Robert kiyosaki conspiracy of the rich pdf

 

    Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money. Pages· · it is likely stolen Robert Kiyosaki's Conspiracy of the Rich. A Note from Robert Kiyosaki: Why I Wrote This Book for You · PART ONE: Chapter Financial Cover Image Rich Dad, Poor Dad: What the Rich Teach Their. Conspiracy of the Rich. The 8 New Rules of Money by Robert Kiyosaki. Chapter 2- The Conspiracy Against Our Education. Why Money Is Not Taught in School.

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    Robert Kiyosaki Conspiracy Of The Rich Pdf

    Robert T. Kiyosaki - Conspiracy of the Rich (the 8 New Rules of Money) - Free download as PDF File .pdf), Text File .txt) or read online for free. Acknowledgments · A Note from Robert Kiyosaki: Why I Wrote This Book for You . is about the history of the conspiracy and how the ultra-rich took control of the . Editorial Reviews. From Publishers Weekly. Starred Review. Like many other business books By offering bonus PDF charts and graphs, Kiyosaki allows listeners to go one step beyond the average audio book. Robert Kiyosaki is the bestselling author of the RICH DAD POOR DAD, which is the bestselling personal.

    Or, get it for Kobo Super Points! See if you have enough points for this item. Is it time for you to take control of your money and your financial future? Is it time to find out what those who control the financial world don't want you to know? Do you want complex and confusing financial concepts to be made simple? If you answered "yes" to these questions, then this book is for you. In , after President Nixon took the U. And today, money is no longer money. That is why the first new rule of money is Money is knowledge. Robert Kiyosaki wrote this book for those who want to increase their financial knowledge and take control of their lives. According to Kiyosaki: We cannot see the world of the future with our eyes.

    When the two hours were up, I asked them if they wanted to take a few minutes to write out a inancial plan for their life.

    Rich Dad's Conspiracy of the Rich by Robert T. Kiyosaki - PDF Drive

    Planning up to retirement is not enough. You need to plan far beyond retirement. Are you planning to be rich, or are you planning to be poor? Are you willing to pay more attention to your deep, often silent, thoughts? Are you willing to invest time to increase your inancial vocabulary? Simply ind a inancial word, look it up in the dictionary, ind more than one deinition for the word, and make ax mental note to use the word in a sentence that week.

    Robert Kiyosaki

    Rich dad was a stickler for words. Rich dad said a similar thing to me: Even though they do not lose money, they simply fail to make money. Yet they consider themselves investors. To rich dad, that was not investing.

    I remember watching a program where Warren Bufett was being interviewed. In fact, his investing was actually done far away from all the noise and promotion of stock promoters and people who make money from so-called investment news. Investing Is Not What Most People hink Years ago, rich dad explained to me that investing is not what most people think it is. Many people think investing involves a lot of risk, luck, timing, and hot tips.

    Some realize they know little about this mysterious subject of investing, so they entrust their faith and money to someone they hope knows more than they do. Many other so-called investors want to prove they know more than other people—so they invest, hoping to prove that they can outsmart the market.

    But while many people think this is investing, that is not what investing means to me. To me, investing is a plan—often a dull, boring, and almost mechanical process of getting rich. But for me, investing is as simple and boring as following a recipe to bake bread. Personally, I hate risk.

    I just want to be rich. How can so few people become rich in a country that was founded on the idea that each of us has the opportunity to become rich? I wanted to be rich. I had no money. So to me, it was just common sense to ind a plan or recipe to be rich and follow it. Why try to make up your own plan when someone else has already shown you the way? So they stop following the plan and then they look for a magic way to get rich quick.

    Most people think there is some magic to getting rich through investing. Or they think that if it is not complicated, it cannot be a good plan. Trust me. When it comes to investing, simple is better than complex. Do you remember that years ago I would spend many hours playing Monopoly with you and Mike? I was only 12 years old, but I knew that for you, Monopoly was more than a game.

    I did not see it that way. I could do it in my sleep, and many times, it seemed like I did. I did it automatically without much thinking. I just followed the plan for ten years, and one day I woke up and realized I was rich. But that strategy was one of the simple formulas I followed. To me, if the formula is complex, it is not worth following. Since I am not a technical specialist, I did not have the scholarly proof that these types of individuals demand— that is, until I read a great book on investing.

