Robert Kiyosaki Blog

Financial Education Portal inspired by Robert Kiyosaki

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Kim Kiyosaki: The steps women should take to financial independence

Entrepreneur, real estate investor and best-selling author of “Rich Woman”, Kim Kiyosaki is on a mission to help women reach their goal of financial independence. Here she talks about the steps women should take to improve their financial...

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Robert Kiyosaki – A Message To Young People

Robert Kiyosaki explains – Why Network Marketing is the Business of the 21st Century? Learn how to build a True Wealth Business with Swiss Gold...

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Robert & Kim Kiyosaki Talk about their upcoming tour to South Africa

Robert & Kim Kiyosaki Talk about their upcoming tour to South...

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Robert Kiyosaki – The Rich Don’t Work for Money

Robert Kiyosaki reflects on how as a child he was sent to a public school comprised of mostly upper-class youth. He was jealous of the material goods his classmates possessed, such as new baseball gloves and bicycles. He decides he wants to start his own business and asks his best friend, Mike, to be his partner. They concoct a scheme to make money out of their neighbors’ lead toothpaste tubes by melting them down and using a nickel as a template. Kiyosaki’s poor father catches them making counterfeit nickels. He applauds their ingenuity, but informs them that their operation is actually illegal and won’t work. His father suggests that they talk to Mike’s dad if they truly want to learn how to be rich. Mike’s father had a reputation in town for his business acumen and talent with earning money. The two agree to meet with Mike’s father the following weekend. Their education with Mike’s father (aka “Rich Dad”) begins. He offers to help them learn to be rich if they agree to work at one of his superettes for 10 cents an hour, three hours every Saturday. Kiyosaki works for four shifts and finds the work boring and the pay disappointingly low. He decides he wants to quit. He confronts Mike’s dad and informs him that he has not held up his end of the deal – he hasn’t taught him anything. He blames Mike’s dad for paying him poorly and treating him unfairly. Mike’s dad explains to him that he has just taught him a lesson, a lesson that mirrors real life. He goes on to say that you can’t blame your employer for your economic troubles and that ultimately you are responsible for your own well-being. He summarizes his first lesson: ”The poor and the middle class work for money. The rich have money work for them.” Mike’s dad informs Kiyosaki that if he wants to keep learning from him, he will return the next week and continue to work at the superette – for no pay. Kiyosaki is angry and bewildered, but returns the next week nonetheless. After several more weeks of working for no pay, Mike’s dad shows up at the end of one of their shifts. He offers to pay them 25 cents an hour, but Kiyosaki can tell that he is testing them. He then offers to pay them up to $ 5 an hour and although Kiyosaki is tempted, he resists. Pleased, Mike’s dad agrees to teach them more about money. He advises them to lose their fear of not having money and their greed for large amounts of money. He explains...

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Robert Kiyosaki – The Definition of Wealth

~ Robert Kiyosaki ~ When I was a young boy, my rich dad told me about the difference between the rich and the wealthy. “Many people think that being rich and being wealthy are the same thing,” said rich dad. “But there is a difference between the two: The rich have lots of money but the wealthy don’t worry about money.” What rich dad meant was that while the rich might have lots of money, they also might have lots of expenses that keep them up at night. Or they might have a high paying job but have to get up to work everyday and have fear of getting fired or laid off. The wealthy, on the other hand, don’t have these worries. Why? What’s the difference? The definition of wealth The definition of wealth is the number of days you can survive without physically working (or anyone in your household physically working) and still maintain your standard of living. For example, if your monthly expenses are $ 5,000 and you have $ 20,000 in savings, your wealth is approximately four months or 120 days. Wealth is measured in time, not dollars. The difference between being rich and being wealthy In 1989, Kim and I became millionaires, but we weren’t financially free until 1994. This is because there’s a difference between being rich and being wealthy. By 1989, our business was making us a lot of money. We were earning more and working less. We had what most people considered financial success. Though we were rich, we still were not wealthy; much of our time was spent working to build our business and its systems. Our goal was to build the business to the point that it would cover all our expenses from cash flow each month—without us working. Additionally, we were invested in other assets like real estate and commodities to add to our cash flow. By 1994, the passive income from our business and assets was greater than our expenses. At that point, we were wealthy, not just rich. It’s not what you make… Ultimately, it’s not how much money you make that matters but how much money you keep—and how long that money works for you. Every day, I meet many people who make a lot of money, but all their money goes out of their expense column. Every time they make a little more money, they go shopping. They often buy a bigger house or a new car, which results in long-term debt and more hard work. Nothing is left to go into the asset column. It’s this kind of behavior that separates the rich...

