Rich dad on Reed

There is this review of Kiyosaki's book Rich dad Poor Dad by John T Reed which was written way back in the year 2000. This review gets a very high traffic till date. people who criticize Kiyosaki on his book often point out to this review .

What I believe is that Rich dad teaches some great real-world lessons in a simple and insightful way. It’s always easy to criticize and blaming others, taking things out of context. And it’s always hard to look at ourselves, feel the need to change and then making the required efforts.

Rich dad poor dad is a simple book which tells you all the things a person should know about money. It has positively changed and inspired millions os people . Robert kiyosaki has prooved himself to the world , he is known all over as a successful multimillionaire . His books are the best sellers and he teaches people to be financially free.

There is a letter by kiyosaki addressed to Reed on his review which i have posted on my other blog, you can see it here.

Learn more about being a RICH DAD to you success and Financial Freedom..
Your partner in success...
Gagan.

Investment education

The only way you can make money work for you is by makin investments. I have been learning a lot by RICH DAD series of Robert Kiyosaki. It is good investment that will be a source of passive income and will go on a long way to your financial freedom.

RICH DAD says, to make money work for you, you have to learn how money works. Making investment is the best way you can put your money to use. If it’s lying idle with you in any form, it will not work instead will loose its purchasing power as the time passes by. So smart investments make up a positive cash flow and are very essential, if we really want to be financially free.

We should be able to see the right opportunity. To make the right decision we should think like business owners because if we think like we own the business to have a clear understanding of your investments, what are you investing in, what is the business model , what are the risks involved, how the company makes its profits and so on. These are the basic facts and figures you should know before making your investments.

And finally about taking the right advice . We should be be able to distinguish between good and bad advice . Investments are always involved withs some degree of risk and we should be able to take to know the risk and take the responsibilty of the decision even when we act upon the adive of someone. Kiyosaki says, if you can educate yourself to know the differences between those three types of advice, getting rich is easy.

Its the financial education which helps you see the opportunity and take the right decision.

Learn more about being a RICH DAD to you success and Financial Freedom..
Your partner in success...
Gagan.

Learn credit by RICH DAD

I want to continue over debt because this is where we all go wrong, and it’s very important to know the basic facts .

Most of us know that millions of people are deeply mired in credit card debt. Many financial experts have said repeatedly, "Get out your scissors and cut up your credit cards. But Kiyosaki says this is not a solution to avoid debt. We have to solve this problem by financial education.
It is this education which makes you use your debt wisely. But this is not taught the way it is needed . The education system should give equal importance to both acedemic and financial literacy.

Today use of credit cards is convenient as well as necessary, as they a widely accepted around the world. Online shopping requires credit cards. And they give us a kind of a financial freedom, what we need to know is how to use them wisely and to our benefit. People tend to fall in the debt trap and most people take bad debt and turn it into horrible debt. But their problem isn't credit cards -- it's a lack of financial know-how.

Learn more about being a RICH DAD to you success and Financial Freedom..
Your partner in success...
Gagan.

Be RICH , know easy money - Debt

There is this piece of information i read about lending and debt. In order to be like a RICH DAD and learn about money, we have to learn how money works on a global level, with respect to nation’s economy and on the personal level too.

I wonder how simple basic concepts have the power to change the financial situation of a person. RICH DAD gives the same concepts in a way everyone can understand. So you don’t have to be a financial analyst to know them.

This is a time where big economies are on a lending spree and developing nations are giving a respectable growth trends. Today a country doesn’t get rich in old ways by getting into wars and attacking weaker nations, they just buy another country’s wealth and debt.

On a more personal scale, many individuals fall prey to the lure of easy credit with credit cards, school loans, and mortgage debt. Once the lenders have you hooked on debt, they're assured of a steady stream of income for years, hoping you never pay it off. And if you default, they may force you into liquidating your assets. Banks and other financial institutes are more than happy to give you easy money.

