Robert Kiyosaki Blog

Financial Education Portal inspired by Robert Kiyosaki

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The Rich Dad Difference Videos (#5 – #8)

Video #5 – Bad Debt vs Good Debt Video #6 – Live Above Your Means Video #7 – 3 Types of Income Video #8 – Investing isn’t...

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The Rich Dad Difference Videos (#1 – #4)

Video #1 – 3 Types of education Video #2 – The Cashflow Quadrant Video #3 – Savers Are Losers Video #4 – Assets and...

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When the Going Gets Tough

When the Going Gets Tough the Tough Get Going This old, but poignant cliché applies in every situation when something is going off track-that is-going off track from what we currently know it to be. The news media and politicians create a ‘sky is falling,’ atmosphere when they focus on the bad news. Yes, it is tough to be laid off or seeing your friends or family get laid off, or if you own a business to see your products or service in a slump. However, there IS money to be made.  You need to think, ‘outside the box,’ and see the situation in a different light. What you focus on is what you attract.  Yes, the Law of Attraction applies in every situation-albeit the analysts are predicting doom and gloom, you can move outside the current paradigm. If you talked to Warren Buffett, he would tell you to analyze what can be done-versus what cannot be done.  Buffett did not become the richest person in the world by worrying about a downturn in the economy or doing what everybody else does. He developed and worked a plan to continue to grow his wealth. When everybody else is selling their stock, Buffett is buying. Yes, he gets ‘sweetheart’ deals and all that, and you are not Warren Buffett.  However, my point is that, in tough times, you have choices, even though they may be few.  You can give up or think, ‘outside the box.’  Instead, of seeing the glass as half empty you can see it as half full. Instead of thinking and focusing on doom and gloom you can develop creative strategies to stay ahead of the ‘so-called’ down turn. The economy rises and falls in response to what people are willing to put into it. Likewise, we have inside ourselves an inner economy that rises or falls in response to our beliefs about what is possible or impossible-positive, negative or neutral. The degree to which you are willing to challenge your belief system determines the success of your inner economy. Have you ever wondered why some families are particularly talented in music or art? Imagine if your family of origin had a belief that musical talent was something they lacked. As a member of that group, you would likely create that same belief about yourself. As a result even if you had the desire to pursue musical endeavors, you might hesitate to get behind yourself, fearing that your investment would be for naught. Even if you had the courage to follow your passion, your inner belief that you inherently lack musical talent would probably be a major obstacle in...

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Innovative WMS program shapes financially savvy students

WOONSOCKET – The Woonsocket school district and the Light Foundation last week debuted the partnership’s most ambitious initiative yet, a first-of-its-kind course in the district created to develop financially streetwise city students before they even hit high school. The week-long course, taught by Light Foundation Executive Director John Keuffer and colleague Richard Carey, took a bold and unconventional approach in teaching Woonsocket Middle School students how to, in a word, be smart and get rich, even if they never score a high-paying job. “Some of these kids are feeling the effects of the down economy pretty badly,” said Keuffer. “We want to show them to look at money differently, that even someone who makes a lesser income can be financially free.” Examples are many, he told students, of people making less money who end up saving millions of dollars over a lifetime. “If you’re smart with your money, you can lead a frugal, yet enjoyable, life,” he said. Keuffer and representatives from the foundation established by New England Patriots All-Pro Tackle Matt Light plan to be back next April for another round of high-energy classes, but then it might be up to someone in Woonsocket to keep the initiative alive. “I’d love to see it part of the math curriculum here,” said Keuffer, midway through the week, on one of his dreams for the course. Jessie Butash, a WMS teacher and liaison between the school and the Light Foundation, agreed with Keuffer that keeping in-depth financial training as part of the curriculum is a great goal. “Teachers were all on board with the program and would love to see more kids be able to take advantage of the opportunity,” she said. In round one of the course, about 20 WMS students agreed to take part in financial literacy training, receiving both school credit and some basic skills they need to be successful. Speaking of his most memorable lesson from the week, 7th-grader Dario Rodriguez said it was his instructors’ examples of how quickly even a cash amount of $1 million can disappear. “They taught us how fast it can go down the drain, with a house, cars, the things people like to buy,” said Rodriguez. “We need to be careful about money and keep the flow of it going.” “It’s about having options, that’s what it comes down to,” Keuffer told students over lunch in the WMS cafeteria. The Light Foundation’s relationship with Woonsocket Middle School students began earlier this year when four local youths were selected to be part of a long-term pilot project designed to keep them on the straight and narrow path with mentoring from Light...

