Robert Kiyosaki Blog

Robert Kiyosaki’s bestseller, Rich Dad, Poor Dad, has helped millions to create roadmaps to their financial goals. Central to his series is the notion of open-mindedness. Instead of sizing up a situation and saying, “I can’t afford that,” he suggests saying, “How can I afford that?” By reshaping the idea into an open-ended question, creativity is stimulated, which leads to inspiration.

Here’s a list of critical thoughts and their positive replacements. I hope these help to prime your mind for money-making thoughts.

Instead of saying:

• We can’t afford it.That’s too expensive.
• I don’t have enough money.
• I’ll never be able to afford that.
• That’s a waste of money.
• It’s too late to get started.
• I’m not good with numbers or investing.
• It’s too risky.
• I really want to get that!

Replace with:

• How can we afford it?Where can I get that for less?
• How can I make more money?
• When will I be able to afford that?
• How can I make that productive?
• How can we let another day go by?
• Where can I learn more?
• What could reduce the risk?
• Do I really need that?

As open-ended thinking becomes more natural for you, you’ll also find yourself better able to help clients who have critical objections. Plus, the difference in this kind of thinking is tremendous. If you aren’t already quieting your critic, you’ll find that these suggestions bring excitement into your daily life.

Consider writing out this list, and adding to it when you discover new negative thoughts. Invent positive replacements, and write those down, too. Review the list frequently, and practice!

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Open Your Mind To Wealth

The New York Times has an article that tells the story of Diane McLeod and her insurmountable debt. http://www.nytimes.com/2008/07/20/business/20debt

Even though she’s going through foreclosure on her home, she’s still getting credit card offers from “Urban Bank!”

With the aftermath of the sub-prime crash still wreaking havoc, Americans are finding themselves in very uncomfortable debt positions. The blog post on the Consumerist asks, ‘What happened to our values?’

I don’t think it’s a question of values, I think it’s a question of education. Students graduate high school without the slightest idea of what awaits them in terms of credit and debt. Most of them don’t even know what an income statement or balance sheet is. Why do we have such a financially illiterate populace here in the U.S. and what can be done about it?

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Why Are Americans So Willing To Dig Themselves Deep Into Debt?

By David John Marotta

As Americans try to spend less and go on a budget, this provides an opportunity to teach the next generation financial principles they may never have seen in the prosperous years they have been alive. Here are ten principles for teaching children about money:

Talk about money. Every time money is involved, parents have a chance to teach their children the values and analysis behind their actions. Money should never be the primarily topic of discussion, but it is one of the most important topics through which we communicate our wisdom and values to our children. Every purchase, investment, or donation can be a time to teach your children something about your values.

Talk openly about money. Parent makes a mistake when they keep information from their children. The only way children learn what is a good deal and what is too expensive is by the experience of what their family earns and what items cost. Hiding this information robs children of the financial education they need.

Talk factually about money.  Many parents have strong emotions about money based on their childhood experiences. These emotions are always transmitted to children. Instead of helping children, they can cripple children from growing to make sound financial decisions

Require chores; pay for optional work. Everyone in the family has to help complete the work that needs to be done. If you want to pay your children, only pay them for optional work they can choose to do or not to do.

Provide children an allowance they can make real choices with. Talk about money is important, but children need real-world lab experience to understand the consequences of their decisions. Consider giving them an allowance large enough so that they can purchase some of their own needs. Then continue to give them honest advice, and help them ask the right questions to make wise decisions based on their values.

Help children prioritize purchases. Ask them if this purchase is better than other purchases they are considering making.

Help children comparison shop. Help them consider issues such as cost, quality, and convenience.

Require children wait before making large purchases.  Adults should wait at least a month whenever they are making a large purchase. Children shouldn’t be expected to wait that long. Here is a good rule of thumb: Children should be required to wait as many days as they are old in years before being allowed to make a large purchase (over a week’s allowance). There is always tomorrow and over half the time they won’t remember what attracted them to it in the first place. Developing this habit will help make them resistant to impulse buying.

Don’t use money as a punishment. Your priority should be helping to give your values to your children, not buy their outward behavior.

