Wisdom of Rich Dad

Tom Chenault invited Robert Kiyosaki (Rich Dad, Poor Dad) on his radio show talking about network marketing.

Robert Kiyosaki talks MLM

from the April 12 Home Based Business Radio Show

• Slow Internet (dial-up): http://www.tomchenault.com/Audio/Kiyosaki/Robert_Kiyosaki_low.wma
• Fast Internet(DSL/Cable): http://www.tomchenault.com/Audio/Kiyosaki/Robert_Kiyosaki_high.mp3

Technically speaking, a credit card is an unsecured loan. This means that unlike a secured loan, which is advanced by a bank/financial institution against a security like property for instance, a credit card is offered without any security.

Not surprisingly, many of the negatives that get written about credit cards are related to expenses, hidden or otherwise, that the user did not know (or was not informed) at the time of opting for the card. To avoid distress at a later date, we have listed down some points that you must note while using the card:

1. Term and conditions

How many times have you read this before – read the terms and conditions carefully before signing up for anything. For every product you purchase or service you opt for, always read the terms and conditions and that includes credit cards. If you find anything in the terms and conditions of the credit card that was not conveyed to you or is contrary to what was conveyed to you, then seek a clarification from the bank. If you are not satisfied with the clarification, dump the card.

It’s important that you read up on the terms and conditions before you use the card and not after. Once you use the card, it is assumed that you have read the terms and conditions and have accepted the same.

2. Annual fees

It is common for banks to waive off the annual fees/membership fees in the first year (cards are usually issued for at least two years). The second year fees are usually charged. It is possible that you are promised that the second year’s fees will be waived off as well. The only way to find out is to check with the bank in the second year.

It is possible that the bank may waive off the fees based on your track record of making timely payments. If the bank does not waive off the fees in the second year, you can cancel the card. However, if you wish to cancel the card in the second year ensure you do so before using it, because using the card indicates that you have agreed to pay the fees/charges for the second year’s subscription.

3. Lifetime free cards

Offering ‘lifetime free credit cards’ is a relatively new trend in the credit card industry. While there was a time when most banks charged annual fees on their credit cards, the industry is graduating to a level where annual fees are being phased out. In effect, clients are being given lifetime free cards i.e. no annual fees are charged. However, its best to double-check with the bank what the executive has promised you about all annual fees being waived off.

4. Minimum payment

One detail you will find relatively well highlighted in your monthly account statement is the Minimum Payment Due. This is the minimum amount that you must pay for the purchases done in that month so as to not attract a penalty for default on payment of card dues.

We would recommend that you pay the entire sum to the extent possible. Buying on a credit card is okay till the time you pay your bills religiously. The moment you carry forward your payment to the next monthly cycle, you will have to pay interest on the unpaid amount along with taxes. In the final analysis this turns out to be very expensive.

5. Payment by EMI

On the same lines, whenever you make a large purchase (the amount varies across banks) you may get an offer from the bank to opt for the EMI (equated monthly installment) facility to make the payment. This facility does not come cheap and the interest on the EMI is prohibitive. Again to the extent possible, we recommend that you make the payment before the due date in one go and give the EMI facility a miss.

6. Borrowing cash is expensive

Credit cards can be used for making purchases on credit as also for borrowing cash. While making purchases on your credit card (so long as you pay on time) is okay, borrowing cash on your credit card is a very expensive affair. Avoid borrowing cash on your card; use the card to the extent possible for making purchases.

7. Insurance benefit

Many credit cards are known to offer an insurance cover. We recommend that you ignore this benefit and go for the core offering – credit card. If the card has features that suit you, then you can opt for it even if there is no insurance cover. On the other hand, if the card features are not to your liking then reject it regardless of the insurance cover.

In any case, on most occasions the insurance cover is usually linked with so many terms and conditions that it is very difficult to claim the same. It is altogether another thing that the insurance cover is unlikely to be sufficient for you.

~ Jerome Ratliff~

Having a mentor a part of your business or you, can accelerate your profession into overdrive. When working with a mentor, you create a professional relationship which allows you to become a better professional. But finding your mentor, regardless who it is, is not an easy task.

Where should you start looking for your mentor?

Put together a plan of how you intend to find your ideal mentor. Decide at that moment that you will not quit before you find him/her.

What’s your objective? What do you need a mentor for? Why do you need a mentor now?
These are questions you must ask yourself prior to meeting with a mentor.

In addition, make sure to have your string of interview questions ready for the mentor. This will be how you determine who is right for you.

Start by asking around. See what other successful professionals are doing and ask questions.

What do you got to lose?

Be up front in the interview by letting them know what you would like to accomplish by having a mentor. This will help determine if the mentor is right for you. If you’re impressed with them, ask for a referral to speak with the mentor.

Look for organizations that offer mentoring programs. It may cost you, but at the same time it will be well worth your money. That’s assuming that you chose the right mentor too.

Two years ago when I began with Robert Kiyosaki’s mentoring program, I failed to ask a lot of the upfront questions that I’ve outline here before you. Luckily for me, since Robert Kiyosaki’s program is so structured, it didn’t matter. However, it could have helped me by showing that I was proactive.

You may come up with your own questions, just be sure that you are thorough and show that you are determined to succeed. A good mentor will hold you accountable for what you need to be doing as a professional. This is important because you are the one in charge, not the mentor. The mentor is there to help you kick it into gear.

Being a part of Robert Kiyosaki’s mentoring program has changed my life immensely, that I decided to mentor others.

So, if you’re serious about choosing a mentor, then start today and start now. You won’t regret it.

Robert Kiyosaki came out with a new book called “How to Increase Your Financial IQ“.

He went on WNBC recently to give some practical money-saving tips in support of his new book’s launch.

<– Click on the image on the right to launch the video.