “Rich Dad, Poor Dad” and “Cashflow Quadrant” both by Robert Kiyosaki. The former will certainly change your life and the latter will definitely shed some light on the common mistake novice entrepreneurs make in distinguishing between self-employed and business owner. One book I will highly recommend for your children if they are in middle or high school and you want to...

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Tips to a successful and wealthy life

We all want to have enough money to be happy from today until the day we leave this earth.  Enough, is a carefully used word. For some people, enough is the amount of money it takes to just have what is needed, for others it means being wealthy and making a LOT of money. In order to move from making money to wealthy, you will need to change your perception of life. These tips to a successful life of making money and becoming wealthy will surely help. Your mind and your money. It is important to think about money in a more organic way if you are going to become wealthy. Money will have to be something you save and not something you spend. Being thrifty today can save that wealth for the long run. The Smaller the Better.  Aiming at the smallest of savings and adding up those amounts over time can be the best choice for a person wanting to be wealthy. Those smalls savings will add up over the years and as long as they are left untouched they will grow to be the wealth you desire. The freedom of saving. All it takes to be freedom from the financial burdens of life is saving. Saving is what people who are wealthy essentially do. So the next time you drop $20.00 on coffee or $40.00 on lunch, remember that the money you save today will buy your financial freedom tomorrow. You are the one. The only person that can be held accountable for your financial placement in life is YOU! You are the one that needs to make making and save money, no one else. Think stock. The next time you want to buy that new product on the market, stop and think stock. The product will, more than likely, be something you will not use in 10 years, but a stock in the mother company will still be growing. Look to the champs. The people who have already traveled the path from making money to becoming wealthy are the best ones to learn from. When finding a mentor, make sure to look beyond the glitz and glamor of celebrity life and focus on the real people of the world. If your goal in life is to become wealthy, you can achieve that goal. All it takes is time, saving, investing, learning and more saving. Then, if you have a little more time lying around, you can save a little more. About the Author: The author, Elliott Roberts, is a writer at Becomng, a Personal Development blog, covering topics ranging from Productivity to Goal Setting, plus...

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What is Gearing?

Borrowing money to invest in shares is commonly referred to as ‘gearing’. Read on for a short guide to gearing, the pros and cons of borrowing to invest, and where you can find more information on borrowing to invest in shares. What is gearing? Investing in the stock market can be a great way to make money, period. However, not everyone has the capital they need to get started straight away, so more and more people are borrowing money from lenders to invest. Gearing has the potential to increase profits with your money as you have more to invest with, but it can also increase losses. The other type of gearing (with the aforementioned gearing being positive gearing) is negative gearing, which occurs when you borrow to invest in an income producing asset but the cost of borrowing is greater than the returns you receive from this particular asset. On a property, for example, negative gearing takes place if the interest you need to pay on the loan is bigger than the rental income you get from the property once other things such as maintenance are figured in. Advantages of gearing: increasing profits There are two oft-cited principal advantages of borrowing to invest: Increasing your profits – if the shares you buy with the money you borrow increase in value, you win when you sell on the shares. There is also the potential for dividends and bonus shares made by the company in question. Tax benefits of negative gearing – If the money you are making on your investment is working out to be less than the cost of borrowing in the first place, you are eligible for a tax deduction on the difference between the amounts. What are the risks of gearing? Interest rates, financial loss and fees The market changes a lot – conditions may change, and rising interest rates may mean you struggle to meet loan repayments, especially if you over-extend benefits. You may rely on the income the investment produces, before experiencing a period where there is no income. Your loss can be multiplied. There may be fees or penalties if paying the loan off earlier than planned. Assets simply may not provide the returns you hoped for. You may have to pay a ‘margin call’ if the value of your investment falls below the level that covers the lender’s loan. In short, a bad investment means little or no returns and a big debt that needs paying off too, so good financial advice is crucial. Originally posted here: What is...

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What Robert Kiyosaki had to say on Fox News

Recently, Robert Kiyosaki appeared on Fox News to promote his newest book, Increase Your Financial IQ. On Your World with Neil Cavuto, Robert talked about how his earlier predictions have come true and discussed the current real estate market, including explaining how he chooses where to invest.  His real estate investments follow the job market;  in other words, he buys properties where the job market is strong because workers need places to live.  He said: “We don’t have a real estate crisis, we’re having a financing crisis.” At the end of the interview, Neil Cavuto said: “Robert Kiyosaki – he has been right every step of the way.” When Robert appeared on Fox Business Network’s Happy Hour, he repeated that this is a great time to look for investment bargains. But, he cautioned, you need to be smart about it. “Financial intelligence is your greatest asset,” he said.  “Invest in your intelligence first before you go buy a stock or bond or gold or silver.” He was critical of financial “gurus” who tell people to cut up their credit cards. He pointed out that you need credit cards to function in today’s economy to rent a car, check into a hotel, purchase merchandise online, and so on. The key is to use credit cards responsibly. When people get into financial problems because of credit cards, the fault is not the credit cards, but the person using them. Read more here: What Robert Kiyosaki had to say on Fox...

