Rich Dad / Robert Kiyosaki Blog

September 20, 2009

Rich Dad Articles on Yahoo!

Filed under: Articles — ~ @ 5:54 am

Robert Kiyosaki Articles on Yahoo – Link

I really got sick of not being able to read the Yahoo Articles on different topics, because all the articles are never displayed on one page. So here they are:


Rich Dad Article – Don’t Fear Failure

Filed under: Articles, Mistakes — ~ @ 5:04 am

Don’t Fear Failure

By 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:

    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.

    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.

    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.

September 9, 2009

Kiyosaki Interview – The biggest skill I have is making mistakes

Filed under: Articles, Interviews, Mistakes — ~ @ 3:10 am

I just want to say I think these interviews/articles are very important. Many entrepreneurs have failure occur in their business venture, sometimes because of poor decisions, sometimes because they believed in others words and other times because of simple bad luck (like the GFC!), so during these very hard economic times – keep pushing forward!

Best-Selling Author Robert Kiyosaki: “The biggest skill I have is making mistakes.”
Tuesday, September 8 2009

Stephen Key

Robert Kiyosaki’s best-selling book, Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money – That the Poor and Middle Class Do Not!, has sat on my nightstand for a number of years. Within it, Kiyosaki advocates bold entrepreneurship and personal conviction as a means to achieving financial success and freedom; simply working as an employee will never generate significant wealth. Rich Dad, Poor Dad has been enormously successful. What advice does Kiyosaki have to give now?

“There’s an assumption that once one has achieved a certain level of success, everything is easier. Not true! I face the same dilemmas and struggles today I did 30 years ago. It’s only the paradigm that has shifted. The way I perceive these problems is different; there’s a different sophistication level. But the lessons I learned as an entrepreneur working on a Velcro and nylon product decades ago are still relevant,” Kiyosaki explains.

Before becoming a best-selling author, Kiyosaki was a product developer. He counts his inexperience and naivete at that time as a blessing. “If, at the time, I knew how much I did not know, I would have never started. I would have stayed in the Marine Corps, done my 20 years, and collected a paycheck. It’s a great thing I didn’t know,” he says with laughter.

It’s the fearless acceptance of the mistakes he made (and, according to him, continues to make) as a result of that naivete that has allowed him to be so successful. “I blundered along then and I often feel like I’m blundering along now. What’s changed? I have smarter advisors,” he reveals.

But as intelligent as they may be, Kiyosaki’s advisors aren’t responsible for his willingness to try and try again. “The biggest skill I have is making mistakes. I’m pretty much an expert now. In the corporate world, if you make mistakes, you’re fired. But in the entrepreneurial world, if you’re not making mistakes, you’re not learning. I enjoy making mistakes. As far as I can tell, every mistake is accompanied by a priceless lesson. I’ve built my life around these lessons.”

While most people avoid fear rather than seek it, Kiyosaki adheres to a different principle. “If I don’t have butterflies in my stomach, there’s no sense working,” he says.

Kiyosaki can explain his perspective on failure and fear in numerical terms. Simply put, the number of failures you experience is a reflection of the degree to which you’re putting yourself out there. And having the courage to put yourself in a position to fail will ultimately lead you to success. If you never try, you’re never going to fail. But more important, you’re never going to succeed. “The biggest problem wannabe entrepreneurs have is believing they’re going to ‘do what they love’ — but really, a big part of being a successful entrepreneur is doing what you don’t want to. And failing is part of that.”

Although Kiyosaki admits that the economy is “terrible,” he doesn’t view it as an impossible climate. “If you don’t make someone else money, they’re not going to give you their money. This principle is true in any economic climate. Show your client how you’re going to make them money. It may not be as easy now, but it’s possible. Get creative,” advises Kiyosaki.
But don’t, he says, talk too much. “Most people overpitch. We have two eyes, two ears, and one mouth. Observe body language and act accordingly. Most salespeople talk too much — don’t.”
Stephen Key is a successful award-winning inventor who has licensed over 20 products in the past 30 years. Along with business partner Andrew Krauss, Stephen runs inventRight, a company dedicated to educating inventors about selling their ideas and the skills needed to succeed. You can listen to the weekly radio show on inventing. Get In The News, list your invention to have media outlets find you for news stories.

