Robert, your books are sold in many countries and translated into different languages. It'd be good to extend the idea of old vs new not just for US but for latinamerica, EMEA, APAC, etc.
I certainly am excited to know more about new rules. I am practicing them and getting results too. As a matter of fact ever since I read in your books about the core values and how they effect our thinking I no longer am afraid of spending money in my assets column(investing). My assets are already taking care of my liabilities.
I still want to learn more. Thank you in advance.
What type of information are you looking for which will help you
I would like to hear more about the commodities markets, how they work, and how I make investments in commodities. Most commodities, like gold and silver have never been worth zero. As more and more people live on our tiny planet, it seems clear they will all need commodities such as grains, metals, cotton, sugar, lumber, and so on. The commodities market strikes me as having potential. I am reading a book now called “Hot Commodities: How Anyone Can Invest Profitably in the World's Best Market” (Paperback) by Jim Rogers, and find it to be a wealth of information.
I found the Rich Dad books regarding real estate, property management, and the legal and tax consequences to be outstanding.
For me, I would like to have a better understanding of the underlying fundamentals of the economy, as that will allow me to derive or assess the demand and supply situation (and thus the value/ potential value of the assets/ businesses that I invest in).
For example, most would say that if a man on the street with no real knowledge of the economy also buy a certain asset, equity, etc, then, that asset would have reached the peak of its bubble (and it's time to cash out). The fundamental factor of that is because a large part of the value of many investment products today are driven purely by the anticipated value, rather than real underlying value.
Do you take into account what happens to income-producing assets if or when a national emergency is declared? I think it would be wise to address the executive orders (laws) that are on the books and how they affect personal property. This is the ultimate "Monopoly" maneuver.
I agree with your sentiment and appreciate your simple language and approach. However you need to be careful to provide sufficient examples and details of what you are trying to express with your new rules. At present I assume you will elaborate on these in future chapters but be aware that it is spending and not saving(investing) which is what gets most people into debt, so you need to say what to invest in and how to go about it. Also diversification in the past has protected many people from complete financial ruin. If investors move away from diversification it becomes essential to understand the product they are investing in and why that product is the best for them. Unfortunately the education system does not teach investment and most people are ignorant of economic products so perhaps your book needs to teach or at least point to, some of the basics before people can embrace your new rules with success and confidence.
I really appreciate this new forum. It gives us the opportunity to become more engaged in the discourse about money and wealth creation. The more we are able to articulate ourselves in discussions about money, the more competent we will become as investors.
When discussing the old vs. new rules of money, I would like to learn more about trends in Permaculture and how to profit from Permaculture ventures. I have read a few websites on the internet about permaculture, but I am still not clear how you can actually make money at it.
I would like to learn how to profit from the trend towards localization. In particular, I am interested in learning if there is an opportunity in local community organic farming.
My theory is that local community based organic farms can offer a price and quality advantage over vegetables sourced from farms located across the country.
* How do you calculate the cash flow potential for this type of business venture?
* How significant is the trend towards permaculture practices, including local organic farming?
* Explain the economics of permaculture.
* What is the definition of permaculture?
* Will services be traded in place of money as the US dollar becomes less valuable?
* What are the possibilities for a radical shift in the way our economies operate, whereby we return to more traditional collaborative communities?
* What tools and methods can be employed to build a "power team" of permaculture investors?
* What real estate investing skills do we need for investing in permaculture and organic farming in urban or suburban areas?
Concrete examples through short anecdotes would help bring the points you are making closer to home. The information you are providing is critical. Cash flow is king. The individuals I speak to always say they understand, however they want many examples of how to implement the new rules of money...
I have been learning about how money works, and making money work for me over the past few years (after reading Rich Dad, Poor Dad, of course!). I definitely am "getting it", that I need to learn how to invest, control my own investing and that I am fully capable of this- which is the opposite of what I have always believed. Now I am looking for the best ways to invest; specific ways to invest that produce cashflow now and that will be profitable in the future. I have learned about real estate investing and have had some success in that area, and am eagerly learning everything I can about wealth building, business building and how to build teams to that end. Sometimes I watch as my friends put their children in college, struggle to help them through with some sort of misaligned faith that this will be all their kids need to have a future, and I wince. My children will be learning right along with me how to be responsible with finances and how to make our money work for us.