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Do Not Limit What You Can Accomplish in year 2009!

As the calendar year comes to a close, many of you will soon be sitting down to write your New Year’s resolutions. You may have your sights set on quitting smoking, getting into better shape, or spending more time with family. Perhaps you want to be more environmentally friendly this year, finally learn to play the piano, or take that trip you have always wanted to take. When setting personal goals for self-improvement, the possibilities are endlessly varied; however, on the forefront of everyone’s mind thisyear should be your personal wealth, and the quantifiable goals you can set to ensure that you prosper in the upcoming year. I assure you, we will do everything we can to assist you in achieving the financial and educational goals you set. Whatever you choose to include on your list, my suggestion to you is to expand it. I never cease to be amazed at two things: the unlimited capabilities of the human soul to achieve the greatness to which it aspires, and how few are those who ever undertake such challenges. Do not limit what you can accomplish in the upcoming year. Dream big, make goals that others may perceive to be outlandish, and work hard to achieve them. Kim Kiyosaki Read more here: Do Not Limit What You Can Accomplish in year...

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Don’t Fear Failure

~ Robert Kiyosaki One of the reasons so many people don’t become entrepreneurs is because they’re afraid of failing. They’re afraid of making mistakes. They’re afraid of losing money. But if people can’t overcome these psychological fears, they’d be better off keeping their day jobs. In the early 1980s, when my first major business failed, I thought I was the stupidest person in the world. Being flat broke and getting calls from creditors made me wish I had never wanted to be an entrepreneur. I even wanted my old job back. But instead of condemning me for failing, my rich dad gave me one of life’s most important lessons: “You’re fortunate to have failed. You now have the opportunity to learn how to turn bad luck into good luck. If you can do that, you’ll have a life of more and more good luck.” Here are three key points for turning bad luck into good luck: Don’t blame. When my rich dad asked me what went wrong, the first thing I did was blame my partners and the economy. He immediately said, “Never blame anyone for your failures.””But it was their fault,” I replied.Shaking his head, my rich dad said, “If you blame someone else, you’ll never learn from your mistake. If you blame, you give your power away.” Remember, there are no victims–only volunteers. And you volunteered to become an entrepreneur. Meet new partners. My rich dad said, “In every bad deal, I have always met good people. Some became new partners.” Still hating two of my partners, it was hard for me to understand this statement, yet I took my rich dad’s advice and began sifting through the wreckage.Today, one of my best friends came from that business fiasco. In the ruins of other business failures, I met my current partner in real estate and another partner in my franchise business. If not for the failures, I wouldn’t have met those fellow entrepreneurs and gone on to make millions of dollars with them. Study your mistakes. “Mistakes are priceless,” my rich dad told me. “Study them, learn and profit from them.”Again, this lesson was hard to hear. Being angry and broke, I wanted to run from my mistakes. But rather than run from my failure, I went back to my factory, studied my mistakes and resurrected the business. This is how I turn bad luck into good luck. Remember, making mistakes and becoming smarter is the job of an entrepreneur; not making mistakes is the job of an...

