I’m here to help you understand MONEY at its simplest form. Robert “Rich Dad” Kiyosaki states over and over that the knowledge of money matters are the pinnacle supreme to financial wealth success. You can tell that he truly believes this in his writings.

Like I said, I’m here to help you understand … understand MONEY at its simplest form.

These are The 7 Steps to the Life Cycle of Money (in any society or civilization proven throughout history!):

1. Free Market emerges

In the beginning of any civilization or the re-beginning of a civilization such as after an economic collapse, one thing immediately emerges due to the talents and gifts given to everyone individually and specifically. One man may specialize in cutting down trees and building houses while another herds cattle and yet another grows vegetables in a garden.

Then this is what happens:

The timberman needs food and the gardener needs a house. This is where the need to trade naturally emerges And You Have “Free Trade” .. This is also known as a barter system.

2. Free Market Money emerges

Next, a Free Market Money emerges. This is a Need due to the fact that different quantities of different items have a “different value”. So for example, say the Gardener needs a house built but the Timberman doesn’t need that many vegetables. They will go to waste. Meanwhile, somewhere in the free market, a man found a gold mine and started mining for gold. This is his trade, and this is also a very difficult process. Due to its lack there of and difficulty to mine, free market money (gold and silver) emerges. This is now used as a “trading unit” in free trade.

3. Government emerges

Order slowly starts coming to the civilization and a government emerges to maintain that law & order. (note: they don’t provide any direct products or services to the market but to “regulate”) In not too long, the government starts regulating the market by placing rules in effect (i.e. times to trade, what can be traded, taxes, and more.)

4. Government Monopolizes

The government decides to issue its own form of “money” also known as fiat money or currency. Its important to realize that this is not gold or silver. This becomes items such as the $20 paper promise note in your pocket that probably didn’t cost anymore than $.01 cent to create. So, it leads to the very curious question: How much is your “money” really worth?

5. Debase the Money

Didn’t think it could get any worse or more manipulated? Well, this is the process in which leads to the example I shared above. The government “literally” and “intentionally” debases or (in other words) “devalues” the money. For i.e. we start with a 999.9% gold coin (which is in fact gold in its its purest form) and before long you have a coin that only has 90% and then 45% gold or silver. Before long, it no longer has any TRUE value. You should be able to look at your coins now in which are made out of metals like zinc, nickel, copper, etc. and see that your being ripped off by the government. Furthermore, they print so much “money” and place too much into the market that there is no longer a “demand” and the value decreases causing what you’re used to seeing: INFLATION! The coins are now less valuable because of their metal content, and then added on top of that, more are in the market therefore that makes them even less valuable as well. (Interesting and Sad Note: You don’t own your debased money either. The government does.)

6. Confidence Crisis

The Great Depression of 1933 really started in 1929 with the stock market crash. This was a confidence crisis because THE PEOPLE FINALLY REALIZED THE LACK OF STORED LABOR IN THE MONEY THEY’VE BEEN USING ALL THESE YEARS! This leads to yet “another” curious question: Are we in this phase now?

7. Re-Emergence of Real Money (Gold & Silver)

People slowly remember what is truly valuable and people return to the original gold & silver monetary system.

Have you seen the spot precious metal prices rising and rising over the past 5 to 10 years? especially within the past 6 months? I HAVE! Its an incredible experience to be a part of. Not every generation gets to experience “this” .. maybe you’d like to learn more OR just leave your comment and share this post with a friend!

We are in these final stages. In my opinion, if we are not headed for the Tribulation, we are in fact headed for the next, Great(est) Depression. This is not to be taken as pessimism. This is to be taken as truth, because the truth shall set you free, right? Once you realize the truth, you can store your labor in real money such as gold & silver and ultimately take place in the largest wealth transfer in history.

To view 7 videos on the 7 Steps to The Life Cycle of Money Visit http://www.goldshop101.com/richdad – There is a lot of valuable information here. I look forward to providing you with much more as I embark further on my financial education journey.

Taken from ManifestYourDreams

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Alex welcomes to the show investor, businessman, self-help author and motivational speaker, Robert Kiyosaki.

Mr. Kiyosaki is best known for his Rich Dad Poor Dad series of motivational books and other material published under the Rich Dad brand.
He has written 15 books which have combined sales of over 26 million copies. He has created three “Cashflow” board and software games for adults and children and has a series of “Rich Dad” audio cassettes and disks.
Other books by Kiyosaki include: Cashflow Quadrant: Rich Dad’s Guide to Financial Freedom, Why We Want You To Be Rich, and Before You Quit Your Job.

Part 1/3

Part 2/3

Part 3/3

Watch part 1 here

Rich Dad’s adviser Mike Maloney was recently invited to speak at the 8th International Banking Forum in Sochi, Russia. The purpose of the conference was for bankers from around the world to meet and discuss the current state of the global economy, the banking system, and strategies for protecting their personal wealth (hence the speaking spot for Mike).

