Rich Dad Poor Dad

Passive Income

admin — Tue, 27 Jul 2010 03:35:57 +0000

We are formally trained to generate active income at a job, however it is difficult to truly generate wealth unless one begins to generate passive income. Most of us think of going to work at our jobs every day. Day after day we labor for our boss or business for payment. This is active pay since it is income that goes away if we do not regularly contribute something in return for pay. To maximize wealth, a person needs to train yourself to make passive income instead of actively earning income.

Some examples of passive income would be if you owned stock in a company that pays a dividend, if you owned rental property that was managed by someone else, or if you owned a business that was managed by someone else. In each of these instances, you, as the owner of the stock, rental property, or business could have no daily, weekly, or monthly interaction in the daily operation of the business and still earn money. In other words these are passive income streams that earn money regardless of your actions.

To become wealthy, you need to begin to think of different sources of passive income that you can use to generate income. The most common passive income which requires no interaction except filing taxes on a yearly basis is owning stock. It is possible to become rich doing this, however this requires twenty to thirty years of pouring large portions of your income into these companies. If you want to accelerate this process, you will need to closely buy and sell different companies. The problem with doing this is that the process then becomes an active process and not a passive process. Some people do this task of buying and selling their stocks daily and we call them day traders since they basically do this day in and day out.

Some better Passive Income ideas that will generate larger quantities of money with little starting capital are the ones you should pursue. Of course coming up with these ideas is easier said than done. Starting a business that others can operate for you is probably the ultimate goal for passive income, however this is a difficult process. Usually this requires you actively start the business by yourself and grow it until it can support the employees to run it on your own. If you eventually can free up your time to think about more passive income ideas, you will begin to get ahead of the game.

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Rich Dad Poor Dad Summary

admin — Sun, 25 Jul 2010 17:49:53 +0000

In this world, economy determines if an individual will eat, have shelter, and clothes on their back. Therefore, finances play a significant part in obtaining the necessities that are needed to survive in everyday life. Since this s such an important factor in people lives, it would be wise to seek the proper direction in obtaining and maintaining wealth. The Internet provides so much information on this subject matter, including the Rich Dad Poor Dad Summary about a book offering advice on how to gain wealth.

Rich Dad Poor Dad Summary of the well known book that helps guide individuals on how to increase their wealth, gives an overview of the topics described throughout the book. Robert Kiyosaki rich dad poor dad tells a story of the author’s life, and how he was taught by his biological father, from one perspective of making money, while learning from his friend’s dad a totally different view. Nevertheless, Kiyosaki used all that he had learned to educate others on becoming rich. Additionally, rich dad poor dad essay has proved to be a wealth of information.

Rich Dad Poor Dad Summary describes a number of lessons to follow, which will help those who are seeking to successfully gain wealth. Lessons such as: knowing the difference between assets and liabilities, seeking to become your own boss, pursuing opportunities to make money, and many other profound ideas. The author encourages individuals to take a risk, in order to gain opportunity to increase their finances. He believes in making wise decisions, by investing in things that will earn money, which he classifies as assets, instead of costing money to come out of the pocket, which he refers to as a liability. Additionally, he explains that fear often holds people back from reaching their full potential life. Even more so, rich dad poor dad seminars assist in continuing to coach those that are interested in climbing up the financial ladder.

Rich Dad Poor Dad Summary tells how the rich dad poor dad analysis has been a tool to help individuals to strategically meet their financial goals, and excel at maintaining them.

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Robert Kiyosaki

admin — Fri, 23 Jul 2010 17:48:41 +0000

Robert Kiyosaki was born on April 8,1947 in Hawaii. He is married to Kim Kiyosaki. He is a well known speaker and author with expertise in the finance industry. He is best known for the Rich Dad Poor Dad series which includes books and audio material. The series also has hands on exercises for the user to enjoy and learn from. Robert and Kim do some speaking events together. Other Robert Kiyosaki books are about investing and other financial concepts. He even has a book focused on teaching kids how to handle money. His books can be found on his website or at most book retailers.

Robert Kiyosaki has given financial advice to thousands if not millions of people seeking help with their finances. The story behind the Rich Dad Poor Dad series is relating between the mentality and what was taught from Robert’s rich and poor dads. He mentions how the two dads gave him conflicting advice and stresses how important it is to understand the differences in the two mentalities. He better explains the advice given to him by the two dads in a cash flow diagram.

