Robert Kiyosaki Blog

Financial Education Portal inspired by Robert Kiyosaki


Save Money ?Rich Dad, Poor Dad? Style

I learned a lot from the Rich Dad, Poor Dad book. Robert Kiyosaki is a great entrepreneur and really knows how to teach how to make money and save money. This article will teach you how to save money “Rich Dad, Poor Dad” style. The main premise the Kiyosaki’s Rich Dad, Poor Dad book is that you need to stop thinking like an employee and start thinking like an owner. One of the first steps in this process is to make you money work for you. To often people keep their savings in a traditional savings account. However, they could be earning higher interest on that money be investing in a high interest savings account, high yield cds, high interest money market accounts, or stock or bonds. Any of these option typically pay better than the tradition brick and mortar bank savings account. While Kiyosaki spends most of his book talking about how to increase your earnings, he also explains how passive income and compounding interest rates really help you to save money. By developing passive income streams you can allow today’s effort to pay of big time even when you are not actively working it in the future. Developing passive income streams is the true way to start building a business. Unlike a 9 to 5 job, a passive income stream can make you money even while you are not working. Once you earn money however, you also have to be reinvesting that money into other stream of income. This could be a high interest savings account or high interest money market accounts. This money could also be invested into growth stock, dividend paying stocks or bonds. This type of investment will often give you a higher return on investment than a high interest rate savings account. However, you lose the security of FDIC insurance when you invest in stocks and bonds. So, in order to save money “Rich Dad, Poor Dad” style, you need to be focusing on earning money, developing passive income streams and growing your savings through investing it in high yield investment vehicles. This is the key to Robet Kiyosaki’s money saving system. Everyone needs to be focusing on these concepts throughout their lives. You need to start thinking like an owner not an employee. Excerpt from:Save Money ?Rich Dad, Poor Dad?...

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Review of Robert Kiyosaki?s latest book has this to say about Robert Kiyosaki’s latest book:  For those of you who aren’t familiar with the Rich Dad series, it’s a financial education series which teaches you how to THINK like the rich, but it’s a little light on specific details on how to actually make extra money. Rich Dad’s Increase Your Financial IQ is no different.  The premise behind the book is about financial IQ and how to be like the rich.  Robert Kiyosaki believes that the rich get richer while the poor get poorer because of the differences in their IQ.  No, not regular IQ, but financial IQ.  Who is Robert Kiyosaki?  I think the biggest claim to fame for Mr. Kiyosaki is that he is the author and creator of the Rich Dad franchise.  Along with being a successful author, he is also a real estate mogul owning millions of dollars in real estate assets. The Topics Covered? Financial IQ #1: Make More Money (the more the better) Financial IQ #2: Protecting your money (pay less taxes) Financial IQ #3: Budgeting your money (budget for surplus) Financial IQ #4: Leveraging your money (the higher you returns, the better) Financial IQ #5: Improving your financial information (problem solving is the key to wealth) What I liked about the book? In Financial IQ #1, the author explains why the rich are rich and why the middle class and poor stay that way.  Kiyosaki explains that the rich use their money to build assets which creates an ever building passive income stream (unlimited potential).  The middle class, on the other hand, use their limited TIME to bring home income.   In Financial IQ #3, Kiyosaki explains to budget for a surplus.  Basically, this means to put your savings as a FIRST priority before everything else.  What he believes that if you are short on money to pay the bills after savings, you’ll need to go out and make more money. In Financial IQ #4, Kiyosaki explains that if you have control of your leveraged asset, then there is no risk involved.  That’s why he invests most of his money in real estate and very little in the stock market. Maybe there is a lot of truth in the old saying “invest in what you know”. I enjoyed the Financial IQ #5 chapter which explained the different parts of the brain and how each part affects decision making.  Kiyosaki emphasizes that the best way to learn is through “doing” and “making mistakes”.  I agree with this point as I have the tendency to get “analysis paralysis”.  What I didn’t like? Throughout the book, Kiyosaki has the message of NOT...

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Book Review: Increase Your Financial IQ by Robert Kiyosaki

~ Justin McHenry ~   Robert Kiyosaki is back with another in his “Rich Dad” line of books; this one’s called Chicken Soup for the Rich Dad’s Soul. Just kidding. But the Rich Dad theme has been beaten about as often as the Chicken Soup horse at this point, so if you’ve read Kiyosaki’s other books, you can expect about 50% new material and 50% recycled ideas. And if you expect more than that, you need to learn a thing or two about brand extension. Anyway, the new book is titled Increase Your Financial IQ, and from this point forward I will discuss it on its own merits, regardless of what may have come before. Increase Your Financial IQ has at its core Kiyosaki’s 5 main aspects of financial genius: 1. Making More Money 2. Protecting Your Money 3. Budgeting Your Money 4. Leveraging Your Money 5. Improving Your Financial Information This core section is pretty good; Kiyosaki has a lot of words of wisdom here. In terms of making money, his biggest advice is to get yourself to a place where your income is not entirely predicated on trading hours for money, i.e., only getting a paycheck for hours worked. Whether that means you’re a full-time entrepreneur or you use your extra money to create passive income (owning rental property for instance) is up to you. Protecting Your Income covers everything from taxes to estate planning to prenuptial agreements. Thinking about who might put their hand in your pocket is important, although I think Kiyosaki goes off the rails a bit through his tired tirades against 401(K) investing (or really against any investing that isn’t real estate or gold). One piece of advice I heartily agree with is that railing against the tax system is a waste of time: “I am not trying to change the system. My personal philosophy is that it is easier to change myself than to change the system.” Budgeting Your Money is the strongest chapter in the book. Despite the name, this chapter isn’t really about listing your income and all your expenses and figuring out how to make it all work. It’s more about a way of thinking, a philosophy that forces you to pay yourself first and put the money you’ve paid yourself into assets that make you more money. It’s sort of a “no excuses” budget in that Kiyosaki says if your income isn’t enough to finance your expenses, you’d better make some more income. Your budget should demand that you take some of your capital and put it to work, regardless of which bill collector may be coming after you....

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