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Robert Kiyosaki – 8 Surefire Ways to Earn Passive Income

Everyone wants to make more money, but very few want to work more hours. The best way to work less and make more money is to learn how to generate passive income. Passive income can be described as income that is received at regular intervals that does not require a lot of work to sustain it — money that you automatically make whether you work any more or not. If you want to earn more money, the following are 10 ways to make money passively in no particular order for income potential: 1. Dividend Investing Becoming a stockholder in a company is a great way of earning income with very little time involved. Buying shares in the business, you can then decide whether you wish to receive quarterly dividend checks (money earned from your investment) or to reinvest the money back into more shares. Dividend investing is easily one of the most popular sources of passive income. 2. Rental Property When you buy rental property, you can start receiving monthly income almost immediately. The work involved requires buying the property one time only. After your mortgage on the property is paid, anything left over is considered passive income. 3. Peer-to-Peer Lending, e.g., Lending Club Online you will find a wide variety of peer lending groups. When you become an investor, you are simply lending a certain amount to other members of the group who need to borrow money. With Lending Club, you can expect to earn a 9% interest on average. 4. Building Websites If you have a knack for building websites that can generate a high amount of traffic, you have a great opportunity to earn passive income. Many people find that by simply creating an information site about a topic they are passionate about, they can get high traffic and earn income by either selling the advertising space on the site or by joining an ad revenue sharing program. Website building is hands-down the most reliable way to make money online. 5. Bonds Many individuals are earning a lot of passive income by investing in bonds. These treasury bonds, also known as T-bills or T-bonds, are long-term investments. When the bonds mature or come due, you earn money on them. For example, you could purchase a $ 100 U.S. Savings Bond for $ 50, but when it comes due, you get the $ 100. 6. Writing a Book If you write a book, you can earn royalties for as long as people keep purchasing it. Many great authors receive monthly royalty checks on books they wrote twenty years prior. All you have to do is look at authors like Stephen King and Danielle...

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Robert Kiyosaki Buy Gold and Silver Protect against Inflation

Robert Kiyosaki Buy Gold and Silver Protect against...

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Robert Kiyosaki – Family Investment Offices: When Do They Make Sense?

Bill Gates has one, and so does Michael Dell. But should every super-wealthy family form its own investment office? Family offices often fulfill multiple functions that wealthy families need, such as managing philanthropic pursuits and estate planning, Bill Woodson, Managing Director for Credit Suisse’s Family Wealth Management group, said. But when it comes to investment advice, some families outsource investing strategy entirely to banks or other investment consultants. Others closely control investments in a certain asset class, but outsource the rest. Some families, however, prefer having their entire investment portfolio under one roof – their own. That requires hiring a top-notch chief investment officer, who then works with third-party firms that can offer specific expertise or provide access to capital markets, Woodson said. Bill Gates, for example, created Cascade Investment to manage his Microsoft riches, while the Dell family has MSD Capital. Bringing the CIO Home The size of the family’s total assets dictates whether a family investment office makes sense. A family with a net worth of $ 1 billion or more can certainly justify – and afford – hiring a top-flight investment manager, Woodson said. With assets between $ 500 million and $ 1 billion, the decision requires a more careful cost-benefit analysis. Below $ 500 million, “it’s very hard to make it work properly” because spending seven figures to hire a savvy Chief Investment Officer and buying the trading and back-office technology he or she needs can be onerous, Woodson said. “Keep in mind that when a family is hiring a CIO, they’re competing against firms like Credit Suisse and others for similar talent,” Woodson said. “They are expensive staff. They are the most experienced professionals with the exception of the president (of a firm) and often times even more expensive than the president.” A confidential survey of single-family offices released last year by the Wharton Global Family Alliance said 37 percent of single-family offices had less than $ 500 million in assets under management, while 42 percent had more than $ 1 billion. On average, single-family offices managed nearly 45 percent of the wealth of billionaires and nearly 66 percent for millionaires. But the survey also showed that billionaire family offices performed better than those of mere millionaires, suggesting that having more money to invest leads to better results. A Family-Specific Investment Strategy Most families create their own investment offices because they want to keep a tight rein on investment strategy. Some also think they can perform the function cheaper in-house, rather than outsourcing to a third-party.  Some offices target long-term, time-consuming asset classes such as private equity that require substantial in-house staff, Woodson said....

