Rich Dad Education Blog

There will always be times when a great deal gets away from you. You might move too slowly or not have the cash or saw some problems that weren't really there--the reason doesn't matter. What matters is how you manage the realization that this "fish" slipped off your hook.

You will never lose money on a deal you didn't do. So when you miss an opportunity, don't beat yourself up. Instead, consider what you learned and move forward.

Don't worry about the deals that get away. Focus on making the ones you are doing as profitable as possible.

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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.

Posted 06:48 AM | Permalink | Comments (1) | TrackBacks (0)

Get to Know Your Market

To know whether or not a particular investment will work for you, you must know your market. There are no shortcuts or exceptions to this rule. You must get out in the field and look at all types of properties. Looking does not commit you to buying and each time you look at real estate, you learn more.

Read the real estate section of your local newspaper. Get comfortable with the language of real estate and the jargon most investors use. Know what the current market values are in various parts of your community for both property prices and rents. Establish relationships with several real estate agents. Join and be active in your local real estate investors’ organizations.

When you know your market, you will be able to recognize and take advantage of bargains and great deals when they come your way.

Posted 07:09 PM | Permalink | Comments (1) | TrackBacks (0)

Okay, you probably read the title of this post and thought, "Five reasons? I could give you 50!" But there are some very fundamental reasons why you should be rich -- especially if you are a woman. Kim Kiyosaki, author of Rich Woman, wrote a great article explaining those reasons. She says that for women, real life financial education is no longer a luxury, it's a necessity.

So what are the five reasons why Kim Kiyosaki thinks you should be rich? Click here to read her article and find out.

Posted 03:55 PM | Permalink | Comments (2) | TrackBacks (0)

A tip from Rich Dad's Education: Your money can be the best employee you’ll ever have. You can put it to work for you, and it will work 24/7/365, it will never complain, it never ask for a day off—it just keeps working.

You put your money to work by investing it wisely. Putting your money in a basic bank account is like putting your best, hardest-working employee in jail. The jail (bank) will put your employee (money) to work for its own benefit, and you’ll see little if any of the results.

Think about what your money can do for you and get the most out of it that you possibly can.

Posted 09:37 AM | Permalink | Comments (1) | TrackBacks (0)

I just finished watching Robert Kiyosaki and Steve Forbes speak on "Stocks, Politics, and the Economy: Prudent Strategies" at the Forbes.com iConference.

Here are a few bits of wisdom Robert offered:

"The biggest thing about financial intelligence is knowing when to save and when not to save." (He pointed out that in today's economy, he's not saving -- he's investing!)

"Banks will always give me money for real estate." (Banks typically won't give you money to invest in stock)

"If you’re going to invest today, invest globally."

"The tax code incentivizes the entrepreneur and punishes the employee." (Become an entrepreneur to build your wealth and to take advantage of the tax breaks the tax code offers.)

In a comment about today's political situation, Steve Forbes noted: "Never underestimate the power of politicians to muck things up."

A concise summary of the discussion is: Increase your own financial IQ so that you can take care of yourself regardless of what happens to the economy.

Posted 09:44 AM | Permalink | Comments (1) | TrackBacks (0)

You can profit from real estate in five primary ways:

1. Positive cash flow. When you buy and hold a property for cash flow, take your total income and subtract all of your expenses. If you have money left over, that’s positive cash flow, and you have made a profit.

2. Appreciation. You profit when your property increases in value, even though you do not actually receive the cash until you sell. There are two types of real property appreciation: natural, which is the amount the market goes up and forced, which is adding value with improvements or a change of use.

3. Equity buildup. As the principal balance of your mortgage is reduced, your equity in the property increases. If the property is rented and you are using the rental income to make the mortgage payments and reduce the principal balance, you can consider the equity you gain part of your profit.

4. Tax reduction. Owning investment property entitles you to use a number of tax reduction strategies, including deductions for depreciation, interest, maintenance, and other expenses related to the management of the property.

5. Financing. If you hold all or part of the mortgage on property you sell, you can profit from the interest on the loan.

