I found out a really good way to make money online, let me take couple mins of your time, that the rest of this will be simple and direct, read my review at Hubpages to find out what I am talking about. This method of getting money online, it's so simple anyone can do it. If you are really triving to make a lot of money online, check out what i am talking about at "The Easiest way to make money online!", to find out what all the fuz is about.
I keep on learning. I read once and again, and again this thoughts.
I just finished the story #1, and I am asking myself now, how can I took all of this knowledge and put into action the soon as possible?
I got a lot of answers. And maybe I got a lot of questions, too.
But now I think, that since I have read "Rich Dad, Poor Dad" 3 years ago, and this, as the 3rd book from the Rich Dad series I read. This one made something different to my thoughts. Putting something new into my brain.
This book has also a mystic. Maybe is that I can read it online, while you are writing it, maybe the forum to discuss, the notes. I'm thinking is everything.
Thanks Robert, for that challenge, and thanks for share all of this knowledge.
I will be in Buenos Aires, there at Gran Rex Theater, this Thursday.
Commendable, to Robert to have the courage to write about this, absolutely when the minds of our average citizens has not quite began to wrap around this concept.
I read most of your books and it is amazing how much I am learning. I am really learning more now (in the last 8 months) than I have learned in 12+ years of school. I am inspired to learn more read more and DO more!! The best is yet to come and I am glad that you showed me this. It can be doom and gloom like Mike Maloney said but you really put it into a different picture. Everyday I work and look at what I am doing to improve my education. It is a slow process and slower since there is no class to sit through or test at the end of the month. The test is everyday and the class is what I choose to do with the dollar in my wallet. Thanks so much for your insight. My friend and I thought something was fishy but I really have found the proof. And I do exactly what you said... watch what washington does not what it says. The economy is "recovering" but the congress is buying gold from IMF and the huge companies are giving their employees their own "golden parachutes" saying that the company has profits and is doing well. That is a lie but if you just look at the surface you think that it sounds like the little guy is getting a break. Yeah, they will break your account! Anyway, Thanks so much. I know you are busy making money and probably won't read this but I guess you know how much I love your work. I have bought almost everything you have sold!! Take care. g
This is a very profound book that I hope to share the learning I have found in each chapter. I believe in my inner spirit, which led me to read Chapter 12 at 1am in the morning after a week where I had declared that I needed to be still to listen to the voice.
Being an employee in the field of education I have constantly been reminded of the contradictions in the developmental process of learning. I was very fortunate to live in a house of Rich Dad and Poor Momma (as I call it), but traveled more on the road of Poor Momma because of her beliefs and ideas dominated my life, especially in the teen years.
I wrote and published a book that I am now ready to re-write because I now have answers to questions that all students should have available to them. I work for a failing district and watch as people aimlessly make decisions about money when the reality is that we know nothing about what we are doing to poison our children.
I am so very thankful for this book! It has brought back the fire that was in me when I was a child, and the fire I see in my daughter as well!
After reading all of the online book straight today, i wish it was something i read before i began investing. I am 100% with you on knowledge is the new money as having read the history of money and the cycle of it that you have explained, i now have more understanding of how it works which in turn will help me make better decisions in the future. Although this book is really inspiring, a lot of people dont know how to begin or where to start though. There seems to be 2 new rules of money for no #8. One says Life is a team sport p18 ch 10 and on p15 ch11 it says Learn to print your own money just in case no one noticed it when you go to print :-P.
One question i have relating to the beginning of the book was where will the money now be going now that its left the stock market?
I believe I understand you completely when you say "Knowledge is the new Money" If I had this type of Knowledge before, I believe I definitely would have had a lot more money now.
For example, I am presently paying a mortgage (bad debt) on a house I built from scratch because I thought I had given my landlord so much money, yet I had nothing tangible for me to show for it. I figured a house of my own would have been a wise asset to show me where at least some of my money was going.(Asset??)
Had I known what I do now, I would have built a 2 - 3 unit place instead. I would have still been able to afford the payments (even in times of having no tenants) comfortably. Of course I would have raised my financial IQ even more before going through with it to ensure that this investment would have been a good debt.
I feel as if I am just waking up out of the Matrix. You can't imagine how much you have raised my confidence in my ability to attain a prosperous future. And I will do just that as I am continuing to raise my financial IQ.
THANK YOU ROBERT!!!
My take on "Knowledge is the New Money" has profoundly increased since reading this book. By reading it, I no longer have any hesitation to play the game the way the wealthy magnates of our society have always played it. Owning large apartments units and futures trading have been the field I've wanted to play on for a very long time and I feel empowered to do what is necessary in order to do so.
To me, "Knowledge is the New Money" means that there are no more excuses. I have a deeper understanding of the fact that as long as I allow myself to be financially unintelligent, my income will never increase. Most of all, my new take on "Knowledge is the New Money" has inspired me to take the kind of action that will allow me to accumulate the kind of wealth that I desire in my life.
I´m afraid i asked this already at some point back in the book, eventhough here it goes again. Will all this new knowledge aply out of the US. Will this work in South America for example?. Will I be able to become rich with these tools you´ve taught us. Is it possible to print my own money with business, paper assets, real estate, gold and silver using your teaching.? I hope so, because i found it all really worth it.
The part of the book that helped me the most was the suggestion to stop trying for capital gains and just go after cash flow. I've read half a dozen of your books, so I knew a lot already, but this distinction was made clear for the first time.
I think that knowledge is power and it becomes in money, if persons could make this knowledge work for it . it was a great experience to have participated in this collaborative writing book. Sharing experiences , knowledge and belief about money or financial education it was just great, thank you a lot to have had this awesome idea. We have to make a deep reflection about this issue and apply this new knowledge in the right way to profit.
Thank-you so much for your on-line book I have learned a great deal from reading it. I am sorry that it is at a end - I have enjoyed reading and would like to learn more about what your have to teach. I read your book that you wrote with your sister "Rich Brother Rich Sister" and enjoyed it so much I became interested in what you had to teach, to be honest I most likely would never read any of your books if I never read the book you wrote with your sister! I am just started learning and have a ways to go- anyway, you have opened my eyes to things I never would have known without your help! Thank-you again.
Thank you Robert for enriching my financial knowledge. Reading your books have encouraged me to work towards financial freedom. I currently have rental property that produces cash flow. I've also researched the option of purchasing gold and silver and have done so for the past year.
Should I worry about the rent?
I would guess that if we have less working people to pay rent, the current government would step in and produce additional rental programs like Section 8. Right? However, during the depression less than 25 percent of the people were unemployed. Wouldn't that leave 75 percent still working and paying rent? Certain employment areas like security, entertainment, utilities, medical, law enforcement and education would grow in this economy. They would make great tenants !
I am currently out of the rat race. I live quite well from my cash flow that is generated from real estate. I have all your books and am currently looking into the commodities, silver and gold. My concern is what happens in a depression or hyperinflation(Germany). How do you derive an income from renters when they have no money (paper or otherwise). Where do the renters get the rent from? I have some small mortgages on two properties. Should I be paying these off in the event of this future disaster? How will these rental properties cash flow when there is no money of any worth circulating. I have talked to my mother and grandmother about the depression and they would receive food stamps to eat. So there was no money for rent. How does this all work?
I am currently out of the rat race. I live quite well from my cash flow that is generated from real estate. I have all your books and am currently looking into the commodities, silver and gold. My concern is what happens in a depression or hyperinflation(Germany). How do you derive an income from renters when they have no money (paper or otherwise). Where do the renters get the rent from? I have some small mortgages on two properties. Should I be paying these off in the event of this future disaster? How will these rental properties cash flow when there is no money of any worth circulating. I have talked to my mother and grandmother about the depression and they would receive food stamps to eat. So there was no money for rent. How does this all work?
I an a Realtor and Investor in Colorado and have felt the direct effects of the economy since what I call the "Debacle" happened last August....
I was doing great selling homes, fixing & flipping homes...was just finishing up a great flip when the Market imploded and just as I was refinancing to get ready to put the home on the market....The Financial World flipped on its side!!!
I bought this home for $300K...it appraised at that time at $500K...we invested $130K into renovation and was re-appraised at $794K in July of 2008....August is when the Debacle happened and the world stopped...financially anyway!