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What are your motives for demanding money?

The increased easy access to credit in the commercial banks, mortgage institutions, and stock market and pension institutions in Nigeria promises enhanced growth for the economy. This is because consumer demand in a country drives economic growth. Effective demand they say is only possible when there is the ability to pay for the goods or services desired. Since demand can only be effective with money, it is therefore no surprise that as the economy begins to record modest growth, the demand for money is increasing at the national and personal levels. Money is therefore a tool for demand in the hands of all economic agents, be it households, companies or the government. Everybody including the wealthy people keeps seeking for more money to finance one form of expenditure or the other. With the budget of Nigeria increasing every year, proposed to be N2.7 trillion in 2008, it is evident that even the country is spending more money every year. Facts indicate that different individuals and governments have different motive for demanding and spending more money. Motives for demanding money are said by economists to be varied from transactional to precautionary to speculative. All three motives involve spending, but the type of demand expenditure makes the difference especially as it concerns wealth creation or capital accumulation. The expenditure on investment also known as the speculative demand for money usually brings in returns for the expender and it is usually from accumulated savings because, such expenditures involves large amounts that may not be easily accessible by a single individual except by means of borrowing. Companies expend in overhead costs, which complements their productive activities and therefore serves as an indirect investment while governments also spend on capital and recurrent fundamentals. The lifestyle of most people however prompts them to spend more money on food, more recharge cards reported to be high in Nigeria, education (children and wards), health care, transportation (fuel), health care, flamboyant weddings and parties amongst others. Tony Adache, a civil servant, spoke on the motive of his demand for money, to him money is for spending and spending is part of life; no human can live without spending on food, transportation, shelter, and so many other things. According to him, one is either spending or another person is spending on one. On whether he saves for investment purposes, he categorically said that he would only save after meeting his needs and those of his family and that his income is not even enough for his needs talk more of investing. Chuks Azu, a trader, said he does save for investing, but that most times one need or the other comes...

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Can?t save? Blame your brain

~ By Jason Zweig (Money Magazine) — Slow and steady wins the race, but a bird in the hand is worth two in the bush. Those dueling proverbs sum up the investing mind. When you imagine choosing between making a quick buck or growing rich later, you know the right answer: Be patient and hold out for the bigger gain. But as soon as you face a real rather than an imaginary choice, the fast money seems irresistible. New discoveries in neuroscience labs are helping to explain why it’s so hard to resist the allure of instant gratification. It turns out that your brain is much more aroused by $1 today than by $1 tomorrow. And $1 six months from now barely registers. Only the promise of a much bigger reward later can fire up your brain the way an immediate score does. No wonder it’s hard to save instead of spend and, when you do save, to think long term; the average holding period for a stock, among individual and professional investors alike, is just over 11 months. And the temptation to buy dotcom stocks in 1999, energy stocks in 2005, real estate in 2006, emerging markets in 2007 or gold right now — what’s hot when it’s hot — is overpowering for many people, no matter how often they’ve been burned before. A sip now or a slurp later? Recent experiments conducted independently by three teams of researchers at leading universities have focused on the battle in the brain between now and later. Tracking people’s choices and their brain activity, one group tested whether college kids would rather have a sip of fruit juice soon or a slurp later. They also tracked how folks decided between gift certificates redeemable the same day for a small amount and those redeemable up to four weeks later for a larger amount. A second team offered people the choice between $20 immediately and an array of alternatives ranging from $20.25 six hours later to $110 six months later. And a third group measured how individuals responded to the choice between various dollar amounts today and an extra 5 percent to 30 percent up to six months later. “When our emotions are charged, we have a hard time waiting for a reward,” says Carnegie Mellon University’s George Loewenstein, one of the first study’s authors. Even the chance of getting a slightly bigger reward tomorrow doesn’t have the same stimulating effect on your brain as a gain today does. It’s all downhill from there. A gain the day after tomorrow carries even less of an emotional kick, and so on. In fact,...

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5 tips on how not to be misled by your advisor