    James P. Clinical or intuitive his method relies on knowledge, experience, and common sense. Quantitative or actuarial his method relies solely on proven relationships based on large samples of data.

    In most instances, investors who used the intuitive method were wrong or beaten by the nearly mechanical method. It is exactly as rich dad said: Most investors prefer personal experience to simple basic facts or base rates. Again, they prefer intuition to reality. Most investors prefer complex rather than simple formulas.

    Keeping it simple is the best rule for investing. Professional institutional investors tend to make the same mistakes that average investors make.

    History does repeat itself. Yet people want to believe that this time, things will be diferent. Some people think these masters of money make decisions diferently, and believe that a strategy perfected in the past ofers little insight into how it will perform in the future.

    He explained that, while a certain sector such as large-cap stocks, may have done the best in the last ive to ten years, over the past 50 years of data, it may actually be another sector of stocks, such as small-cap stocks, that may make investors the most money. Rich dad had a similar view. I ind myself disturbed because those kinds of stories distract from their plan, their success. Such stories of hot tips and quick cash often remind me of a story rich dad told me.

    Suddenly, on the road ahead of them appear several large deer with massive horns. Suddenly, the car goes over a stream embankment and crashes into the water below. All you have to do is know what you want, have a plan, and stick to it.

    Are you ready to ind a simple formula as part of your plan and stick to it until you reach your inancial goal? My standard answer is that it comes in steps: Take your time. Take days to think quietly. Take weeks if you need to. All too often, people either innocently or intentionally want to impose on others what they want for those people instead of respecting what others want for themselves.

    Call professional investors. All investment plans begin with a inancial plan. If you do not like what the professional says, ind another one. You would ask for a second opinion for a medical problem, so why not ask for many opinions for inancial challenges?

    Financial advisors come in many forms. Choose an advisor who is equipped to assist you in developing a written inancial plan. Many inancial advisors sell diferent types of products. One such product is insurance. Insurance is a very important product and needs to be considered as part of your inancial plan, especially when you are irst starting out.

    For example, if you have no money but have three children, insurance is important in case you die, are injured, or for whatever reason, are unable to complete your investment plan.

    Insurance is a safety net, or a hedge against inancial liabilities and weak spots. Also, as you become rich, the role of insurance and the type of insurance in your inancial plan may change as your inancial position and inancial needs change.

    So keep that part of your plan up to date. Two years ago, a tenant in one of my apartment buildings left his Christmas tree lights on and went out for the day. A ire broke out. Immediately, the ire crews were there to put out the ire.

    I was never so grateful to a bunch of men and women. Insurance is simply peace of mind. Some inancial advisors specialize in helping people at diferent inancial levels. In other words, some advisors work only with rich people. Regardless of whether or not you have money, ind an advisor you like and who is willing to work with you.

    If your advisor does a good job, you may ind yourself outgrowing your advisor. My wife Kim and I have often changed our professional advisors, which include doctors, attorneys, and accountants. If the person is a professional, he or she will understand. But even if you change advisors, be sure you stick to your plan. I had a goal of being a multimillionaire before I was 30 years old.

    Even though I achieved my goal by the time I was 30, the problem was that I then immediately lost all my money. After I lost my money, I simply needed to reine my plan according to what I had learned from that experience. I then reset my goal, which was to be inancially free and a millionaire by age It took me until age 47 to reach the new goal.

    I just improved upon it as I learned more and more. So how do you ind your own plan? Ask them to provide their qualiications and interview several. It will very likely be an eye-opening experience. Set realistic goals. I set a goal of becoming a multimillionaire in ive years because it was realistic for me.

    It was realistic because I had my rich dad guiding me. Yet even though he guided me, it did not mean I was free from making mistakes—and I made many of them, which is why I lost my money so quickly.

    Being young, however, I had to do things my way. Always remember that it is best to start by walking before you run in a marathon. You ind your own plan irst by taking action. Begin by calling a professional and set realistic goals, knowing the goals will change as you change—but stick to the plan. For most people, the ultimate plan is to ind a sense of inancial freedom, freedom from the day-to- day drudgery of working for money.

