You need money to make money, it’s one of those cliches that I actually like and agree with but I am a bigger proponent of cutting out the clichs we hear all the time and getting to the practical application of the principle behind it.

It is just as easy to say you have to have money to lose money. If you think it is easy to make a million dollars by buying a million shares of a stock and waiting till it gains one dollar then it is just as easy to loose a million dollars by buying the same stock and waiting for it to lose a dollar a share.

Einstein’s theory of relativity had nothing to do with money but that doesn’t stop me from stealing his idea and applying it to finances. My economic theory of relativity says that the more money you have the more you can gain or lose, the less money you have the less you can gain or lose. It’s all relative. But ok, what do we do with this information?

Well let’s look at how a person begins the journey. The first place to start making money is by getting a job or starting a business. Once you have an income then you need to save.

Saving also includes investing. If I have a thousand dollars in the bank I have saved that money and if I buy stocks with it, I still saved the money but now I am trying to get more with it.

If my income is high I will probably have more to invest and if my income is low I will have less money to save or invest (sorry, don’t mean to insult your intelligence but hang in there I am getting to the point).

The low income person might not be able to catch up to the high paid person but, if they are willing to work at it, they can certainly do better. Remember, the high income person is also going to have higher expenses for things like his big house (higher mortgage and utilities), his fancy car and his fantastic vacations.

On a percentage basis you can save and invest as much or even more than the high income earner but you have to be willing to give up one thing in exchange for another. In order to save more you have to spend less.

It takes money to make money but notice there is nothing there about amount. You have money and as long as you have realistic goals you can have the same gains as a rich person. The difference is that 10% of $1,000 is $100 and 10% of $1,000,000 is $100,000. But don’t let that be an excuse. Start investing and worry about the amount later.

The sad truth of investing is that the less people have to invest, the more they tend to treat investing like playing the lottery.  It seems everyone wants to find the next stock that will turn $1,000 into a $1,000,000 but doing that will most likely lead to a stock that will turn $1,000 into $0. I have been there and done that so I know what I am talking about.

The folks who try to find the magic stock are also the people who are taken in by those stock trading classes that promise to reveal the secret to finding riches in the stock market. But think about it. If these seminars were so right wouldn’t everyone be a millionaire?

Ok so you have money, you want to invest it properly, avoiding the scams and fantasies but where do you go? Well this is one of those cases where I think there are people way more qualified to give you this kind of information than I am. The problem is that it’s easy to find those people selling you a dream and more difficult to find honest people who will tell you to be realistic, reasonable and patient.

I suggest Bill Schulthus and his book “The Coffeehouse Investor.”   The subtitle of the book is “How to ignore wall street and get on with your life.” That’s the key, ignore the wall street advisors who make money the more you trade regardless of whether you make money or not.

So yeah, it is true, you need money to make money but the fact is if you spend less, have a little discipline and save, you will have money. Now go make some more.

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Money to make money

~ Robert Kiyosaki

Whenever I consider new strategic alliances or expansion opportunities, I look for three things: good partners, good financing and good management. Whether we’re looking for investors, partners or vendors, we weigh their experience, expertise, track record and character. The quality of the businesses or individuals we align with directly affects our future.

Are your philosophies and standards aligned? Is there trust and respect and a shared vision for the future? Are the business rules and reporting processes clear and manageable? The best partnerships and alliances are ones that have the potential to deliver big wins–for both sides.

I’ve come to believe that the strongest businesses are relationship-based, not transaction-based. We work to develop relationships with our customers to build loyalty and lifetime value. It’s the same with the B2B deals we strike: Long-term relationships in which both sides benefit and profit trump short-term, transactional plays when it comes to the investment they require and the dividends they pay.

Good financing means strong financials as well as optimal strategies within the deal for managing debt, structuring terms, handling revenues and cash flow, and maximizing tax advantages. Often, the terms of the deal can turn an average opportunity into a great one.

Regarding the importance of strong management, you may have heard the maxim in business that “money follows management.” I often ask myself what other companies see when they put my company under a microscope. If a potential partner or investor asks who your management team is and how strong they are, what will they conclude? That same test applies to the alliance decisions we make as entrepreneurs.