There is no harm in borrowing money. RICH DAD says, we can not say all debt is bad, because there are situations where borrowing money is crucial for growth, investment and expansion. Without borrowing money or taking a loan we might loose a good opportunity.Good debt is debt that generates income. Bad debt is debt that goes to buy stuff.

To be like a RICH DAD, get yourself out of the bad debt cycle.

Learn more about being a RICH DAD to you success and Financial Freedom..
Your partner in success...
Gagan.

RICH work smart

This is a age of smart working not hard working.
I have come across a lot of hard working people work all their lives and still are not able to manage a good living leave aside making investments.

RICH get RICHER by saving on taxes, and the majority of us face the burden .
Rich dad shares a fact that the salaried class are the highest taxed people all over the world . I think they are the people who make economies run.According to kiyosaki, the richer are getting richer because they have more control over their number one expense that is taxes.

With the limited exposure and programed to work day and night in the same routine work which hard work most of the people get limited incomes, which are again wiped out through taxes.

So financial education becomes more important not only for the growth but also for the survival.
Get out of Rat race - Robert Kiyosaki .

Learn more about being a RICH DAD to you success and Financial Freedom..
Your partner in success...
Gagan.

RICH DAD guide to investing - Value matters

Investing: Why Value Matters More Than Price

According to RICH DAD Robert Kiyosaki , a very few people know the "intrinsic value" of stocks.
The good news is that once you understand intrinsic value, you may better understand why some investors make more money than others. You might also realize that you can find intrinsic value in investments other than stocks, such as real estate.

Kiyosaki says , while the price of an asset is important, it's not something we watch on a daily basis, look for well-managed businesses that grow more valuable over time.

Keeping an Eye on Intrinsic Value
You become a better investor by training your brain to "see" what your eyes can't -- the real value (or lack of value) in any investment, regardless of whether it's a stock, bond, mutual fund, business, or real estate. This is its intrinsic value.

So according to RICH DAD the average investor only knows one way to make money: buying low and selling high. A professional investor would rather buy low, realize gains from other arenas, and let the asset grow forever.

Learn more about being a RICH DAD to you success and Financial Freedom..
Your partner in success...
Gagan.

To Diversify or not to Diversify

In this post I will share something about investments, on a thought given by RICH DAD Robert Kiyosaki that whether we should diversify our investments or be focused .

Many financial advisors recommend that you diversify for your own protection. What they fail to tell you is that it is also for their protection. Since most financial advisors cannot tell you exactly which stock or mutual fund is a great investment, they tell you to buy a bunch of them.

Kiyosaki says, instead of diversifying, my rich dad taught me to focus on finding the best investments. That meant sifting through hundreds of offers, studying, analyzing, and determining the pros and cons of each. Learning to focus was one of the best real-world business lessons I received from my rich dad.

Kiyosaki says there are two factors that justify Diversification .
So why do financial advisors recommend diversification when the world's greatest investor chooses not to diversify? I believe there are two answers to this question.

1. Active vs. passive investing. There are active and passive investors. Warren Buffett is an active investor. Most people are not. Active investors should focus. Passive investors should diversify.

2. Risk. Some investments are riskier than others. Stocks, bonds, mutual funds, and real estate investment trusts (REITs) are very risky investments, hence you should diversify if
you invest in them. If you invest in businesses, as Warren Buffett does, or real estate, as I do, you should focus.

One of the reasons the rich get richer is because they are focusing, while the middle class is diversifying, and the poor are counting on Social Security.

Learn more about being a RICH DAD to you success and Financial Freedom..
Your partner in success...
Gagan.

Fear can be expensive - RICH DAD

This is a recent article given by RICH DAD, Robert Kiyosaki about taking risks in investments which I would like to highlight...

We misjudge risk if we feel we have some control over it, even if it's an illusory sense of control. The article uses the example of people who drive rather than fly.

Even though the risks of death are higher driving than flying, many people would rather drive simply because they feel they have more control driving. The facts are that only a few hundred people die a year flying and 44,000 are killed a year driving. After Sept. 11, 2001, many people took to the roads rather than the skies. Not surprisingly, between October and December 2001, there were a 1,000 more deaths.

