Wisdom of Rich Dad

As the calendar year comes to a close, many of you will soon be sitting down to write your New Year’s resolutions. You may have your sights set on quitting smoking, getting into better shape, or spending more time with family. Perhaps you want to be more environmentally friendly this year, finally learn to play the piano, or take that trip you have always wanted to take.

When setting personal goals for self-improvement, the possibilities are endlessly varied; however, on the forefront of everyone’s mind thisyear should be your personal wealth, and the quantifiable goals you can set to ensure that you prosper in the upcoming year. I assure you, we will do everything we can to assist you in achieving the financial and educational goals you set.

Whatever you choose to include on your list, my suggestion to you is to expand it. I never cease to be amazed at two things: the unlimited capabilities of the human soul to achieve the greatness to which it aspires, and how few are those who ever undertake such challenges. Do not limit what you can accomplish in the upcoming year. Dream big, make goals that others may perceive to be outlandish, and work hard to achieve them.

Kim Kiyosaki

I would like to share with you a record of a conference call with Robert Kiyosaki, which took place on October 15th, 2008, right after the market crashed down.

Robert Kiyosaki gave few absolutely brilliant and practical advices about what people should do in the new economic environment. Also, he shared a lot of other wisdom with the listeners.

I recommend you to download this file, put it on your mp3 player or CD, and listen to it while driving to your job in the morning. It’ll give you a tremendous energy boost for the whole day.

And just in general, if you are serious about changing your life, I recommend you to start your days from some training or motivational audios. I promise, you won’t regret it. Your life is going to start changing immediately.

Here’s the audio:
Robert Kiyosaki: How to Predict the Future (mp3, 6.5MB, lasts about 1 hour)

- Damian Ray

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Unfortunately, the audio has been removed and Damian Ray’s website is unavailable.
In place, here’s the download of another interview of Robert Kiyosaki with MoneyWeb.co.za.

It’s an hour long mp3 of size about 7.9MB.  Enjoy!

Download the interiew (mp3)

~ Robert Kiyosaki

One of the reasons so many people don’t become entrepreneurs is because they’re afraid of failing. They’re afraid of making mistakes. They’re afraid of losing money. But if people can’t overcome these psychological fears, they’d be better off keeping their day jobs.

In the early 1980s, when my first major business failed, I thought I was the stupidest person in the world. Being flat broke and getting calls from creditors made me wish I had never wanted to be an entrepreneur. I even wanted my old job back.

But instead of condemning me for failing, my rich dad gave me one of life’s most important lessons: “You’re fortunate to have failed. You now have the opportunity to learn how to turn bad luck into good luck. If you can do that, you’ll have a life of more and more good luck.”

Here are three key points for turning bad luck into good luck:

1. Don’t blame. When my rich dad asked me what went wrong, the first thing I did was blame my partners and the economy. He immediately said, “Never blame anyone for your failures.”"But it was their fault,” I replied.Shaking his head, my rich dad said, “If you blame someone else, you’ll never learn from your mistake. If you blame, you give your power away.” Remember, there are no victims–only volunteers. And you volunteered to become an entrepreneur.
2. Meet new partners. My rich dad said, “In every bad deal, I have always met good people. Some became new partners.” Still hating two of my partners, it was hard for me to understand this statement, yet I took my rich dad’s advice and began sifting through the wreckage.Today, one of my best friends came from that business fiasco. In the ruins of other business failures, I met my current partner in real estate and another partner in my franchise business. If not for the failures, I wouldn’t have met those fellow entrepreneurs and gone on to make millions of dollars with them.
3. Study your mistakes. “Mistakes are priceless,” my rich dad told me. “Study them, learn and profit from them.”Again, this lesson was hard to hear. Being angry and broke, I wanted to run from my mistakes. But rather than run from my failure, I went back to my factory, studied my mistakes and resurrected the business.

   This is how I turn bad luck into good luck. Remember, making mistakes and becoming smarter is the job of an entrepreneur; not making mistakes is the job of an employee.