If your management is weak, so is the future of the business. If the management team of the company you’re considering as an alliance partner or vendor is weak or ineffective, so are your prospects of a successful and profitable relationship. Weak management will be challenged in both good and bad times–explosive growth requires as much focus and discipline as managing through a downturn.

It’s easy to find bad partners, lose control of your cash flow and discount the importance of strong management. It’s harder to invest time and resources to find and vet agreements with strong partners, structure a deal that adds value to the entire relationship, and search for, hire, and build a strong and talented team of leaders. No matter how strong your product or service, your attention to these fundamentals–or lack of–will determine your future.

Read the original post:
The Art of Alliances

What tips do you have for building long-term relationships with the people who can help a business and investments grow?

You have to be a great leader. It’s something I’m learning. I never stop learning to be a leader. I can’t say I am a great leader. I desire. I strive. I improve my leadership skills.

There’s a great book called “The Starfish and the Spider,” and it’s a great book on leadership. It’s a very simple read. They’re two different leadership styles. In other words, you cut the spider’s head off, the whole animal dies. You can cut a starfish up in a thousand pieces and get a thousand starfish. That’s the difference. I am a starship style. I am not a spider style. It’s a great book on leadership, and I’m consistent in my leadership.

Looking back over the years, is there anything you would have done differently to be more successful today?

I don’t regret anything I’ve done because everything I’ve done has been a learning experience. I never stop learning. I make mistakes constantly. Today, with the economy as hard as it is, I would just say a tough economy means I have to get smarter. That’s all it means. I don’t judge it as good or bad.

Other than being on “Oprah,” what marketing and promotional activities have been successful for you?

Every product I design has a viral component to it. In other words, I don’t have formal sales people working for me or my company. So if a product is viral, and that means if someone recommends your book to someone else, it was designed into the book and my board game.

In other words, I have people teaching people or people selling for me. And in today’s over-cluttered, over-communicated world, the person you’re going to listen to the most is a friend who says, “Hey, I read a great book, or here’s a great product I recommend.” It is the most powerful form of marketing there is. It’s also the oldest form of marketing there is.

Who are some other people that you look up to and have guided your career along the years?

Well, I have partners who I respect tremendously. I only do business with people I respect. You look at all of our company, and my advisors are real advisors. They are not financial planners. They are not celebrities. They are people hitting the trenches every single day.

Another thing too, I don’t have to know anything. I just have to know who knows. The reason I say that is I’m coming out with a new book called “The Conspiracy of the Rich” which is a Web book, and it’s for free.

Well, why am I doing this? Because I know it’s going to make me money. I don’t have to be the smartest person on Earth. I just have to know who is smart, who has ethics, who has integrity and who shares the same values I do.

What is your top advice for the entrepreneurs out there, and people who just have a good business idea, who are afraid to move forward?

I will say it again. Have them read the book “Before You Quit Your Job.” You’ve got to take advice from people who’ve done what you want to do. The point is, if you’re going to be successful at anything in life, you’ve got to spend time with people who practice what they preach. If you’re afraid, you’re probably hanging out with other cowards.

So in this economy, if we’re going into a depression, you better have Plan B ready to go. Don’t hope the economy is going to come back. Don’t hope Obama is going to save you…because they’re not. They can’t. You’ve got to save yourself. This is not a time to be afraid. This is a time to be brave. This is a time to become smarter. Not to become Chicken Little with the sky falling. And if you can do that, you’ll be an entrepreneur. If you can’t do that, you’re finished. This is the time to learn.

I think everyone sees the professional business side of you. Maybe you’d like to share some of the things you like to do in your free time?

Well, I hate to say this. Business is my game. It’s more than a hobby to me. It’s my life. And I’ve always surrounded myself with the best people…my greatest pleasure in life is hanging out with really smart people who are part of business and business teams.

What I cannot stand is illegal, immoral and unethical acts. I’m ripped to shreds constantly in the blogs. And I just have to be true to me. I know my accountants and my attorney wouldn’t be around me if I was a crook. Do you see what I’m saying? If you’re a crook accountant, you’ll hang out with a crook business leader.

Is there anything else you would like to share that we haven’t touched on that may help some of the entrepreneurs out there?

You are the company you keep. And if you improve, then the people around you will improve. It’s a very easy measurement. And what that comes up to is instead of trying to change the world, just change yourself.