The home just sat for 4 mos even with my most vigorous sales efforts...Open Houses, Flyers to 2200 agents, email blasts,etc.
My short term loan was due...I negotiated a 6 mo extension with the lender for 2 pts and rented the home....
The home has been rented at $3500 a month for 4 mos and my loan is due again....and I cant get a Long Term mortgage on it!
My short term lender will not extend...since I dont have a 12 month rental history on it...the banks will only consider my income which is not sufficient for a loan on this property even at 63% loan to value!!!!
The current markets have made it a great buyers market but very tough to originate mortgages especially on Investors....
Most banks in this area are looking at 60% LTV instead of the 80% LTV for investors historically have gotten....
Also the $8K Buyers Credit was not available to Investors or Home buyers who have owned a home in the last 3 years...
My question is" If this was truly a Stimulus Credit, then why didnt EVERYONE who purchases a property in the short time frame get the credit????
I now see it was a political ruse to gain support in the election...Period!
The best investment I have is a Fannie Mae foreclosure I bought in November of 2008 for $74K....I put $3500 into it and now rent it at $900...my payment is $425 and I put $15K down(which is not available now on this same type of investment!) which gives me a 31% Cash on Cash Return 1st year....
This "Bail Out" economy is very frustrating for me and others like me...entreprenuers that work 7 days a week, do whatever it takes to be successful, provide jobs & housing for the masses thru our investments and now our Goverment is locking us out of our own economy!!!!
I have risked everything and stand on the precipice right now looking down without a net!
My eyes are now open on how economies are driven by different governments. My home is Tanzania, where the conspiracy is at unexplainable level. True examples in your book had touched my life at higher degree. Now that you have opened my mind, I am looking for some funds to undergo a course on Financial Education and finally to fight the conspiracy.
I will make sure I use the 8 rules of money to achieve my goals of being rich. The cash flow Quadrant and B-I triangle are my biggest tools while attempting towards my goals.
You are UNIQUE dear Robert. You deserve presidency – to serve the US and Africa – the home of conspiracy. I am very happy to get into Rich Dad Company and you are the greatest milestone of my life.
My experience with my father is not entirely unlike your experience with your "Poor Dad." I've watched my father work his entire life away trying to provide for his family, much like his father before him. I have a lot of respect for the man, but from the tragic point of view that I never really got to know him growing up. He was always working to make ends meet.
Now that I am a father, I am determined to not relive his life. I want to provide for my family, but I don't want to lose my family in doing so. I felt a bit overwhelmed and like I didn't have the adequate tools to break the cycle, but that somehow knowledge was what I really needed. I have thoroughly enjoyed this book, as I have the other "Rich Dad" books that I have read. The more I learn with each one, the more I want to know. Maybe that's a good thing.
This will change my life! Very interractive enlightening and good for business peolpe like me.
Thanks Robert for being such a mentor in this generation.
Great Stuff!!
John
I am a long-term fan of yours and I have read about six of your books so I know your work. Basically you have gathered the various things from the books that you wrote into a new context and added a lot of new information about the governments' role in our lives. I really like your solution to the conspiracy as in going with the flow (using debt and all the rest of it to your advantage)and basically becoming a stronger part of the system and not a parasite like failing business or lost like employees.....but something unnerves me and that is the fear that this system is falling apart, that hyperinflation can occur because the government is priniting too much to bail out people and businesses who cannot take care of themselves and that this number of people might be more than the people who can take care of themselves (despite all of the efforts of people like R.K). Either thank you for the genuine tremendous effort in this book
This COR is a must have book. It opens a new chapter to me and I believe to everyone who read it. I am happy to read first hand. Thank you Robert and keep up the good work.
Literally, money is a form of exchange that carries value as long as the system finds value in the medium. As the fallacies of the industrial age on the working and middle class come to their inevitable end, what has value for exchange is knowledge. I engage, and exchange your time for my knowledge; or I develop a knowledge with a plan to create access to money and I have something of value that I must promote and get to the right person who can build on the knowledge I have. With everything coming down all around us, if I have an idea (knowledge) and can apprehend how to leverage it (knowledge) I have wealth and can generate access to money.
For me, this means that,to be rich, and to survive the economic and political upheaval we are now experiencing, I need to know how to be this myself, and not rely on someone else to know it for me. This is not to say that I need to know everything about everything, but rather to know what I do know, know what I don't know, and know in whom I can trust to help me with what I don't know.
I feel I should temper my last post. I am eternally grateful to you, Robert for writing "Rich Dad, Poor Dad" and for developing the Cash Flow game. I had to buy two, we lost ours in a move and could never find it. Also lost the Cash Flow for Kids but did not buy that one again. I did buy Cash Flow II. I realize that many people view all this as another scheme but I certainly was able to straighten out my finances to a greater extent than I would have been able to without it. So I owe you a great deal for those things alone.
I want to say too that while playing the Cash Flow game I realized there is a shift in thinking when you get in the fast track. There is a shift that separates you from those still there. I believe this happens in real life too. So the game points out not only economic tenets but also sociological aspects of where we find ourselves when it comes to money and possessions.
It should not be that hard to incorporate financial education in the schools. Do you have a plan for this?
First I would like to say it was several years ago that I purchased the first Rich Dad book and subsequently the cash flow game as well as other books. Every person needs to know these very basic ideas about money. Putting the real estate and investment suggestions into practice was more difficult. But the core idea I think is passive income. I do believe in living below your means, not because you are being deprived or you are not optimistic but because freedom and peace of mind as well as the opportunity to invest seem to me to be available to those who have the discipline to do so.
There is something I disagree with you about and that is your ability to accept the U.S. becoming a third world country with only the rich and the poor. This is a step backwards and makes capitalism no different than communism. It is government's job in a democracy to consider all people and how we can work together, whether we are employees, self-employed, business owners, or investors. If our government becomes only interested in one segment's well being then we are no long a democracy. There are many people in our country and the world who are simply unable to be investors or business owners, are they expected to work and make others rich while they remain at the mercy of the policies that keep them poor. After all, what stops those in control (ultra rich) from suddenly changing the rules.
I believe that it is our leaders' primary job to strive for economic morality rather than focus on sexual morality.
I think it is immoral to simply say we are going to be a third world country, pick whether you want to be rich or poor. Maybe the employees and self-employed of this country who provide the services and products by putting in the hours of their time should simply stop working for one day. What then for the millionaires and billionaires? Nobody to man the machines at their companies, no one to put the groceries on the shelves, no one to sell the products and services their companies provide. Whose going to pay the rent on your Class B apts if their are only Class C income earners. How much will the rich have to pay for security? Will security be enough to keep out the newly destitute. Maybe the rich will up the religious fervor. That seems to be what many poor people gravitate to when times get tougher. Tell them the end of the world is coming. That will keep them occupied. So no, I say no, if there is no middle class it does not matter whose side you are on, the results will be bad for all.
What is your new take on “Knowledge is the New Money"?
If certain things were commonly known, most people would have far fewer financial troubles. Knowledge is a way of allowing that to happen for those interested enough to pursue financial knowledge. Things are available that were not available to most people before. That is a helpful thing.
If people are going to take responsibility for themselves, individually and collectively, knowledge is an important part of the equation. It would not necessarily be possible, otherwise.
An expression often used when someone does not know what the laws are is, 'ignorance of the law is no excuse'. I thought it sounded mean, but also realized it is just a matter of knowing what is going on. How much more so in business? Knowlege can help keep opportunity from escaping us.
That phrase sums up where we are at and where we are going. If you don't grasp on to this concept and get moving, you will be left behind to be at the mercy of our government, and most likely very poor. There is only so much that us little people can do since the government thinks that we work for them and not vice versa, so you need to take care of yourself. It's a dog, eat dog world and if you want to survive, you need to be constantly learning and changing. My husband, a former airline pilot, says an important phrase in flying - that you must learn to improvise, adapt, and overcome when there are problems. You can choose to change and learn finances, or you can bury you head in the sand.
First of all I wanted to say thank you to Robert and Kim for their unvaluable contribution to my financial knowledge. I am one of those millions of well educated and hardworkers out there finishing my PhD and looking for a good job. I am from Cuba and this is what we learnend at school there not to mention that there isn't any financial education at all, even for the students that get a title in economy.
