Robert Kiyosaki Blog

Financial Education Portal inspired by Robert Kiyosaki

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Teachers of “the Secret”

What Happens When 3 Extraordinary Teachers from "the Secret" Come Together to Teach the Science of Getting Rich? by Mark Ginat The Science of Getting Rich is a timeless classic written in 1910 by Wallace D. Wattles. It is a bold title for a book and suggests that getting rich is a predictable outcome if one can master the principles outlined in the book. Here is how Wallace D. Wattles puts it in his own words, "The ownership of money and property comes as a result of doing things in a certain way. Those who do things in this certain way, whether on purpose or accidentally, get rich. Those who do not do things in this certain way, no matter how hard they work or how able they are, remain poor. It is a natural law that like causes always produce like effects. Therefore, any man or woman who learns to do things in this certain way will infallibly get rich." Certainly, this book is well referenced by many of the great teachers today and it is the same book that inspired Rhonda Byrne to produce that runaway success "the Secret". Here is what Rhonda Byrne said on her introductory note to the book, "I can honestly say that, since that first night when a tattered printed manuscript found its way to me (thanks to one of my daughters), my life has never been the same. Once you read it for yourself, you will understand why". Rhonda went on to produce the movie "the Secret" and the best-selling book of the same title which has sold millions of copies worldwide. However, learning how to do things in that "certain way" as described by Wallace D. Wattles may be more challenging for some as the book was written nearly 100 years ago. Some of the language is a little dated and much of its wisdom lost from a modern day perspective. Fortunately, a new training seminar for the Science of Getting Rich has brought the wisdom of this timeless classic back to life for modern readers. Called "the Science of Getting Rich", this program is the most comprehensive training system for mastering Wallace D. Wattles wealth creation philosophies and principles since its creation. It comprises written, audio and live seminar formats for learning, applying and mastering the Science of Getting Rich A unique "twist" to the program is the fact that it has an in-built vehicle for creating substantial financial wealth through its affiliate program. This is truly a unique wealth eduction and wealth building program designed to empower any individual with the resources to get rich. It is a...

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Finding the Right Business Partner

One of the best pieces of business advice I ever got was "You can’t do a good deal with a bad partner." Having had many partners over the years, I can say that this statement holds true. So I thought I’d offer some personal experiences I’ve had with partners both good and bad. All Play and No Pay The first partner is a former CPA who does spectacular pro forma projections. His numbers on the future viability of a real estate project are always well laid out and convincing. In fact, after first meeting him and his business partner, a Wall Street whiz kid, and looking at some photos of a property they were interested in and an architect’s rendition of what it would look like upon completion, I was sold. I became their money partner. So far I’ve done three deals with this pair, and to date, we haven’t made a dime. The numbers still look neat and tidy every quarter, just the way a CPA should present the financials. The problem is in execution: The projects never finish on time or on budget. Something always goes wrong, and there’s always some kind of drama — problems with environmentalists, city planners, or banks. Finally, after years of squabbling, his partner (the whiz kid) left the relationship. The projects of theirs that I invested in are still operating, but to date I haven’t made any money on them. A Complementary Relationship The second partner is Ken McElroy, a writer and personal friend. My wife, Kim, and I have made the most money with Ken. There are several reasons why: • We share the same investment philosophy. We buy, improve, hold, and refinance. We generally don’t like selling our properties. • His expertise makes up for gaps in mine. Ken owns the largest property management company in the Southwest, and his partner, Ross, is a real estate developer. Both men have nearly 20 years of experience in their respective fields. Because of Ken’s years as a property manager, he has the experience and skill to evaluate the value of an existing property. And Ross has the know-how to bring the reconstruction of properties in on time and often under budget. • We adhere to the same strategy. Ken, Ross, Kim, and I like to put our money in, improve a property, bring in better tenants at increased rents, reappraise the property, and then borrow our money out and move the equity on to the next property. We then repeat the process. A Near-Infinite Return For example, we put approximately $2.5 million into a $9 million, 300-unit apartment house, and secured a construction...

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Congratulations and Welcome to the Rat Race!

For Millions of People, Graduation Means Joining the Rat Race 1.3 million college graduates will exit academia for the work force this year, armed with a sheepskin and laden with debt. This debt, $22,221 on average… as reported by Student Monitor LLC, a leading market research firm, represents both credit card debt and student loans. Debt that, according to that company’s survey stats, will take eight years to pay off. And, in most cases, there’s more where that came form. It’ll take the shape of car loans, revolving credit and even mortgages.  In Rich Dad’s world, the Rat Race is that vicious cycle of living paycheck to paycheck… and the conventional wisdom that getting a good education, good grades and a safe, secure job (with “good benefits”) will lead  to “the good life.” Or, at least, a steady pay check so that there’s money to make monthly payments on expenses and debt.  These new grads are in good company: millions of Americans contribute their fair share to the $100+ billions in credit card debt ($46.6 billion with Capital One Financial alone) in the US. Debt that, in many cases, will take decades to pay off.  Nearly 90% of college grads surveyed in 2004* reported that they were “prepared” for the responsibility of credit cards… over half (56%) of them didn’t know the APR (annual percentage rate of interest) on those cards. In this case, ignorance may not be bliss.  So what is Rich Dad’s answer to the Rat Race dilemma so prevalent in our society? That’s easy: Financial Education. And we’re not alone in that mission. In mid-April of 2005, the Federal Reserve unveiled a new website that Fed chairman Alan Greenspan calls “an online tool that offers students easier access to a wealth of information in the areas of economics, banking and financial services.”  In 2002, Greenspan was quoted as saying that a good foundation in math would improve financial literacy and “help prevent younger people from making poor financial decisions that can take years to overcome.” He added, “People need to be able to read, write and speak basic financial concepts in order to make informed investment decisions.”  “The challenges Americans face – with social security, consumer debt, bankruptcy law changes, and retirement planning – don’t begin at age 65. They begin at age five, when kids enter school.”   – Robert Kiyosaki  Sources: Student Monitor research; MBNA and Capital One Financial reports; The New York Times Lessons for Graduates:  1. Work to learn… not to earn Sometimes a pay check is less important than the lessons you get from working. 2. Who’s giving you advice? Most people...

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