    Realize that investing is a team sport. In this book, I will go into the importance of my inancial team. I have noticed that too many people think they need to do things on their own. Well, there are deinitely things you need to do on your own, but sometimes you need a team. Financial intelligence helps you know when to do things on your own and when to ask for help. When it comes to money, many people often sufer alone and in silence. As your plan evolves, you will begin to meet the new members of your team who will assist you by helping make your inancial dreams come true.

    Members of your inancial team may include: Always remember what rich dad said: So take your time, yet keep taking one step a day, and you will have a good chance of getting everything you want in your life. Mental-Attitude Quiz My plan has not really changed, yet in many ways it has changed dramatically. What has not changed about my plan is where I started and what I ultimately want for my life. It punishes you irst, and then gives you the lesson.

    So my plan is basically the same, yet it is very diferent since I am diferent. I would not do today what I did 20 years ago. However, if I had not done what I did 20 years ago, I would not be where I am today and know what I know today. For example, I would not run my business today the way I ran my business 20 years ago. Yet it was losing my irst major business and digging myself out from under the rubble and wreckage that helped me become a better businessperson.

    So although I did reach my goal of becoming a millionaire by age 30, it was losing the money that made me a millionaire today—all according to plan. It just took a little longer than I wanted.

    And when it comes to investing, I learned more from my bad investments, investments where I lost money, than I learned from the investments that went smoothly. Five will probably be dogs and do nothing, and two would be disasters. Yet I would learn more from the two inancial disasters than I would from the three home runs.

    In fact, those two disasters made it easier to hit the home runs the next time I was up to bat. And that is all part of the plan.

    Are you willing to start with a simple plan, keep the plan simple, but keep learning and improving as the plan reveals to you what you need to learn along the way? Rich hese are very important personal choices and should not be taken lightly. In , when I returned from the Vietnam War, I was faced with these choices.

    I suspect that they will be having a rough time in the next few years. Yet if you keep your record clean, you might ind job security in that profession—if that is what you really want. I want to move on. I grew up in a family where money was not discussed at the dinner table because it was an unclean subject, a subject not worthy of intellectual discussion. But now that I was 25 years old, I could let my personal truth out.

    I knew that the core values of security and comfort were not highest on my list. To be rich was the number- one core value for me. My rich dad then had me list my core inancial priorities. My list went in this order—to be: Step one is to write out a inancial plan to be inancially secure.

    Why should I bother with a plan to be secure? While a few people like you do make it, the reality is that the road to wealth is littered with wrecked lives of reckless people—people just like you. All my life, I had lived with my poor dad, a man who valued security above all. I was ready to scream. I was ready to get rich, not be secure.

    It was three weeks before I could talk to rich dad again. I was very upset. He had thrown back in my face everything I had done my best to get away from. I inally calmed down and called him for another lesson. Lesson is over. I had my plan, and I showed it to him. Yet the process was extremely valuable because I learned a tremendous amount by talking to diferent inancial advisors.

    I was gaining a better understanding of the concepts rich dad was trying to teach me. Finally, I was able to meet with rich dad and show him my plan. So they often spend their most precious asset, their time, and wander through life without much of a plan. I really have to expand my thoughts into the future and ind out what I want for my life.

    I did not know what true comfort meant. So security was easy, deining comfort was more diicult, and I now cannot wait to deine what rich means and how I plan to achieve great wealth. So people splurge or get into debt by taking the annual vacation or downloading a nice car, and then they feel guilty. I learned that I was really selling myself short. In fact, I felt like I have been walking in a house with a low ceiling for years, trying to scrimp, save, be secure, and live below my means.

    Nothing is more tragic than to see people who have sold themselves short on what is possible for their lives. In reality, it is inancially limiting—and it shows up in their faces and in their attitude in life the older they get. Most people spend their lives mentally caged in inancial ignorance. One of the most important discoveries people can make by taking the time to learn how to plan is inding out what is inancially possible for their lives. And that is priceless.

    I am often asked why I spend my time building more businesses, investing, and making more money. While I make a lot of money doing what I do, I do it because making money keeps me young and alive. If our maker has created a life of unlimited abundance, why should you plan on limiting yourself to having less?