Two comments so far:
I know that the marketing edge here is conspiracy. And it's good. I'd like to see another paragraph just under the one where you talk about "is there a conspiracy or not..." that resets the reader. The understanding should be along the lines of "just because there's a conspiracy, doesn't mean you're excluded - When you know the rules of the game, you can play".
As for the Gold standard discussion. It was not clear to me what you were getting at. I think another sentance or two about the effect of the switch (when it's discussed the first time) would be useful. You reference the other book (IQ). A quote from that where you describe the effects of the switch will help the reader to understand better where you are going.
Well, I wish to have practical expamples that we can apply the next day in our daily life. I've read most of your books and I avoided many mistakes such as buying a brand new car, but I still don't own much assets. It would be good if you give easy example on how to apply the news rules. It's good to know the rules, but it's useless to know it without applying it!
I suppose the most burning question I have is about people knowing what they need to do, but feeling unable to get started, usually because they are in mortgage stress (even while still renting) and have no disposable income.
Some concrete steps couples can take to reduce debt and be on a more solid financial footing would be great. How can we stop playing by the old rules? A two-income family with a relatively low amount going out on servicing debt each month still doesn't have much room to get creative with the family finances. Or do we?
Great delivery. Great timing. Our country isn't facing a new game, the rules have just been changed. I've read most of your books, and the single most important idea to grasp was moving to a creative mind set. When I still was in the competitive a lot of the other information was still a little hard for me to except. Having read many books on the "creative" I would add something to get the reader in the right mind set. It's clear that buy just opening the book that the reader feels that there is somthing in the book that will inlighten them, but the right mindset is esenntial for total understanding.
I live in South Africa, I believe we still adhere to the gold standard with our currency. In my 'wet behind the ears' brain it does seem that this has and will case a major headache for the dollar.
I am 24 years old, I have just started working and I am considering investing in real estate. However, our housing market boomed the last 5 years and has now slowed down, and when I say boomed I mean in certain areas almost a 100% increase over those years. I am afraid to go make 'good debt' seeing as we have no idea of what will happen in this downturn pertaining to house prices globally.
I heard that some house prices fell by 43% in some states in the USA, I think it was Idaho or Ohio.. not sure.
We sadly cannot apply the rollover technique here, however we have other options available such as refinancing on a growing property as a deposit for the next property--however given the times, this sounds risky.
Information I would like would be:
1) How to identify good investments in these times, both real estate and perhaps stocks which took such massive dives.
2) Things seem pretty bleak, I wonder if things will ever truly recover.
3) Most 'gurus' say these times are the best to invest 'rule of reversal' because no one is investing, you should invest now.
That is a very good question since I have read all the books you wrote. For this question, I would say nothing as of this time, but at the back of my mind, of course, there is a type of information which is relevant to financial literacy.
I guess it would be about Time versus Control. How do you balance timing of opportunity versus the control of money? Is there such a thing as balancing of time and control?
Several months ago, I started my search of how money is created. I found few educative videos on the subject. I can't remember how the first video was called, but it explained how FED works. The second one called Zeitgeist, and it has several versions. The last version, is less educative and too much propaganda. Then I've read a booklet, Modern Money Mechanics. It was quite hard to understand, but as I read it again and again - I started to understand it. The whole thing is based on so called - "Fractional Reserve System". It is actually this system that allows money to be created out of thin air. Money - is someones debt.
So after this research, which I'm still doing, I started to develop several systems that can be used to actually create money. I absolutely understood how money can be created, without being a bank.
Right now, I'm looking for patterns I didn't figure out.
Several months ago, I started my search of how money is created. I found few educative videos on the subject. I can't remember how the first video was called, but it explained how FED works. The second one called Zeitgeist, and it has several versions. The last version, is less educative and too much propaganda. Then I've read a booklet, Modern Money Mechanics. It was quite hard to understand, but as I read it again and again - I started to understand it. The whole thing is based on so called - "Fractional Reserve System". It is actually this system that allows money to be created out of thin air. Money - is someones debt.
So after this research, which I'm still doing, I started to develop several systems that can be used to actually create money. I absolutely understood how money can be created, without being a bank.
Right now, I'm looking for patterns I didn't figure out.
I love it Robert, what I love is how you repeat things, people may think that oh yeah you said that in other books. The new way I believe Robert is showing us is in our mindset. We have to look deep inside ourselves and change the way we perceive things, before we can add action to it. So to me the new way is to get rid of the old way first, then keep reading and reading to reprogram yourself to the new way. Auto suggestion then takes over.