Posted 08:41 AM | Permalink | Comments (0) | TrackBacks (0)

You can profit from real estate in five primary ways:

1. Positive cash flow. When you buy and hold a property for cash flow, take your total income and subtract all of your expenses. If you have money left over, that’s positive cash flow, and you have made a profit.

2. Appreciation. You profit when your property increases in value, even though you do not actually receive the cash until you sell. There are two types of real property appreciation: natural, which is the amount the market goes up and forced, which is adding value with improvements or a change of use.

3. Equity buildup. As the principal balance of your mortgage is reduced, your equity in the property increases. If the property is rented and you are using the rental income to make the mortgage payments and reduce the principal balance, you can consider the equity you gain part of your profit.

4. Tax reduction. Owning investment property entitles you to use a number of tax reduction strategies, including deductions for depreciation, interest, maintenance, and other expenses related to the management of the property.

5. Financing. If you hold all or part of the mortgage on property you sell, you can profit from the interest on the loan.

Posted 08:41 AM | Permalink | Comments (0) | TrackBacks (0)

Always make money in a win-win situation. Everyone involved in the transaction should be satisfied and feel like a winner.

If you make money at someone else's expense, it will come back to you in a negative way. Remember, what goes around, comes around.

Posted 08:01 AM | Permalink | Comments (0) | TrackBacks (0)

When you're considering an investment, here are the seven questions you need to ask. Get all the answers, consider them, and then make a decision.

1. What is my time and money investment? (Not "how much does it cost?")

2. What is the return on my investment? Is the gain sufficient?

3. What are all the upsides of this investment?

4. What are all the downsides?

5. What is the best case scenario?

6. What is the worst case scenario?

7. Can I handle the worst case scenario?

Posted 05:00 AM | Permalink | Comments (1) | TrackBacks (0)

Did you know that “cash is trash”? Learn more about that and Rich Dad Predictions for 2008 in part 4 (the final installment) of this great series.

Posted 01:47 PM | Permalink | Comments (0) | TrackBacks (0)

Here's the third is the series of videos with Rich Dad predictions for 2008.

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For more about what the Rich Dad team sees for 2008, watch Rich Dad Predictions 2008 Part 2.

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Robert Kiyosaki said: "When things are bad, the rich get richer. When things are good, the rich get richer."

Think about it. Is there any reason to delay implementing your plan to become rich?

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One of the nice things about being rich is that you can buy things. But it’s what you’re buying today that will determine your financial situation tomorrow.

Here’s a simple guide to spending that will have a tremendous impact on your financial future: Stop making purchases and start making investments.

Posted 07:49 PM | Permalink | Comments (0) | TrackBacks (0)

Watch and listen to Robert Kiyosaki and his team as they discuss the psychology of winning – then think about what drives you. Click to see the video.

Posted 05:54 AM | Permalink | Comments (0) | TrackBacks (0)

Hear Robert and Kim Kiyosaki on Doing It Right Radio™. Click here to hear Robert speak on entrepreneurship and Kim on the importance of financial literacy for women.

Posted 06:48 AM | Permalink | Comments (0) | TrackBacks (0)

Henry Ward Beecher said, “It is not work that kills men, it is worry. Work is healthy; you can hardly put more on a man than he can bear. But worry is rust upon the blade. It is not movement that destroys the machinery, but friction.”

Don’t let yourself rust with worry. Work toward your financial and personal goals instead. Keep moving forward.

Posted 10:02 AM | Permalink | Comments (0) | TrackBacks (0)

Most people think that you solve money problems with money. But just having more money won’t fix your money problems if you don’t have financial intelligence. That’s why it’s not unusual for people who win lotteries to end up bankrupt in spite of their windfall (or maybe even because of it). The point is: you solve money problems with education. Educate yourself about money—how to make it, manage it, keep it, grow it.

Posted 04:43 PM | Permalink | Comments (0) | TrackBacks (0)

A point Robert Kiyosaki and other Rich Dad Education™ instructors often make is this:

It’s okay to ask other people for the answer.

