Robert Kiyosaki Blog

Financial Education Portal inspired by Robert Kiyosaki


Developing Wealth Creation Skills

Wealth creation is probably a new term for most people. It is hard enough to create something useful for ourselves. Yet, do people really think that creating wealth is possible? As we can see, in today’s educational system it is rare for universities to teach wealth creation even in business schools. Thus, it might as well be an abstract idea as world peace. However, inspirational giants and self-made millionaires like Robert Kiyosaki, Tony Robbins and Jamie McIntyre are people who have perfected wealth creation skills. As the term implies, skill is an action to produce tangible results. One cannot say that he has the skill to do something if he cannot demonstrate it. Thus, developing wealth creation skills is not only a tangible part of reality, but also something that people can develop and enhance. Following a path towards developing wealth creation skills will definitely help you achieve financial freedom. Do not Sell Yourself Short The first step in developing your wealth creation skills is acknowledging your value.  Having the self-confidence to move forward with your strengths will allow you to be valuable to other people. When this happens, do not undervalue yourself. When you undervalue yourself you project an image where people can manipulate you. Feeling that you do not get equal value for your work is the biggest individual letdown. In order to develop your wealth creation skills, you must design your launch pad to success by feeling good with your work. By pushing yourself to live up to your perceived value, you also give yourself the incentive to become a better person and raise your value even higher. Then you can become a critical creator of your wealth. Millionaires are not cheap Most successful people will tell you that success comes with a price. Sometimes the price tag for success is something that we can afford. However, we still don’t have the will to spend it anyway. Self-made millionaire’s spends on things that they can’t afford because they know that they can be better off with it. Remember that the world millionaire and cheap will not come together. If you want to be a millionaire someday, start getting rid of the word cheap. Remember that every benefit always comes with a cost. Go for things that you feel will benefit you the most and be daring enough to supply the necessary effort for it. Finding your craft – then get paid for it People find confidence if they do what they really love doing. However, people tend to leave the things that they love in order to work hard for money. When this happens, one finds...

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Living beyond means

Recently released numbers from the U.S. Bureau of Economic Analysis show that the US once again has an increasing personal savings rate. Unfortunately, this rate has been declining for decades as Americans began living increasingly beyond their means. On more than one occasion the savings rate even dipped into negative territory, meaning that America’s population in aggregate was borrowing more than it was saving. This high consumption rate in turn has led to excessive borrowing, which was the ultimate cause of the financial crisis that occurred last year. Generation Y, my generation, seems to have particular difficulty saving money. First off, we’re still relatively young, and young people in general are less inclined to think long term. However, young adults today are worse than previous generations in that they see disposable income and no need to save a portion. This inability to save is partially the fault of parents. Many simply never taught their kids to save. Mine was the generation of the allowance. Parents thought they were teaching us a lesson and that by giving us a defined amount for any given period, we would learn to budget. Instead, kids got their allowance and viewed every cent as spending money. To people who never think about the benefits of saving, allow me to introduce the 8th Wonder of the World: Compound Interest. Consider the following examples: 1. Let’s say that at age 25 a person had accumulated $10,000 to invest. If they can earn, say 10% per year for round numbers, on average, how much will he have at age 60, assuming he never contributes another dollar? 2. What if that same person waited until age 30? How much would they have at 60 then? 3. And if they waited until age 35, what’s there at 60? The answers can be found at the end of the blog. Keep in mind that those results reflect growth with no additional savings. To see even more phenomenal results, consider the following: 4. Let’s say I have a friend who’s 25 years old and has little or no savings to date. Realizing the predicament he may face in the future, he has decided to adjust his spending habits to start saving $100 per week. While this is no large sum, let’s say he continues this pattern of saving for the next 35 years. Assuming 52 weeks per year and an average annual return of 10%, how much will my friend have when he’s 60? The real concept here is to let your money work for you. For continued reading on the subject, we strongly recommend Rich Dad, Poor Dad by Robert...

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How To Create Life Leverage

I think that I’ve always been attracted to the prospect of increasing cashflow because of what it represents. To me, it’s always been a symbol for life leverage: the ability to increase one’s options for action. We feel alive when we are free – to feel free is at least closely related to feeling alive in the sense of feeling an excitement for living. Recall the last time you were travelling to a new country or location you’d never been to, or the thrill of meeting someone special, or finishing a story or painting of your own creation, or the simple pleasures that come with having an unexpected, free day to spend exactly how you want it, or the thoughts you had after seeing a powerfully moving film, or receiving an unexpected but welcome windfall of money. Maybe a different situation comes to mind to you. I’m guessing you may have felt thrilled and quite inspired. To be inspired, etymologically speaking, is Latin for “having the breath of God inside you.” The Greek equivalent is to have enthusiasm – from entheos, “to be in God.” “God” can refer to however you conceive a higher power or higher intelligence ordering things – whatever turns out to be above beyond the realm of mere human consciousness and human life. To create life leverage is to access more of this feeling of inspiration and enthusiasm. It is to move closer to that part of you that feels this way or is “in touch” with your own “divine spark” so to speak; the part that leads you to take – as Joe Vitale has said – “inspired action.” Imagine feeling that way all the time? Of course you’d have your ups and downs, too, but in general the more actions and options that are open to us, I think, is one of the key ingredients for how good we can feel. One of the worst feelings is to “feel stuck” in our lives – we must be in a certain place at a certain time for other people so we can please their clients and customers; or how about the feeling of having absolutely no time or space to oneself? That can really wear down your health after a while. So here are some quick thoughts on how we can better get in touch with or create more of this life leverage. (1) Have a plan. You might not have a huge global plan that you can fit over all parts of your life just yet, but I think it’s probably a good thing if you can at least have a plan running...

