Insight for Today 12/5/07

"I do the very best I know how - the very best I can; and mean to keep doing so until the end. If the end brings me out all right, what is said against me won't amount to anything."
Abraham Lincoln 1809-1865, Sixteenth President of the USA

Insight for Today 12/4/07

"The road to happiness lies in two simple principles: find what it is that interests you and that you can do well, and when you find it put your whole soul into it - every bit of energy and ambition and natural ability you have."
John D. Rockefeller 1839-1937, Industrialist and Philanthropist

Insight for the Day 11/15/07

"Whether or not we realize it each of us has within us the ability to set some kind of example for people. Knowing this would you rather be the one known for being the one who encouraged others, or the one who inadvertently discouraged those around you?"
Josh Hinds Syndicated Columnist and Author

Insight of the Day 11/7/07

"One can choose to go back toward safety or forward toward growth. Growth must be chosen again and again; fear must be overcome again and again."
Abraham Maslow 1908-1970, Psychologist

Insight for Today 11/1/07

"Whatever we are waiting for - peace of mind, contentment, grace, the inner awareness of simple abundance - it will surely come to us, but only when we are ready to receive it with an open and grateful heart."
Sarah Ban Breathnach Author of Simple Abundance

Insight for Today 10/25/07

"Whatever course you decide upon, there is always someone to tell you that you are wrong. There are always difficulties arising which tempt you to believe that your critics are right. To map out a course of action and follow it to an end requires...courage."
Ralph Waldo Emerson 1803-1882, Poet and Essayist

Insight for Today 10/10/07

"The more you praise and celebrate your life, the more there is in life to celebrate."
Oprah Winfrey TV Personality, Producer and Author

Duplication Article by Jayne Johnson

At our 7:30am Round Table Meeting held on 9/25/07, Jayne had another great half hour speech on Duplication!!

"Duplication: Impartial perception; it’s perceiving something exactly, precisely, with no alteration.
Example: if a person says, “green apple,” the listener gets “green apple,” not “apple,” or “red apple” or
“green apple with a brown stem.” You get something exactly as it is. No spin on it, no change to it, no
“I agree” or “I disagree” type of judgment tacked on to it. You just get IT, precisely, with nothing
added to it or subtracted from it.
Misduplication: The prefix “mis” means “wrong” or “incorrect,” etc. Misduplication is perceiving
something inaccurately, incorrectly; it could include adding more to it or subtracting something from
it.
Adding more to it could mean putting a spin on it or putting an interpretation to it. This is often done
through judging, assessing, evaluating, associating, or identifying. Example: You perceive a certain
look on your friend’s face and interpret it as anger. You say, “What are you mad about?” Your friend
says, “Nothing, I’m not angry. I was just thinking about something.”

To continue to read this article click here

After you read the article, any feedback???

Friday, October 5 - Ken McElroy - Rich Dad's Advisor RDTV Taping

On Friday, October 5, Ken McElroy will bring his expertise to the Rich Dad Studio. Ken is a Rich Dad Advisor and the author of three Rich Dad Books. He has 20 years of real estate experience, owns several businesses, and his company is the largest property management company in the southwest. The two-hour taping begins at 9:00AM.

If want to attend:

Please RSVP to Kathy Grady, kathygrady@richdad.com with the following information:

- Your complete name
- Your guest's complete name
- Taping Ken McElroy

Please use 'STUDIO TAPING' as the subject line of your reply.

Thursday, October 4 - Larry Winget RDTV Taping

On Thursday, October 4 we welcome another special guest. Larry Winget, author of Shut Up, Stop Whining and Get a Life, is known for his confrontational style of teaching. Some of you may have seen him on CNBC's The Millionaire Inside. Larry is viewed by many as a behavioral change expert who has personally traveled the road from rags to riches - using a combination of strategies to help people move from financial wreckage to responsible spending habits. Larry is a straight shooter whose style is strong and effective. The two-hour taping begins at 9:00AM.

If want to attend:

Please RSVP to Kathy Grady, kathygrady@richdad.com with the following information:

- Your complete name
- Your guest's complete name
- Taping Larry Winget

Please use 'STUDIO TAPING' as the subject line of your reply.

America's top oil suppliers to slash exports by 2012: CIBC World Markets

I was carpooling with one of my co-workers at work, Bob Turner, the oil man at Rich Dad's. We were listening to the news and heard that the oil barrel has gone up to $83.50 per barrel! Then he saw this article:

America's top oil suppliers to slash exports by 2012: CIBC World Markets

Global supply gap, surging prices will shift attention to oil deposits north of border

September 27, 2007: 08:20 AM EST

NEW YORK, Sept. 27 /PRNewswire-FirstCall/ - CIBC - Six of the largest oil suppliers to the U.S. are poised to significantly cut exports by 2012, ramping up pressure on supply and price, and intensifying the focus on one of the last great deposits open to private investment: Canada's oil sands.

The forecasted cuts by Mexico, Saudi Arabia, Venezuela, Nigeria, Algeria and Russia are the subject of a keynote address that Jeff Rubin, chief market strategist and chief economist at CIBC World Markets will deliver at the firm's Industrial Conference Oct. 2 in New York City. In his remarks, Mr. Rubin will share his latest research on the global oil supply/demand balance, with specific focus on the size and scope of the oil supply crunch facing the U.S. over the next five years.

Click here to read further

Give me your feedback after reading this article.