Don’t loan your children money. If their desired purchase is something they should be saving for, let them save for it. If you want to buy it for them for the value of the experience, buy it for them. The principles are “If they want it, they have to save for it. If you want them to have it, you will buy it for them.” Loaning your children money for items they want teaches them they aren’t responsible and they don’t have to prioritize.

David John Marotta works at Marotta Asset Management, Inc. of Charlottesville which provides fee-only financial planning and asset management.

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10 Principles of Teaching Children about Money

HOW TO PREDICT THE FUTURE

3-Day Seminar with Robert Kiyosaki

October 24th, 25th & 26th, 2008 • Scottsdale, Arizona

During the 3-day seminar, Robert will focus on topics that include:

1. How to predict the future

By studying Dr. R. Buckminster Fuller’s work on prognostication, you will learn how the future is not traveling in a straight line. You will learn how to change your life by changing your future.

2. How to create your future

Robert and Rich Dad’s Advisor Blair Singer will teach PERT (Planning Evaluation Review Technique). Through this you will gain the ability to go into the future and create backwards. PERT was the planning technique used to put the first humans on the moon.

3. How to print your own money (and change your financial future)

One of the most powerful books Robert has read is Dr. Fuller’s Grunch of Giants, GRUNCH stands for Gross Universal Cash Heist. The book is about how the rich print their own money and why they’re rich. You will learn to do the same. More importantly, you will learn how to prosper from the future of money…not be a victim of it.

–  Watch Video - Register   –

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Robert Kiyosaki’s ?How to Predict the Future? Seminar

The title to this post is a little off in that most times people invest in things in order to get wealthy.  Either way you look at it, there is much research on this subject.  Funny thing, it is not primarily mutual funds or even individual stocks that make up the portfolios of the wealthy.

First, lets define wealthy. 

There are three generally agreed upon categories.  The mass affluent which has a net worth outside of their primary home of $100,000- $999,999.  The wealthy which has a net worth outside of their primary home of $1,000,000- $9,999,999.  And the super wealthy which has a net worth outside of their primary home above $10,000,000.

Interestingly, the investment strategy is basically the same between the wealthy and the super wealthy. And the higher you go in net worth for the mass affluent the more they look like the other two classes.

So how do they invest?  What financial instruments do they use?  Well, the truth is they use all sorts of financial instruments, but there are two main strategies which set them apart from those that have less than them.

First, is real estate.  The largest categories of investments for the wealthy is real estate and it only gets larger as you go up the wealth ladder.  Of course they all own a primary home.  But a second home is the next largest category of real estate investment.  And as you go up the scale they own 3,4 or more homes. 

Next category is income producing real estate.  The wealthy own apartment buildings, commercial buildings, duplexes, etc. that will produce income for multiple generations.  REIT’s (real estate investment trusts) are favored by the wealthy. Raw land is bought and sat on until the investment blooms.

The next largest category is businesses. Usually they control or own large blocks of a business that can be best called creative or niche businesses.  The wealthy have been able to identify unique ways to satisfy needs.  Many times the discovery has come out of a industry that they worked in for years, first as a employee.

They also own some of the traditional investment classes like stocks, bonds, mutual funds.  However, it is at much smaller percentages than the non-wealthy.  For example, the super wealthy own individual stock and mutual funds, but the median ownership is around $1,000,000 for individual stocks and $500,000 for mutual funds. 

Now remember, the super wealthy category starts at $10,000,000.  So their stock ownership percentage is very small compared to their overall assets.  They own cash value life insurance at about the same percentages as their stock ownership.

Their overall startegies suggest an understanding of the tax laws, so that they legally avoid high outlays to government.  It also tells us they understand history.  The greatest investments, those that last for generations until someone forgets why they were purcashed in the first place, are income producing real estate. 

Imagine if your great grandfather purchased apartment buildings in Manhatton or Miami Beach or Chicago.  What would they be worth now?  How much income might they be producing for you?  The truth is, businesses come and go and our needs change, but we always need a place to live or a place to shop.

Maybe you are not the landlord type, like me.  The thought of having  renters calling me all hours of the day and night to have the plumbing fixed is my nightmare.  But there are many ways to own real estate that don’t have that nightmare.

Think about starting a business that fills a niche.  Think about investing in real estate.  If you can find success in these two areas, then you are likely to join the wealthy or even the super wealthy!    

source: shaferfinancial.wordpress.com

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What do the wealthy invest in?