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Free credit report ads: Stop the music!

The new credit card reform law is full of good consumer protections, but here’s one you might not know about: It’s going to require companies like (owned by credit bureau Experian) to clearly state that their services aren’t actually free. Who doesn’t love those commercials? You know, the ones featuring the lovable 20-something singing about his credit troubles in a variety of musical genres? In the first, he’s dressed in pirate gear and crooning about how he has to work in a seafood restaurant because his identity was stolen (it works best if you don’t think too hard about it). My favorite jingle is the one that has him singing about how he married his dream girl, only to find out that her credit was bad, too. You can see all the commercials here: The only  problem, of course, is that is not really free. In order to get your report through the site, you must sign up for a trial membership in the site’s “Triple Advantage Credit Monitoring” program. If you don’t cancel your membership within a 7-day trial period, you’re billed $14.95 a month. And plenty of people have fallen for the site’s promise without realizing they were going to be billed. The Better Business Bureau has received 9,865 complaints about the site in the last 36 months, with some complainants saying that they kept being billed even after canceling membership. But now, thanks to the Credit Card Accountability, Responsibility and Disclosure Act, companies touting free credit report services must disclose in their ads that consumers are entitled by law to receive a free credit report from each of the three credit bureaus, and that the official web site to obtain them is And radio and TV ads must clearly state, in both the audio and the video, “This is not the free credit report provided for by federal law.” That’s good news, since the web-only public service commercials the Federal Trade Commission created in response to’s ads need all the help they can get: Excerpted from:Free credit report ads: Stop the...

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What Not To Do When Writing Business Plan

London Business School professor John Mullins says now is a great time to start a business. He writes in the WSJ: Costs are lower, and more talent is available, thanks to layoffs. Prospective clients are more likely to try a new supplier who can help them cut costs or increase their competitiveness. Established players, too, are focused on cutting costs instead of increasing market share. Of course, starting a business means finding funding, and finding means writing a business plan. In his very long WSJ article, Mullins explains what not to do when writing one up. We’ve boiled it down to five bullet points: Don’t focus on your amazing technology. Focus on the customer need your business will solve. Don’t overestimate the size of an untapped market, and then claim your business will only need to capture a small slice of it. In untapped markets, the consumers don’t know they need a product yet and they don’t know how to get it. Mullins calls these the “Coke-for-Every-Kid plans.” Don’t stretch the numbers. Mullins quotes an entrepreneur who says, “With a couple of beers and an Excel spreadsheet, you can make a lot of money in no time.” Don’t try it. Don’t lead with your resume. Investors don’t care how many Harvard MBAs there are on your team. Don’t ignore the risks your business will face. Investors know all businesses have their weaknesses. Don’t be naive and try to pretend yours won’t. Excerpt from:What Not To Do When Writing Business...

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Credit Crunch Song – Voice Over Man – What A Bunch Of Bankers

Peter Dickson is the voice of ITV, X-Factor, Britain’s Got Talent, Family Fortunes to name a few. He’s made a record about the credit crunch and the BBC have banned it, ‘its too politically sensitive’ say the Beeb. Help him get the record into the charts so the BBC have to play it! Do you like the action of the banks in recent months? No, they’ve taken our money. When was the last time you needed some cash, say several billion and you were given it? Come on … See original here: Credit Crunch Song – Voice Over Man – What A Bunch Of...

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As economy worsens, fake check scams spread

To a con artist, cash is king. International scammers have developed a deviously clever way to trick people into sending them cash. The crooks mail out counterfeit checks or money orders and come up with a creative story to get their victims to wire back thousands of dollars. According to a survey released Wednesday by the Consumer Federation of America (CFA), nearly a third of all adult Americans have been approached with fake check scams and at least 1.3 million have fallen for it. “They didn’t realize the pitch and the check were both phony until they wired off the money,” says Susan Grant, CFA’s director of consumer protection. She says the average victim gets taken for between $3,000 and $4,000. Sally Greenberg, executive director of the National Consumers League, puts the yearly loss at $20 to $60 billion a year. Her group runs the Web site “These are very persuasive scams that play on people’s vulnerability,” she says. Here’s another reason so many people get burned by these counterfeit checks: They look legitimate. “They look so real your bank teller can’t always tell it’s a fake,” says Allison Southwick of the Better Business Bureau. It starts with that bogus check or money order Why did you get that unexpected check or money order for thousands of dollars? Maybe you’ve won a contest. Maybe you hit the jackpot in a lottery. Maybe it’s payment for a work-at-home job. The storylines are varied, but the con always works the same way. You need to deposit the check and wire off most of the money right away. “Once it’s wired it’s gone, gone, gone,” Greenberg says. The CFA survey pinpoints one reason why this scam is so successful. Most people (59 percent of those responding) mistakenly believe that when you deposit a check or money order, your bank confirms that it is good before letting you withdraw the money. Forty percent believed they would not be held responsible if the check or money order turned out to be counterfeit. Wrong! Many victims tell me they asked their bank if the check “cleared” before they wired the money and were told yes. Here’s the deal: When a bank says a check has cleared, it means you have access to those funds. It does not mean the check is good. If the check bounces – which could take a few days or many weeks – you are responsible to repay your bank for any of the money you withdrew. Bogus checks can be used for almost anything. All the bad guys need to do is concoct a story about why they sent...