    I knew he was hurting and struggling to start his life over again. Many times I had sat down with him and attempted to show him a few of the things I knew about money. However, we usually got into an argument. I think there is often that kind of breakdown in communication when two parties communicate from two diferent core values, one of security and the other of being rich.

    As much as I loved my dad, the subject of money, wealth, and abundance was not a subject we could communicate about. Finally, I decided to let him live his life and I would focus on living mine. If he ever wanted to know about money, I would let him ask, rather than trying to help when my help had not been requested. He never asked. Instead of trying to help him inancially, I decided to just love him for his strengths and not get into what I thought were his weaknesses.

    After all, love and respect are far more important than money. Mental-Attitude Quiz In retrospect, my real dad had a plan only for inancial security via job security. He failed to update his plan and continued to plan only for security. If not for those safety nets, he would have been in very bad inancial shape.

    My rich dad, on the other hand, planned for a world of inancial abundance, and that is what he achieved. Both lifestyles require planning. Sadly, most people plan for a world of not enough, although a parallel world of inancial plenty is also possible. All it requires is a plan. Do you have a written inancial plan to be: But security and comfort still come before being rich, even though being rich may be your irst choice. To be comfortable, you need only two plans.

    And to be secure, you need only one plan. Remember that only three out of every Americans are rich. Most fail to have more than one plan. Rich dad turned to his yellow legal tablet, wrote down the following words, 1. Secure 2. It is really measured in time. And of the assets of time and money, time is really the more precious asset. Give me an example. Why the diference in price?

    Why would you pay so much more for a plane ticket? I really was not getting what rich dad was talking about—yet I knew that it was important to him.

    I wanted to say something, but I did not know what to say. I did understand the idea that time was precious, but I never really thought of it as having a price.

    And the idea of downloading time rather than saving time was important to rich dad, but it was not important to me yet. And your dad thinks that how much money he has in savings is important. All I am saying is that the price is really measured in time. However, your real price will be measured in time.

    Poor people measure in money. Rich people measure in time. I have met a lot of poor people with a lot of money. So they have a lot of money but are just as poor as if they had no money. In reality, money by itself has very little value. So as soon as I have money, I want to exchange it for something of real value. So they cling to it, work hard for it, work hard at living frugally, shop at sales, and do their best to save as much of it as they can.

    But today we are talking about the diference between the plan to be rich and the other two plans. In fact, I recommend that for most people. Simply work and turn your money over to professional managers or institutions and invest for the long term. People who invest in this manner will probably do better than the individual who thinks he or she is the Tarzan of Wall Street. A steady program of putting money away following a plan is the best way to invest for most people.

    Or they want to start a business so they rush out and start a business without the basic skills of business.

    And then we wonder why 95 percent of all small businesses fail in the irst ive to ten years. All they have to do is change a few words, a few ideas, and their inancial world will change like magic. But most people are too busy working, and they do not have the time. It is a subject that does not interest me. Most people do not go beyond secure and comfortable because they are not willing to invest the time.

    At least the person has a inancial plan to be secure or comfortable. You see them in the later years of their lives, broke, spent, and talking about the deal they almost made or the money they once had. At the end of their lives, they have neither time nor money. I had already seen and met such investors. It is not pretty to see a person who is out of both time and money. Mental-Attitude Quiz Investing at the secure level and the comfortable level should be as mechanical or as formula-driven as possible.

    If you start early and if the stars shine on you, at the end of the rainbow should be the pot of gold. Investing can, and should be, that simple at these two fundamental levels. So if you cannot shake this nervousness, then invest with greater caution. But always remember the price: Once your investment plans of being inancially secure or comfortable are in place and on track, you are better able to speculate on that hot stock tip you heard from a friend. Speculating in the world of inancial products is fun, yet it should be done responsibly.

    Professional money managers do that for me. I invest the way my rich dad taught me to invest. Very few people invest or play the game of investing at this level. It is not a method for everyone, especially if you do not already have the secure and comfort levels already in place.

    Are you willing to set in place an investment plan to cover your inancial needs to be secure or comfortable? Are you willing to invest the time to learn to invest at the rich level, the level of my rich dad? First, they have not been trained to be investors. Second, most investors lack control or are out of control. Most of us know intuitively that if you want a real deal, you have to be on the inside.

