Robert Kiyosaki Blog

Financial Education Portal inspired by Robert Kiyosaki

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Size does matters

Growing your business comes down to basic multiplication–just make sure you add in the human factor. Robert Kiyosaki  –  Entrepreneur Magazine – April 2008 One of the biggest dilemmas you will face after you get your business up and running is the decision to either grow or stay small. Obviously, most entrepreneurs opt to keep their businesses small because it’s much easier to control and manage a small business. And that’s because growth requires people. As my rich dad often said, “Business would be easy if not for people.” If you choose to grow your business, being able to lead and manage people is one of the most important skills you can possess. As the number of people grows, the number of relationships grows–and grows exponentially once you have four people in the business. For example, a one-person business has zero relationships; add a second person, and the relationship dynamic kicks in. Add another person: three people and three relationships. But look what happens with the fourth person: four people and six relationships. Visualize each person as a dot, and draw a connecting line between each of the dots. You’ll see that with four people, you’ll have six connecting lines. Take it a few steps further and do the math: Seven people equals 21 relationships; 100 people means 4,950 relationships! Many businesses grow by adding employees, then contract because they fail to grow internal communications systems and procedures. Instead of employees working together as a team to serve their customers, the exponential number of relationships causes internal chaos. One of the problems with exponential growth of relationships is that it requires managers and leaders with exceptional people skills. But many entrepreneurs make the mistake of hiring team members that have great technical skills but lack equally great people, communication and leadership skills. A few years ago, I brought on a brilliant attorney who was great at practicing law but absolutely horrible when it came to working with people. It was soon obvious to me that this attorney should only be in a windowless, one-person office and kept far away from contact with any other living creature. It took nearly a year to repair the damage this single brilliant technician did in just four months. Before adding employees, you must honestly answer the following questions: How are my/their leadership skills? How are my/their organizational skills? How are my/their people skills? Then it all comes back to the age-old question: “How do you find great people?” To answer this, I turn to my good friend Donald Trump, who says, “Set the example and you will be a magnet for the right people.”...

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The 4 money symbols

I am by no means an expert on money or business. Recently I talked about reading ‘Rich Dad, Poor Dad’’ by Robert Kiyosaki. It really did have an impact on me and I’ve been thinking about how to use my dispensable income wisely. I thought of the ways money flow in and out of my life. As well as saving, which I can’t really afford to right now, I thought of four others. Two are positive and two are negative. Two are extreme and can make or break you. The other two aren’t as drastic. + Plus is money that comes into our lives through selling something we already have. What we are really selling are valuable assets which are more valuable than we realize. The main one is time which is extremely valuable but we usually sell it quite cheaply. In my case this involves labouring on a building site for minimum wage while I could be at home using my time to start a business. Another example is a skill such as a builder building a house for money. While you are getting paid, like time you have to actually show up and produce every time in order to receive your money. – Once we get our money we usually spend it. Subtraction is money going out of our lives in small steps. These are usually essentials such as food but can include things we waste our money on such as a new TV or a restaurant meal. ÷ Division is when we use money to buy something but it also takes money away from us on a regular basis in the form of bills, maintenance or credit. Kiyosaki calls this a ‘liability’ which includes a car, a house, sky/cable TV and addictions such as smoking. Liabilities can easily lead to debt. ×Multiplication’s are the best things you can seek. These are ‘assets’ and when you buy them they keep giving you more money. This is how the rich get rich and they use money from their assets to buy more assets. According to Kiyosaki when you have enough assets then you can buy liabilities and luxuries. I suppose it’s easier said than done and I have yet to buy any assets. At least I now know what to look for and I’m a bit more conscious with my money. ~~ http://lifesbestfriend.blogspot.com ~~ View original post here: The 4 money...

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‘Rich Dad’ offers help to emerging companies