RICH DAD says, today, many people feel they have more control if they have money in savings. Thus the saying, "Safe as money in the bank." But the fact is that savers are the biggest losers of all.

According to Kiyosaki , investment decisions should be taken wisely with experts opinions.
One of the reasons people think investing is risky is because there's an entire industry that wants you to believe so. Trading on your fears is very profitable.

“Face your fears and doubts, and new worlds will open to you.”Robert Kiyosaki

Learn more about being a RICH DAD to you success and Financial Freedom..
Your partner in success...
Gagan.

Get OUT of rat race ...Be a RICH DAD

Robert Kiyosaki defined the "Rat Race" for us
I will try. and explain the concept by RICH DAD in simple words .

A child is born , goes to school completes his study ,looks for a safe, secure job or career.
The child finds that job, maybe as a doctor or a lawyer, or joins the Army or works for the government.

Generally, the child begins to make money, credit cards start to arrive in mass, and the shopping begins, if it already hasn't. He gets married, may be it doubles his income.
The happy couple decides that their careers are vitally important and begin to work harder, seeking promotions and raises. The raises come, and so does another child and the need for bigger house.

They work harder, become better employees, even more dedicated.
They get their large pay check and wonder where all the money went. They pay some mutual funds and buy groceries with their credit card. The children reach 5 or 6 years of age, and the need to save for college increase as well as the need to save for their retirement.

"That happy couple, born 35 years ago, is now trapped in the Rat Race for the rest of their working days. They work for the owners of their company, for the government paying taxes, and for the bank paying off a mortgage and credit cards.


“Wealth has very little to do with timing, education or even how much money you are making – it is merely a matter of getting the right education, mindset and discipline. Create huge sum of money without investing huge sum of money up front and without putting hard earned saving at risk.” Robert Kiyosaki

Learn more about being a RICH DAD to you success and Financial Freedom..

Your partner in success...Gagan.

Robert Kiyosaki defined the "Rat Race" for us
I will try. and explain the concept by RICH DAD in simple words .

A child is born , goes to school completes his study ,looks for a safe, secure job or career.
The child finds that job, maybe as a doctor or a lawyer, or joins the Army or works for the government.

Generally, the child begins to make money, credit cards start to arrive in mass, and the shopping begins, if it already hasn't. He gets married, may be it doubles his income.
The happy couple decides that their careers are vitally important and begin to work harder, seeking promotions and raises. The raises come, and so does another child and the need for bigger house.

They work harder, become better employees, even more dedicated.
They get their large pay check and wonder where all the money went. They pay some mutual funds and buy groceries with their credit card. The children reach 5 or 6 years of age, and the need to save for college increase as well as the need to save for their retirement.

"That happy couple, born 35 years ago, is now trapped in the Rat Race for the rest of their working days. They work for the owners of their company, for the government paying taxes, and for the bank paying off a mortgage and credit cards.


“Wealth has very little to do with timing, education or even how much money you are making – it is merely a matter of getting the right education, mindset and discipline. Create huge sum of money without investing huge sum of money up front and without putting hard earned saving at risk.” Robert Kiyosaki

Learn more about being a RICH DAD to you success and Financial Freedom..
Your partner in success...Gagan.

RICH don't work for money.

Rich Dad say: "Job is really a short-term solution to a long-term problem."
Kiyosaki points out that for most people a job is a temporary solution to a long-term problem. If you find yourself living from paycheck to paycheck, you probably understand what he means. The average person works for money instead of learning how to make their money work for them.

If you find yourself in the position of working for an hourly wage – whether you are in business for yourself or working for another, then you may want to ask yourself how what you are doing is or could be creating a life-time asset. Aside from money, what are you working towards? What skill are you learning or could you be learning that will allow you to create leverage?

One should be educated in Financial Literacy which in fact is available only to a few, the Rich They work for the knowledge that will help them learn to leverage their money. In other words, they work to learn how to make their money work for them.


Learn more about being a RICH DAD to you success and Financial Freedom..