Economics Study Group with Robert

Robert had a study group yesterday at the Rich Dad's office on the Dow Theory article he subscribes to. Click here to view the video

Insight for Today 9/26/07

"If you doubt you can accomplish something, then you can't accomplish it. You have to have confidence in your ability, and then be tough enough to follow through."
Rosalynn Carter Former American First Lady

Insight for Today 9/25/07

"People think I'm disciplined. It is not discipline. It is devotion. There is a great difference."
Luciano Pavarotti 1935-2007 Opera Singer

Big Favor to ask.........................................................

Please tell ten friends to tell ten today! The Breast Cancer site is having trouble getting enough people to click on their site daily to meet their quota of donating at least one free mammogram a day to an underprivileged woman. It takes less than a minute to go to their site and click on 'donating a mammogram' for free (pink window in the middle).

This doesn't cost you a thing. Their corporate sponsors /advertisers use the number of daily visits to donate mammogram in exchange for advertising. Here's the web site! Pass it along to people you know.

http://www.thebreastcancersite.com/

Insight for Today 9/19/07

"It's the repetition of affirmations that leads to belief. And once that belief becomes a deep conviction, things begin to happen."
Claude M. Bristol 1891-1951, Author of The Magic of Believing

Success Principles Mentorship Message # 2

Click here to purchase the book

This lesson is pretty cool. It taught me something that I never do! Need to Acknowledge your past success. We remember our failures more than our successes. The more self-esteem you have the more risk you are willing to take. Divide your own life into 3 equal time periods:

#1 - Birth to age 20

Think of things that you have accomplished, victories, etc. Like the first time you learn how to ride a bike, participate in a school play, learned how to spell a really tough word, graduating from high school, wrote an essay, etc.

#2 - Age 20 to 40

Same thing as above, maybe got the job you always wanted, relationship, house etc.

#3 - Age 40 to 60

Same as above

Then the lesson takes you to another exercise, list 100 or more successes. Boy was that hard!! At first I just couldn't. Once I read into the lesson more than it became easier.

Another lesson is to do a Victory Log daily.

What successes can you come up with? Comments?

"Looping" by Jayne Johnson

In our 7:30am Round Table meeting last Tuesday, 9/11/07, Jayne Johnson spoke on a subject called "Looping" She is a Clearing Practitioner for Robert and Kim Kiyosaki. She also attends our early meetings every week and she give us an half an hour of her speech. Have you ever felt that you were stuck and you couldn't move forward? There can be different reasons why one gets stuck. Consider the idea that people sometimes communicate their opinions as if their opinions were facts. They may not be facts to the listeners, but the speaker, even the most well-meaning friend for loved one, at times will communicated to you as facts. One comment can suddenly put you stuck in a mystery that you now must solve. So you ask yourself questions, questions for which you probably have no solid answers. Now you are caught in a loop, puzzled, second guessing yourself, and worrying, with lots of maybes and I wonder why swirling around in your head. When we are certain we feel good, when we are uncertain, we loop around and around trying to become certain. Sound familiar?? Find yourself doing that?? I know I have. It is self-doubt about what you thought you were sure about an can lead to worry and stress quickly. Boy is that a fact! The opinions of others can often be helpful, but at times they are flat out wrong. If you fail to notice that and abandon your own certainty, the trap is set. You are unwittingly throwing your own truth out the window. Looping comes from doubting yourself. Is there a solution to this?? Sure there are, TRUST YOURSELF AND DON'T BUY IN. Someone says something to you, is it true to you? If it is not, then acknowledge that to yourself because rebuttals to the other person often produce an argument or upset. Simple silent recognition accomplish four things:

1. Prevents you from looping
2. Keeps you from being engulfed in mystery
3. Releases stress you may incur from being told something that is worrisome to you
4. Gives you certainty about yourself and your own truths

This is an article she wrote in her Goals Workshop Companion Workbook. You can also check out her website by clicking here

Any body have any comments or feedback?

It is true that every one has the right to have and express his or her own opinions, when you consciously distinguish between your own opinions and the opinions of others, you show respect for both the other person and yourself.

Rich Dad RDTV Taping on 9/6/07 called "Addicted to Proverty

I attended the taping and it was pretty interesting. His name is Dr Michael Carlton. He works with people with addictions, like drugs, alcohol, sex, gambling, etc. Is it possible to be addicted to poverty? It sure is. Soon this will be on our website on the RDTV page of the www.richdad.com. Click on the title to get a brief youtube video by John Seiferth of the Rich Dad's Underground.

Insight for Today 9/11/07

"The money I have is in direct proportion to the value I've given to others. The more I give of myself, incredibly, the more economic power comes my way."
Tod Barnhart Author of The Five Rituals of Wealth

Quote for Today 9/10/07

"Focus on what you want and not what on you don't want."
- The Law of Attraction

Insight for Today 9/6/07

"The difference between getting somewhere and nowhere is the courage to make an early start. The fellow who sits still and does just what he is told will never be told to do big things."
Charles M. Schwab 1862-1939, Industrialist

http://azpurplerat50cashflowclub.blogspot.com/

Hi Everyone!

There is a HUGE Cashflow Event with Robert
and Kim coming up on Saturday, September 29th at a local church in Mesa,
AZ. I don't know if this event has been announced yet to the public,
but you can sign up today before it gets announced to the public. Check
it out...

http://www.businessmentorship.com/Index.cfm/GO/bmiHome

Introducing the Red Rat video

I came across this old video we use to have up on our old website a few years back. It is an animated video on How To Get Out of the Rat Race. Check it out!!!!!