~ Sunday Business Post ~  Keith Cunningham lost his entire $300 million fortune at 40 and then made it all back. Now, he’s giving lessons in ‘wealth mastery’, writes Niamh Hooper. Half of all businesses started today will not last beyond two years, and 80 per cent will not last beyond five years. As we face into an economic downturn, thousands of Irish businesses are digesting these statistics and are looking for help. Some turn to American entrepreneur, author and businessman Keith Cunningham for tips on ‘‘wealth mastery’’. Regarded as a world authority on business turnaround, Cunningham claims to be the ‘Rich Dad’ in the international Rich Dad, Poor Dad book series that has sold over 26 million copies worldwide. In the four years since the first book was published, it has proved to be the most popular book series in Ireland on ‘getting money to work for you, rather than you working for money’. Nice concept. But in Cunningham’s company, it’s more than a concept. In an interview with The Sunday Business Post before giving his Igniting Your Business seminar to a sell-out audience of 550 people in Dublin, Cunningham said success was determined by one thing. Commitment to mastery. The 57-year-old straight-talking Texan’s story is an inspiring one. Having started out in business at 11 with his own profitable door-to-door egg delivery service, he went on to create a $300 million business in Cable TV and real estate. By 40, he had lost it all. His money, his wife, his kids – everything. ‘‘I got cocky, I think pride was my downfall, I got complacent.” He declared personal bankruptcy in 1991 and took an 18-month sabbatical. ‘‘On my ‘think time’, I studied all the world’s religions, all the ‘ologys’, read 180 books and attended many seminars. I began re-evaluating who I am, what I stand for and what my life is about. I had stopped learning, stopped growing. I re-emerged with a commitment to mastery. ‘‘The most powerful thought for most people is that hell on earth would be to meet the person you could have been.” During his time off, he met and mentored Robert Kiyosaki, providing the business information in the Rich Dad, Poor Dad books. ‘‘I got him interested in business and he got me interested in teaching,” he said. Within three years of his return, Cunningham had rebuilt his net worth. In recent years, he has mentored thousands of successful business people, sharing with them his mistakes and learnings of the past 35 years in business. He has also written the book Keys to the Vault. The concept of mastery – ‘‘what you...

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Money Lessons From Rich Dad

1. Build Your Mental Wealth Muscles This is my absolute favorite lesson from the book. The author would constantly hear his poor dad saying, “I can’t afford that.” However, his rich dad said that instead of saying you can’t afford something, ask yourself… “How can I afford this?” The first statement requires no thinking. You want something. You don’t have enough money. Therefore, you can’t afford it. The second statement is so much better. You want something. You don’t have enough money. So, let’s find some way that I can create enough money to be able to afford it. The difference between these two statements is incredible! “Forcing yourself to think of how to make extra money is like going to the gym and working with weights. The more you work your mental muscles, the stronger they get.”                 – Robert Kiyosaki, author “Rich Dad, Poor Dad” So, let’s say you wanted to buy a new big screen TV, but you don’t have enough money. What can you do to be able to afford it? Let’s come up with a plan… I don’t know you, but I bet one thing you could do is find some unneeded junk around the house and sell it on eBay. With that alone, I bet you would have enough for your big screen. Or, at least half of it anyways! Another thing you could do is start a savings plan for it. I bet you could easily save five dollars here or five dollars there. Cut back a little on your usual spending habits. Then, use those savings to help pay for the big screen. The point is, next time you want something you can’t afford, use your mental wealth muscles to find ways that will make you be able to afford it. The more you use these muscles, the better they get. And the more money you will find yourself accumulating. 2. Increase Your Financial Intelligence It’s a fact, schools don’t teach students nearly enough about money as they should. You learn history and you learn how to find what x is equal to, but you never learn what financial options that you have. I’ve learned that increasing your financial intelligence is a self-study. High school or college is never going to teach you as much as you should know. You’re going to have to pick up the books and learn it yourself. So… What areas of financial intelligence do you need to learn? Rich dad suggests four main categories. Those are… Accounting – You’ve got to be able to read financial statements. Investing – You have to learn to grow your assets...

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Financial advice: buyer beware

Diana Clement ~ NZ Herald Not everyone can be a financial expert. And in the same way you might go to a doctor for medical advice or a careers coach for guidance on how to climb the corporate ladder, many people choose to get professional financial advice from someone qualified and experienced. A number of professions offer advice and some overlap. These include accountants, lawyers, financial advisers (also called financial planners), insurance advisers, stockbrokers, and mortgage brokers. You can also get free advice from budget advisers associated with the Federation of Family Budgeting Services. If you’re in debt, this can be a very good place to start because it costs nothing. Or, if you need a kick up the pants as well as advice, you might consider employing a financial coach or mentor. Their role is to keep you on the straight and narrow and focused on achieving your financial goals. Seeing your coach is like getting a weekly or monthly financial reality check. Have you done what you said you would do? Are you fooling yourself with myths and excuses? Banks and life insurance companies also employ people who can give you “advice”. But only about the products that their particular company sells, which may not be best suited to your circumstances. Before you choose an adviser it’s important to understand the way your adviser gets paid. In the case of accountants and lawyers it’s usually on a per-hour basis, which should, unless you’re really unlucky, mean that you’ll get advice best suited to your needs. A small number of financial planners charge by the hour and either don’t take commissions, or reinvest them for you. Many Kiwis aren’t prepared to pay up front for financial advice. If you do, however it will save you wondering if you’re getting the best advice. Typically, financial advisers get a commission or cut from products you invest in and sometimes charge an ongoing annual management fee. In some cases this has led financial planners to recommend inappropriate products to clients. However, most are professional in their dealings with clients and offer best practice advice. Most advisers use what is known as modern portfolio theory, which uses diversification to optimise the return from investors’ portfolios. Usually investors will be given a portfolio containing a mixture of cash, shares, bonds and property, weighted according to their risk and return. Because of the way most advisers are paid, they tend only to recommend those investments that pay commission and residential property investment is often left out of the mix. They will, however, include commercial property syndicates, which do give investors exposure to property. In...