We tend to think we have to figure things out for ourselves because of what we learned as part of a traditional education. As a youngster in school, you were taught that asking another student for an answer on a test was cheating. That’s certainly correct, and it’s important to learn integrity.

But that’s school. In real life, everything you do is essentially a test—but asking for help figuring out the answer is called collaboration. It’s a positive thing and will probably put you in a stronger position than if you had tried to deal with things by yourself.

In the real world, don’t cheat—but certainly collaborate.

Posted 08:20 AM | Permalink | Comments (0) | TrackBacks (0)

Our students often tell us they want to become rich because they want to have the resources to help others. That’s an admirable goal we support. Remember that you need to create wealth for yourself before you can start using your money to help others. Wealth gives you the resources to turn your altruistic dreams into reality. Let us help you do that.

Posted 06:04 AM | Permalink | Comments (0) | TrackBacks (0)

Some wealthy people made their money by inheriting it or getting it as a gift or windfall in some other way. Many wealthy people learned how to make money from someone. Someone taught them the knowledge and skills they needed to reach their financial goals.

You can learn how to make money the exact same way: from someone who knows how to do it and is willing to share that information. You really can learn to be rich, and you can learn to be rich through the training offered by Rich Dad Education™.

Posted 04:59 PM | Permalink | Comments (0) | TrackBacks (0)

When most people invest, they think in terms of making their money work for them. Not a bad way of thinking, but it’s more fun if you take this approach: Send your money out there and tell it not to come back without some friends.

Posted 05:37 AM | Permalink | Comments (0) | TrackBacks (0)

Don’t try to do this by yourself. Build a team of people who will benefit from your success and therefore be glad to help you.

Put people who are smarter than you are on your team. Figure out what you don’t know and find people who know it—those are the people you want on your team.

At Rich Dad Education, the only “grade” you receive is the one you give yourself with your accomplishments. So don’t worry about competing with your classmates or with anyone else, for that matter. Instead, cooperate with the people who can help you reach your goals.

Posted 07:19 AM | Permalink | Comments (0) | TrackBacks (0)

How can you get the maximum benefit from Rich Dad training, or any other training, for that matter?

Simple: Be willing to become a student again. Put your ego aside and let someone else who knows how tell you what to do. Don’t try to figure out why it won’t work. Instead, believe that it will and you’ll be amazed at what you can accomplish.

Jackie

Posted 04:53 PM | Permalink | Comments (1) | TrackBacks (0)

Fear is a complicated emotion, but one thing about it is very clear: all too often, fear is what holds us back from reaching our dreams.

We’re afraid we’ll fail. You might, but what happens if you don’t? And you’ll probably make some mistakes, but so what? Fear of failure is no excuse for not trying.

We’re afraid people will laugh at us and make fun of us. Think about this – why would someone make fun of you for wanting to achieve financial independence? Perhaps because they haven’t done it? Eleanor Roosevelt once said, “No one can make you feel inferior without your permission.” So don’t give them permission.

One more thing about fear: Don’t try to hold other people back because you’re afraid. If you’re afraid and you want to give into your fears, fine – that’s your choice and your decision. But don’t impose your fears on anyone else.

Please help others by sharing your stories of facing and conquering fears.

Jackie

Posted 09:08 AM | Permalink | Comments (0) | TrackBacks (0)

At Rich Dad Education, we teach proven real estate investing strategies. But your life will not change just because you learn a real estate investing strategy.

Change your thoughts, change your words, change your actions -- and then your life will change. The knowledge is important but it’s not enough. Knowledge by itself won’t change anything. The change comes when you take action on the knowledge.

Jackie

Posted 04:38 PM | Permalink | Comments (0) | TrackBacks (0)

You’ve probably heard all your life that time is money. At Rich Dad Education, we know that’s not true. Time is more valuable than money. In fact, time is your most valuable resource because it can never be replaced.

Value your time far more than you value your money.

Jackie

Posted 11:15 AM | Permalink | Comments (0) | TrackBacks (0)