Beaten Game Twice the Day I Got It - by garyfender | Cashflow Games

I came across this post on our INSIDERS Discussion Forums on the CASHFLOW Games Forum on this member experience playing our CASHFLOW THE E-GAME and I wanted to share it with you guys:

I also went bankrupt like 3 times before I figured out how it all worked. The biggest secret is to cut expenses, increase savings, so I have money to invest. Then when a good investment opportunity arises like this one with a cashflow of +2800 a month. Which required only a $30,000 down payment. I had $10,000 saved. So I grabbed a calculator did a quick calculation of $20,000 at 120% was 2,000. I saw that even with the loan, I'd still be making a return of $800.00 per month. So I bought the deal. Then started paying off my other loans. Which increased my passive income to $3,100. Before long I had the $20,000 paid off and made it to the fast track. After a lot of tries I was finally able to land on my Dream and beat the game. The worst I did was when I got an occupation as a teacher and kept getting stock investment and no property. Then I landed on getting kids 3 times. Before long my income was at like $300 a month. I couldn't get out of the rat race. Really showed me how big a liability kids are. I won't be having any of those!

To join the free community at the Rich Dad's website, please visit www.richdad.com and sign up and mingle with over 500,000 Rich Dad like minded community members!!

I have a special guest today Tricia Loggins..................

Tricia is one of our two receptionist at Rich Dad's Company. She is also in our Rich Dad's Silver Investment Club. On 9/7/07 we will be going to the silver coin store to get some silver for our investment. Here is her comment in what she has learned since she joined us 8 months ago:

Since being employed with the Rich Dad company, I have opened up a new chapter in my life. Before I started here I was all about working for money, going to school , and getting a safe secure job. Now I have opened my eyes to a new perspective; investing. I fully plan on learning everything that I can while im here and becoming financially free. Robert is truly one of the greatest teachers and I could not be more thankful to have found this company, which I now consider my "second" family!

Tricia Loggins

Suze Orman: Well-known financial author

MONEYWEB: Do you follow any, or do you agree with any of Robert Kiyosaki's philosophies? SUZE ORMAN: Of course I do. You know, what you think, ...


John Seiferth found this article and sent it to us in Purple Circle. Like he said is wow. I thought yeah you are right. So I wanted to post this article and get your feedback. At first I didn't really like Suze Orman and I haven't even seen her speak either. And it is great that she pretty much agrees with Robert!

My first mentoring lesson #1 with Jack Canfield

Click here to purchase the book


Lesson One: TAKE 100% RESPONSIBILITY FOR YOUR LIFE

As human beings, we often believe we don't have enough money, romance, success or joy in our lives. But what we need to understand is that greatness exists in all of us. It's simply a matter of pulling that greatness out of ourselves and using it to get us from where we are now...to where we want to be.

While many people believe they are entitled to live a great life, top achievers we've met over the years know they must take 100% responsibility for achieving the lifestyle, relationships, financial freedom and opportunities they experience in their lives.

This isn't always easy. But one way to start taking more responsibility is to begin responding differently to the events that occur in your life. Remember the formula from Principle #1 of The Success Principles book?

E + R = O

Event + Response = Outcome. That's right...you can actually change the outcomes in your life -- and get better ones -- simply by responding differently to challenges and opportunities that occur.

I realized that I need the book so when each lessons refers to a page in the book I can read it. I will be on vacation 8/25/07 till 9/4/07 from Rich Dad and this is the perfect opportunity for me to revamp my life and how to get where I want to be in life. It is so true that each event that happens to you has responses and an outcome. I got me an notebook so I can over the vacation write down all the events that happens in my life, my responses and my outcome. Maybe I can see things more clearly once I do that!

Click on the links to hear the audio:

Window Media version

Real Player version

Jack Canfield

I was introduced to a movie called "Secret" by our IT person, John Seiferth. Incredible movie! I really do believe in the law of attraction. When I am feeling down and things are going well I retreat to watching the movie again. Jack Canfield is one of the teachers in the movie. I have signed up to take advantage of his 21 days free mentoring. It doesn't matter if your goals are to be the top sales person in your company, become a leading architect, lose weight, become a better parent, increase confidence, buy your dream home or make millions of dollars – Jack can help you develop a clear, personal plan of action that will completely transform your life into exactly what you want it to be. I will keep you posted as I go through the mentoring!

A Silver Lining for Nervous Investors (Article) by Robert Kiyosaki

The subprime mess is widespread, and it seems to be getting worse. It's certainly worse if you're about to lose your home.

The stock market is schizoid -- up one day and down the next. If you're a day trader, this volatility is pure heaven; if you're getting ready to retire, it's likely to give you a heart attack.

Big Deal

As for commercial real estate, it's a great market. I just bought a 350-unit apartment house in Tulsa with an assumable loan at a 4.9 percent interest rate. Rents are low, the oil business is creating jobs, and demand for apartments is high.

As with any market, the real estate business is terrible for some people and couldn't be better for others (like me).

But as much as I love real estate, I believe the biggest opportunity today is in silver. I think this precious metal is about to become the most spectacular investment in recent history -- bigger than oil, even bigger than Google.

All That Glitters

Let me give you some reasons why:

• Silver is a consumable industrial commodity.

It's used in computers, cells phones, and electrical relays. This means that as countries like China, India, and Vietnam, and regions like Eastern Europe, become more modernized, the demand for silver will increase.