May 15, 2009

Robert Kiyosaki on All Booms Bust

Filed under: Articles, Real Estate, Rich Dad Gold — Tags: , , — ~ @ 12:50 am

Robert Kiyosaki on All Booms Bust

Lately, I have been asked if we are in a real estate bubble. My answer is, “Duh!” In my opinion, this is the biggest real estate bubble I have ever lived through. Next, I am asked, “Will the bubble burst?” Again, my answer is, “Duh!”

Robert Kiyosaki / Rich Dad Bulletin 4

Filed under: Articles — Tags: , — ~ @ 12:29 am


In their book the Sovereign Individual, Davidson and Lord Rees-Mogg state that America will begin to decline in the next few years simply because we have become a large welfare state, with everyone expecting the government to take care of them when the going gets tough. In writing this book, they were not referring to the poor people on welfare. They were referring to the millions and millions of people and businesses who have come to expect the government to take care of them. This group includes the millions of government employees who are now retired, people who depend upon Social Security, Medicare, and the large businesses that expect the federal government to bail them out when they get in trouble.
Soon after the World Trade Center disaster, the words of Davidson and Rees-Mogg came true again. Immediately after the disaster, all of the major airlines went begging for money from the federal government. While they blamed the tragic event, the facts are that many of these airlines were in financial trouble even before September 11th. The tragic event just gave them an excuse to ask for more federal welfare money.
This government welfare mentality is one of the reasons Davidson and Rees-Mogg predict that America will be in financial trouble. We simply have too many people with the “take care of me” mentality.
In the coming months, more and more people and companies will be coming forward asking the state and federal government for some form of welfare. This government welfare mentality is one of the reasons Davidson and Rees-Mogg predict that America will be in financial trouble. We simply have too many people with the “take care of me” mentality. In other words, according to Davidson and Ree-Mogg, what will bring our country down is not terrorists from the outside. What will bring America down is financial weakness from the inside. Simply put we have too many rich people on welfare.
Davidson and Ress-Mogg predict that the government will do two things to counter the demands of millions of people needing government welfare. One, the government will increase taxes on those that do have money and two, the government will print more money. Both actions will greatly damage the financial well-being of those that legitimately try to be financially responsible and not expect a government hand out.
The people that will be punished by taxes are the hard working people who are financially    responsible and who pay their taxes.
According to Davidson and Rees-Mogg, more and more of the rich and financially astute will seek governments that are respectful of those that are financially responsible and avoid governments that punish the rich. As most of you know, that is going on more and more. One of the reasons the State of Nevada is such a popular state for the rich is simply because Nevada protects the rich from the Federal Government. 
According to Davidson and Rees-Mogg, the future of business will be found not in a different state or a different country offshore. According to these two futurists, the new offshore will be in cyber-space…into a world where governments cannot pry. I am not saying this is true or not, nor do I recommend doing anything that breaks the laws of this country or any country. Their point is that the people that will be punished by taxes are the hard working people who are financially responsible and who pay their taxes.
The reason I bring this up is because you do not have to break the law to minimize your tax exposure. You can do it legally if you have the proper legal and accounting advice. At the 3-Day Advanced Investing Strategies program, you will meet with my tax and corporate advisors from Nevada. By learning from them, you will learn how the rich legally minimize and control their tax bills. 
As many of you know, the people who pay the most taxes are people who have jobs and own homes. As America becomes more desperate for taxes, it is these people that will carry the heaviest tax load. In the near future, not only will it be risky to have a job, it will be very expensive…because taxes are our single largest expense.
It’s not time to work hard, earn money, and give it to the rich who are on welfare, it is not financially intelligent…not to me at least. Why should I bail out the owners of the airlines? I believe in paying my fair share of taxes but I do not want to pay for people who mismanage their businesses and expect the government to bail them out. What would you think of me if I expected the government to take care of me?
Regardless if you agree with me or not on the government bailing out the airlines, the fact remains that if you do nothing and remain uneducated about taxes, the chances are you will be taxed to financial death. In the near future, you will probably work harder and harder and pay more and more in taxes. To me, that is not being financially intelligent.
Years ago, my poor dad said,
“The rich exploit people. The government protects the poor and working class from the rich.” My rich dad saw it the other way. My rich dad said, “If you want to be rich, you need to protect yourself from those who believe in taking from the rich and giving to the poor. The reason is because the poor never get the money. The only people that get the money are those that take the money.”
… the average 50 year old male in America will have paid over $500,000 in taxes and have less than $5,000 in savings
In the coming years, as America becomes more of welfare state, the battle will be over taxes. If you want to do better in the future, you need to protect yourself from those who believe in taking from the rich and lining their own pockets. Always remember that taxes are your single largest expense. According to my accountant Diane Kennedy, the average 50 year old male in America will have paid over $500,000 in taxes and have less than $5,000 in savings. If that is not highway robbery, then stand by. Taxes for the unprotected and uneducated will get worse in the future of business.
As I said, I do not mind paying my fair share of taxes. But to pay for the mistakes of the rich is not fair…not to me at least. If you are ready to take control of your financial future, you will need to take control over the taxes you pay. These new products will teach you how.
Thank you for reading this bulletin. This is the 4th out of 4. I trust it has been informative and give you an insight into what you can expect to learn from my tapes and books. As I wrote earlier, I decided to write these bulletins after the events on September 11, 2001. After that tragic day, you and I need to be even more financially educated, if we are to have a bright and prosperous financial future. Regardless if you buy my tapes or books, I wish you all the best and thank you for taking an interest in my work and your education.
All the best to you,
Robert Kiyosaki