    It could be to download a car, tickets to a play, or a new dress. An Important Note As this book progresses, many sacred money cows may be slaughtered. Inside investing is one of them.

    In the real world, there is legal inside investing and there is illegal inside investing. What makes the news is the illegal insider investing. Yet there is more legal insider investing in the real world that does not make the news, and that is the type of inside investing I am talking about. A hot tip from a taxi driver is in many ways an insider tip. But if you want to be rich, you have to be closer to the inside than the professional to whom most people entrust their money. To do that, I needed to invest a lot more time than the average investor—and that is what the rest of this book is really about.

    Before You Decide I realize that many people do not want to invest that much time into the subject of investing just to get to the inside. I hope that after reading the next few chapters, you will have learned a few new ways to reduce your investment risk so that you can become more successful as an investor, even if you do not want to be an inside investor. As I said earlier, investing is a very personal subject, and I completely respect that reality.

    I know that many people do not want to commit the time to the subject of investing the way rich dad and I did. Mental-Attitude Quiz he business of investing has many parallels to the business of professional sports. At Super Bowl time, millions of football fans watch the game. On the ield are the players, the fans, the cheerleaders, the vendors, the sports commentators, and the fans at home watching the event on TV. Today, for many investors, the world of investing looks like a professional football game.

    You have the same cast of characters. You also have the cheerleaders, telling you why the stock price is going up. Or, if the market goes down, they want to keep cheering you up with new hope that the price will soon rise. Instead of reading the sports page, you read the inancial pages. And of course, we have the viewers at home. What most people do not see in both arenas of the sports world and the investment world is what is going on behind the scenes.

    And that is the business behind both games. Oh, you may see the owner of the team occasionally, just as you may see a CEO or the president of the company, but the igurehead is not really the business. It does not download the tickets. Are you willing to start taking control over yourself? Based on what you know so far, are you willing to invest the time to gain the education and experience to become a successful investor as an insider? But if you want to be rich, working hard and saving money will probably not get you there.

    He knew that working hard and saving money was good for the masses, but not for anyone wanting to become rich. If you want to be rich, you will need greater inancial sophistication than merely working hard and saving money.

    Your net result is a loss of money. People who think things are risky often also avoid learning something new. In Rich Dad Poor Dad, I shared the diagrams of the income statement and the balance sheet that he used to teach me the basics of accounting and inancial literacy.

    In order for me to understand investing, I irst needed to fully understand the lessons taught in those two books. When I was between the ages of 12 and 15, rich dad would occasionally have me sit at his side while he interviewed people who were looking for a job.

    Across the table was a single wooden chair for the person who was being interviewed. One by one, his secretary would let the prospective employees into the large room and instruct each person to sit in the lone open chair. Rich dad never said anything to me before, during, or after these interviewing days. Besides, it is painful to see grownups so needy for a job and money. Some of those people are really desperate. I doubt some of them could last three months without a paycheck. And some of them are older than you and obviously have no money.

    Why do you want me to see this? It hurts me every time I do this with you. I know your dad is encouraging you to go to college so you can get a high-paying job.

    If you listen to his advice, you will be going in this direction. If you listen to me, you will be sitting in the wooden chair on my side of the table. Each side has its pluses and minuses. Will you wind up on the E and S side or the B and I side of the table? He had everything going for him at 40, and it was all over just 10 years later. It could get worse if he does not make some rapid changes. If he keeps going with his old beliefs about jobs and job security, I am afraid he will waste the last years of his life.

    And one of their major costs is employee compensation and employee retirement plan funding. You mark my words, in the next few years businesses will begin shifting the responsibility of investing for retirement to the employee.

    By the time you are my age, iguring out what to do with people who have no inancial and medical support when they are older will be a massive problem. And your generation, the baby-boomer generation, will probably be tasked with solving that problem. You had nothing. All you had was the idea of going to school so you could get a job with beneits. But whether he chose to be a policeman, politician, or a poet, I wanted him to irst be an investor.