Silver is also applied in medicine. One little-known use is as a bactericide, a role silver has filled throughout history. Today, medical devices such as catheters and stethoscopes use silver, and every hospital in the western world uses silver sulfadiazine to prevent infections.

• Silver is scarcer than gold.

Gold is hoarded. It's estimated that 95 percent of all gold ever mined is still around. The exact opposite is true of silver: An estimated 95 percent of all silver ever mined has been consumed.

Forty-five percent of all silver mined is burned up in industrial uses. Jewelry accounts for 28 percent, and 20 percent has been consumed in photography. Only 5 percent is in coins.

• Silver supplies are down.

In 1900, it was estimated that the world had 12 billion ounces of silver. By 1990 it had dropped to 2.2 billion ounces. By 2007, the supply was down to 300 million ounces.

Some of the more pessimistic forecasts estimate that the world will be out of silver in about 10 years. This could be catastrophic to the world economy. In 10 years, silver might have as much of an impact on the world economy as $200-a-barrel oil.

A Safe Haven?

As a precious metal, silver is also money. And as the U.S. dollar drops, gold and silver are seen as a hedge against a loss of value. As more and more people wake up to the reality that their cash is trash, real estate is a gamble, and the stock market is too volatile, silver may be a great safe haven.

As I write, silver is approximately $13 an ounce. If industrial consumption continues and monetary panic sets in, who knows how high the price will go? Between 1979 and 1980, silver went to $48 an ounce. In today's dollars, that would be the same as $80 an ounce.

And recently, exchange traded funds in silver have been added as a way for investors to hold silver. The reason I find the silver ETF so intriguing is because an ETF represents real money -- not fake money like the U.S. dollar.

The ETF Solution

Prior to 1963, a U.S. dollar was real money that could conceivably be exchanged for silver. After 1963, it became a Federal Reserve note that was no longer backed by silver. A silver ETF is similar to old-time money, then, and as the U.S. dollar continues to drop in purchasing power these new ETFs may become the "new old money."

The significance of the new silver ETF is that it makes owning silver simple and convenient for the general public. Owning silver ETFs is easier than owning physical silver, which is heavy and requires security such as a safe. And owning silver ETFs is safer than buying a silver mining stock, which can be risky.

Silver ETFs are also pretty straightforward: If silver is $13 an ounce, you buy so many ounces at that price. If the price of silver goes up, you make money; if the price goes down, you lose money. The risk is minimized because you're buying physical silver -- you aren't buying a share of a silver company, which can go bust. As long as the ETF is honorable and protects your silver, your investment is secure. (A caveat: Silver ETFs haven't proven reliable yet, so use caution if you take this route.)

A Rich Find for Investors

My prediction is that the industrial demand for silver will continue to go up as the wider world becomes more modernized. At the same time, as the dollar drops in purchasing power, the average investor will wake up to the convenience of owning silver ETFs and start to buy them.

Consequently, the ETF side will dry up the silver supply for the industrial side. Someday in the near future, then -- maybe in two to five years from now -- these two forces will collide and the price of silver will go up faster than anything on the market today.

The Birth of a Silver Bug

I personally became interested in silver in 1957 as a 10-year-old boy, when I began collecting coins. I became a true silver bug when, in 1965, the federal government took silver coins out of circulation and reduced the silver content of a silver dollar from 90 percent to 40 percent. I immediately began getting bags of coins from my local bank and scratching through them looking for real silver coins.

Little did I know that I was simply behaving according to Gresham's Law, which states that good money goes into hiding when bad money enters the system. Today, I still have the silver coins I socked away as a kid.

While it's true that I could've profited more by putting my money into investments other than coins, my love of silver caused me to watch and understand the silver market. After five decades of doing so, I'm quite certain that silver will soon emerge as not just a good investment, but a spectacular one -- maybe even a once-in-a-lifetime investment. Of course, I've been saying that for 50 years now, so take my advice with a shot of tequila.

Buying In

Anyway, there are three ways to play silver:

• Buy coins from a coin dealer

• Buy shares in silver mining companies

• Cautiously buy silver ETFs through your stockbroker

The web sites for Kitco and Gold & Silver Inc. provide more detailed information.

My E-Game Club

I will be on vacation all next week, 8/25/07 till 9/3/07 and I will be online off and on each day to play the e-game. I will be the purplerat50 online. Join me for a fun game of learning!

The Dow Is Crashing!

An article from Mike Maloney:

On October 4th 2006, the Dow broke its old high of 11,750 set back on January 14th 2000, and from then on all you heard from the financial press was "Dow sets a new, all time, record high"… at least that's all you heard until the correction on February 27th, 2007.

I just don't get it. How can anyone at this point in time (including the financial press) believe they are actually making gains being invested in general equities? On February 20th, the Dow hit its "brand new, all time, record high" of 12,795, and at the writing of this article hovers at 12,560, 6.9% above its 2000 high.

A 6.9% gain over the entire 7-year period… hasn't anyone heard of inflation? Don't investors know that if their portfolio doesn't outpace inflation they are actually losing ground?

The Dow is actually crashing, but if you have not yet educated yourself on the insidious ravages that inflation can have on your portfolio, you can't see it. This is a blind spot investors must be mindful of, and guard against, if they are to prosper.

Please click here to read the read of his article.........

