Robert Kiyosaki

Secrets of The Rich

People tell you:
Study Hard. . .
So you can get good grades. . .
So you can find a good job . . .
So you can find a good company to work for.
People tell you:
Study Hard. . .
So you can get good grades. . .
So you can find a good job . . .
So you can find a good company to work for.
An Entrepreneur will tell you:
You dont want a good company to work for. . .
You want to study hard to find out how to buy
a good company and sell it.
People tell you:
Study Hard. . .
So you can get good grades. . .
So you can find a good job . . .
So you can find a good company to work for.
An Entrepreneur will tell you:
You dont want a good company to work for. . .
You want to study hard to find out how to buy
a good company and sell it.
THIS OF COURSE CAUSES A CONFLICT WITHIN YOU!
I do not take the subject of money lightly
I do not accept the comments like:
Were not interested in money were school teachers.
F.A.TS?= Financial
Aptitude
Testing
Financial aptitude is never tested.
So there is a growing gap between the haves and
the have nots.
Financial education is left up to the parents.
So a poor parent will teach poor attitudes.
There is a big difference between literacy in words
and literacy in numbers.
INCOME
EXPENSES
ASSETS LIABILITIES
The difference between an asset and a liability.
ASSET:
An asset is something that puts money
in your pocket without you working for it.
LIABILITY:
A liability is something that takes
money out of your pocket.
ASSETS LIABILITIES
HOUSE
CAR
HOUSE
CAR
?
?
ASSETS LIABILITIES
HOUSE
CAR
HOUSE
CAR
CASHFLOW
ASSETS LIABILITIES
HOUSE
CAR
HOUSE
CAR
?
?
INCOME
EXPENSES
JOB
$1000
INCOME
EXPENSES
JOB
$1000
RENT MORTGAGE
FOOD
STEREO
CLOTHES
ASSETS LIABILITIES
HOUSE
CAR
CREDIT CARDS
ASSETS LIABILITIES
HOUSE
CAR
CREDIT CARDS
KIDS
THE CASHFLOW PATTERN OF SOMEONE
WHO IS POOR.
THE CASHFLOW PATTERN OF SOMEONE
WHO IS MIDDLE-CLASS.
THE CASHFLOW PATTERN OF SOMEONE
WHO IS MIDDLE-CLASS.
They are on a treadmill. Their liabilities keep them at work.
They never get ahead.
THE CASHFLOW PATTERN OF SOMEONE
WHO IS RICH.
If you want to be Rich and Happy
Dont go to school!
By Robert Kiyosaki.
The Secrets of the Rich NO.1
The Poor and the Middle-Class
work for money.
The Secrets of the Rich
The Poor and the Middle-Class
work for money
The Rich have money work
for them.
The Secrets of the Rich NO.1
STATISTICS.
25% ARE DEAD.
51% HAVE INCOMES OF $6000.
20% HAVE INCOMES OF $6000 - $35000.
3% HAVE INCOMES OF OVER $35000.
1% ARE RICH.
The Secrets of the Rich NO.2
MIND YOUR
OWN BUSINESS.
My PROFESSION was sales
BUT
My BUSINESS was real estate.
_______________________________________________
My PROFESSION was sales
BUT
My BUSINESS was real estate.
_______________________________________________
Dont mind somebody elses business.
Youve got to take care of YOURSELF!
EXAMPLES OF ASSETS
REAL ESTATE.
STOCKS.
BONDS.
INTELLECTUAL PROPERTY [BOOKS].
MUTUAL FUNDS
BUSINESSES.
There are people who:
OWN A BUSINESS.
and
There are people who:
OWN A J OB.
There are people who:
OWN A BUSINESS.
and
There are people who:
OWN A J OB.
_______________________________________________
When you OWN A J OB you are not free
YOU must do the work!
The Secrets of the Rich NO.3
CREATE INVESTMENTS
DONT BUY THEM
THE STAGES OF CREATING AN INVESTMENT
EXAMPLE:
1. I buy 5 houses for $5000 down each
2. Those 5 houses are worth to me $30,000 each
3. I sell each house for $60,000
4. I make $30,000 profit on each house
5. That profit is created in the ASSET column
THE STAGES OF CREATING AN INVESTMENT
EXAMPLE:
1. I buy 5 houses for $5000 down each
2. Those 5 houses are worth to me $30,000 each
3. I sell each house for $60,000
4. I make $30,000 profit on each house
5. That profit is created in the ASSET column
6. I created $30,000 X 5 = $150,000 in the form of a NOTE
7. Then I took 10% interest on that $150,000
8. This gives me annually $15,000 into my INCOME column
9. Over the 30 years repayment period I have make $450,000
The Secrets of the Rich NO.4
EXPAND THE PRODUCT
BEFORE YOU BUY
THE STAGES OF CREATING AN INVESTMENT
EXAMPLE:
1. I bought 80 acres of land for $150,000 with a house on it.
2. I sold the house with 4 acres for $150,000.
THE STAGES OF CREATING AN INVESTMENT
EXAMPLE:
1. I.P.Os Initial Public Offering
2. You are offered shares at $1.50
3. Traders come in and your shares may go to $5.00
4. Then a mutual fund may pick it up and they may go to $20.00
[THIS IS WHERE THE BROAD PUBLIC PICK UP THEIR SHARES]
OR:
1. Create 5 founders and 5 million shares at 10c STAGE 1
2. Sell them for 50c per share STAGE 2
3. Offer them at IPO STAGE 3
Get in before they go to IPO by creating them yourself.
IF YOU REALLY WANT TO MAKE MONEY
THE BEST WAY TO DO IT IS
BETWEEN YOUR EARS.
THINK
DONT
WORK
HARD!
What is your winning formula?
Part of my winning formula was:
Dont do what everybody else is doing.
Some of your formulas might be:
Be good, do as you are told, take orders.
What blocks most people from achieving is that they are
not willing to LET GO of their winning formula. . .
Some of you will still go home and go back to work.
Part of my winning formula was:
Dont do what everybody else is doing
Some of your formulas might be:
Be good, do as you are told, take orders
What blocks most people from achieving is that they are
not willing to LET GO of their winning formula. . .
Some of you will still go home and go back to work.
If you want to be successful you have got to be willing to
change your winning formula.
TO BE AN ACHIEVER YOU HAVE GOT TO
DO
SOMETHING
YOU HAVE GOT TO
USE
THE INFORMATION YOU GET
ACHIEVERS
TAKE
ACTION
ARE YOU WILLING TO TAKE ACTION
?
ARE YOU WILLING TO MAKE MISTAKES
?
Secrets of the Rich (Part 4)
Robert Kiyosaki
What We Are Today
Not an information Society anymore
A Learning Society
- People will not care what you know but
how fast can you learn.
How fast can you drop the old winning
formula and adopt a new winning formula?
How fast can u adopt new ideas?
Two Tips
1
st
Tip: Never say you cant afford it
2
nd
Tip: Watch out for your friends;
Choose your friends carefully
Paying your liabilities
How to pay for your liabilities?
Buy assets first, let your assets pay for
your liabilities.
Make Mistakes...
Achievers are willing to take risks.
Learn from mistakes.
If you dont make mistakes , you dont
learn anything.
Thats the winning formulae!
You will be what you will to be
Poem By William Shakespeare