In their book the Sovereign Individual, Davidson and Lord Rees-Mogg state that America will begin to decline in the next few years simply because we have become a large welfare state, with everyone expecting the government to take care of them


Robert Kiyosaki / Rich Dad Bulletin 3

Filed under: Articles — Tags: , — ~ @ 12:25 am


Robert Kiyosaki Bulletin #3
  Bulletin 3 of 4 by Robert Kiyosaki
Michel de Nostradamus, in 1568 predicted the coming of the Third Anti-Christ in July 1999. On the eve of the new millennium thousands awaited the end of the world.
The fact is that for centuries, many people have predicted that the world would change dramatically around the year 2000.
After the World Trade Center event, I believe the question most of us should really be asking is how do people predict the future?
Two of my favorite authors are James Dale Davidson and Lord William Rees-Mogg. They are highly respected economic historians. Long before the first World Trade Center bombing in 1993, they were talking about terrorist attacks in America. In their book The Great Reckoning, they are predicting worldwide depression and how we should all prepare for it. Even if you do not believe in people being able to predict the future, I do believe you owe it to yourself, to get that book and read it. I think it will open your eyes and maybe get you on the right track, the track of doing well, regardless if their predictions are right or way off base. The real question is, if a depression does come, are you prepared for it?
How will you do if there is a depression? Will you and your loved one do well or will you go down with the millions of people who are not prepared.
Now, I am not saying that a depression is coming. The point of this article is that after reading their books, my wife Kim and I used their words of warning and began preparing for the coming economy, good or bad. At first their words of depression frightened us, but if you recall my first bulletin, I stated that the future is seen through the bad news, not the good news. Because of these author’s warnings, we used our fear to get stronger rather than run in fear or pooh-pooh their words of caution. Kim and I have been in preparation for over 8 years now. It has been one of the best financial decisions of our lives. Their words of warning caused us to become even more diligent and better educated. The reason I write these articles and pose such questions is to have you ask yourself, how will you do if there is a depression? Will you and your loved one do well or will you go down with the millions of people who are not prepared, if there is a depression?
The following are 5 points via which you can gauge your preparedness. They are:
1. Do you have enough in savings to cover two years worth of expenses?
2. Do you have gold coins, equivalent to six months living expenses in a safe deposit box? The coins are a hedge just in case the currency of the U.S. begins to greatly devalue.
3. How are you debt to equity ratios? For example, if your house is worth $100,000 a 1:1 debt to equity ratio would mean you $50,000 in equity in the house and a $50,000 mortgage.
4. Is your business or the company you work for going to do well in a depression? If not, start a part time business. Our businesses are designed to do well in a good economy and do even better in a depression. A part-time business that will do well in a down economy is a network marketing business. During a depression, many more people will be very receptive to joining a network marketing company.
5. Do you have the technical skills to be an investor? Do you know how to buy real estate, stock options, and grow a business? Do you also have the financial resources or financial backers that will provide the money to begin investing when stocks, real estate, and businesses are available for bargain prices?
The main point is this. Even if a depression does not occur, to be this prepared is a sound way to manage your life and your investments. After reading The Great Reckoning, Kim and I began to put our personal and business finances in order. Because of this, we have done very well when the economy was good and are prepared to do well in a bad economy.
You see, it does not really matter if Nostradamus was right or if the prediction of a depression comes true. The real question is how prepared are you for whatever happens, and that is what matters most.
I realize that for some of you, these five points may seem like a tall order, yet I assure you it can be done with a little planning, dedication, and education. If you are ready to improve your education and be better able to implement all five points in your life, then you may want to purchase our programs.  For those of you who already purchased our tapes, board games etc. congratulations. You are better prepared to meet the challenges of the coming years, which are predicted to be financially tough ones. You see it does not really matter if Nostradamus was right or if the prediction of a depression comes true. The real question is how prepared are you for whatever happens, and that is what matters most.
The good news is that when times become tough, you have the opportunity to bring out of you the person that is strong and resilient. I am confident that inside each and every one of us, is a person capable of meeting any challenge that life puts in front of us. My rich dad often reminded me that in such times of uncertainty, the greatness in people shines through. In the next few years, look forward to the challenges and let the greatness inside of you come through.
The future is very bright for those that are prepared for it. We at wish you the brightest of financial futures, regardless which way the future goes.
This completes bulletin 3 out of 4. Look for the last of the 4 bulletin series on how to prepare for the future of business.
All the best,
Robert Kiyosaki

Michel de Nostradamus, in 1568 predicted the coming of the Third Anti-Christ in July 1999. On the eve of the new millennium thousands awaited the end of the world.


