Monday, 8 June 2009

Rich Dad – Robert Kiyosaki, My Ultimate Wealth Creation Mentor Part Three of Three

Then how about the stock market? The stock market has slumped and millions have lost more than half of their pensions last year! Did you know that we can make money when stocks go up as well as down, you may have heard of Hedge Fund companies. George Soros, the billionaire investor and author made more than $1billion in 2008, (the year of the worst recession since the great depression in 1930s) while other prestigious companies went bankrupt? Some people may have heard of black Monday on October 1987, the day of the stock market crash, but it was one of the best days for some professional traders like James B. Rogers, who made millions on a single day.

How about businesses? Microsoft was started during a recession and has become one of the most successful companies to date. Facebook was valued at $10billion in 2009 compared to $3.8 billion in 2008, an increase in value of 263%, compare this to the industrial giants, two of the “Big Three”- Chrysler and General Motors recently filed for bankruptcy. So it is entirely up to you to decide whether you want to see opportunities or disaster.

I also found discipline and self belief are very important to keep my goals and visions alive in this global recession and to keep my spirit up when we have all the negative media coverage. I can honestly say this recession has slowed me down and I have encountered obstacles and problems on the way. However it is too naïve to expect everything to go smoothly, just as you expected and planned. It's also helpful to read inspirational books and go to seminars to keep your spirit up.

Along the way I have also read books from the following people who have inspired me and gave me valuable knowledge. Brian Tracy, Anthony Robbins, Robert Allen, Napoleon Hill, George Clason and many more. Their wisdom, knowledge and courage often inspires me towards my goals and dreams. Life is not a bed of roses and these books act like torches to brighten my road.

It's also a good idea to attend seminars to meet like minded people. I love to attend wealth creation, personal development and business seminars, as this helps me to learn how to leverage other people's money, experience and knowledge. In addition to property seminars, I have also attended many other paid and free seminars and met and listened to millionaires from all different backgrounds many of whom started with nothing or were deeply in debt. Their stories are inspiring and I have also gained the necessary skills and knowledge that will benefit my personal development.

In addition to property investment, I'm also developing my internet business and improving my trading skills. I love and am passionate about what I do and I know these are also important success factors whatever you do. I'm also still proud of my MBA, because it has given me so much confidence and the knowledge that I gained from this course has given me an edge that will be very useful for running my businesses.

The good news is that we can operate in several cash flow quadrants at the same time to generate multiple streams of income. As Rich Dad said, every one one of us has the potential to become rich. You do not need money to become rich, but your brain, your most important asset, can make you rich. It is not how much resources you have, it is your resourcefulness that makes all the difference.

Since the time that I wrote down my goals to become financially free and become a millionaire, I also wrote down my financial plan, as without a plan my goals would be destined to fail. Opportunities are everywhere and our determination to succeed is the most important factor. I will never give up my dream, I will continuously take action and learn more by attending seminars and by reading books that increase my financial IQ and effectiveness. Persistence and positive attitude are other important character traits and I believe the law of attraction.

The end

I'm interested in sharing your stories of Rich Dad and perhaps any of your life stories... Shannon

Sunday, 7 June 2009

Rich Dad – Robert Kiyosaki, My Ultimate Wealth Creation Mentor Part Two of Three

Brian Tracy, one of world's most inspirational speaker and author once said that every one of us should write down a goal to become a millionaire and he claims it has become even easier due to the internet and technology development. He also said that if you want to become a lawyer you study law, if you want to become an accountant you study accounting and if you want to become a millionaire you should study money and rich people. So why not study rich and successful people, who have already been there?

Personally, I believe Robert Kiyosaki is the best financial educator in the world, Robert and his books have inspired and influenced millions of people around the globe and helped them become rich. I decided to make him my mentor, despite the fact I have never met or spoke to him in my life. They say if you want to be rich, just copy the formula used by rich people, so I decided to copy his formula for my journey. All his books are written based on his own experience of building his multimillion fortune, he went broke several times, once even ending up homeless, but he never gave up and went on to build his own businesses, invested in real estate and other businesses.

So what else have I learned from him? Well, just read what he said,
“Your house is a liability to you not an asset”,
“Investing is not risky, being uneducated (referring to financial education) is risky”,
Poor Dad said: “Go to school, get a degree, find a good job and save for retirement” Rich Dad said: “Build your assets and invest wisely, the most important words in business are cash flow and leverage; your brain is your most important asset”,
“It does not take money to make money”,
“People who want to become millionaires go to seminars and people who want to become good employees go to universities”,
“JOB stands for Just Over Broke”,
“Mind your own business, people stay poor or in the middle class because they mind other people's business rather than minding their own”,
The importance of cash flow quadrants and which quadrants you want to generate your cash from and a lot more...

I know it takes time to build wealth, as Robert and his wife took almost 9 years to retire financially free, but I believe this can be a lot shorter due to advances in internet, technology and because you can learn and leverage other people's success, experience and knowledge to your advantage. I knew just reading his books would not be enough and I needed to take action as this is the dividing line between winners and losers. I have taken my important first step by reading his books and I have also attended paid seminars to educate myself. I decided to invest in property and purchased my first investment property in late 2007; I am buying more properties this year. I love the Chinese saying “A journey of a thousand miles starts with the first step.”