Mis-selling and poor advice continue to plague the domain of investment and insurance products. To make matters worse, a section of advisors/agents vociferously claims that the aforementioned don’t exist; others choose to justify the same by shifting the onus onto investors. Such trivialities notwithstanding, the ground reality is that mis-selling and poor advice are ‘clear and present’ menaces that investors routinely encounter. Typically, by the time an investor realises that he has become a victim of mis-selling/poor advice, the damage has already been done. We thought it would be interesting to come up with a checklist of warning signals that can caution an investor of an impending investment/insurance disaster. Now, we aren’t claiming that this list is an exhaustive one. Perhaps, it wouldn’t be possible to create an exhaustive list, given the numerous instances of poor advice rendered and the innovative mis-selling techniques deployed. But this can serve as a starting point for sure. So here goes. It’s time for you to be cautious if your advisor 1. Only peddles forms and fails to offer advice If your advisor is the kind who only approaches you for getting you invested in various avenues and offering advice doesn’t feature in his scheme of things, then there is a cause for concern. An advisor’s primary responsibility is to offer advice. He is the one who should help you translate your investment objectives into monetary terms, lay out plans to help you achieve the same and get you invested in line with those plans. The advisor is also required to periodically review your plans and incorporate changes therein, if required. While offering prompt and reliable service is important, offering accurate and unbiased advice is certainly an advisor’s core responsibility. And dealing with an advisor who doesn’t make the grade on the latter, could spell trouble for you. 2. Frequently churns your portfolio Churning the portfolio is a term that investors in the mutual funds segment should be able to easily identify with. It means frequently buying and selling funds, especially of the equity variety. You can be sure that you are at the receiving end if most of this buying and selling is in NFOs (new fund offers). Equity investing is essentially about investing for the long-term and if the advisor’s recommendations were correct in the first place, there should be little need for a churn. So an advisor who frequently churns your portfolio is either incompetent or has an ulterior motive i.e. to make more money by getting you regularly invested in NFOs. For the uninitiated, NFOs fetch higher commissions vis-a-vis investments in existing funds, thereby making them more popular among...

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Robert Kiyosaki with Tom Chenault?s Radio Show

Tom Chenault invited Robert Kiyosaki (Rich Dad, Poor Dad) on his radio show talking about network marketing. Robert Kiyosaki talks MLM from the April 12 Home Based Business Radio Show Slow Internet (dial-up): Fast Internet(DSL/Cable): See original here: Robert Kiyosaki with Tom Chenault?s Radio...

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Using credit card? 7 points to note

Technically speaking, a credit card is an unsecured loan. This means that unlike a secured loan, which is advanced by a bank/financial institution against a security like property for instance, a credit card is offered without any security.  Not surprisingly, many of the negatives that get written about credit cards are related to expenses, hidden or otherwise, that the user did not know (or was not informed) at the time of opting for the card. To avoid distress at a later date, we have listed down some points that you must note while using the card:  1. Term and conditions How many times have you read this before – read the terms and conditions carefully before signing up for anything. For every product you purchase or service you opt for, always read the terms and conditions and that includes credit cards. If you find anything in the terms and conditions of the credit card that was not conveyed to you or is contrary to what was conveyed to you, then seek a clarification from the bank. If you are not satisfied with the clarification, dump the card. It’s important that you read up on the terms and conditions before you use the card and not after. Once you use the card, it is assumed that you have read the terms and conditions and have accepted the same. 2. Annual fees It is common for banks to waive off the annual fees/membership fees in the first year (cards are usually issued for at least two years). The second year fees are usually charged. It is possible that you are promised that the second year’s fees will be waived off as well. The only way to find out is to check with the bank in the second year. It is possible that the bank may waive off the fees based on your track record of making timely payments. If the bank does not waive off the fees in the second year, you can cancel the card. However, if you wish to cancel the card in the second year ensure you do so before using it, because using the card indicates that you have agreed to pay the fees/charges for the second year’s subscription. 3. Lifetime free cards Offering ‘lifetime free credit cards’ is a relatively new trend in the credit card industry. While there was a time when most banks charged annual fees on their credit cards, the industry is graduating to a level where annual fees are being phased out. In effect, clients are being given lifetime free cards i.e. no annual fees are charged. However, its best to double-check...

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Choosing a Mentor

~ Jerome Ratliff~ Having a mentor a part of your business or you, can accelerate your profession into overdrive. When working with a mentor, you create a professional relationship which allows you to become a better professional. But finding your mentor, regardless who it is, is not an easy task. Where should you start looking for your mentor? Put together a plan of how you intend to find your ideal mentor. Decide at that moment that you will not quit before you find him/her. What’s your objective? What do you need a mentor for? Why do you need a mentor now? These are questions you must ask yourself prior to meeting with a mentor. In addition, make sure to have your string of interview questions ready for the mentor. This will be how you determine who is right for you. Start by asking around. See what other successful professionals are doing and ask questions. What do you got to lose? Be up front in the interview by letting them know what you would like to accomplish by having a mentor. This will help determine if the mentor is right for you. If you’re impressed with them, ask for a referral to speak with the mentor. Look for organizations that offer mentoring programs. It may cost you, but at the same time it will be well worth your money. That’s assuming that you chose the right mentor too. Two years ago when I began with Robert Kiyosaki’s mentoring program, I failed to ask a lot of the upfront questions that I’ve outline here before you. Luckily for me, since Robert Kiyosaki’s program is so structured, it didn’t matter. However, it could have helped me by showing that I was proactive. You may come up with your own questions, just be sure that you are thorough and show that you are determined to succeed. A good mentor will hold you accountable for what you need to be doing as a professional. This is important because you are the one in charge, not the mentor. The mentor is there to help you kick it into gear. Being a part of Robert Kiyosaki’s mentoring program has changed my life immensely, that I decided to mentor others. So, if you’re serious about choosing a mentor, then start today and start now. You won’t regret it. View original post here: Choosing a...

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