Robert Kiyosaki / Rich Dad Bulletin 2

Filed under: Articles — Tags: , — ~ @ 12:20 am
obert Kiyosaki Bulletin #2
After September 11th, I decide to write to those of you who want to succeed. This is bulletin #2 out of 4.
A friend I flew with in Vietnam with called me the other day. He said, “I’ve been laid off again. What do I do now?”
Jim and I went through flight school and Vietnam together. When we returned to the states, he got a job as a pilot with the airlines and I began building my business.
Jim was absolutely in love with his work. He loved flying and the company he worked for. Unfortunately, the company was with Pan American, which for those of you who are old enough to know that Pan Am went out of business, even though it was once the number one airline in America.
After five years of taking odd jobs, he finally was rehired by an airline whose name I will not mention, because it is still in business today, but just barely. This is the airline he was laid off from.
“I’m 53 years old.” said Jim. “I still have two kids in school. I have nothing saved for retirement. And worst of all, how am I going to find a job that pays me $85,000 a year, especially when all I know is to be a pilot?”
For those of you who have read my books or listens to my tapes and cd’s, you may know what I think about the idea of job security. I have said it for years, “Job security is an obsolete idea.” The reason I say this is because the issue of job security was the issue for my parents, the World War II generation.
My parents grew up in the Depression and to them, just finding a job was a challenge, so when they found one, they clung on to it for dear life. Once they retired, they did not have to worry because the government pension, Social Security, and Medicare were there to take care of them once they were through working. We do not have that luxury.
For those born after the WWII generation, job security is not an issue. The reason I say that job security is not an issue is because there are plenty of jobs. Always remember that McDonald’s is always hiring. I still see help wanted signs everywhere. So the problem is not finding a job. It is long-term financial security that is the issue. 
The problem is long-term financial survival. For my friend Jim, a well-educated, highly skilled man, hard working man, the question is, where is he going to find another pilot’s job that pays him what he needs when the airlines today, are downsizing? How will he continue to pay his mortgage, pay for his kid’s college education, and put enough aside to retire on?
When Jim asked me for my advice, I said, “After you find a job, this time, why not start a part-time business?
“What kind of business?” he asked.
“Why not build a network marketing business in your spare time? Why not build something you control and you own?”
“No, no way.” He said. “I just want a high paying job. I want to fly again. I’m not interesting in network marketing. But thanks for the advice. I’ll call you back when I find a new job with another airline. I love flying and that is all I want to do.”
The days of lifetime job security and your mutual funds going up by 20% per year are over. If you think your mutual funds will carry you after you retire, I think you had best make other plans.
Jim has not called back. It has been almost three weeks. Obviously, he did not like my advice but for you, I would like to give you the reason I offered him that advice. As I write, President Bush is in China and our military is in Afghanistan.
If you cannot see the writing on the wall, let me open your eyes. The days of lifetime job security and your mutual funds going up by 20% per year are over. 
If you think your mutual funds will carry you after you retire, I think you had best make other plans. Why? Because what has just happened to my pilot friend Jim, will be happening to millions of people. The idea of high paying jobs and pension funds that increase by 20% per year is an obsolete idea. 
America is at war, battling an invisible enemy, an enemy without a country. On top of that, China is expected to pass the U.S. as a world financial power in less than ten years. It does not take a crystal ball to see that there will be plenty of jobs in America, but fewer and fewer will be high paying. Why? Because the Chinese are smart, hard working, and willing to be paid less… much less.
Jack Welch, the retired CEO of General Electric said recently, “20% to 30% of what is produced in America will soon be produced in China.” In other words, in order to compete with China in the world economy, we must produce for less or lose. Highly skilled pilots like my friend Jim need to work for less, if they want to work. 