Insight for Today 8/21/07

"The most important thing in life is to stop saying 'I wish' and start saying 'I will.' Consider nothing impossible, then treat possibilities as probabilities."
David Copperfield Magician

Publicity Alert! - Kim Kiyosaki

Publicity Alert!

Kim Kiyosaki

Kim makes a guest appearance... on The Paula White Show

Host: Paula White

When: Tuesday, August 21

Stations: BET 7:00 AM EST

CTN 5:30 PM EST

Daystar 5:00 PM EST

TBN 7:30 AM EST

Good Deal Bad Deal

Publicity Alert! - Kim Kiyosaki

Kim makes a guest appearance... On Fox’s Your World With Neil Cavuto

Host: Neil Cavuto

When: Airs on Fox

Friday, August 17

Check your local listings

Kim will be talking about the market volatility and how it will affect investors.

My Guest Starr Mason

Starr Mason, one of our two Administrative Receptionist, has joined our Rich Dad's Customer Service Silver Investment Club along with Tricia Loggins, the other Administrative Receptionist. Here is her experience when we went to the Silver Coin Store to purchase silver:

This week I received 20 silver coins from Robert and Kim for a bonus! That was really sweet of them! Well it was a great experience for me being that I am new to all of this investing. So yesterday I decided that I was going to take some money from my paycheck and invest into buying more silver since it was down at a good price! During lunch, Linda and I drove to Valley Coin Store. When we walked up to the door we had to ring a bell and wait for the clerk inside to unlock it from his desk. As soon as we walked inside, the door closed behind us and locked us in! The clerk did not say one word to us until we walked up to the counter and wanted to purchase something. This is a security precaution, as I am sure that the clerk could not know a person's intention and must protect himself. So I asked the man for some 1 oz bars of silver and paid him for them, then he unlocked the door and let us out. I am very happy to be learning about investments and how to use my money to work for me! This will be a fun road to financial freedom! ~Starr

Great Job Starr!!!!

A Synopsis : Rich Dad Poor Dad by Robert Kiyosaki

FINANCIAL LITERACY = FINANCIAL INDEPENDENCE

A true tale of two dads— one a highly educated professor, the other, an eighth grade dropout. Educated dad left his family with nothing, except maybe some unpaid bills. The dropout later became one of Hawaii’s richest men and left his son an empire. One dad would say, “I can’t afford it” while the other, asked, “How can I afford it?” Rich dad teaches two boys priceless lessons on money, by making them learn through experience. The most important lesson of all is How to Use Your Mind and Time to create personal wealth. Free yourself from the proverbial “rat race”.

Learn to spot opportunities, create solutions and “mind your own business”. Learn to make money work for you, and not be its slave.

Rich Dad’s Words of Wisdom:

•You are what you Think.
•A job is a short-term solution to a long-term problem.
•A highly paid slave is still a slave.
•Why climb the corporate ladder when you can own the ladder?

Good Thinking:

Two roads diverged in a wood, and I—
I took the one less traveled by,
And that has made all the difference.
Robert Frost, from ‘The Road Not Taken’

Overview

There is a Need.
The rationale for teaching people financial literacy comes from the fact there is no real job security these days. Even after years of toil, the poor and middle class may find they do not have sufficient funds for their children’s college education, or their own retirement. Why work for a corporation, the government, and the bank all your life? Awaken your financial genius and gain financial independence and freedom!

Lesson 1: The Rich Don’t Work For Money

At age 9, Robert Kiyosaki and his best friend Mike asked Mike’s father (Rich Dad) to teach them how to make money. After 3 weeks of dusting cans in one of Rich Dad’s convenience stores at 10 cents a week, Kiyosaki was ready to quit.
Rich Dad pointed out this is exactly what his employees sounded like. Some people quit a job because it doesn’t pay well. Others see it as an opportunity to learn something new.

WORK TO LEARN
Next Rich Dad put the two boys to work, this time for nothing. Doing this forced them to think up a source of income, a business scheme. The opportunity came to them upon noticing discarded comic books in the store. The first business plan was hatched. The boys opened a comic book library and employed Mike’s sister at 1$ a week to mind it. Soon they were earning $9.50 a week without having to physically run the library, while kids read as much comics as they could in two hours after school for only a few cents.

Lesson 2: Why Teach Financial Literacy?
They don’t teach this at school.
The growing gap between rich and poor is rooted in the antiquated educational system. The system trains people to be good employees, and not employers. The obsolete school system also fails to provide young people with basic financial skills rich people use to grow their wealth.
Know your options and use this knowledge to build a formidable asset column.
In an age of instant millionaires it really isn’t about how much money you make, it’s about how much you keep, and how many generations you can keep it.

Steps to get out of the proverbial rat race:
1. First, understand the difference between an asset and a liability.

Assets
•Real Estate
•Stocks
•Bonds
•Notes
•Intellectual Property

Liabilities
•Mortgages
•Consumer Loans
•Credit Cards

The poor have day-to-day expenses, the middle class purchase liabilities that they think are assets (i.e., a home or a car), and the rich build a solid base of income-generating assets.
The middle class finds itself in a constant state of financial struggle. Their primary income is wages, as wages increase, so do their taxes. Expenses increase as wages increase. Hence the phrase “the rat race.” They treat their home as their primary asset instead of investing in incomegenerating assets.
The rich get richer because they keep acquiring more assets and investments to generate more income, which far exceeds their expenses.

Reasons why the home is not an asset but a liability:
1. People work almost all their lives to pay off a home (30-year loans)
2. Maintenance and utilities expenses.
3. Property tax
4. House values can depreciate.
5. Instead of investing in income-earning assets, your money goes out to payments for the house.