For some reasons I love freedom very much. The concept of financial freedom has given sense to my life. I will go for it. I don't have any clue about financial concepts; all I have is the willing of becoming financial free, a Rich Dad Poor Dad book, a Cashflow 101 and a first reading of this amazing "Conspiracy of the Rich".
The "Real State Example"
- I didn't get the point completely in this example pp. 12 Ch. 11.
Could someone explain it more clearly to me?
What refinance property means?
It seems to me that the refinancement of the appartment made it possible to pay the rest of the first loan back (80 000). They got their down payment (20 000) and had extra (20 000) to invest. But, how do they pay back the 120 000 loan to the bank that gave the refinancement if they start getting cashflow and paying just the 6% interest every month? In other words, How is the 120 000 loan payed back with this scheme?
Thanks a lot for opening my mind, we will keep in touch.
I have been a big fan of all the teachings for almost 10 years now. I've read about 7 of the books, have and play the "cash flow" game and have put many of these principles into practice.
I do have some concerns with the "printing money in real estate" section in Ch. 11 of this book.
I challenge anyone to buy a house in this economy, especially as an investment, and find a bank or private money lender who will finance 80% of the purchase price and then give an additional 20% for repairs and/or remodeling which is essentially 100% financing. If you can do that, I'm not sure where you can double the rent by adding an additional bedroom and bathroom AND increase the appraised value of the home by 50% because of these additions! Then find another bank/investor to turn around and loan money on the new "appraised" value. Because of all the "flipping" in the real estate market over the past 3-4 years there's now a big emphasis on "seasoning" when it comes to refinancing or selling a property.
In the example given I'd also find it hard to believe that after debt service your monthly expenses would only be $300 when considering taxes, insurance, and management fees which are typically 10% of the monthly rent, which in this case would be $120. So taxes are around $1500/yr?
With so many foreclosures and bank-owned properties flooding the real estate market this doesn't seem realistic in today's economy.
I love the concept of using the bank and tenants money to create cash flow but it just doesn't seem possible in this market.
If anyone can help me find a market and/or lenders that fit this scenario, please let me know.
I would enjoy the ability to be able to chose what you chose to read, and become more informed about money.
Thank you very much for your Free Book Robert, I am a great fan of what you do.
As I said before _"PRICELESS."
Before reading the conspiracy books:
i tried my self for the last 6 years to do what Robert Kiyosaki wrote on the books by my self. Do my own too slow for me.
After reading the conspiracy books:
I will join the coaching, to make boost what i already have.
and make sure i can do derivatives "thinks" get more help and more advice from the expert
While I've been watching our troubled economy for the past couple of years this book has really opened my eyes to what is going on behind to scenes to cause all of this and what we can expect in the next few years.
Most importantly it has given me some good direction and some great ideas to start with so that I can withstand the coming storm. I don't know if I have enough time to completely get myself ready for what's coming but I can definitely get started and put myself in a position to thrive while others are losing.
Chapter 10 was especially thought provoking and really got the wheels turning in my head.
Hey all,
I was watching the video with Mike Maloney and Robert, and it got me thinking about a question I've had for a while.
If we can see a hyperinflation , or even just drastic inflation coming, why can't the White House?
I personally look forward to inflation, I have secured myself with reserves of silver, and, although it wasn't in the cards originally, I will be able to pay my debt on my property back very easily with increased cashflow due to living expenses spiking. I just had a thought...
Is it possible that the White House is doing the same? Are they secretly acquiring assets of various sorts and inflating the dollar on purpose? I suppose it would be a good way to get to a reasonable level of debt - if it works for me/us, why wouldn't it work for them?
At this point, there is no turning back. All currencies throughout the world are going to lose tremendous value. Government Officials HAVE to know that - I don't see why they wouldn't use the 'mess' in their favour.
Knowledge is the New Money - focus on the Asset column
I find your focus refreshingly simple and workable. By focusing on cashflow I don't have to worry about the volatile swing in real estate prices as the property supports itself. Secondly, if I focus on learning from the "Cone of Learning", making mistakes becomes the way to gain knowledge. I will simulate my next investment as a "big deal" card in the cashflow game as see what I learn.
Robert, my take on “Knowledge is the New Money" recognizes that there are a select few individuals such as yourself that are qualified, well-positioned and willing purveyors of the 'higher-order financial knowledge' that is essential to recognize, to understand and to prosper by means congruent with rules that govern the macro [larger] financial market - the scope to which all micro [lesser] financial markets are subject, regardless of their apparent size and/or perceived strength. Having conveyed this and other issues of relevance so clearly, you have bestowed upon your readers a gift of understanding within which may be discerned an equivalent gift of choice.
For most, patterns of financial thought, behavior and results are evidence of having adopted the beliefs and practices of the family into which they were born and/or raised. In turn, beliefs and practices are perpetually reinforced through our associations with various social groups that likewise embrace them. Considering a widespread lack of appreciation for the role of 'mistakes' and 'failure' within an overall process of learning; a seemingly-natural predisposition to resisting change; a penchant for seeking 'instant gratification' and an innate desire for acceptance within contexts defined by the multiple social groupings of which we are part; these and many other aspects of life tend to exert collective inertia that conspires against our adoption of new beliefs and behaviors when such do not conform with the 'status quo' of the various groups with which we are affiliated, including those of our families and friends. Overcoming such resistance to a change of beliefs and behaviors requires an extremely compelling force - such as may be experienced by those who, through understanding, come to an enlightened appreciation for the truth and practical significance of what you have revealed through your teachings.
The knowledge that you have expounded exists in stark contrast to prevailing wisdom that, in addition to its failure to recognize, acknowledge and adapt according to this higher-order of financial knowledge, exacerbates the error by yet seeking to promote the continuation of blind adherence to obsolete rules, the design criteria of which were in service to a now-defunct financial paradigm. Prevailing financial wisdom continues to be professed in a manner that fosters the illusion that old rules remain valid in service as 'sound' guidance upon which to base financial decisions - implying not only a miraculous resurrection of a dead paradigm; but, that its associated rules remain active, valid and in force as a viable framework upon which to base expectations of future performance, the benchmarks of which are typically projections patterned after past results created within the context of the paradigm at a time when it was intact and valid.
Those who remain unaware of the meaning and relevance of "knowledge being the new money" shall remain subject to present and future turmoil associated with financial storms within which they will still possess little if any control over their financial destinies - battered with increasing intensity by forces that will likely include hyperinflation, increased taxation, dwindling retirement funds [in proportion to the demographic of baby boomers that will be taking mandated monthly distributions - affecting massive downward pressure upon values through regular, periodic sales of associated stocks], and of the government's attempts to meet its Social Security and Medicare obligations - to name a few of the primary forces that have yet to clearly exert their pending influence.
Those who become aware and act according to their understanding of "knowledge being the new money" position themselves to fare well through the tempests yet to come, with prospects for creating multigenerational wealth along the way - should they aspire to do so. It is extremely gratifying to possess unwavering confidence in my ability to produce such results in my own life, and upon so doing, to share this gift of knowledge with those I believe to be most inclined to use it for their own good and the good of others.
Thank you Robert for all that you have shared through your works, for the generosity shown through your decision to share this most timely of content, of your current perspectives relating thereto, and for considering prospects of including and attributing our contributions within the printed publication. Most of all, I wish to thank you for consistently aggregating selective, high-impact subsets of the body of financial knowledge into such easily digestible forms that even one such as myself may benefit from the wisdom embedded within.
I think most of us are overwhelmed with information and can't make much real and useful knowledge out of it.
We're drunk on cheap information and half truths, ultra sophisticated jargon and microscopic definitions. We lack the big and clear pictures that set place us in the real territory we're in.
Real knowledge is the opportunity to make riches out of ideas and I think your books have given me a couple of good business ideas or "experiments" to play with, whether I win or loose.
Getting to know your books has been an oasis of refreshing knowledge in a desert of cheap words.
Thanks again for this book. This information may be worth bullions of gold.
When I first read Rich Dad Poor Dad at 17, I felt that I'd finally come across someone who was saying what I couldnt express - that the path to true financial freedom was through the B/I quadrants and not the E/S Quadrants. Coming from a strongly academic, E/S-type family, I made up my mind from early on that I was going to be the one to be different.
