Wisdom of Rich Dad

During the vacations your kids can try out some easy ways of earning money. With this, they can gain experience and this way they’ll stay active. What’s more they’ll love the idea of earning some extra pocket money for their expenses. This will also help them learn the value of money and the effort it takes to earn money. These are fun-filled ways which they’ll enjoy and also help them explore their creativity and skills. So let’s move on to know about the ways for kids to make money fast.

Best Ideas for Kids to Earn Money

Pet Sitting
One of the easy ways for kids to make money fast is through pet sitting. This is a fun way of earning money if your kids love to spend time with pets, which usually many kids do. You can ask your neighbors, if they have pets or someone nearby looking for such services and let your kids get started.

Read the rest of this entry »

Starting your own business is the best thing you can do if you do not want to worry about work timings and taking orders from superiors. Starting a business on a small scale does need a certain amount of capital and hard work at first, but after the business gestation period it can become profitable consistently.

There are some considerations to be taken in mind before planning for a business; like making a business plan, arranging for finances, hiring resources, and setting up other necessities. Let us take a look at some of best businesses to start in 2011 which have a capability of generating a decent amount of income.

Best Businesses to Start in 2011

Read the rest of this entry »

Do you know someone that is constantly seeking ways to make $100,000 or more? They are always looking for the answer, but they never seem to make any progress. A friend of mine, for example, is a serial “wealth building seminar” attendee. He works really hard to attend every investment, stock trading, real estate, and money making opportunity meeting he can get to.

Unfortunately, for John he has not found the answer to building wealth, so he keeps going to these events. He buys ever new Robert Kiyosaki book, which is essentially the same information rehashed in a new package. But that’s okay for Rich Dad. He knows that 95% of people who read his book will still be hungry for more information. It’s true. 95% of people who attend these conferences and purchase personal finance books do not take action. The answer to building wealth and making more money has been right in front of them all along, but they continue to spend thousands of dollars to let people teach them how to become rich.

Read the rest of this entry »

Islamic laws or Shar”ah does not allow Muslims to trade Forex or any other financial market in the way that a non Muslim does. According to Islamic law, one is not allowed to give or receive interest payments on any of their transactions.

If you have spent any time trading the foreign exchange market, you probably know by now that there are many different aspects to the market that you learn as you go along. One such unique Forex characteristic is an Islamic Forex account and the resulting industry of Islamic Forex brokers.

Now, you are probably thinking: “Wait, Islam is a religion, what could a religion possibly have to do with the Forex market?” The answer is simple. Islamic laws or Shar”ah does not allow Muslims to trade Forex or any other financial market in the way that a non Muslim does.

Read the rest of this entry »

Recently,  I discovered the Tycoon$ game on Facebook. It is an economic simulation game, where you build a business and grow your “empire”. It is still in beta, but I found it very refined and completely bug free.

One thing that is really interesting about the game is that it gives us insight into how markets and economies work. Most people who make the rules for an economy (politicians) do not really know the effects of their policies. They have an idea about what they think is right, or what they think will happen. However, these ideas are based on opinion, or the unproven theories of economics.

What can we learn from such a “game”?

I think we can learn a lot more than most people think from a game like this. It has a realistic and functioning market for 24 different commodities. You can submit limit orders and become a commodity trader.

Another thing that it teaches us is how psychology expresses itself in the environment and in the markets. We can see that the big producers of any given commodity come in and sell in large lots (20,000 is the maximum, at this time). Yet the consumers are buying in small lots of hundreds or a few thousand. So, perhaps the market prices are under more influence from the large sellers than the small buyers, at least in the short term.

Another interesting thing to consider is what will happen over the next few months. The game is only a few months old, and hardly known. What will happen if the number of players doubles or quadruples over the next few months? What will happen to prices? Will they go up across the board?

What about automobiles? They cannot be produced by new players due to high capital requirements. However, they are consumed by the Housing Industry, which has a very low short term ROI. I think it is fascinating to analyze these markets and their interactions, and predict what will happen.

Although this simulation does represent a simplified economy, it does give us clear analytical proof about whether our theories are correct. It seems to me that this game, or any other economic simulation of similar complexity is a powerful learning tool.

Another method that people of varying economic means use to build wealth is to invest in real estate. Owning and managing real estate is like running a small business. You need to satisfy customers (tenants), manage your costs, keep an eye on the competition, and so on. Some methods of real estate investing require more time than others, but many are proven ways to build wealth.

John, who works for a city government, and his wife, Linda, a computer analyst, have built several million dollars in investment real estate equity (the difference between the property’s market value and debts owed) over the past three decades. “Our parents owned rental property, and we could see what it could do for you by providing income and building wealth,” says John.

Investing in real estate also appealed to John and Linda because they didn’t know anything about the stock market, so they wanted to stay away from it. The idea of leverage — making money with borrowed money — on real estate also appealed to them. John and Linda bought their first property, a duplex, when their combined income was $20,000 per year.

Every time they moved to a new home, they kept the prior one and converted it to a rental. Now in their 50s, John and Linda own seven pieces of investment real estate and are multimillionaires. “It’s like a second retirement, having thousands in monthly income from the real estate,” says John.

John readily admits that rental real estate has its hassles. “We haven’t enjoyed getting calls in the middle of the night, but now we have a property manager who can help with this when we’re not available. It’s also sometimes a pain finding new tenants,” he says. Overall, John and Linda figure that they’ve been well rewarded for the time they spent and the money they invested. The income from John and Linda’s rental properties allows them to live in a nicer home.