Your losses:
1. Time that could have been used to grow value in other assets.
2. Capital which could have been invested rather than paying home-related expenses
3. Education that makes you a Sophisticated investor

If you want to buy a house, first generate the cash flow by acquiring assets, which bring income to pay for it.

Examples of real assets are:
•Apartments for rent
•Real estate
•Businesses that do not require your physical presence. You hire managers.

Average time of holding on to an asset before selling it for a higher value:

1 year
•Stocks (Startups and small companies are good investments)
•Bonds
•Mutual funds

7 years
•Real estate
•Notes (IOUs)
•Royalties on intellectual property
•Valuables that produce income or appreciate

In summary, the key steps to getting out of the rat race are the ff:
1. Understand the difference between an asset and a liability.
2. Concentrate your efforts on buying income-earning assets.
3. Focus on keeping liabilities and expenses at a minimum.
4. Mind your own business.

Lesson 3: Mind Your Own Business

KEEP YOUR DAY JOB BUT START MINDING YOUR OWN BUSINESS.

Kiyosaki sold photocopiers on commission at Xerox. With his earnings he purchased real estate. In 3 years’ time his real estate income was far greater than his earnings at Xerox. He then left the company to mind his own business full time. He knew that in order to get out of the rat race fast, he needed to work harder, sell more copiers and mind his own business.
Don’t spend all your wages. Build a good portfolio of assets and you can spend later when these assets bring you greater income.

Lesson 4: The History of Taxes and the Power of Corporations
Income tax has been levied on citizens in England since 1874. In the United States it was introduced in 1913. Since then what was initially a plan to tax only the rich eventually “trickled down” to the middle class and the poor.

The rich have a secret weapon to shelter themselves from heavy taxation. It’s called the Corporation. It isn’t a building with the company name and logo in brass signage out front. A corporation is simply a legal document in your attorney’s file cabinet duly registered under a government state agency. Corporations offer great tax advantages and protection from lawsuits. It’s the legal way to protect your wealth, and the rich have been using it for generations. Do your own research and find out what tax laws will bring you the best advantages.


The Golden Rule: PAY YOURSELF FIRST.

Rich dad says paying yourself first forces you to create more sources of income to cover your expenses. It’s a simple rule that works like this:
The Rich with Corporations People who work for corporations:

Rich : Earn  Spend  Pay Taxes
Poor: Earn  Pay Taxes  Spend

Key Financial IQ Components:

It helps to take some courses to gain financial literacy; rich dad stresses the importance of learning –

1. Accounting. It pays to know how to read financial statements. When acquiring businesses or assets you need to quickly see the financial standing of the company you are acquiring. Many grown adults do not know how to balance a balance sheet. In the long term, this knowledge will pay off for you and your business.

2. Investment Strategy. This skill will sharpen with experience. Talk to investors and observe how they play the game. Kiyosaki and Mike spent many boyhood hours sitting in on Rich Dad’s meetings with brokers, accountants, and attorneys.

3. Market Behavior. Know the laws of Supply and Demand. No business owner can do without understanding these basic principles of the market. Bill Gates saw what people needed. Open your eyes to opportunities. Look at what sells and who buys.

4. Law Kiyosaki recommends doing everything you can to grow your business within legal boundaries. Know your corporate, state, and accounting laws.

Lesson 5: The Rich Invent Money

Self-confidence coupled with high financial IQ can certainly earn more for you than merely saving a little bit every month.

Make good use of your time and find the best deals.
An example: In the early 90’s the Phoenix economy was bad. Homes once valued at $100,000 sold for $75,000. Kiyosaki shopped at bankruptcy courts and bought the same houses at only $20,000. He resold these properties for $60,000 making a cool $40,000 profit. After six more transactions of the same manner he made a total $190,000 in profit and it only took 30 hours of work time. Rich Dad explains there are Two Types of Investors:

1. Buyers of Packaged Investments.

This is when you call a retail outlet, real estate company, stockbroker or financial planner and put your money in ready-made investments. It’s a simple, clean way of investing.

2. The Professional Investor
Design your own investment. Assemble a deal and put together different components of an opportunity. Rich dad encourages this type. You need to develop three main skills to be this type of investor, namely how to:
o Identify an opportunity everyone else has missed.
o Raise capital
o Organize smart people

Identify an opportunity everyone else has missed.
Learn to identify hidden Freebies in business deals. For example: The real business of McDonald’s isn’t hamburgers. It’s the free real estate underneath each franchise, on every important intersection, in cities all over the world that is the real wealth of its owners.
THERE IS ALWAYS RISK. You need to learn how to manage risk and not avoid it.

Lesson 6: Work to Learn –Don’t Work for Money

The Author’s Odyssey
After college graduation Robert Kiyosaki joined the Marine Corps. He learned to fly for the love of it. He also learned to lead troops, an important part of management training. His next move was to join Xerox where he learned to overcome his fear of rejection. The thought of knocking on doors and selling copiers terrified him. Soon he was among the top 5 salespeople at the company.
For a couple of years he was No.1. Having achieved his objective – overcoming his shyness and fear—he quit and began minding his own business. Learn skills like PR, marketing, and advertising. Take a second job if it means learning more.