For some people it sounds crazy, my God! The average property price has dropped more than 20% since the peak price in 2007! For some people this is a great opportunity, for other people this is a disaster. Remember the Chinese word crisis is comprised of danger (危) and opportunity( 机), winners see the opportunities while losers see disaster. Rich dad said recession is a window of opportunity to increase your property portfolio and his fortunes were made because of this. We may all have the experience where something happened to you that you at first thought was a disaster but as time went by actually later turned out be one of the luckiest thing ever happened to you in your life.

The truth is that the professional property investors never purchase properties at market value, but below market value of between 10%- 40% or even more. In property you make money when you buy, not when you sell. Rich dad taught me that we should purchase an investment property for monthly positive cash flow, but not rely on capital growth. Any capital growth should be treated as a bonus. This will help you to do well regardless of up and down markets. I listened to his advice and it has paid off, one of my buy to let properties has a monthly rental income that covers 675% of my mortgage, the lender only requires 125%, the current recession has helped me to generate bigger cash flow as the Bank of England base rate has decreased to a record low of 0.5%

While amateurs and financially uneducated property investors go bust or get into deep trouble in the current down-turn, the true property investors thrive and are quietly increasing their property portfolio. Most of these amateurs either bought properties at market or over-market values or with negative cash flow each month as they expected the market to continue to go up for capital growth. Warren Buffet, the most successful billionaire investor once said, “when the tide goes out, you will find out who has been swimming naked.”

Everything has a cycle, a boom won't last forever and neither does a bust, the key is to understand the cycle and use this to your advantage. When the vast majority of the public wake up and are trying to jump in to buy properties, the professionals are already way ahead of the game. So how do we spot opportunities and see the future? History repeats itself and we all can learn from history, others and our own previous experience by financially educating ourselves.

To be continued...
I'm interested in sharing your stories of Rich Dad and perhaps any of your life stories... Shannon

Rich Dad – Robert Kiyosaki, My Ultimate Wealth Creation Mentor, Part One of Three

I first listened to Rich Dad, Poor Dad 2: Cash Flow Quadrant - Rich Dad's Guide to Financial Freedom(rated 5 stars by readers in Amazon) by Robert Kiyosaki in early 2007 and then bought his New York Times best seller, Rich Dad, Poor Dad. Since then I have read and listened to 12 Rich Dad or his advisor's books and CDs and I will be buying more of his books in the future. Despite the fact that I have spent less than £80 on his books the value that I got from his books is definitely and massively more than what I paid for my Master of Business Administration (MBA) course, which cost me around £8,000 in 2002.

The value that I got from his inspirational books is tremendous and priceless; he taught be how to think outside the box and completely changed my mindset. My MBA taught me nothing about money and investment, while Robert Kiyosaki's books taught me everything about wealth, money and the power of leverage. I have learned the truth about the rich, why the rich are getting richer and the poor are getting poorer. I realised that unless I change my cash flow quadrants, just being an employee will never be enough for me and I would never be able to achieve what I really wanted in my life.

I found the golden key to my financial freedom, wealth and success and the lifestyle that I have been dreaming of from the Rich Dad books. I learned that we are all capable of and deserve more than what employers are paying us and the truth is your employer will never pay you the worth of your real capability. Most people retire poor because they do not have the knowledge and necessary financial education to secure their financial future. I always thought becoming financially free and being rich was impossible for me, it sounded and felt like a goal that was too out of reach for me. Rich Dad taught me that everything is possible and I, not my boss, needed to secure my own financial future and I must certainly not depend on the government to look after me when I retire. Our financial future is on our hands, we should control our own destiny, but not by others.

I also realised if I want to be rich and successful I would have to do things differently from the crowd as if you do the same thing as most people do then you end up getting what most people have. The truth is only 1% of people retire rich and the remaining 99% retire poor (relative to the rich) after working hard their entire lives. Why? Rich Dad gave me the answer to this question. I agree with multi-millionaire Bradley Sugars, he said “ the difference in your income from today compared to in 5 years are the people you meet and the books you read”.

Most of us grow up in a society and family background that encourages you to go to university, get a good degree and then find a good job as the best way to secure your financial future; a typical Poor Dad's obsolete idea according to Rich Dad. That's why I did my MBA, but the Rich Dad series told me a different story. Before reading his books I never knew why I was struggling and been unable to achieve my dream lifestyle, despite the fact I was working extremely hard, received one of the highest academic qualifications and am able to speak four important languages fluently.

At school our intelligence is measured by our grades and degrees, but in real life our success is measured by our financial status. Who is crazy enough to argue that they are more successful than Bill Gates, the richest man on this planet but who is also a Harvard university drop out? Can you imagine our life without the all the software of Windows.

In fact, some of the most successful businessmen are people who have never gotten a university degree, including multi-billionaire Sir Richard Branson, the computer billionaire Michael Dell who was a University of Texas drop out and the celebrity millionaire- Sir Alan Sugar. They are some of the most successful business owners and investors in the world; before reading all the Rich Dad books I had no real clue as to how they could become so rich and successful. According to Rich Dad's cash flow quadrants (left quadrants: employee, self employed; right quadrants: business owner, investor) these people are all operating from the right quadrants.

To be continued...
I'm interested in sharing your stories of Rich Dad and perhaps any of your life stories... Shannon