Pilots need to work for less, many other professions will need to work for less and produce more in order to survive. If you have been watching the news, between the stories of Anthrax and President Bush in China, you may have caught a glimpse of Bill Gates and other American business leaders shaking hands with the Chinese. Let me say this, these leaders of American business are not there because they like Chinese food.
Starting your own business gives back some control over your life. If you think your boss or company can protect you from the geopolitical forces that are at play today, I think you need to rethink that thought.
The reason I suggested that my friend Jim start a network marketing business on the side is because becoming a business owner is a very wise strategy, especially at this time in history. Starting your own business gives back some control over your life. 
If you think your boss or company can protect you from the geopolitical forces that are at play today, I think you need to rethink that thought. There is an old song that said, “For you better start swimming or you’ll sink like a stone, for the times they are a changing.”
Our leaders are in China, not in the war zone. That should tell you how much things are going to change and change soon.
The three main assets  that give people real financial security. Those assets are:
1.  Business
2.  Stocks/options
3. Real Estate.
You need to plan and prepare to meet the future head on.  If you are not interested in building a business, you should learn about stock options and real estate and how to be a better investor in them. Even if you know nothing about any of these assets, this program is easy enough for the beginner and the advanced investor. 
In today’s volatile world, I suggest that all of us rethink our plans for the financial future. In this volatile world you need to know about more than one asset class.
The reason I recommend network marketing is because network marketing is the business of the future. Back in the late 1990’s, it was often difficult to talk to people about network marketing when the economy was so strong.
It was hard to talk to people about network marketing when their mutual funds were going up by 20% per year. But those days are over. If you ever wanted to get ahead of the curve, now is the time to open your mind and look at this business of the future.  Here is a fantastic new technology with color video emails.  You can’t lose with this opportunity.
Now is the time to talk to people when they too are looking for new answers and new ways to find true long-term financial security. A network marketing business is one of the asset classes. It is a business.
If you work hard and build the business, that business will give you the excess cash to acquire the real estate and stocks that will give you true long term financial security…security you can pass on to your loved ones. You can’t do that with your job, no matter how secure it is.
My prediction is that for employees who are well educated, well trained and ambitious, the next few years will be tough ones.
My friend Jim the airline pilot is also a casualty of the September 11th event. The problem is, he is not willing to make changes. My prediction is that for employees who are well educated, well trained and ambitious, the next few years will be tough ones. Why? Because well-educated, ambitious, high paid employees are often the first to be downsized and once down sized, they often find it harder to find a job at the pay scale they were use to. 
In the Industrial Age, if you were well educated, hard working, and experienced, you were desirable. In the Information Age, experience and age are liabilities, not assets. So with each passing year, it gets harder to re-enter the job force and find a high paying job in the new economy. As my rich dad often said, “The rules have changed.
If you want to do well, change with the rules.” Unfortunately, we are in time of crisis. None-the –less, for the brave at heart, now is the time to make changes, changes that will give you life time financial security which is far better than job security.
This program is especially for those that are ready to move on, rather than wait for things to return to normal, which I doubt they ever will. I wish you all the best. This completes bulletin 2. Click below for the two more to come on how to prepare for the future of business.