Nine years later, after reading most of Kiyosaki's books I'm not financially free yet, but for what I lack in passive income I have in priceless knowledge I have gained since first picking up your book.
I believe that knowledge is the new money because even with little money, one can educate themselves and then use this education to produce exponential results. This is why I've given myself the challenge of reading 12 books in 12 weeks. The amount of money I would have spent on the books compared to how much money I will make from the knowledge will produce infinite ROI!!
Thank you Robert and Kim for helping us to be empowered to be in control of our financial destinies.
It really is about who and what you know. There are alot of scam artisits out thre, especially in real estate. Don't believe me, look at the mees we are in now with the real estate market. My advice, net work well, if you are going to open any type of business including investing in real estate. You have to be super careful who you trust with your money or you will be taken like nothing.
There is another great site that teaches people about money. It is called www.HowMoneyReallyWorks.com there is an awesome book on there called How To Get Off The Financial Tight Rope, it has helped me tremendously, I hope it helps you too.
In reading this book, I realize now that their is a lot more to money management than seeing how much I have. It takes a lot of thinking and hands on participation, rather than listening to theory, to do do wll in this economy. It is especially crucial to know the difference between an asset and a liability, which leads to wiser spending choices.
Thanks for your comments and your book-- it's definitely needed in our society. I recently took part in some financial education at my church, and while it was probably what America needed at a base level, in terms of reducing debt and reliance on credit cards, it failed to address how to invest money. Being a person who has studied Rich Dad Poor Dad and Caashflow Quadrant, my interest in the seminar quickly faded. I see the financial industry's preaching about "invest in mutual funds" as a way of eliminating peoples' freedom, and that is the point that you have made for me with your Conspiracy book. I've invested in two rental properties in the last several years, and hope to do more in a much quicker fashion in the next few years. That's my plan, and I'm sticking to it. Thanks for helping me liberate myself from the slavers.
Amazing reading, I never realised how the US economy worked. Thank you for opening my eyes. Really would love to know if some (or all) of the money making suggestions work in the UK or EU?
I am taking your concepts on "printing your own money" and creating a plan for my company (a stem cell company) to license stem cell treatment technology to practitioners. I plan on charging a yearly franchising fee, as well as a licensing fee for each treatment produced (or sold). THis is a win-win-win-win proposition, which will benefit me, and my company (stemtechlab.com), the outside labs that I sell my technology to, the doctors that they sell their stem cells to, and the patients who receive them. Can't do better than that!
Thanks for the book online. I am in Ecuador, where it is very difficult to buy books, especially in English! I agree that some lessons on licensing would be helpful.
I am trying to apply your principles to a plan to produce gold and silver coins. I also have a gold mine that needs development, and anticipate using the income from the stem cell business to develop both of these businesses.
Robert,honestly you are d Bible of our time in d area of financial education.I have read the book and I know that I am better off now.I am a Nigerian and I just quit my job at 43.Honestly speaking its when you are equipped financially dat you can survive the current global meltdown.I wonder why my people over here still scramble to America via VISA LOT despite the downturn of the economy.I beleive you can make it here in Nigeria.
Dear Robert, thanks for the opportunity to read your free ebook, following is a short story regarding Fed's policy
Economics Lesson
It is the month of August, on the shores of the Black Sea . It is raining, and the little town looks totally deserted. It is tough times, everybody is in debt, and everybody lives on credit.
Suddenly, a rich tourist comes to town.
He enters the only hotel, lays a 100 Euro note on the reception counter, and goes to inspect the rooms upstairs in order to pick one.
The hotel proprietor takes the 100 Euro note and runs to pay his debt to the butcher.
The Butcher takes the 100 Euro note, and runs to pay his debt to the pig grower.
The pig grower takes the 100 Euro note, and runs to pay his debt to the supplier of his feed and fuel.
The supplier of feed and fuel takes the 100 Euro note and runs to pay his debt to the town's prostitute that in these hard times, gave her "services" on credit.
The hooker runs to the hotel, and pays off her debt with the 100 Euro note to the hotel proprietor to pay for the rooms that she rented when she brought her clients there.
The hotel proprietor then lays the 100 Euro note back on the counter so that the rich tourist will not suspect anything.
At that moment, the rich tourist comes down after inspecting the rooms, and takes his 100 Euro note, after saying that he did not like any of the rooms, and leaves town.
No one earned anything. However, the whole town is now without debt, and looks to the future with a lot of optimism..
And that, ladies and gentlemen, is how the United States Government is doing business today.
Thank you, Robert, for writing this fine online book and offering it for free.
My wife and I are both 54 years old (she's a whole lot younger though), living in Irvine, CA. We are almost upside down on a house that has decreased in value from it's high by almost 40%. We have about $50,000 in liquid assets. Included in that is a small amount of physical gold and silver - approximately $15,000 worth in today's (July 5th 2009) spot prices. We own two investment grade insurance products which have also lost considerable value from their high. We just sold a rental to her recently widowed sister in Ft. Worth, TX and we are in the process of buying another rental 2B/2B condo in Huntington Beach, CA. The net postive cash flow for this rental looks to be about $265.00 monthly - better than a negative at any rate.
Unknown to the mortgage company , my wife was just laid off from her job last week and I have had sporatic work for the past two years as a controller/business manager.
Of course we are worried about the economic trends and have seen this coming for about the last 2 years (a decade or so too late, I'm afraid). I will go so far as to say the economic bottom will be much worse than even you indicate and will be with us for at least a generation or so. It may even leave permanent negative effects on our society.
Now back to the topic. Your information is valuable and will take considerable effort to internalize at our age. Not impossible, just a bit more energy and effort required on our part.
This is a very long shot but I want to attempt it anyway. Would you or someone you personally know and trust in your organization be interested and willing to take us on as a special project? We would make a very interesting case study as both my wife and I come from considerbly impoverished backgrounds. Me in Appalachia Kentucky and an orphanage in Louisville, KY. She in a remote province in the Philippines. I have 14 brothers and sisters, she has 11. Most of my brothers and sisters are doing financially OK, however, only two of her siblings are somewhat OK financially. She and I have been a major contributor to her family for the past 2 decades and have been one of the main reasons 4 of them have homes.
Of course, if this isn't something you want to respond to I fully understand and want thank you for what you have done for us in the meantime (we have your Cashflow game and played it well over 20 times already - wife normally wins).
Wow, great book. I'll look forward to reading the whole of it as a completed work.
Congratulations on another top cash-generating asset.
Now the bottom line is what we do with all this hard-earned 'new money' we have learned here. We could shove it under the mattress and forget about it.
Or we could get it to work hard on our behalf and make some investments through our knowledge to make more money and more knowledge. We could create derivaties and sell these under various guises. We could add it to other forms of assets and increase the overall value. I would like to put it in a high interest account and have it acrue knowledge automatically without me doing anything!
I found particularly interesting the methods of learning and retention. This is why the learning by modelling is a very powerful way to code in the skills you want and finding someone who will do that on the job with you is the ultimate.
So, Robert, any positions available as an adopted 'rich son' and you can be my Rich dad? I am serious!
I have learned a lot from my 'poor dad' throughout the years. He had the big thinking but never followed up. My parents worked very hard all their lives and are now comfortable through massive pension investment (which is now greatly taxed as you say), stocks and shares which are now down 70%! and other investments that they didn't really have the education to invest in.
Net result - nice lifestyle (comfortably frugal) with no mortgage etc. but they don't really do anything. No zest for life.
I want financial abundance and to live life at 100%. I have abundance in all other areas so obviously need to invest more time, effort and energy into this one while building up my knowledge base!
I found out a really good way to make money online, let me take couple mins of your time, that the rest of this will be simple and direct, read my review at Hubpages to find out what I am talking about. This method of getting money online, it's so simple anyone can do it. If you are really triving to make a lot of money online, check out what i am talking about at "The Easiest way to make money online!", to find out what all the fuz is about.
http://hubpages.com/hub/The-Easiest-way-to-make-money-online-today
Robert, can you please read the article at the following link and comment about it please?
Thank you very much
http://finance.yahoo.com/career-work/article/108451/fund-boss-made-7-bil...
I keep on learning. I read once and again, and again this thoughts.