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Robert Kiyosaki – Want to Retire? Stop Chasing Returns

When you’re in the accumulation stage of life, investment returns are an important consideration for achieving various financial goals. Once you retire, however, you live on income, not investment returns. Unless you acknowledge this basic fact and change your mind-set from a return chaser to an income accumulator well before you plan to retire, you increase the risk of outliving your assets. It isn’t easy to change old habits. When we’re in our 20s, 30s, and 40s, many of the goals we plan for require accumulation of a fixed amount that will be needed on a specified future date. The fixed amount will either be used all at once, e.g., down payment on a house, or over a certain number of years, e.g., college. In either case, the required amount can be projected using an appropriate assumed inflation rate. The ability to achieve the foregoing types of goals is dependent upon three things: (a) amount of time between commitment to begin funding the goal and the future date when the targeted amount is needed, (b) rate of return needed to achieve the goal which can vary depending upon whether it’s funded by a lump sum, installment payments, or a combination of both, and (c) availability of funds required to achieve the goal. The second item, rate of return, is critical. The greater the return, the less the amount of funds required to achieve a particular financial goal. In today’s low-interest rate environment with few opportunities available to capture return from fixed-income investments such as CD’s and bonds, investors are chasing returns more than at any other time in recent history. For those of us in our 40s, 50s, and 60s who want to plan for retirement, we need to gradually shift our focus from investment returns to income. A constant flow of sustainable income that will cover our expenses is essential for minimizing the possibility of outliving our assets. Unlike asset accumulation goals that are attained with an inflated fixed amount that’s used all at once or over a defined number of years, retirement is an open-ended proposition with many unknown variables. For starters, the retirement date, itself, can be a moving target. It’s often accelerated for health and other reasons; however, it’s also deferred in many cases. Second, we’re unable to plan for the number of years we’ll spend in retirement since we don’t know when we’re going to die. Finally, more so than at any other time in our lives, we need to acknowledge, and plan for, the potential for sizable one-time and continuing health-related expenses, with the likelihood of occurrence increasing at the end of our...

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Robert Kiyosaki – 5 Things Never to Put On A Credit Card

Credit cards are powerful financial instruments, but cardholders must use them carefully to avoid becoming trapped in a cycle of debt. At the same time, it can be difficult for cardholders to contemplate a huge expense knowing that a bank has already extended them sufficient credit to just charge it. Yet a credit card is often the worst means of finance. Credit card debt is unsecured and typically carries a higher interest rate than a car or home loan. And unlike a home mortgage or student loan, credit card debt is never tax deductible. Of all the things financed with credit cards, here are the five worst. College Tution Many adults can trace their debts back to their college years when they didn’t fully appreciate how difficult it would be to pay off credit card charges, especially after interest starts to compound. And in many cases, college graduates aren’t able to land a job as soon as they hoped, or they have insufficient income to start paying off their debt. Rather than using a credit card, higher education can be funded through low-interest student loans, scholarships, grants, and part-time jobs. And if these sources are inadequate, students can consider a less expensive school or delay enrollment until they have more savings. Taxes When taxpayers find themselves with an unexpectedly large liability, it can be tempting to just charge it. And conveniently, the IRS makes it easy to use a credit card to make payments through one of several companies that they authorize to accept money on their behalf. However, there are several reasons why you shouldn’t. First, the payment processors will collect a fee of 1.88 percent to 2.35 percent. Also, the IRS will allow you to set up a payment plan with a more competitive interest rate. IRS underpayment interest rates change each quarter, but are currently at 3 percent, far better than any credit card’s standard interest rate. And finally, taxpayers should seek to have their withholding adjusted to ensure that they are not underpaying taxes in the future. Big Wedding Planning a wedding is not easy, but couples need to live within their means and avoid financing the occasion with their credit cards. It is a special day for newlyweds, but it is not worth it when they are forced to begin their lives together underneath a mountain of debt. Vacation People take vacations to take breaks from their everyday lives and to reduce stress. But when travelers finance their trips with their credit cards, they will only be returning to the difficulties caused by their debt. Going camping, staying at hostels, and visiting family and friends are just a few of the...

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