The Robert Kiyosaki cash flow quadrant is a tool he uses to explain how income is earned. The cash flow quadrant groups everyone into one or more group based off of the letters E, S, B, and I. E stands for employee. S represents the self employed or small business owners. B stands for business owner and I stands for investor. The difference between the I or small business owner and the B or business owner is that the big B has a business with more than five hundred employees. The quadrant explains the varying mindsets of each type of person represented.

Robert Kiyosaki talks about making passive income as a means of obtaining wealth. He focuses on key financial strategies that are not taught in the classroom. Some Robert Kiyosaki quotes related to this are ”Academic qualifications are important and so is financial education. They’re both important and schools are forgetting one of them.” and “The future is created by what you do today, not tomorrow”. Kiyosaki encourages investing in real estate and other commodities and becoming a business owner. His website has tools such as a financial calculator and a cash flow game that people can access for free. The website also has an online community with a blog and podcasts.

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Cash Flow Quadrant

admin — Wed, 21 Jul 2010 16:32:13 +0000

Most of us start out in life as employees working for someone else, which is good since we all learn skills from our employers. However as we learn, we realize that there is more out there. Many of us started flipping burgers, stacking boxes in the stock room, or delivering papers. As kids we were happy just to make a few quick bucks and begin to spend the money on useless candy, toys, and eventually cars and hobbies. As we mature, we get less and less fulfillment out of these things and want to make a living in a more established and stable job. Companies and universities have sold us on this idea of a career doing the same thing working for someone else as an employee. Others have bucked this system and become self employed. This may be slightly better since the self employed have the perception that they are in control of their destiny. However, the employed and self employed are still responsible to work on a regular basis, otherwise the income stops. The author of Rich Dad Poor Dad has developed the cash flow quadrant chart to help train us to think beyond the employee and self employed quadrants.

Other quadrants that are discussed by the author, Robert Kiyosaki, are the small business owner, and investor. These are discussed in the cash flow quadrant pdf that can be downloaded free off the Internet. In this document, you will learn in detail of the Cash Flow Quadrant and how to move yourself into the B (small business owner) and I (investor) quadrants. The cash flow quadrant pdf has the same contents of the Cash Flow Quadrant book so you can read through all of the text or preview to see if you want to buy the book.

It is important that you do something to get started on the process and set goals for yourself. Reading the Cash Flow Quadrant is an excellent catalyst to get the creative juices flowing in your head. Only you can chart your course with the cash flow quadrant diagram since you need to visualize how you will obtain wealth. The one thing that is certain is that if you don’t try then you will certainly fail.

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Rich Dad Poor Dad

admin — Sun, 11 Jul 2010 14:13:49 +0000

Rich Dad Poor Dad books and games can be a fun way to learn financial literacy. The books tell interesting stories of Robert Kiyosaki and his friend Mike growing up where Robert’s dad was in education and Mike’s dad was an entrepreneur. Of course the poor dad was Robert’s father while the rich dad was Mike’s.

A Rich Dad Poor Dad summary of the book would state that Robert’s friend Mike’s father taught the boys lessons about first working as an employee and then seeing the value of passive income through owning businesses and investing.

In fact, Robert Kiyosaki has a well-known illustration called the Cash Flow Quadrant where you can identify yourself in one or more of four categories. Those categories could be described as: employee, self-employed, big business owner who could walk away for a year and return to find the business better off than he left it, and investor.

Robert and his wife Kim try to stay in the Business and Investor half of the quadrant rather than trading their time for dollars. In fact, passive income systems would be a great way to describe his philosophy. If you can find or create repeatable systems to earn money whether you work or not, you are on your way to living the dream.

One of Robert’s main vehicles is real estate because you can invest the bank’s money and keep the profit for yourself. He preaches that the deal is made not when you sell the property, but when you buy it and if you can earn more monthly income from that property than you spend on the loan and expenses. If you can use the bank’s money to buy properties and you keep the profits, then you are leveraging other people’s money (OPM).

Robert Kiyosaki is also known for his analogy of escaping the Rat Race. This basically means the employee/self-employed earns more passive income than their expenses so that they can effectively stop trading time for dollars.

His Cash Flow 101 and Cash Flow 202 board and electronic games are great at teaching the mindset of getting out of the rat race and earning passive income.

Learn more about Robert and his products here.