    Many of my wealthy friends said that their families started an investment portfolio for them when they were very young and then guided them in learning to be investors— before they decided what type of profession they wanted to enter. Mental-Attitude Quiz In the Industrial Age, the rules of employment were that your company would employ you for life and take care of your investing needs once your working days were over. In , the average length of retirement before death was only one year for men and eight years for women.

    In other words, all you had to do was focus on the E quadrant and your employer would take care of the I quadrant. Many lived with that inancial attitude, and they often taught that same attitude to their children.

    Many people also continue to believe that their home is an asset and their most important investment. In the Industrial Age, that was all a person needed to know about money management because the company or labor union and the government took care of the rest.

    We need to know the diference between an asset and a liability. We are living much longer and therefore need more inancial stability for our retirement years.

    Your inancial portfolio needs to be a much bigger investment than your home. Which quadrant will you place irst? Which is the most important to you? What side of the table do you eventually plan to sit on? When a person shifts to the other side of the table, his or her point of view of the world also changes. I believe that this shift is brought on by the change of ages, the change from Industrial-Age thinking to Information-Age thinking.

    I had about four months before I was to leave the military and enter the civilian world. I had stopped all eforts to get a job with the airlines. I had decided that I was going to enter the business world in June of and see if I could make it in the B quadrant. It was not a hard decision since rich dad was willing to guide me, but the pressure to become inancially successful was building. I felt that I was so far behind inancially, especially when I compared myself to Mike.

    During one of our meetings, I shared my thoughts and frustrations with rich dad. One plan is to ensure that I have basic inancial security, and the other more aggressive investment plan is so I will be comfortable inancially.

    Rich dad grinned when he heard that. You are not in competition with anyone else. People who compete usually have huge ups and downs in their inancial life. You are not here to try to inish irst. All you need to do to make more money is simply focus on becoming a better investor. If you focus on improving your experience and education as an investor, you will gain tremendous wealth.

    If all you want to do is get rich quickly, or have more money than Mike, then chances are you will be the big loser. Anything other than that is foolish and risky. I knew then that rather than try to make more money and take bigger risks, I would focus on studying harder. Rich dad went on to explain his reasons for starting Mike out in the I quadrant, rather than the B or E quadrant.

    Football is a game you can play for only a few years. So why not start with the game you will end up with? Mike continued playing golf. I went on to baseball, football, and rugby. I was not very good at any of them, but I loved the games and I am glad I played them. Fifteen years after starting to play golf and beginning to invest, Mike was now a great golfer, had a substantial investment portfolio, and had years more investment experience than I did.

    At age 25, I was just beginning to learn the basics of the game of golf and the game of investing. I make this point because regardless of how young or old you are, learning the basics of anything, especially a game, is important. Most people take some kind of golf lessons to learn the basics before playing golf, but unfortunately, most people never learn the simple basics of investing before investing their hard-earned money. Ordinary earned income is generally derived from a job or some form of labor.

    In its most common form, it is income from a paycheck. It is also the highest-taxed income, so it is the hardest income with which to build wealth. Portfolio income is generally derived from paper assets such as stocks, bonds, and mutual funds. Portfolio income is by far the most popular form of investment income, simply because paper assets are easier to manage and maintain.

    Passive income is generally derived from real estate. It can also be derived from royalties from patents or license agreements.

    Yet approximately 80 percent of the time, passive income is from real estate. One of the conlicting viewpoints between my two dads was what a parent should say to a child. When you get good grades, you will be able to get a good job.

    If you boys listen to me, you will work hard for portfolio income and passive income if you want to become rich. At age 25, I was beginning to understand a little better. My dad was 52 and starting all over again, focused only on ordinary earned income, something he had thought was the right thing to do all his life.

    My rich dad was rich and enjoying life simply because he had worked hard for passive and portfolio income. I now knew which type of income I was going to work hard for, and it was not earned income. What happens if I lose the money? But for now, I just want you to understand the basics.

    And watch out for the negative thoughts. People who are too negative and avoid risk back themselves out of most opportunities because of their negativity and fear of risk. Got it? Start with the basics. What happened to assets and liabilities? It is time for you to go beyond the simple understanding of assets and liabilities—an understanding that most people never achieve, I might add.