A Difference in Education
Schools train professionals. Professionals become so specialized they cannot apply themselves in other fields and need to form unions to protect their jobs. Remember you can have a profession, say, learn to be a pilot if you want to learn how to fly, but at the same time mind your own business.
The rich “groom” the next generation by training the heir in all aspects of running the business. They move him from department to department so he learns how each one relates to the other. Specialization is not the key here, but picking up important lessons from each area and seeing the business as a whole. Rich Dad groomed Kiyosaki and Mike in the same manner. Mike would later take over Rich Dad’s empire, which included restaurants, convenience stores, and a construction company. Kiyosaki created his own empire with real estate, new
products and educational materials.

Three Main Management Skills
1. Management of Cash Flow
2. Management of Systems (Includes Time with family and time for your self)
3. Management of People

Five Obstacles to Financial Independence
1. Fear. Don’t play it safe and cling to what you think is secure. If you don’t go for it and think big you won’t be able to earn big.
2. Cynicism. Don’t listen to advice of others who are not doing what you intend to do. Listen to your self and those who are doing what you aim to do.
3. Laziness. Greed is good and fights laziness. Think about the freedom and money you’ll have and you will put in those extra work hours. Change your thinking. Instead of saying “I can’t afford it.” Ask yourself “How can I afford it?” Challenge your mind to create solutions.
4. Bad Habits. Spending habits should turn into saving and investing habits.
5. Arrogance. Don’t think you know everything there is to know about money. Listen to others. Enroll in useful seminars.

Ten Steps to Awaken Your Financial Genius:

1. Find a reason greater than reality, a big dream. Think of the freedom, the lifestyle wherein you control your own time. Think of what you don’t want, i.e. “I don’t like being an employee”.

2. Use the power of choice, daily. You can choose to watch MTV, or watch CNBC. It’s how you choose to use your time and energy everyday that brings financial success in the long run.

3. Choose your friends carefully. It pays to have friends who are focused and achieving their goals. Surround yourself with friends you can learn from.

4. Master a formula. Learn a new one, and learn fast.

5. Pay yourself first. Practice self-discipline by keeping expenses low. Tenants can pay for your expenses if you rent out apartments or ministorage, for instance. Savings are used for investing and creating more money, not for paying bills.

6. Pay your broker well. Attorneys, accountants, stockbrokers, and real estate brokers will have more incentive to work harder for you. If they make more money, it means you make more money as well. 3 -7% is a good incentive.

7. Be an Indian giver. It’s the concept behind ROI. (Return on investment) Invest and then take the initial money out after a time when the investment has earned for you.

8. Buy luxuries last. Let the income from your growing assets afford you the new car. Wait for your asset base to grow first. Middle class people buy luxuries first, on credit.

9. Find yourself a hero. When you play golf you can imagine you are Tiger Woods. When you do business, you can ask yourself, “What would George Soros have done if he was in my place right now?”
10. Teach and you shall receive. As in money, love, or friendship. If you give without expecting anything in return, you receive more.

According to Kiyosaki, the Japanese have a belief in three great powers:
1. The Sword (weapons)
2. The Jewel (money)
3. The Mirror (self-awareness)

The most valuable of the three is the mirror, or knowing your self. Without this knowledge of self you will have no direction in life and in your business.

To-Do List
1. Stop what you’re doing. Take a step back to assess your situation. Stop doing what is not working and look for a new option.
2. Look for new ideas.
3. Take action. Find someone who has done what you want to do. Take them to lunch. Ask for tips.
4. Take classes and buy tapes.
5. Make lots of offers. Finding a good business deal is a lot like dating. You must go to the market and talk to a lot of people, make offers, counteroffers, negotiate, accept and reject. Many single people sit at home waiting for the phone to ring instead of going out and hitting the dating scene.
6. Take a walk through your neighborhood and look for bargain real estate deals.
7. Buy the pie and cut it into pieces. People buy only what they can afford so they think small. Think big. This goes for land and other investments.
8. Learn from history. Colonel Sanders lost everything in his 60’s and started from scratch with a fried chicken recipe. Bill Gates became rich before he was 30.

Rich Dad's Guide to Wealth with Robert Kiyosaki-Pair Tickets to Raising your Financial IQ with Robert Kiyosaki event on Sept 18th

Raising your Financial IQ with Robert Kiyosaki with guest Kim Kiyosaki:
Tuesday, September 18th, 2007, 6:30 - 9pm Marble Collegiate Church in Midtown Manhattan.

Robert Kiyosaki shares his knowledge, personal best practices and teaching abilities in a 2-1/2 hour learning session. Business partner and wife Kim Kiyosaki will also speak sharing her advice and counsel on investing, real estate and women's business issues. Don't miss this opportunity to hear it live, straight from the Rich Dad and Rich Woman authors.

Click Here

Robert & Kim Kiyosaki on CNBC "High Net Worth"

These are the dates:

8PM EST Sunday 19 August
11PM EST Sunday 19 August
3AM EST Monday 20 August
6AM EST Monday 20 August

Tune in to see Robert and Kim as they are at home, managing their investments and most importantly participating in a CASHFLOW game at a South Phoenix Boys & Girls club. As Robert mentioned yesterday in a company meeting, seeing the kids learning about money and investing is the reason we do what we do.

Click here.................

Robert Kiyosaki Live on the Larry King Show 8/16/07

This will airs on CNN, Thursday, August 16th, at 9pm ET. Click Here.......