After September 11th, I decide to write to those of you who want to succeed. This is bulletin #2 out of 4.


Robert Kiyosaki / Rich Dad Bulletin 1

Filed under: Articles — Tags: , — ~ @ 12:15 am


1 of 4 Bulletins from Robert Kiyosaki, author of Rich Dad Poor Dad

 I believe that you will find the information contained in this bulletin and the following bulletins useful, especially in these very uncertain times.


May 10, 2009


Filed under: Articles — Tags: — ~ @ 2:54 am


Is there more to financial security than money?
by Robert T. Kiyosaki
So, just what is security? Is it . . .
A high-paying job?
Working for the government?
Working for a large corporation? 
Money in the bank? 
Investing in stocks and bonds?
A retirement plan? 
Medical and life insurance? 
A savings account? 
Working for a small company? 
Working for yourself?
Marrying someone rich?
Having a gun in your house?
Owning real estate?
A burglar alarm?
These are the traditional “things” people feel will make them secure. The trouble with these answers is that none of them comes with an ironclad guarantee. What may constitute security today may fall apart in the future. What may seem like security is often only a delusion. Regardless, people turn to those sources listed above because they don’t know what else to do. In the long run, hooking up with one or more of these “security systems” can end up preventing you from ever finding any real source of security.
“Train now for a high-paying job with a secure future,” radio commercial blared. Riding in a cab through downtown San Francisco, I saw streets that were crowded with men and women in dark suits rushing against a background of bums and beggars. I wondered who felt more secure — the bums and beggars or the corporate warriors. As I looked at their faces, employed and unemployed, few of them appeared to be feeling secure.
It was 1981 and I knew first-hand what insecurity was all about. I had lost everything, jeopardized my father’s property and was in the midst of digging myself out of a hole, desperately attempting to save a sinking company.
I had one thing going for me after being humbled into realizing I did not know all the answers. I had made the decision to learn from my mistakes. I quit pretending that I knew everything and began to discover what I did not know.
I vowed to master the art of business. I realized that if I mastered that, I would no longer have to be a slave to a job or dependent on the stability of the economy. If I was truly a good business person son, I could make money i’ doing anything. And if I could make money doing anything, then I could do something that satisfied my heart, my soul and I my spirit. If I was truly a good businessman, I could give my unique gift to this world. That would be the greatest joy of all. It had been tough for me to commit to learning rather than going for the dollars, as most of my friends were doing during the booming ’80s. But I had discovered the hard way that at this point in my life I had to put all my energy into learning rather than earning. For a while I would make knowledge my top priority, much more important than money. Even though I would have a lot less money than my friends for a few years, my true wealth (knowledge) would eventually pay off, and it would continue paying off for the rest of my life.
While growing up I learned about investing. I knew how to make money with money. When my mother told me to “study hard so I could get a good job,” I didn’t listen to her. I was convinced that I already knew it all. I would get rich through investing. However, investing failed to give me a sense of being a productive, contributing member of society. By 1977 I was feeling incompetent and unfulfilled. So I decided to become a businessman. I set out to build a business. Well, the business did very well for a while, then failed. It would be easy to say that it failed because of a crooked partner who literally ran off with the profits. But that wasn’t the real reason. It failed because I continued to act as if I knew all the answers. The bottom line is that I lost all my money because I would not admit to myself that I had a lot to learn about business. My arrogance was very expensive.
After losing my company, I had several lucrative offers. Although the money was tempting, especially when banks and creditors were hounding me, I continued my educational process, learning how to be a complete businessperson.
