Wisdom of Rich Dad

  By BRETT ARENDS

You’ve eaten the hot dogs. You’ve watched the fireworks.

Now it’s time to declare another kind of independence — your own. If you’re like most Americans, you haven’t been free in a long, long time.

Instead you’re in chains. You’re manacled to dozens of monthly bills you can’t seem to escape.

Mortgage payments. Car payments. Credit-card payments. Cellphone, landline, cable TV. TiVo. You name it. Thousands of dollars.

Call them tribute. Or tithes.

Who’s really free here?

Our Founding Fathers probably would have thrown their cable boxes into Boston Harbor. But then, they ranked liberty ahead of the pursuit of happiness.

Take a look at the chart. Maybe it should become our new Read the rest of this entry »

  - Ben Stein

Now for some reassuring words. Of all of the columnists writing in this space, I suspect I am the oldest. This means I have seen the most economic fluctuations. This also means I am less terrified about them than younger heads.

Let me put this differently. I read recently in The Wall Street Journal that the stock market was at the time of that writing almost in “Bear Market Territory,” which is to say, down roughly 20% or more from its high. This, said the author of the piece, shows that we are about to have very bad economic times. The author helpfully noted that the market has been down into “Bear Market Territory ” some nine times since the mid-1960′s. Without doubt, this author was trying to do his best, and to serve his readers.

But here’s a relevant addendum: yes, the market may have fallen 20% or more nine times since then. But there have only been five recessions since then.
That is to say, the stock market predicts 10 out of five recessions. Not such a great record.

The truth is that while the economy is clearly slowing down we are not yet in a recession. There has so far not even been one quarter of negative economic growth, nor even a break-even quarter. We may well have one soon, but two in a row are required for the Read the rest of this entry »

I learned a lot from the Rich Dad, Poor Dad book. Robert Kiyosaki is a great entrepreneur and really knows how to teach how to make money and save money. This article will teach you how to save money “Rich Dad, Poor Dad” style.

The main premise the Kiyosaki’s Rich Dad, Poor Dad book is that you need to stop thinking like an employee and start thinking like an owner. One of the first steps in this process is to make you money work for you.

To often people keep their savings in a traditional savings account. However, they could be earning higher interest on that money be investing in a high interest savings account, high yield cds, high interest money market accounts, or stock or bonds. Any of these option typically pay better than the tradition brick and mortar bank savings account.

While Kiyosaki spends most of his book talking about how to increase your earnings, he also explains how passive income and compounding interest rates really help you to save money. By developing passive income streams you can allow today’s effort to pay of big time even when you are not actively working it in the future.

Developing passive income streams is the true way to start building a business. Unlike a 9 to 5 job, a passive income stream can make you money even while you are not working.

Once you earn money however, you also have to be reinvesting that money into other stream of income. This could be a high interest savings account or high interest money market accounts.

This money could also be invested into growth stock, dividend paying stocks or bonds. This type of investment will often give you a higher return on investment than a high interest rate savings account. However, you lose the security of FDIC insurance when you invest in stocks and bonds.

So, in order to save money “Rich Dad, Poor Dad” style, you need to be focusing on earning money, developing passive income streams and growing your savings through investing it in high yield investment vehicles. This is the key to Robet Kiyosaki’s money saving system. Everyone needs to be focusing on these concepts throughout their lives. You need to start thinking like an owner not an employee.

Robert and Kim Kiyosaki say that their business relationship has strengthened their marriage and they believe that it is beneficial for couples to grow together financially as well as spiritually and emotionally.

But with that said, it’s important that you and your spouse set some rules so that you keep your business activities in perspective and proportion with the rest of your lives. Don’t spend the whole day working on your business and then the whole evening talking about it. You have to turn it off. You have to spend time on your personal relationship and your family.

When you and your spouse become business partners as well as life partners, set some ground rules. Be clear on when you’re working and when you’re not. And always allow enough time to nurture the feelings that brought you together in the first place.