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Teaching kids about money: Do you know these 7 key facts?

Almost everywhere you go, you can hear parents say: “I want to start teaching my kids about money while they’re young, so that maybe they’ll grow up and avoid making the same mistakes I did, maybe they’ll be both wealthy and grateful.” It makes sense that teaching kids about money is on almost every parent’s mind. There are several money gurus for adults (Robert Kiyosaki – “Rich Dad, Poor Dad,” David Ramsey – “Total Money Makeover”, David Bach – “Automatic Millionaire,” to name a few). Of course, most parents with young children who are learning from these gurus eventually get around to wanting to impart this new-found wisdom to their children while they’re still young. Also, there’s the huge number of conscientious parents who are in debt and who are on a path of getting rid of their debt. And then, there’s the self-aware parents who have become introduced to, and may be continuing on the path of, replacing a poverty-focused mentality with an abundance mentality (e.g. The Secret, Law of Attraction, and various faith-based and secular abundance teachings). Of course, America is very well-poised to finally leave the poverty mentality of The Great Depression, as the third or fourth generation is being born now. Finally, Americans are extricating themselves, bit by bit, piece by piece, of the deeply embedded beliefs and language of The Great Depression, which are negative and counter-productive to building financial wealth. Maybe you read “Rich Dad, Poor Dad,” and a light bulb went off about how you look at money, and now you are at a loss of how to teach your children about money. Maybe you don’t yet know how money works or what ROI means, and don’t have the time to go through a long learning curve, but want to capture the opportunity to teach your kids about money now while they’re young. Here are 7 key points that you must know when teaching your kids about money: 1. Financial Wealth is created when your money makes money (rather than you making money). 2. ROI means Return On Investment. It is your Return On Investment – that is, the money that your invested money makes for you – that defines your wealth (rather than your earnings or your capital gains). For more teaching on this topic, read or listen to “Rich Dad, Poor Dad,” and/or play “Cash Flow 101,” to learn about getting off of the Rat Race. 3. Thinking that you’ll get out of debt and become wealthy when you work harder, get a raise, make more money, have greater commissions, or make some landmark profits in your stock trading account,...

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The Upside of a Downturn

President Barack Obama’s campaign theme was “Change.” We’ve all seen plenty of change in the past year, specifically economically and financially. Much of this change most people would label as negative. If you take into account the banking crisis, the growing numbers of people facing unemployment, the double-digit losses in so many 401(k)s and retirement plans, and the number of cities and states whose budgets are upside-down, then it does paint a pretty dismal picture. And some—those hoping the government will save them or those who are not willing to change what isn’t working—will face a very rough road ahead. No doubt most of us will have to do many things differently, regarding our money, our investments and our businesses, in order to not only survive but to thrive in this economic climate. That being said, and being the optimist that I am, I have to look and ask, “Where’s the upside in all of this?” And I do believe that there is not just one diamond in this rough, but there are three positive gems that could manifest out of this turmoil. 1) A Wake-up Call for the World Sometimes things have to get bad before we take action. This time in history could very well be our fi nancial and economic wake-up call. There are many pieces of this puzzle that are broken, and it will take more than a new president, new rules for Wall Street and a few crooks going to jail to fix it all. This is undoubtedly a global problem, and it will take resources from around the world to turn this one around. I trust this is a wake-up call for our political, business and financial leaders that real and tough changes have to be made, now. There is an even more important wake-up call for the individual, if you’re willing to tell yourself the truth. That wake-up call is this: You can no longer be clueless about your money. It is the realization that turning your money over to the so-called fi nancial experts isn’t working. It is the light bulb that goes off when you see you have an absolute need for real financial education. No more disguising a sales pitch for sound fi nancial advice. No more taking the advice from fi nancial advisors who don’t practice what they preach, who tell you what to do but don’t do it themselves. And no more allowing ourselves to be ignorant enough to blindly follow their recommendations. Fortunately, the message is spreading. Peter Applebome, a talented journalist, recently wrote in an article for The New York Times titled, “Contemplating the Boobs...

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Robert Answers “10 Questions” on

Watch the video interview and read the feature article in TIME Magazine as Robert answers “10 Questions” from readers.  From Conspiracy of The Rich to how to find a rich dad, Robert answers your toughest questions as only he can. Originally posted here: Robert Answers “10 Questions” on...

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