    But the point I am making here is that all securities are not necessarily assets, as many people think they are. However, many average investors cannot distinguish between a security and an asset. Many people, including many professionals, do not know the diference. Many people call any security an asset. And generally, these securities are bound up tightly by government regulations. And that is why the U. You may notice that its title is not the Assets and Exchange Commission.

    It does not guarantee that everyone who acquires a security will make money. If you remember the basic deinition, an asset puts money in your pocket, or the income column. A liability takes money out of your pocket, and that shows up in your expense column.

    He drew this diagram on it: But if it loses money and that event is recorded in the expense column of the inancial statement, then that security is a liability. In fact, the same security can change from being an asset into a liability. It is up to me as the investor to determine if each security is an asset or liability. It is ultimately the investor who is the asset or the liability. I have seen many so-called investors lose money when everyone else is making money.

    I have sold businesses to many so-called businesspeople and watched the businesses soon go bust. I have seen people take a perfectly good piece of real estate, real estate that is making a lot of money, and in a few years, that same piece of real estate is running at a loss and falling apart.

    And then I hear people say that investing is risky. In fact, a good investor loves to follow behind a risky investor because that is where the real investment bargains are found. Such stories draw in only the losers. If a stock is well known or has made a lot of money, the party is often already over or soon to be over.

    As a person who operates on the B and I side, I want to ind securities that are liabilities and turn them into assets, or wait for someone else to begin turning them into assets.

    Most people just think a contrarian investor is antisocial and does not like going along with the crowd. I like to think of myself as a repairman.

    I want to look at the wreck and see if it can be ixed. If it can be ixed, then it would still be a good investment only if other investors also want it ixed. So a true investor must also like what the crowd likes, and that is why I would not say I am a pure contrarian.

    I will not download something just because no one else wants it. A non-investor tries to predict what and when things will happen. And look at it now. Most investments that will make you rich are available for only a narrow window of time—a few moments in the world of trading or a window of opportunity that is open for years, as it is in real estate. But regardless of how long the window of opportunity is open, if you are not prepared with education and experience or extra cash, a good opportunity will pass.

    If you want to download a stock, then attend classes on how to spot bargains in stocks. It all begins with training your brain to know what to look for and being prepared for the moment the investment is presented to you. It is much like the sport of soccer. You play and play, and then all of a sudden the winning kick at the goal appears. But even if you miss the shot in soccer or in investing, there is always another shot at the goal or another opportunity-of-a-lifetime investment right around the corner.

    Again there are so many people who come from the mindset that there is scarcity, instead of abundance, in the world. If you are good at the B and I side of the CASHFLOW Quadrant, you have more time and more deals to look at, and your conidence is high because you know you can take a bad deal that most people would reject and turn it into a good deal.

    You called the owner and ofered him a low but fair price at your terms, and he took it. He took your ofer because no one else had made him an ofer in over two years. I knew what the land was worth, and I also knew what was going to happen in that neighborhood in a few months, so there was very low risk coupled with a very low price. I would love to ind ten more pieces of land today in that same neighborhood. What will happen to my investment then?

    I am going to wait and see what happens. In fact, the best investors make more money in a down market simply because the market falls faster than it rises. As the saying goes: But I do love the tax advantages that cash low from real estate that do not come from stocks. But that will come later. Right now, that is enough about the advantages of preparation over prediction for you. Good deals seem to bring out the greed in people.

    So when a person inds a good deal, the deal—because it promises great rewards—attracts the cash. In other words, the deal would have been good if the guy in charge of the deal had stepped aside.

    It is like having a world-ranked race car with an average driver. No matter how good the car is, no one would bet on it with an average driver at the wheel. In real estate, people often say the key to success is location, location, location.

    I think diferently. In reality, in the world of investing—regardless of whether it is real estate, business, or paper assets—the key is always people, people, people. I have seen the best real estate in the best location lose money because the wrong people were in charge.

    Again, it is not the investment that is necessarily safe or risky. It is the investor. But there is one more investor basic rule I would like to leave you with.

    And that is investor basic rule number seven. Would this be a good investment? As you said, security of capital is very important.

    Would that be of interest to you? Yet it is still a high-risk deal. Education 2. Experience 3. Investing in the investments of the rich takes excess cash, which means you can truly aford to lose and still proit from the loss. At the rich level, you will ind out that there are good losses and bad losses, good debt and bad debt, good expenses and bad expenses. At the rich level, your educational requirements and experience will need to go up dramatically.