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When You Think Real Estate, You Think Rich

What exactly is it that separates the wealthy from the rest of us? This is an essential question that isn’t asked nearly often enough. On first considering the question, you may be tempted to give answers such as, “Having wealthy parents” or “Winning the lottery” or even “Working at a cushy, high-paying job.” Indeed, anyone in any of the aforementioned circumstances can count his or herself among the very lucky.   Unfortunately for these people, however, being lucky isn’t all it takes to become rich. Robert Kiyosaki, author of the best-selling Rich Dad, Poor Dad books claims that being rich has more to do with how much money you hold on to than how much money you have coming in. Kiyosaki’s father, the so-called “Poor Dad,” is a great example of a well educated man blessed with a great career who was nonetheless poor, because he couldn’t seem to keep any of the money he was earning. The good news for you, is that becoming rich has less to do with external factors like your job or whether you were born a Rockefeller, which you can’t control, and more to do with internal factors which you can. Whether you ever become rich or not is determined, in large part, by nothing more than how you think. Kiyosaki’s “Rich Dad” used a graph entitled the Cash Flow Quadrant to explain this principle, separating people into four groups. ‘E’s and ‘S’s, or employees and those who are self-employed, occupy one half of the graph. ‘B’s and ‘I’s, or businesspeople and investors were on the other. Robert Kiyosaki claimed that, in addition to representing the source of a person’s cash flow, these categories served as a window into how different type of people think about money. Furthermore, Kiyosaki explains, individuals don’t land in one quadrant or another by a roll of the dice. According to Kiyosaki, the people who fit into these four categories are fundamentally different in their thoughts and emotions, and these essential differences drive individuals to behave differently towards their money. What’s more, Kiyosaki says, it is that emotional difference that determines to which quadrant a person is drawn. And, he says, you can always tell which quadrant a person is coming from simply by listening to what they say. If you hear a person talking primarily about their benefits and job security, then that person is coming from Kiyosaki’s E or employee quadrant. He also goes on to say that it is perfectly all right to live your life in the E quadrant if security is indeed the most important thing to you. But, he adds, the E...

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Stock Market Tutorial: The Bare Basics

If you’re new to investing, this stock market tutorial will give you a general overview of stocks and demystify the whole process. There is a common misconception that only the wealthy can invest in the stock market. This is simply not true. It is essential to have a general understanding of stocks before you begin investing. Since you have chosen to read a stock market tutorial, you’re clearly taking the initiative needed to join in on this wonderful opportunity to earn additional income. This stock market tutorial will discuss just the basics on stocks. Upon finishing, move on to the next level of advancement. Before long you’ll be a stock market tutorial graduate! Perhaps you’ll be the next Donald Trump someday! But let’s not get too far ahead of ourselves! Where Do People Learn About the Stock Market? Many jobs will offer stock options to their employees through the company. A simple investment such as this can result in some wonderful long term returns. Another place people get started with stocks is from a family member such as a parent who takes the time to teach them. Some couples handle their stocks together, and some parents talk to their teenage children about stocks. Other sources for information on the stock market include: a stock market tutorial such as this one, books, business magazines, and more. What Are Stocks? Stocks are portions of ownership (also called “shares”) in a company. Growing companies sell these shares to help fund further development. Why Should You Invest? The question of whether to invest is yours to decide. Let’s assume since you’re reading a stock market tutorial you’re already convinced. You may still want a few reasons to invest, though. Here are some benefits to investing in the stock market: Stocks grow over time. When the stock grows you can sell it at a higher price and thereby turn a profit. However, in selling it, you relinquish the opportunity to generate future income from that stock to the new investor. The main reason to invest in stocks is that you can make more money more quickly, if you invest in the right stocks, than you can through other methods of investing. Types of Stocks Stock types are broken down by the risk involved. There are low risk stocks, moderate risk, and high risk. These terms seem fairly self-explanatory even in a basic stock market tutorial. Low risk stocks are best when you start out. As you might guess, you can invest in low risk stocks without negatively impacting your finances in a major way. The lowest types of risk are found in older, historically...