I just finished the story #1, and I am asking myself now, how can I took all of this knowledge and put into action the soon as possible?
I got a lot of answers. And maybe I got a lot of questions, too.
But now I think, that since I have read "Rich Dad, Poor Dad" 3 years ago, and this, as the 3rd book from the Rich Dad series I read. This one made something different to my thoughts. Putting something new into my brain.
This book has also a mystic. Maybe is that I can read it online, while you are writing it, maybe the forum to discuss, the notes. I'm thinking is everything.
Thanks Robert, for that challenge, and thanks for share all of this knowledge.
I will be in Buenos Aires, there at Gran Rex Theater, this Thursday.
Commendable, to Robert to have the courage to write about this, absolutely when the minds of our average citizens has not quite began to wrap around this concept.
I read most of your books and it is amazing how much I am learning. I am really learning more now (in the last 8 months) than I have learned in 12+ years of school. I am inspired to learn more read more and DO more!! The best is yet to come and I am glad that you showed me this. It can be doom and gloom like Mike Maloney said but you really put it into a different picture. Everyday I work and look at what I am doing to improve my education. It is a slow process and slower since there is no class to sit through or test at the end of the month. The test is everyday and the class is what I choose to do with the dollar in my wallet. Thanks so much for your insight. My friend and I thought something was fishy but I really have found the proof. And I do exactly what you said... watch what washington does not what it says. The economy is "recovering" but the congress is buying gold from IMF and the huge companies are giving their employees their own "golden parachutes" saying that the company has profits and is doing well. That is a lie but if you just look at the surface you think that it sounds like the little guy is getting a break. Yeah, they will break your account! Anyway, Thanks so much. I know you are busy making money and probably won't read this but I guess you know how much I love your work. I have bought almost everything you have sold!! Take care. g
This is a very profound book that I hope to share the learning I have found in each chapter. I believe in my inner spirit, which led me to read Chapter 12 at 1am in the morning after a week where I had declared that I needed to be still to listen to the voice.
Being an employee in the field of education I have constantly been reminded of the contradictions in the developmental process of learning. I was very fortunate to live in a house of Rich Dad and Poor Momma (as I call it), but traveled more on the road of Poor Momma because of her beliefs and ideas dominated my life, especially in the teen years.
I wrote and published a book that I am now ready to re-write because I now have answers to questions that all students should have available to them. I work for a failing district and watch as people aimlessly make decisions about money when the reality is that we know nothing about what we are doing to poison our children.
I am so very thankful for this book! It has brought back the fire that was in me when I was a child, and the fire I see in my daughter as well!
Thank you!
After reading all of the online book straight today, i wish it was something i read before i began investing. I am 100% with you on knowledge is the new money as having read the history of money and the cycle of it that you have explained, i now have more understanding of how it works which in turn will help me make better decisions in the future. Although this book is really inspiring, a lot of people dont know how to begin or where to start though. There seems to be 2 new rules of money for no #8. One says Life is a team sport p18 ch 10 and on p15 ch11 it says Learn to print your own money just in case no one noticed it when you go to print :-P.
One question i have relating to the beginning of the book was where will the money now be going now that its left the stock market?
I believe I understand you completely when you say "Knowledge is the new Money" If I had this type of Knowledge before, I believe I definitely would have had a lot more money now.
For example, I am presently paying a mortgage (bad debt) on a house I built from scratch because I thought I had given my landlord so much money, yet I had nothing tangible for me to show for it. I figured a house of my own would have been a wise asset to show me where at least some of my money was going.(Asset??)
Had I known what I do now, I would have built a 2 - 3 unit place instead. I would have still been able to afford the payments (even in times of having no tenants) comfortably. Of course I would have raised my financial IQ even more before going through with it to ensure that this investment would have been a good debt.
I feel as if I am just waking up out of the Matrix. You can't imagine how much you have raised my confidence in my ability to attain a prosperous future. And I will do just that as I am continuing to raise my financial IQ.
THANK YOU ROBERT!!!
My take on "Knowledge is the New Money" has profoundly increased since reading this book. By reading it, I no longer have any hesitation to play the game the way the wealthy magnates of our society have always played it. Owning large apartments units and futures trading have been the field I've wanted to play on for a very long time and I feel empowered to do what is necessary in order to do so.
To me, "Knowledge is the New Money" means that there are no more excuses. I have a deeper understanding of the fact that as long as I allow myself to be financially unintelligent, my income will never increase. Most of all, my new take on "Knowledge is the New Money" has inspired me to take the kind of action that will allow me to accumulate the kind of wealth that I desire in my life.
I´m afraid i asked this already at some point back in the book, eventhough here it goes again. Will all this new knowledge aply out of the US. Will this work in South America for example?. Will I be able to become rich with these tools you´ve taught us. Is it possible to print my own money with business, paper assets, real estate, gold and silver using your teaching.? I hope so, because i found it all really worth it.
The part of the book that helped me the most was the suggestion to stop trying for capital gains and just go after cash flow. I've read half a dozen of your books, so I knew a lot already, but this distinction was made clear for the first time.
I think that knowledge is power and it becomes in money, if persons could make this knowledge work for it . it was a great experience to have participated in this collaborative writing book. Sharing experiences , knowledge and belief about money or financial education it was just great, thank you a lot to have had this awesome idea. We have to make a deep reflection about this issue and apply this new knowledge in the right way to profit.
Thank-you so much for your on-line book I have learned a great deal from reading it. I am sorry that it is at a end - I have enjoyed reading and would like to learn more about what your have to teach. I read your book that you wrote with your sister "Rich Brother Rich Sister" and enjoyed it so much I became interested in what you had to teach, to be honest I most likely would never read any of your books if I never read the book you wrote with your sister! I am just started learning and have a ways to go- anyway, you have opened my eyes to things I never would have known without your help! Thank-you again.
Hello,
Thank you Robert for enriching my financial knowledge. Reading your books have encouraged me to work towards financial freedom. I currently have rental property that produces cash flow. I've also researched the option of purchasing gold and silver and have done so for the past year.
Should I worry about the rent?
I would guess that if we have less working people to pay rent, the current government would step in and produce additional rental programs like Section 8. Right? However, during the depression less than 25 percent of the people were unemployed. Wouldn't that leave 75 percent still working and paying rent? Certain employment areas like security, entertainment, utilities, medical, law enforcement and education would grow in this economy. They would make great tenants !
Just a thought....thanks again Robert.
I am currently out of the rat race. I live quite well from my cash flow that is generated from real estate. I have all your books and am currently looking into the commodities, silver and gold. My concern is what happens in a depression or hyperinflation(Germany). How do you derive an income from renters when they have no money (paper or otherwise). Where do the renters get the rent from? I have some small mortgages on two properties. Should I be paying these off in the event of this future disaster? How will these rental properties cash flow when there is no money of any worth circulating. I have talked to my mother and grandmother about the depression and they would receive food stamps to eat. So there was no money for rent. How does this all work?
I am currently out of the rat race. I live quite well from my cash flow that is generated from real estate. I have all your books and am currently looking into the commodities, silver and gold. My concern is what happens in a depression or hyperinflation(Germany). How do you derive an income from renters when they have no money (paper or otherwise). Where do the renters get the rent from? I have some small mortgages on two properties. Should I be paying these off in the event of this future disaster? How will these rental properties cash flow when there is no money of any worth circulating. I have talked to my mother and grandmother about the depression and they would receive food stamps to eat. So there was no money for rent. How does this all work?
I an a Realtor and Investor in Colorado and have felt the direct effects of the economy since what I call the "Debacle" happened last August....
I was doing great selling homes, fixing & flipping homes...was just finishing up a great flip when the Market imploded and just as I was refinancing to get ready to put the home on the market....The Financial World flipped on its side!!!
I bought this home for $300K...it appraised at that time at $500K...we invested $130K into renovation and was re-appraised at $794K in July of 2008....August is when the Debacle happened and the world stopped...financially anyway!
The home just sat for 4 mos even with my most vigorous sales efforts...Open Houses, Flyers to 2200 agents, email blasts,etc.
My short term loan was due...I negotiated a 6 mo extension with the lender for 2 pts and rented the home....
The home has been rented at $3500 a month for 4 mos and my loan is due again....and I cant get a Long Term mortgage on it!