    If not, you will not be there for long.

    Rich Dad's Conspiracy of the Rich: The 8 New Rules of Money

    Rich dad went on to explain that if things do not follow the KISS keep it simple, sweetheart formula, then the risk is probably high. Whatever the case, it is best that you pass on the investment. If someone does that, ask him or her to use simple English. And a cap rate, which is a term used in real estate, just measures how much money the property puts or does not put in your pocket.

    So even going to the toilet was at one time diicult. Today, hopefully, you are potty-trained, and going to the potty by yourself is just part of the basics. Neither did my rich dad. Some people are fortunate enough that their inancial plan to be comfortable creates enough excess cash to make them think they are rich.

    But unless they learn to think as rich people think, they will still be poor people. Again, they are: If you are uncertain or are curious about some of the requirements involved in the education and experience that can lead to acquiring excess cash, then read on.

    You can then raise the bar, and your goals, and focus more of your time on becoming rich. But the challenge for most people is to invest the time. I only had a couple of months to go before I would be discharged from my military contract. I still did not know what I was going to do once I drove of the base for the last time.

    President Nixon was in trouble with Watergate and the trials were about to begin, so I realized that he had larger concerns than I did at that moment. We all knew the war in Vietnam was over, and we had lost. I still had a very short military haircut, and I stood out each time I went into the civilian world where long hippie hair was the style.

    I began to wonder what I would look like in shoulder-length hair. I had worn a military haircut since , ever since I entered the military academy for college.

    It was the wrong period of time to have short hair. One had sold all his stock to stand aside with cash. I was not invested in the stock market at the time, so I could objectively watch the efect that the ups and downs of the market had on people.

    Rich dad and I met for lunch at his favorite beachside hotel. He was as happy as ever. I thought it strange that he would be calm and happy while everyone else, even the commentator on the radio, was nervous.

    I doubt if anyone can predict the market, although there are many people who claim they can. A person can predict something happening maybe once, maybe even twice. But I have never seen anyone predict anything regarding the market three times in a row. If there is such a person, he or she must have a high-powered crystal ball.

    It is the investor who is risky. Many people who think they are investors are not really investors. In reality, they are speculators, traders, or—even worse— gamblers. How do I become an investor who makes a lot of money with very little risk—and then hangs on to the money I make? It is to keep things simple and understand the basics. Begin with having your investment plans for security and comfort in place. If you are not willing to invest your time, then leave your investment capital with people who are following the investment plan of your choice.

    Many people dream of getting rich, but most will not pay the price of investing their time. I really wanted to learn to invest following his investment formula, yet he was still testing my determination to invest my time and efort to learn what I needed to learn. I am willing to invest my time. I will study. You are not wasting your time teaching me. Just tell me what the basics are to becoming a successful investor with very low risk.

    I got concerned this morning when you came in concerned about the market going down. If you let the ups and downs of the stock market run your life, you should not be an investor. If you cannot control yourself, the highs and lows of the market will run you, and you will lose during one of those ups or downs. As I said, a true investor does not care which direction the market goes.

    A true investor will make money in either direction. He attended Hilo High School and graduated in Thereafter, most information on Kiyosaki comes from speeches and talks he has made of his life. As per Kiyosaki, he received congressional nominations from Senator Daniel K. Inouye for the U. Naval Academy and the U. Merchant Marine Academy. Marine Corps. Kiyosaki resigned after six months to join the Marine Corps, [17] serving as a helicopter gunship pilot during the Vietnam War in , where he was awarded an Air Medal.

    He took a job as a sales associate for Xerox until June The company went bankrupt in In , Kiyosaki sold the education company. In his book, he encouraged parents not to send their children to college and instead to enter the real estate business.

    As per an interview with Forbes , Kiyosaki's main earnings come through franchisees of the Rich Dad seminars. Many are concentrated in the information technology mobile apps and internet , publishing, retail, education, mining, energy, financial market, and real estate industries.

    He has a series of authors and other "experts" that he often cites as "Rich Dad Advisors" on real estate investing, financial planning, and avoiding taxes.

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