Silver Investments

Yesterday we had a mandatory meeting with Robert and Kim in the afternoon. Robert and Kim wanted to thank us for our patience and understanding in tightening up in our Rich Dad's Company. They gave us a small bonus and each and every one of us received 20 Silver Coins!!!!!!!!! That is so awesome and so generous of them!! I have started a "Rich Dad's Customer Service Silver Investment Club" with two of our receptionist at Rich Dad's, Tricia Loggins and Starr Mason. Starting in September 2007, each payday we will go to the silver store here in Scottsdale, AZ and buy two silver coins. And we will continue to do this till the end of the year. My goal was that at the end of the year is to take the silver coins and turn them into money for investments to have some kind of PASSIVE CASHFLOW INCOME! This ought to be fun! I will keep you posted.

Insight for Today 8/16/07

"No matter how small and unimportant what we are doing may seem, if we do it well, it may soon become the step that will lead us to better things."
Channing Pollock Actor, Writer and Composer

John Sieferth, Rich Dad's IT person

Our Rich Dad's Company is in the process of tightening up. Robert wants to make sure that to certain individuals are where they are most valuable and more important, where they want to be. Robert wants to have a great company and get the right people on the bus and get the wrong people off the bus. Once that happens, all the right people need to do is figure out what seat they want to sit in. It is then up to the team to determine what course the bus should take. John Sieferth's real passion is creating media - audio and video. Especially edgy, behind-the-scenes, on the street content (see Rich Dad Underground). he love storyboarding, directing, shooting, and editing video. He also love creating video that is in-your-face and out of the norm and love provoking the viewer into thinking and exploring.

John will be posting updates as the team has given him an assignment of what the video would look like and how he would transit out of IT - check out the Rich Dad's Underground!!!

Good Luck John!!!!!!!!!!!!!!!!!

Insight for Today 8/15/07

"When you get into a tight place and everything goes against you, till it seems as though you could not hold on a minute longer, never give up then, for that is just the place and time that the tide will turn."
Harriet Beecher Stowe 1811-1896, Novelist

Our weekly 7:30am Round Table Meeting

There are a lot of changes going on at Rich Dad.

In order for the company to expand and get bigger, the core of the company must tighten up. As John Sieferth (our IT person at Rich Dad) put it: The "washer and string exercise" is a perfect visual for what is happening and why.

1) Tie a washer to the end of a piece of string
2) Hold the string in one hand allowing the washer to dangle about 3-4 inches
3) Begin to swing the washer in a circular motion

The first thing you'll notice is that the center (your hand) must remain in a very tight circle in order to keep the washer in its orbit.

That is what is happening here at Rich Dad. With the team expanding exponentially - Franchising, Rich Dad's Coaching, Rich Dad's Education, international publishers and partners, etc - it is absolutely critical that the center of the organization become tighter and tighter. We must establish structure, standards, guidelines, accountability, consequences, and rewards in order to keep this organization moving in the right direction.

More on this as the details unfold... go to the Rich Dad's Underground

Insight for Today

"Catch a passion for helping others and a richer life will come back to you!"
William H. Danforth Founder of Ralston Purina

Rich Dad's Coaching

Expand your Context

Opportunities for wealth are unlimited for those who are ready. But if your mind isn’t open to the possibilities, you won’t even know where to look. Get started with a Coach today so you can start thinking rich. That’s exactly what my rich dad did for me and your Rich Dad Coach can do for you.

Write your own Rules

The rich and wealthy operate in the B and I quadrants. These are people that understand how to leverage their money through successful business operations and educated investing. When you reach this stage you can start writing your own rules for success. Depending on your goals, your Rich Dad Coach will help you to focus on the quadrant of your choice.

Get what you want

Remember, my poor dad let scarcity rule his life while my rich dad allowed abundance into his life. Are you ready to let money into your life?

Achieve your Plan

Once you begin to understand how to leverage your time and money, you’ll need a plan of action. As you develop it, your Coach will help you focus on the important aspects so you won’t fall into unwanted habits of the poor and middle-class.

Insight for Today 8/7/06

"When you paint success pictures in your mind, you initiate an inner process whereby your attitudes, hopes, aspirations, and enthusiasm are elevated in response to an image of a more promising future. Every person who aspires must first sell themselves hope, the promise of a better life."
U.S. Andersen Author and Speaker

China Today according to Donald J. Trump

Globalization is a fact of life in today's environment. As Robert described China and India as growing economies we must watch, I simply smiled - as once again we have been thinking alike. Many people think it will take years for China and/or India to approach America's position as the largest economic power. But this may be yet another example of groupthink in process. Both Robert and I have seen their global impact already.

Recently, I was talking to a friend who lives in Europe, and he mentioned the huge amount of coverage China gets over there, compared with what we have about it in the United States. It's a very big topic there. There are two facts alone about China that will indicate how that country is doing and where that country is going:

1. The first Starbucks opened in China two years ago. There are now more Starbucks in China than in the United States.

2. In the 1970s, Shanghai had exactly ONE skyscrapers. It now has close to 800.

As a builder of skyscrapers and having a Starbucks in Trump Tower, I find those two facts staggering. Those are just two examples, yet easily visualized examples that should bring something home: China is a big force, Its population is such that one in every five people in the entire planet is Chinese. Chine has a vibrant economy and workforce and has adapted very well to the new technology. The Chinese are industrious and disciplined. What does this mean? We can either close our eyes and be blown aside, or we can study China and position ourselves to benefit from the changes

Taken from "Why We Want You To Be Rich" by Donald J. Trump and Robert T. Kiyosaki