Read more from the original source:
Brief tips from Robert Kiyosaki

By Louis Sahagun
Los Angeles Times

One day in spring 2007, the phone rang in the little Buddhist center in Long Beach that has been the focus of the Venerable Tenzin Kacho’s life since she was ordained a nun by the Dalai Lama.

On the other end of the line was her brother, Robert Kiyosaki, a combat helicopter pilot in Vietnam who crashed three times and went on to become a globe-trotting entrepreneur and author of a bestselling book on personal finance, “Rich Dad, Poor Dad.”

He was calling from his publisher’s office in New York. There were some pleasantries, then Kiyosaki cut to the chase: “I’ve got a great idea for you. We’re going to write a book together.”

Some background: Tenzin and her brother were raised in a family of Japanese descent in Hilo. Their father was the state superintendent of schools. Their mother was a registered nurse.

The book, her brother said, would be an inspirational blend of Eastern religion and business acumen told through their own experiences and conclusions about what is ultimately meaningful in life.

“It’ll be great,” said Kiyosaki, a self-described meat-and-vodka deal-maker who believes that peace comes after a fight. “We’ll promote the book on a world tour. Eventually, you can start your own book series. I can see the titles now: Karma. Reincarnation. Compassion.”

For Tenzin, a soft-spoken woman who wears saffron robes and shaves her head, the idea seemed audacious. Peace, meditation and loving kindness had been the bywords of her life at the center, an enclave of intricate altars, incense, votive candles and framed images of the Dalai Lama.

Yet, to hear her brother tell it, the endeavor would bring a double benefit: It would help self-centered business people — such as him — get in touch with their inner Buddha. And it would make a working woman out of her and vastly expand the reach of her spiritual counseling.

Tenzin calls it one of the hardest decisions of her life. Only months earlier, Tenzin, whose secular name is Emi Kiyosaki, had undergone an angioplasty that left her with out-of-pocket medical bills totaling $17,000 and ongoing battles with what she calls “a really bad insurance company.”

No surprise there. While seeking spiritual perfection, she had all but ignored practical matters such as researching adequate insurance coverage, creating bank accounts and earning an income.

Not anymore. Her collaboration with her brother resulted in publication this year of their book “Rich Brother, Rich Sister: Two Different Paths to God, Money and Happiness.”

It also has redefined her priorities. In accordance with an adage espoused by her brother — “Give a man a fish, you feed him for a day; teach him to fish, you feed him for life” — Kiyosaki agreed to pay most, but not all, of her medical bills.

“Had Robert paid the entire bill and said, ‘Just call me any time you need help,’ ” she said, “I’d not have learned some important lessons. At 60, I’ve gone back to work. In May I landed a job as a hospice hospital chaplain, working 20 hours a week.”

She is also preparing to accompany her older brother — he’s 62 — on an book promotion tour with stops in Singapore, Australia, New Zealand and Malaysia. Then they’re off to a conference in Florida.

“It’s been wonderful sharing my brother’s world,” she said.

Kiyosaki joined the Marine Corps and served in Vietnam, flying in combat for a year.

“Life is not sponge cake,” he says. “It’s cold, cruel and vicious.”

Kiyosaki, sometimes collaborating with other authors, has turned “Rich Dad, Poor Dad” into a brand.

Tenzin’s path has been far different. She was compelled by pregnancy to marry before completing university studies. After a few years, she divorced and lived in a geodesic dome in a forest. Later, she served as a Buddhist chaplain at the U.S. Air Force Academy in Colorado Springs, Colo.

Kiyosaki, who is based in Phoenix, follows the teachings and wisdom of architect, inventor, author and visionary Richard Buckminster Fuller. Tenzin is a disciple of the Dalai Lama and chose to forsake material wealth in favor of monastic life.

But now, as assistant spiritual director at Thubten Dhargye Ling Buddhist center in Long Beach, troubling questions have been bubbling to the surface since her book was published.

“Am I selling out?” she asked. “What will the conservative monastic order think of me now?

“I take comfort in the Dalai Lama, who urges women to make the most of every opportunity that comes to them. The way I see it, I’m an educated woman and have many skills I can use to help others.”

Source:
Kiyosaki strikes it rich again