But that isn’t all I was learning. Part of my discovery was that in order to be a good businessperson I would have to learn how to become a kinder, more open human being. After four years in a military academy and six years as a Marine Corps officer, I had become tough. I treated people in my company like members of a combat squad. Not only did I alienate my partners, but my wife left, too.
By 1984 I had become a little more civilized, in both my business and personal life. I met my wife Kim and we were married in 1986. In 1987 we celebrated the most important financial event in our lives since losing my company. My net worth was at zero. We cheered wildly. For years we had been looking at a net worth so far in the red that even a glimpse of a zero looked pretty good. My assets finally equaled what I owed.
Five years later, having mastered the principles of business and put them into practice, Kim and I were able to retire. Our reason for working shifted from working just to earn more money to working because it truly nourishes us. The money continues to pour in, but now we have the luxury of viewing our work as a way to make a contribution to society.
My definition of security has radically changed. Today, security means:
1. Working when I want, where I want and with whom I want.
2. Knowing how to enjoy prosperity whether the economy is up or down.
3. Being willing to lose everything and knowing I’ll be wiser when I get it back.
4. Not having to work at anything I don’t want to.
5. Not spending hours each week stuck in commuter traffic.
6. Achieving everything I want without damaging myself, my family, the environment or anyone else.
7. The ability to increase or decrease my income at will.
8. Freedom from all money worries.
9. Freedom to live wherever I choose.
10. Traveling with pay and enjoying frequent vacations.
When I think about our society’s misconceptions about security, I am reminded of something that happened when I was a pilot in Vietnam. During a combat mission, every pilot “for his own security” wore a bullet- proof vest, or “bullet bouncers.” I saw what happened to a pilot when a large caliber bullet hit his “bullet bouncer.” It didn’t bounce. When the bullet hit, the vest acted more like a net, catching the bullet and spreading its impact over a wider area, virtually crushing the pilot’s entire body. Some security! Next day, as I prepared for my mission over a hot combat zone, I realized
the vest provided nothing more than a false sense of security. What’s worse, it hindered my arm movements, interfering with my ability to fly. I knew that my only real security was knowledge — what I knew about combat and flying — knowledge acquired through hours of trial and error, through making mistakes, correcting them and learning from them. I jettisoned the vest that day and never wore it again.
Security in the real world is just like that vest. Our security comes from trust in ourselves, not from externals like the bullet bouncers of modern life — the right college degree, working for a company that offers good benefits, or even working in the government where nobody gets fired. Each time I take a risk, make a mistake, correct it and learn, my security increases because my wealth (knowledge) increases.
Security will forever elude those who follow the rules learned in school — be good, do as you are told, don’t make mistakes, etc. All these rules do little more than stop the learning and personal development process. In today’s rapidly changing world true security can be found only in ourselves and in our ability to admit what we don’t know, learn, and thus grow from any situation.
Most of us are so enamored of the idea of security that even when unhappy with our jobs we stay with them, year after year. The truth is, staying in situations which are unsatisfying only increases our sense of insecurity. We begin to feel there is no other choice but to sell our souls in the name of security. When we’ve committed ourselves to a life like that, it becomes very difficult to see that we’re sacrificing ourselves every moment of every day to a false sense of security provided by a “bullet bouncer” that really doesn’t work. Even when we’ve seen evidence proving that the safety vests don’t work, that they even seriously restrict our movements, we continue to cling to them.