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Calling all Bizkid$

KLRN and Security Service Federal Credit Union are looking for kids with a little bit of business savvy. Throughout the month of April, kids six to 12 can shout out their business successes at the KLRN Web site, or they can pick up an entry at Security Service Federal Credit Union.Each week, one kid will be chosen to win $100. A grand prize winner will get $500 and be submitted to PBS for possible inclusion on an upcoming episode of Biz Kid$, a show that teaches kids about money. More here: Calling all...

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In case of emergencies, break into stash of cash

~ Annette Sampson ~ The strategy To stash some cash for emergencies. Do I need to do that? Are you kidding? Hasn’t all the mayhem on world debt and sharemarkets this year brought home the fact that spare cash is a good thing to have? Whether you believe the latest rally is the turnaround point or not, the fact remains that the easy money of recent years has dried up and the resulting credit squeeze has put meaning back into the old adage that cash is king. There’s not a lot the experts agree on but on one point they are unanimous: the uncertain times aren’t disappearing any time soon. We’re still seeing the unwinding of dodgy lending practices, a recession in the US looks increasingly likely and Australia can’t seem to work out whether the porridge is too hot, with inflation the main problem, or about to become too cold as all those interest rate hikes start to bite. A cash buffer gives you the security of having money on hand if your personal circumstances take a turn for the worse and the ability to take advantage of opportunities when other people are strapped for funds. In falling markets, investors with liquidity can snap up bargains as cash-strapped investors are forced to sell. How much of a buffer should I have? Denis Orrock, the general manager of InfoChoice, says his Depression-era dad always advocated having three months’ income set aside to help you get back on your feet if something went wrong. He says that’s still a reasonable ballpark figure, though how much you need will depend on things such as how much debt and other commitments you have. “[Having a buffer] also frees you up and gives you more choice in life,” he says. “You often see people who don’t like their jobs but can’t afford to leave. But people make decisions if they have money set aside and want to make changes. They reap the benefits of their savings.” Financial planner Laura Menschik of WLM Financial Group says in uncertain times you need to look at what you can do to make yourself as comfortable as possible. This could mean having cash set aside but it could also involve paying down your debts so that you have money to draw on if you need it. “If you pay off all your credit cards, you know that you can use them in an emergency,” she says. “Reducing your debt over time gives you access to finances when you need them.” If you have a home loan with a redraw facility, Menschik says pumping extra money into your...

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What?s your money personality?

US-based psychologist Kathleen Gurney, a leader in the field of money personalities says everyone fits into one of these nine money personalities. ENTREPRENEURS: This is a very male dominated group that favours investing in the stock market. HIGH ROLLERS: They are thrill seekers who enjoy the ride of financial risk. HUNTERS: These are often women. Usually highly educated, with a live-for-today financial style. ACHIEVERS: These are often conservative and not interested in risking assets they have worked hard to accumulate. They’re big on insurance and like to take charge of their money. MONEY MASTERS: They get contentment and security from money and are the top wealth accumulators. They tend to act on sound advice and don’t rely on luck. PERFECTIONISTS: They hate making mistakes and as a result they often don’t make decisions about their money. They find it difficult to find suitable investments thanks to having tunnel vision. PRODUCERS: They have a lack of self confidence in money management and do not profit from risks because they can’t evaluate them carefully. OPTIMISTS: They can cope with risk, but are more interested in enjoying their money than taking risks. They have few anxieties and tend to outsource the management of their money. SAFETY PLAYERS: They are the really risk averse investors who put their money into really safe and secure investments such as the bank. They don’t take enough risk to make their money grow. Here is the original post: What?s your money...

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