My short term lender will not extend...since I dont have a 12 month rental history on it...the banks will only consider my income which is not sufficient for a loan on this property even at 63% loan to value!!!!
The current markets have made it a great buyers market but very tough to originate mortgages especially on Investors....
Most banks in this area are looking at 60% LTV instead of the 80% LTV for investors historically have gotten....
Also the $8K Buyers Credit was not available to Investors or Home buyers who have owned a home in the last 3 years...
My question is" If this was truly a Stimulus Credit, then why didnt EVERYONE who purchases a property in the short time frame get the credit????
I now see it was a political ruse to gain support in the election...Period!
The best investment I have is a Fannie Mae foreclosure I bought in November of 2008 for $74K....I put $3500 into it and now rent it at $900...my payment is $425 and I put $15K down(which is not available now on this same type of investment!) which gives me a 31% Cash on Cash Return 1st year....
This "Bail Out" economy is very frustrating for me and others like me...entreprenuers that work 7 days a week, do whatever it takes to be successful, provide jobs & housing for the masses thru our investments and now our Goverment is locking us out of our own economy!!!!
I have risked everything and stand on the precipice right now looking down without a net!
Thoughts??????????????
Robert,
The book is great and wonderful.
My eyes are now open on how economies are driven by different governments. My home is Tanzania, where the conspiracy is at unexplainable level. True examples in your book had touched my life at higher degree. Now that you have opened my mind, I am looking for some funds to undergo a course on Financial Education and finally to fight the conspiracy.
I will make sure I use the 8 rules of money to achieve my goals of being rich. The cash flow Quadrant and B-I triangle are my biggest tools while attempting towards my goals.
You are UNIQUE dear Robert. You deserve presidency – to serve the US and Africa – the home of conspiracy. I am very happy to get into Rich Dad Company and you are the greatest milestone of my life.
Be blessed for all what you do.
My experience with my father is not entirely unlike your experience with your "Poor Dad." I've watched my father work his entire life away trying to provide for his family, much like his father before him. I have a lot of respect for the man, but from the tragic point of view that I never really got to know him growing up. He was always working to make ends meet.
Now that I am a father, I am determined to not relive his life. I want to provide for my family, but I don't want to lose my family in doing so. I felt a bit overwhelmed and like I didn't have the adequate tools to break the cycle, but that somehow knowledge was what I really needed. I have thoroughly enjoyed this book, as I have the other "Rich Dad" books that I have read. The more I learn with each one, the more I want to know. Maybe that's a good thing.
THANK YOU SO MUCH, INFACK YOU HAVE BEEN AN ASSET FOR THIS GENERATION. GOD WILL CONTINUE TO ENRICH YOUR KNOWLEDGE BASE.
TO SAY THAT THE BOOK HAS IMPACTED SO MUCH ON ME WILL BE AN UNDERSTATEMENT. YOU HAVE REALLY TOUCHED MY LIFE AND I AM SURE THIS IS JUST THE BEGINING.
THANK YOU SO MUCH. I EXPECT MORE OF YOUR WORKS.
ONCE AGAIN THANK YOU.
ADEPOJU, Nigeria.
This will change my life! Very interractive enlightening and good for business peolpe like me.
Thanks Robert for being such a mentor in this generation.
Great Stuff!!
John
I am a long-term fan of yours and I have read about six of your books so I know your work. Basically you have gathered the various things from the books that you wrote into a new context and added a lot of new information about the governments' role in our lives. I really like your solution to the conspiracy as in going with the flow (using debt and all the rest of it to your advantage)and basically becoming a stronger part of the system and not a parasite like failing business or lost like employees.....but something unnerves me and that is the fear that this system is falling apart, that hyperinflation can occur because the government is priniting too much to bail out people and businesses who cannot take care of themselves and that this number of people might be more than the people who can take care of themselves (despite all of the efforts of people like R.K). Either thank you for the genuine tremendous effort in this book
Robert,
This COR is a must have book. It opens a new chapter to me and I believe to everyone who read it. I am happy to read first hand. Thank you Robert and keep up the good work.
Watch "Zeitgeist" on YouTube! Spread the truth!
Literally, money is a form of exchange that carries value as long as the system finds value in the medium. As the fallacies of the industrial age on the working and middle class come to their inevitable end, what has value for exchange is knowledge. I engage, and exchange your time for my knowledge; or I develop a knowledge with a plan to create access to money and I have something of value that I must promote and get to the right person who can build on the knowledge I have. With everything coming down all around us, if I have an idea (knowledge) and can apprehend how to leverage it (knowledge) I have wealth and can generate access to money.
For me, this means that,to be rich, and to survive the economic and political upheaval we are now experiencing, I need to know how to be this myself, and not rely on someone else to know it for me. This is not to say that I need to know everything about everything, but rather to know what I do know, know what I don't know, and know in whom I can trust to help me with what I don't know.
I feel I should temper my last post. I am eternally grateful to you, Robert for writing "Rich Dad, Poor Dad" and for developing the Cash Flow game. I had to buy two, we lost ours in a move and could never find it. Also lost the Cash Flow for Kids but did not buy that one again. I did buy Cash Flow II. I realize that many people view all this as another scheme but I certainly was able to straighten out my finances to a greater extent than I would have been able to without it. So I owe you a great deal for those things alone.
I want to say too that while playing the Cash Flow game I realized there is a shift in thinking when you get in the fast track. There is a shift that separates you from those still there. I believe this happens in real life too. So the game points out not only economic tenets but also sociological aspects of where we find ourselves when it comes to money and possessions.
It should not be that hard to incorporate financial education in the schools. Do you have a plan for this?
First I would like to say it was several years ago that I purchased the first Rich Dad book and subsequently the cash flow game as well as other books. Every person needs to know these very basic ideas about money. Putting the real estate and investment suggestions into practice was more difficult. But the core idea I think is passive income. I do believe in living below your means, not because you are being deprived or you are not optimistic but because freedom and peace of mind as well as the opportunity to invest seem to me to be available to those who have the discipline to do so.
There is something I disagree with you about and that is your ability to accept the U.S. becoming a third world country with only the rich and the poor. This is a step backwards and makes capitalism no different than communism. It is government's job in a democracy to consider all people and how we can work together, whether we are employees, self-employed, business owners, or investors. If our government becomes only interested in one segment's well being then we are no long a democracy. There are many people in our country and the world who are simply unable to be investors or business owners, are they expected to work and make others rich while they remain at the mercy of the policies that keep them poor. After all, what stops those in control (ultra rich) from suddenly changing the rules.
I believe that it is our leaders' primary job to strive for economic morality rather than focus on sexual morality.
I think it is immoral to simply say we are going to be a third world country, pick whether you want to be rich or poor. Maybe the employees and self-employed of this country who provide the services and products by putting in the hours of their time should simply stop working for one day. What then for the millionaires and billionaires? Nobody to man the machines at their companies, no one to put the groceries on the shelves, no one to sell the products and services their companies provide. Whose going to pay the rent on your Class B apts if their are only Class C income earners. How much will the rich have to pay for security? Will security be enough to keep out the newly destitute. Maybe the rich will up the religious fervor. That seems to be what many poor people gravitate to when times get tougher. Tell them the end of the world is coming. That will keep them occupied. So no, I say no, if there is no middle class it does not matter whose side you are on, the results will be bad for all.
If certain things were commonly known, most people would have far fewer financial troubles. Knowledge is a way of allowing that to happen for those interested enough to pursue financial knowledge. Things are available that were not available to most people before. That is a helpful thing.
If people are going to take responsibility for themselves, individually and collectively, knowledge is an important part of the equation. It would not necessarily be possible, otherwise.
An expression often used when someone does not know what the laws are is, 'ignorance of the law is no excuse'. I thought it sounded mean, but also realized it is just a matter of knowing what is going on. How much more so in business? Knowlege can help keep opportunity from escaping us.
That phrase sums up where we are at and where we are going. If you don't grasp on to this concept and get moving, you will be left behind to be at the mercy of our government, and most likely very poor. There is only so much that us little people can do since the government thinks that we work for them and not vice versa, so you need to take care of yourself. It's a dog, eat dog world and if you want to survive, you need to be constantly learning and changing. My husband, a former airline pilot, says an important phrase in flying - that you must learn to improvise, adapt, and overcome when there are problems. You can choose to change and learn finances, or you can bury you head in the sand.