Your partner in success...Gagan.

RICH DAD Cash Flow ...

I will start from where i left in my last article about Robert Kiyosaki 's Cash Flow Quadrant .

Kiyosaki says, the E or Employed people work in 9 to 5 jobs and do all the hard work. Majority of the population lies in this quadrant. And it’s the most secured sources of income with low risk. You get paid in proportion to the time given by you to the organizationThe moment you stop working or deviate from the existing work routine your income get affected.

According to Kiyosaki, “WEALTH is the no. of days you can survive forward if you stop working tomorrow.”

Kiyosaki says the second quadrant on the left is S or Self employed or Small business owners. This is again a secured low risk quadrant for people who are professionals or are self employed. They have to give their time to get paid like the E, the difference being they own the job.

According to Kiyosaki, in order to obtain financial freedom, one must be either a business owner or an investor, generating passive income.

The third quadrant given by Kiyosaki is the B or Business owner which is on the right of the grid. These are the people who do the smart work, who employ other people to work for them and leverage on their time and efforts.

The fourth quadrant is the I or the Investors, according to Kiyosaki the investors use money to make money. They leverage on money i.e. spending money in order to receive a larger payout in return.

Learn more about being a RICH DAD to you success and Financial Freedom..
Your partner in success...Gagan.

RICH DAD's Cash flow defined...

I will try and highlight another most popular and a very powerful concept given by Robert Kiyosaki known as CASHFLOW quadrant.

According to Robert Kiyosaki, CASHFLOW Quadrant is a powerful way to understand how income works for different individuals.

What is cash flow quadrant?
Kiyosaki’s cash flow quadrant is a grid consisting of the letters E, S, B, and I. The cash flow quadrant itself is just an illustrative tool to show the difference between Employees, Self Employed/Small Business owners, Business owners (not directly involved in the day-to-day operation of the company), and Investors. Kiyosaki discusses the differences between concepts and ideas characteristic of each quadrant, particularly as they relate to passive income and tax advantage.


Kiyosaki tells us that we can be successful regardless of which quadrant we are in, but he recommends that we try to move from being an employee to being an investor and a business owner so that we can have more free time to do what we love.

“If you want to go somewhere, it is best to find someone who has already been there.”
ROBERT KIYOSAKI

Learn more about being a RICH DAD to you success and Financial Freedom..

Your partner in success...
Gagan.

RICH DAD POOR DAD, the book

Rich Dad Poor Dad was Robert Kiyosaki's first best-selling book. In it, he advocates financial independence by means of investing, real estate, owning businesses, and the use of finance protection tactics.Rich Dad Poor Dad is written in a way which makes finances interesting. The most central element stressed by Kiyosaki is the advocacy of owning the system or means of production, rather than being an employee of someone else.

Kiyosaki shares the different attitudes to money, work and life of the two men who influence him the most and how they in turn influenced key decisions in his life. Rich dad is the one who does nt have much acedemic background but is a self made multi-millionaire. Poor Dad is a Ph.d holder who worked every day at the job and was not too good at money because he never learned how to handle money instead depending on the government for support.

Kiyosaki says that the rich buy "income-producing assets". Kiyosaki argues that the poor buy worthless items that they think are assets, which clearly do not earn anything, and may have no market value.

learn more about being a rich dad to your success and financial freedom...

Your partner in success...
Gagan

Welcome to richdadcash!

About Richdadcash.

I am pleased to welcome you all to richdadcash , a platform to share and discuss education , knowledge, money, income, wealth, investments inspired by Robert Kiyosaki , author of the best seller RICH DAD POOR DAD .

Kiyosaki is the authority on wealth as he explains how rich people think and what you should know about money through his book Rich Dad Poor Dad. He wants everyone to be smart with money and think like a Rich Dad.

Education in schools and colleges is primarily focused on acedemics and it does not help people be financially free to a great extent . So there is a need to think beyond our acedemics and learn to make money work for us .

learn more about being a rich dad to your success and financial freedom...

your partner in success,
gagan