What exactly is it that separates the wealthy from the rest of us? This is an essential question that isn’t asked nearly often enough. On first considering the question, you may be tempted to give answers such as, “Having wealthy parents” or “Winning the lottery” or even “Working at a cushy, high-paying job.” Indeed, anyone in any of the aforementioned circumstances can count his or herself among the very lucky.

Unfortunately for these people, however, being lucky isn’t all it takes to become rich. Robert Kiyosaki, author of the best-selling Rich Dad, Poor Dad books claims that being rich has more to do with how much money you hold on to than how much money you have coming in.

Kiyosaki’s father, the so-called “Poor Dad,” is a great example of a well educated man blessed with a great career who was nonetheless poor, because he couldn’t seem to keep any of the money he was earning.

The good news for you, is that becoming rich has less to do with external factors like your job or whether you were born a Rockefeller, which you can’t control, and more to do with internal factors which you can.

Whether you ever become rich or not is determined, in large part, by nothing more than how you think.

Kiyosaki’s “Rich Dad” used a graph entitled the Cash Flow Quadrant to explain this principle, separating people into four groups. ‘E’s and ‘S’s, or employees and those who are self-employed, occupy one half of the graph. ‘B’s and ‘I’s, or businesspeople and investors were on the other. Robert Kiyosaki claimed that, in addition to representing the source of a person’s cash flow, these categories served as a window into how different type of people think about money.

Furthermore, Kiyosaki explains, individuals don’t land in one quadrant or another by a roll of the dice.

According to Kiyosaki, the people who fit into these four categories are fundamentally different in their thoughts and emotions, and these essential differences drive individuals to behave differently towards their money.

What’s more, Kiyosaki says, it is that emotional difference that determines to which quadrant a person is drawn. And, he says, you can always tell which quadrant a person is coming from simply by listening to what they say. If you hear a person talking primarily about their benefits and job security, then that person is coming from Kiyosaki’s E or employee quadrant. He also goes on to say that it is perfectly all right to live your life in the E quadrant if security is indeed the most important thing to you. But, he adds, the E quadrant is the most difficult quadrant from which to become rich.

Though the revelation that wealth simply depends on your attitude and personality may initially seem rather intimidating, you should take it as encouragement. Even if you don’t see yourself as a lucky person right now, rest assured that you can, if you have the drive, become wealthy.

Real estate is a great place to start for prospective investors; it’s what made “Rich Dad” rich in the first place! In order to become a real estate investor and start building your fortune, all you have to do is make a decision to stop working for a paycheck, and put your paycheck to work for you.

If you’re new to investing, this stock market tutorial will give you a general overview of stocks and demystify the whole process.

There is a common misconception that only the wealthy can invest in the stock market. This is simply not true.

It is essential to have a general understanding of stocks before you begin investing. Since you have chosen to read a stock market tutorial, you’re clearly taking the initiative needed to join in on this wonderful opportunity to earn additional income.

This stock market tutorial will discuss just the basics on stocks. Upon finishing, move on to the next level of advancement. Before long you’ll be a stock market tutorial graduate! Perhaps you’ll be the next Donald Trump someday! But let’s not get too far ahead of ourselves!

Where Do People Learn About the Stock Market?

Many jobs will offer stock options to their employees through the company. A simple investment such as this can result in some wonderful long term returns.

Another place people get started with stocks is from a family member such as a parent who takes the time to teach them. Some couples handle their stocks together, and some parents talk to their teenage children about stocks.

Other sources for information on the stock market include: a stock market tutorial such as this one, books, business magazines, and more.

What Are Stocks?

Stocks are portions of ownership (also called “shares”) in a company. Growing companies sell these shares to help fund further development.

Why Should You Invest?

The question of whether to invest is yours to decide. Let’s assume since you’re reading a stock market tutorial you’re already convinced. You may still want a few reasons to invest, though. Here are some benefits to investing in the stock market:

Stocks grow over time. When the stock grows you can sell it at a higher price and thereby turn a profit. However, in selling it, you relinquish the opportunity to generate future income from that stock to the new investor. Read the rest of this entry »