Hi everybody,
First of all I wanted to say thank you to Robert and Kim for their unvaluable contribution to my financial knowledge. I am one of those millions of well educated and hardworkers out there finishing my PhD and looking for a good job. I am from Cuba and this is what we learnend at school there not to mention that there isn't any financial education at all, even for the students that get a title in economy.
For some reasons I love freedom very much. The concept of financial freedom has given sense to my life. I will go for it. I don't have any clue about financial concepts; all I have is the willing of becoming financial free, a Rich Dad Poor Dad book, a Cashflow 101 and a first reading of this amazing "Conspiracy of the Rich".
The "Real State Example"
- I didn't get the point completely in this example pp. 12 Ch. 11.
Could someone explain it more clearly to me?
What refinance property means?
It seems to me that the refinancement of the appartment made it possible to pay the rest of the first loan back (80 000). They got their down payment (20 000) and had extra (20 000) to invest. But, how do they pay back the 120 000 loan to the bank that gave the refinancement if they start getting cashflow and paying just the 6% interest every month? In other words, How is the 120 000 loan payed back with this scheme?
Thanks a lot for opening my mind, we will keep in touch.
I have been a big fan of all the teachings for almost 10 years now. I've read about 7 of the books, have and play the "cash flow" game and have put many of these principles into practice.
I do have some concerns with the "printing money in real estate" section in Ch. 11 of this book.
I challenge anyone to buy a house in this economy, especially as an investment, and find a bank or private money lender who will finance 80% of the purchase price and then give an additional 20% for repairs and/or remodeling which is essentially 100% financing. If you can do that, I'm not sure where you can double the rent by adding an additional bedroom and bathroom AND increase the appraised value of the home by 50% because of these additions! Then find another bank/investor to turn around and loan money on the new "appraised" value. Because of all the "flipping" in the real estate market over the past 3-4 years there's now a big emphasis on "seasoning" when it comes to refinancing or selling a property.
In the example given I'd also find it hard to believe that after debt service your monthly expenses would only be $300 when considering taxes, insurance, and management fees which are typically 10% of the monthly rent, which in this case would be $120. So taxes are around $1500/yr?
With so many foreclosures and bank-owned properties flooding the real estate market this doesn't seem realistic in today's economy.
I love the concept of using the bank and tenants money to create cash flow but it just doesn't seem possible in this market.
If anyone can help me find a market and/or lenders that fit this scenario, please let me know.
I would enjoy the ability to be able to chose what you chose to read, and become more informed about money.
Thank you very much for your Free Book Robert, I am a great fan of what you do.
As I said before _"PRICELESS."
Before reading the conspiracy books:
i tried my self for the last 6 years to do what Robert Kiyosaki wrote on the books by my self. Do my own too slow for me.
After reading the conspiracy books:
I will join the coaching, to make boost what i already have.
and make sure i can do derivatives "thinks" get more help and more advice from the expert
good luck for everyone
While I've been watching our troubled economy for the past couple of years this book has really opened my eyes to what is going on behind to scenes to cause all of this and what we can expect in the next few years.
Most importantly it has given me some good direction and some great ideas to start with so that I can withstand the coming storm. I don't know if I have enough time to completely get myself ready for what's coming but I can definitely get started and put myself in a position to thrive while others are losing.
Chapter 10 was especially thought provoking and really got the wheels turning in my head.
Hey all,
I was watching the video with Mike Maloney and Robert, and it got me thinking about a question I've had for a while.
If we can see a hyperinflation , or even just drastic inflation coming, why can't the White House?
I personally look forward to inflation, I have secured myself with reserves of silver, and, although it wasn't in the cards originally, I will be able to pay my debt on my property back very easily with increased cashflow due to living expenses spiking. I just had a thought...
Is it possible that the White House is doing the same? Are they secretly acquiring assets of various sorts and inflating the dollar on purpose? I suppose it would be a good way to get to a reasonable level of debt - if it works for me/us, why wouldn't it work for them?
At this point, there is no turning back. All currencies throughout the world are going to lose tremendous value. Government Officials HAVE to know that - I don't see why they wouldn't use the 'mess' in their favour.
I find your focus refreshingly simple and workable. By focusing on cashflow I don't have to worry about the volatile swing in real estate prices as the property supports itself. Secondly, if I focus on learning from the "Cone of Learning", making mistakes becomes the way to gain knowledge. I will simulate my next investment as a "big deal" card in the cashflow game as see what I learn.
Robert, my take on “Knowledge is the New Money" recognizes that there are a select few individuals such as yourself that are qualified, well-positioned and willing purveyors of the 'higher-order financial knowledge' that is essential to recognize, to understand and to prosper by means congruent with rules that govern the macro [larger] financial market - the scope to which all micro [lesser] financial markets are subject, regardless of their apparent size and/or perceived strength. Having conveyed this and other issues of relevance so clearly, you have bestowed upon your readers a gift of understanding within which may be discerned an equivalent gift of choice.
For most, patterns of financial thought, behavior and results are evidence of having adopted the beliefs and practices of the family into which they were born and/or raised. In turn, beliefs and practices are perpetually reinforced through our associations with various social groups that likewise embrace them. Considering a widespread lack of appreciation for the role of 'mistakes' and 'failure' within an overall process of learning; a seemingly-natural predisposition to resisting change; a penchant for seeking 'instant gratification' and an innate desire for acceptance within contexts defined by the multiple social groupings of which we are part; these and many other aspects of life tend to exert collective inertia that conspires against our adoption of new beliefs and behaviors when such do not conform with the 'status quo' of the various groups with which we are affiliated, including those of our families and friends. Overcoming such resistance to a change of beliefs and behaviors requires an extremely compelling force - such as may be experienced by those who, through understanding, come to an enlightened appreciation for the truth and practical significance of what you have revealed through your teachings.
The knowledge that you have expounded exists in stark contrast to prevailing wisdom that, in addition to its failure to recognize, acknowledge and adapt according to this higher-order of financial knowledge, exacerbates the error by yet seeking to promote the continuation of blind adherence to obsolete rules, the design criteria of which were in service to a now-defunct financial paradigm. Prevailing financial wisdom continues to be professed in a manner that fosters the illusion that old rules remain valid in service as 'sound' guidance upon which to base financial decisions - implying not only a miraculous resurrection of a dead paradigm; but, that its associated rules remain active, valid and in force as a viable framework upon which to base expectations of future performance, the benchmarks of which are typically projections patterned after past results created within the context of the paradigm at a time when it was intact and valid.
Those who remain unaware of the meaning and relevance of "knowledge being the new money" shall remain subject to present and future turmoil associated with financial storms within which they will still possess little if any control over their financial destinies - battered with increasing intensity by forces that will likely include hyperinflation, increased taxation, dwindling retirement funds [in proportion to the demographic of baby boomers that will be taking mandated monthly distributions - affecting massive downward pressure upon values through regular, periodic sales of associated stocks], and of the government's attempts to meet its Social Security and Medicare obligations - to name a few of the primary forces that have yet to clearly exert their pending influence.
Those who become aware and act according to their understanding of "knowledge being the new money" position themselves to fare well through the tempests yet to come, with prospects for creating multigenerational wealth along the way - should they aspire to do so. It is extremely gratifying to possess unwavering confidence in my ability to produce such results in my own life, and upon so doing, to share this gift of knowledge with those I believe to be most inclined to use it for their own good and the good of others.
Thank you Robert for all that you have shared through your works, for the generosity shown through your decision to share this most timely of content, of your current perspectives relating thereto, and for considering prospects of including and attributing our contributions within the printed publication. Most of all, I wish to thank you for consistently aggregating selective, high-impact subsets of the body of financial knowledge into such easily digestible forms that even one such as myself may benefit from the wisdom embedded within.
Robert,
I think most of us are overwhelmed with information and can't make much real and useful knowledge out of it.
We're drunk on cheap information and half truths, ultra sophisticated jargon and microscopic definitions. We lack the big and clear pictures that set place us in the real territory we're in.
Real knowledge is the opportunity to make riches out of ideas and I think your books have given me a couple of good business ideas or "experiments" to play with, whether I win or loose.