Our social system creates fearful, specialized drones who believe that their lifetime security means getting a good job with plenty of benefits. A prime example is in the timber industry, now under attack by the environmental movement, automation and exports. Once an industry with a fairly high degree of job security, it is now undergoing tremendous change. People who believed they had a job for life are finding themselves starting over, looking for work in a new specialty.
If they were generalists, thinking for themselves, they could profit from the change. Change brings new opportunities. Granted, such opportunities are not always clearly apparent. Often they have to be created, and this takes the skills of a generalist. But as long as we have been trained to just do as we’re told and not ask any questions, we can never be much more than robots, totally dependent on others to provide us with a place to work and a paycheck at the end of the week.
Change is now so rapid, owing in part to the fastest changing technology in the history of humanity, that job security itself has become obsolete. Becoming a generalist allows a person to benefit from change. The generalist has
the skills to build a new way of life, to create alternatives instead of being trapped in co-dependent relationships with companies which themselves are addicted to false security and resistance to change.
What does it mean to be a generalist? John W. Gardner, the founder of Common Cause and former president of the Carnegie Foundation for the Advancement of Teaching, once wrote: “What we must reach for is a conception of perpetual self-discovery, perpetual reshaping to realize one’s best self, to be the person one could be.” That’s the essence of the generalist, to be constantly moving toward a horizon which can never be reached.
Cavett Robert pointed out in his book, Success With People Through Human Engineering and Motivation, that preparation for the future can no longer mean preparation for a specific job. The world is changing so quickly that even in a specialized field such as medicine, law, or economics, a person must expect to be retrained at least four times during his or her lifetime. He states, “In our approach to knowledge we must realize that preparation is a constant process of change with no ending. It must be forever moving, never static. School is never out for the person who wants to succeed.”
To be a generalist means to always stay open and alert to change. It is found in our constant and continuous preparation of ourselves to function in the changing world around us. The generalist’s motto, which is more important today than ever before in history, continues to be that success is a journey, not a destination. Above all, the generalist is one who never ceases to grow.
A best-selling author, Robert T. Kiyosaki retired in 1994 at the age of 47 from the business and teaching world. His last entrepreneurial business was an international educational company that produced the world famous seminar Money and You. He lives in Phoenix, Arizona with his wife Kim while he works on his second book. He is deeply concerned with the ever-widening gap between the ‘haves’ and ‘have nots’ in America. Robert’s financial freedom allows him the time to dedicate his life to this pressing problem.

Is there more to financial security than money? By Robert T. Kiyosaki

So, just what is security? Is it . . .

A high-paying job?
Working for the government?
Working for a large corporation? 
Money in the bank? 

Kim Kiyosaki – How we got out of Debt

Filed under: Articles, Debt — Tags: — ~ @ 2:26 am

How We Got Out of Bad Debt By Kim Kiyosaki

More and more people are getting swallowed up by debt. I’m sure you’ve read and heard many of the statistics and stories in the news.

One of the keys to financial independence is to get rid of your bad debt and acquire good debt. Bad debt is debt that makes you poor, such as credit card debt, car loans, school loans – this is consumer debt. Good debt is debt you acquire that actually works for you. The best example of good debt is a mortgage loan on a rental property that throws off positive cash flow every month. Good debt is money that you borrow to purchase assets that puts money in your pocket. 

In 1985, Robert and I had a good deal of bad debt. And even though we kept making payments every month, we never seemed to make a dent in the amount of debt we owed.

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