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10 Ways to Save Energy and Money

It’s no big surprise that energy costs money, but some people greet their bills each month with shock when they see how much their consumption is costing them. According to the U.S. Department of Energy (DOE), the average family spends approximately $1,600 per year on utility bills alone. Anything you can do to conserve energy puts some of that money back in your pocket. Let’s take a look at 10 painless ways to reduce consumption and cut your expenses. 1. Use Your Thermostat Turning up the temperature during the summer and turning it down during the winter are great strategies for putting your thermostat to work for your wallet. The DOE recommends setting the air conditioner at 74 degrees and the furnace at 68 to keep your house comfortable while reducing your energy costs and decreasing the demand on the energy grid. A programmable thermostat lets you make the house hotter or cooler during periods when you aren’t home. This reduces the temperature difference between the exterior and interior of your house, which in turn reduces energy loss. If you don’t have a programmable thermostat, you can manually adjust your existing unit. 2. Ceiling Fans If you have ceiling fans in your house, turn them on and use them properly. According to Energy Star, a voluntary labeling program sponsored by the DOE and the U.S. Environmental Protection Agency (EPA), ceiling fans should be set to spin counter-clockwise in the summer, which pulls hot air up to the ceiling and away from the living space. In the winter, reverse the setting so the fans blow the hot air down. 3. Energy Star Appliances Energy Star also identifies energy-efficient appliances, including washers, dryers, refrigerators, freezers, dishwashers, dehumidifiers, room air conditioners, computers and more. When you are shopping for new appliances, look for the Energy Star label and you can rest assured that the items you are purchasing will go a long way toward saving you some cash. The point here is to not increase the use of these items just because they are energy savers. This is much the same as concept low-fat food: consuming more defeats the purpose. 4. Home Electronics Stereos, DVD players, televisions, kitchen appliances, and any other plugged-in appliances draw a small amount of power even when turned off. Large LCD and plasma televisions consume up to 400 watts of energy when in use and about four watts when not in use, according to the British Broadcasting Corporation. Use the surge suppressor to turn them completely off when not in use, or unplug these items until you really need them 5. Energy-Efficient Light Bulbs A quick and easy...

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A Consumers Guide to Buying a Fixed Annuity

by Charles Mandolson Most people thinking about their future always would like to think about availing of some attractive financial products that will effectively be able to provide additional income for them as well as their families especially at the time of their retirement. This will take some time to consider most especially in trying to choose which will provide the best option depending on one’s situation or circumstances. Among the products available out there are a host of annuities. For your information, an annuity is simply an agreement for an organization (an insurance company) to pay another an income stream in the form of regular payments in exchange for investment given in the form of premiums. There are various types of annuities that people can choose from. One of those choices is fixed annuity.   In a fixed annuity, an individual receives a fixed and guaranteed regular income for the term of the agreed contract. This term usually covers the duration of the individual’s life. Fixed annuities also provide a guaranteed interest rate for the investment sum of the policy. The advantage of a fixed annuity contract is that it has a cash surrender value which can be availed in partial amounts or in its entirety before or during the annuity period. In a fixed tax-deferred annuity, the individual is allowed to invest in a annuity with an accumulation period wherein taxes on earnings are deferred or delayed until a certain term. The advantage of this is that it allows your investment to grow faster because it earns an interest on the money that you would have otherwise pay to taxes every year. The individual benefits from compounding of the tax-deferred earnings, that is, until he makes a withdrawal or begins receiving his annuity income. Fixed tax-deferred annuities are safe as investment income especially for people planning for their retirement. Every qualified life insurance company issuing such tax-deferred income investment instruments are required to meet its contractual obligations. This is made possible by companies establishing reserves that should be equal to the withdrawal value of every annuity policy at all times. Aside from the reserves, the insurance companies are legally obligated by state law that certain levels of capital and surplus be met in order to further increase the protection of the policy holders. As an added benefit to fixed tax-deferred annuities, they are not subject to withholding taxes while they are compounding. This makes such policies the best option for those people planning to save money for a long period of time. The longer the investment stays without any withdrawals or income payouts made, the longer the...

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