Getting to know your books has been an oasis of refreshing knowledge in a desert of cheap words.
Thanks again for this book. This information may be worth bullions of gold.
Luis
Santiago Chile
When I first read Rich Dad Poor Dad at 17, I felt that I'd finally come across someone who was saying what I couldnt express - that the path to true financial freedom was through the B/I quadrants and not the E/S Quadrants. Coming from a strongly academic, E/S-type family, I made up my mind from early on that I was going to be the one to be different.
Nine years later, after reading most of Kiyosaki's books I'm not financially free yet, but for what I lack in passive income I have in priceless knowledge I have gained since first picking up your book.
I believe that knowledge is the new money because even with little money, one can educate themselves and then use this education to produce exponential results. This is why I've given myself the challenge of reading 12 books in 12 weeks. The amount of money I would have spent on the books compared to how much money I will make from the knowledge will produce infinite ROI!!
Thank you Robert and Kim for helping us to be empowered to be in control of our financial destinies.
Gratefully,
Michelle
http://www.busireader.blogspot.com/
It really is about who and what you know. There are alot of scam artisits out thre, especially in real estate. Don't believe me, look at the mees we are in now with the real estate market. My advice, net work well, if you are going to open any type of business including investing in real estate. You have to be super careful who you trust with your money or you will be taken like nothing.
There is another great site that teaches people about money. It is called www.HowMoneyReallyWorks.com there is an awesome book on there called How To Get Off The Financial Tight Rope, it has helped me tremendously, I hope it helps you too.
In reading this book, I realize now that their is a lot more to money management than seeing how much I have. It takes a lot of thinking and hands on participation, rather than listening to theory, to do do wll in this economy. It is especially crucial to know the difference between an asset and a liability, which leads to wiser spending choices.
Thanks for your comments and your book-- it's definitely needed in our society. I recently took part in some financial education at my church, and while it was probably what America needed at a base level, in terms of reducing debt and reliance on credit cards, it failed to address how to invest money. Being a person who has studied Rich Dad Poor Dad and Caashflow Quadrant, my interest in the seminar quickly faded. I see the financial industry's preaching about "invest in mutual funds" as a way of eliminating peoples' freedom, and that is the point that you have made for me with your Conspiracy book. I've invested in two rental properties in the last several years, and hope to do more in a much quicker fashion in the next few years. That's my plan, and I'm sticking to it. Thanks for helping me liberate myself from the slavers.
I couldn't agree more.
Amazing reading, I never realised how the US economy worked. Thank you for opening my eyes. Really would love to know if some (or all) of the money making suggestions work in the UK or EU?
I am taking your concepts on "printing your own money" and creating a plan for my company (a stem cell company) to license stem cell treatment technology to practitioners. I plan on charging a yearly franchising fee, as well as a licensing fee for each treatment produced (or sold). THis is a win-win-win-win proposition, which will benefit me, and my company (stemtechlab.com), the outside labs that I sell my technology to, the doctors that they sell their stem cells to, and the patients who receive them. Can't do better than that!
Thanks for the book online. I am in Ecuador, where it is very difficult to buy books, especially in English! I agree that some lessons on licensing would be helpful.
I am trying to apply your principles to a plan to produce gold and silver coins. I also have a gold mine that needs development, and anticipate using the income from the stem cell business to develop both of these businesses.
Robert,honestly you are d Bible of our time in d area of financial education.I have read the book and I know that I am better off now.I am a Nigerian and I just quit my job at 43.Honestly speaking its when you are equipped financially dat you can survive the current global meltdown.I wonder why my people over here still scramble to America via VISA LOT despite the downturn of the economy.I beleive you can make it here in Nigeria.
Dear Robert, thanks for the opportunity to read your free ebook, following is a short story regarding Fed's policy
Economics Lesson
It is the month of August, on the shores of the Black Sea . It is raining, and the little town looks totally deserted. It is tough times, everybody is in debt, and everybody lives on credit.
Suddenly, a rich tourist comes to town.
He enters the only hotel, lays a 100 Euro note on the reception counter, and goes to inspect the rooms upstairs in order to pick one.
The hotel proprietor takes the 100 Euro note and runs to pay his debt to the butcher.
The Butcher takes the 100 Euro note, and runs to pay his debt to the pig grower.
The pig grower takes the 100 Euro note, and runs to pay his debt to the supplier of his feed and fuel.
The supplier of feed and fuel takes the 100 Euro note and runs to pay his debt to the town's prostitute that in these hard times, gave her "services" on credit.
The hooker runs to the hotel, and pays off her debt with the 100 Euro note to the hotel proprietor to pay for the rooms that she rented when she brought her clients there.
The hotel proprietor then lays the 100 Euro note back on the counter so that the rich tourist will not suspect anything.
At that moment, the rich tourist comes down after inspecting the rooms, and takes his 100 Euro note, after saying that he did not like any of the rooms, and leaves town.
No one earned anything. However, the whole town is now without debt, and looks to the future with a lot of optimism..
And that, ladies and gentlemen, is how the United States Government is doing business today.
BR
stpindo
Thank you, Robert, for writing this fine online book and offering it for free.
My wife and I are both 54 years old (she's a whole lot younger though), living in Irvine, CA. We are almost upside down on a house that has decreased in value from it's high by almost 40%. We have about $50,000 in liquid assets. Included in that is a small amount of physical gold and silver - approximately $15,000 worth in today's (July 5th 2009) spot prices. We own two investment grade insurance products which have also lost considerable value from their high. We just sold a rental to her recently widowed sister in Ft. Worth, TX and we are in the process of buying another rental 2B/2B condo in Huntington Beach, CA. The net postive cash flow for this rental looks to be about $265.00 monthly - better than a negative at any rate.
Unknown to the mortgage company , my wife was just laid off from her job last week and I have had sporatic work for the past two years as a controller/business manager.
Of course we are worried about the economic trends and have seen this coming for about the last 2 years (a decade or so too late, I'm afraid). I will go so far as to say the economic bottom will be much worse than even you indicate and will be with us for at least a generation or so. It may even leave permanent negative effects on our society.
Now back to the topic. Your information is valuable and will take considerable effort to internalize at our age. Not impossible, just a bit more energy and effort required on our part.
This is a very long shot but I want to attempt it anyway. Would you or someone you personally know and trust in your organization be interested and willing to take us on as a special project? We would make a very interesting case study as both my wife and I come from considerbly impoverished backgrounds. Me in Appalachia Kentucky and an orphanage in Louisville, KY. She in a remote province in the Philippines. I have 14 brothers and sisters, she has 11. Most of my brothers and sisters are doing financially OK, however, only two of her siblings are somewhat OK financially. She and I have been a major contributor to her family for the past 2 decades and have been one of the main reasons 4 of them have homes.
Of course, if this isn't something you want to respond to I fully understand and want thank you for what you have done for us in the meantime (we have your Cashflow game and played it well over 20 times already - wife normally wins).
God bless you and Kim and take care,
Jack and Vivian Stewart
949-654-2515 home
stewart949@cox.net
Wow, great book. I'll look forward to reading the whole of it as a completed work.
Congratulations on another top cash-generating asset.
Now the bottom line is what we do with all this hard-earned 'new money' we have learned here. We could shove it under the mattress and forget about it.
Or we could get it to work hard on our behalf and make some investments through our knowledge to make more money and more knowledge. We could create derivaties and sell these under various guises. We could add it to other forms of assets and increase the overall value. I would like to put it in a high interest account and have it acrue knowledge automatically without me doing anything!
I found particularly interesting the methods of learning and retention. This is why the learning by modelling is a very powerful way to code in the skills you want and finding someone who will do that on the job with you is the ultimate.
So, Robert, any positions available as an adopted 'rich son' and you can be my Rich dad? I am serious!
I have learned a lot from my 'poor dad' throughout the years. He had the big thinking but never followed up. My parents worked very hard all their lives and are now comfortable through massive pension investment (which is now greatly taxed as you say), stocks and shares which are now down 70%! and other investments that they didn't really have the education to invest in.
Net result - nice lifestyle (comfortably frugal) with no mortgage etc. but they don't really do anything. No zest for life.
I want financial abundance and to live life at 100%. I have abundance in all other areas so obviously need to invest more time, effort and energy into this one while building up my knowledge base!