The first morning passed without too much fuss as each speaker gave an introduction and a brief talk on his or her area of expertise. However, by the end of the day…it became obvious that something was definitely wrong. After speaking with many of the attendees, Mike was alarmed to find that practically none of the international bankers understood our present monetary system. Most had no idea how currency is created! Here at wealthcycles.com, we’ve often wondered exactly how well modern day bankers understand the worldwide predicament that we find ourselves in. Ladies and gentlemen, our worst fears have been confirmed – the lights are on, but there’s nobody home.

Mike’s presentation on personal protection of wealth changed overnight, into one of basic education on our monetary system. How can anybody take the role of wealth protection (or running an economy!) seriously unless they can see the massive storm that lies ahead?

Whether you are a banker or a baker, a lawyer or a bricklayer…the time to get educated is NOW. We hope you enjoy Mike’s frantic effort to awaken the conference from its slumber. It would have been nice for Mike to finish his speech, but perhaps there was a little too much reality on the stage for these Masters Of The Matrix, the Demigods Of Delusion.

Participate in The biggest wealth transfer in history – YOUnique Wealth

Rich Dad’s adviser Mike Maloney was recently invited to speak at the 8th International Banking Forum in Sochi, Russia. The purpose of the conference was for bankers from around the world to meet and discuss the current state of the global economy, the banking system, and strategies for protecting their personal wealth (hence the speaking spot for Mike).

The first morning passed without too much fuss as each speaker gave an introduction and a brief talk on his or her area of expertise. However, by the end of the day…it became obvious that something was definitely wrong. After speaking with many of the attendees, Mike was alarmed to find that practically none of the international bankers understood our present monetary system. Most had no idea how currency is created! Here at wealthcycles.com, we’ve often wondered exactly how well modern day bankers understand the worldwide predicament that we find ourselves in. Ladies and gentlemen, our worst fears have been confirmed – the lights are on, but there’s nobody home.

Mike’s presentation on personal protection of wealth changed overnight, into one of basic education on our monetary system. How can anybody take the role of wealth protection (or running an economy!) seriously unless they can see the massive storm that lies ahead?

Whether you are a banker or a baker, a lawyer or a bricklayer…the time to get educated is NOW. We hope you enjoy Mike’s frantic effort to awaken the conference from its slumber. It would have been nice for Mike to finish his speech, but perhaps there was a little too much reality on the stage for these Masters Of The Matrix, the Demigods Of Delusion.

Participate in The biggest wealth transfer in history – YOUnique Wealth

“The main reason people struggle financially is because they have spent years in school but learned nothing about money. The result is that people learn to work for money. . . but never learn to have money work for them.” Robert Kiyosaki

The #1 New York Times Bestseller “Rich Dad, Poor Dad” is a story about the money lessons that Robert Kiyosaki learned from his two dads, his biological father, who was his poor dad, and his best friend’s father, who was his rich dad. Poor dad was a Ph.D. and held a very important government position, but he never had enough money at the end of the month and he died broke. Rich dad dropped out of school at the age of 13 and went on to become one of the wealthiest men in Hawaii.

“Rich Dad, Poor Dad” is a must-read for anyone looking to develop a rich person’s financial programming and mindset. The first important lesson this book teaches is the following: Don’t work hard for money; instead, have money work hard for you.

Kiyosaki explains in his book that there are three types of income:

• Earned income

• Passive income

• Portfolio income

Poor dad taught his son Robert to go to school, study hard, and get good grades so that he could find a secure job that would pay him a good salary and give him excellent benefits. That is, he advised him to work for earned income, or to work for money. However, there are several problems with this strategy. First, income streams from a salary are linear: you only get paid once for your effort. If you stop showing up for work, you stop getting a paycheck. It’s like being on a treadmill. Second, earned income is confined to the amount of time that you work, and time is a limited resource. Therefore, there’s a limit to how much earned income you can make. And third, earned income pays the most taxes.

Passive income is income that does not require your direct involvement. You make a strong initial effort to get this type of income started, but then you do minimal work thereafter to keep it going. It can be income derived from royalties–for example, you write a book–, from patents–you invent something–, income derived from real estate, and so on. Brian Lee at geniustypes.com swears by bulk candy vending machines to create passive income. There are many ways to create passive income and the key is to be on the look-out for passive income producing opportunities.

Portfolio income is generally derived from paper assets such as stocks, bonds and mutual funds. Bill Gates is one of the four richest men in the world because of portfolio income, not earned income. That is, he’s rich because of the stock that he owns, not because of the salary he earns. One of the many benefits of portfolio income is that paper assets are easier to maintain than other types of assets.

Another way to think of passive and portfolio income is as residual income.

With residual income you work hard once, and it unleashes a steady flow of income for months or even years. You get paid over and over again for the same effort. That is, you get paid multiple times for every hour of work and the stream of income continues to flow whether you’re there or not. Therefore, you can spend your time doing things other than working for money. In addition, how much money you make is not determined by how many hours you work, but by how many residual streams of income you create.

Rich dad would say to Robert: “The key to becoming wealthy is the ability to convert earned income into passive income and/or portfolio income as quickly as possible.” Start looking for opportunities to create passive and portfolio income and develop a disciplined, well-planned strategy for your money.

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