We should all be looking for education and examples to piggyback ride and learn creative and effective ways to acquire assets and be in sync with the new rules of money…
iam looking at what can i invest in , in this credit crunch crisis. also how to practically apply the new rules , give practical realistic examples for people like me who dont earn a lot
What I am looking for is clear, grounded information which gets me started on path of using the new rules. The 2 examples so far are pretty good. I understand those. Keep the information clear so that I can translate it into strategies and assets in the real world. As I said the 2 examples meet this criteria. Real world information. Street smart information. Good basic ideas and strategies is what I want to read about.
At the end of para 2 on page 7 I think you meant to say 'put money in their pocket'. The word 'in' was missing.
On the subject of old vs new rules; I'd like to know how long these new rules are likely to last? The last time fiat currency, i.e. paper money was tried back in the 1700's it didn't last long. Caused a massive uncontrollable boom, and then obliterated everything, and everyone went back to real money, i.e. gold and silver. How long is it before the world loses faith in the $US as the default reserve currency? What will the consequences be? I'd like to know your view on the current Government sponsored theory that we should all just borrow and spend without a care in the world. It's like they think the cure for a heroin addict is to take 10 times as much heroin. In the economic situation we find ourselves in now, they tell us the cure to too much debt is to borrow every more debt. Madoff only ran a small ponzie scheme, the US Fed and Tresury runs the biggest ponzie scheme the world has ever known. The only thing that keeps this moneygoround going is borrowing more/selling more bonds to pay off the old ones, and even Corporate America went along for the ride, and took the same advice. Which is why they are in trouble now, they can't borrow to pay back their old debts. 1930 could be a small drop in the ocean compared to this. With $40trillion of CDS's out there, it could all come tumbling down like a house of cards, an implosion similar to a black hole.
So far your old vs the new rules of money is good.
I would like to see additional discussion on how these rules would apply and suggestions on where to position for the future for two major groups.
The baby boomers who are and will continue to be retiring and the Gen X, Y and people who come after the baby boomers. And the ones who will be inheriting and be taking over the controls of power and have to "really" deal with the mess that has been created with
fiat currency
social security
medicare and medicaid
multi-billion dollar bailouts of banking, auto and credit markets
if we are following the path of Japan, do you believe that we will enter a stagflation of over a decade of recession or economic depression. Where would you position yourself? If the dollar is going to hyperinflate gold and silver will store wealth, but where do we invest or "spend" money if we the world is going into a recession and then depression?
I absolutely agree on what you said, Mr Robert. So, what advise do you have for fresh graduates that intends to move on to tertiary education diplomas, when I only earn SGD800 per month? I was thinking, for the next three years in my life, which I'll spend specializing in a diploma course of my choice, I would want to get ahead of the pack and get more financial literate than others. So the plan will be, after graduation, I will be ahead of others, in terms of financial literacy. Would you agree with me?
Some financial experts stick to the old rules of money and they swear by them. I think the opinions of these "experts" should be exposed and measured against the new rules. I might not be correct about this, but I think Suze Orman always mentions savings and getting out of debt and living below your means as well as Dave Ramsey.
Maybe if a comparison could be made between what they say and do people would understand better or at least be make them think.
I suppose the comparison between a world without borders (present world) vs. years past would be interesting. It could broken down further - import/export (how interdependent we are on others these days) & the currencies (how interconnected they are). I also would be curious to know more of the changes that have been done to hide knowledge from the unsuspecting man.
I watched a good video a while ago that talked about resources and I believe it was on GoldSilver.com I was amazed at how creative the American government is in hiding certain facts. More on this kind of stuff would be great.
Question: the highest order of the world is "creating" hyper-inflation to make people poor and hopeless. From now on, can we say 'in gold we trust' regardless what price is today? Guessing: perhaps in one day the funny money devalued, country bankrupted, and even Fed collapsed, what will be the foreseeable new wallet for those highest order? Thanks.
When discussing the old vs. the new rules of money, what type of information are you looking for which will help you advance your financial well-being?
One rule or should I say skill that is important to develop is asset evaluation skills. That people need to understand and accept they’re not born with a “Knack” for buying assets. I started in shares at 13, I brought based how impressive a company looked (I’d love to say there was more to my decision making but there wasn’t). Little did I know I was playing Russian roulette with my hard earned paper-run money. It wasn’t till I studied accounting in my late-twenties and reading finance books such as yours that I discovered more responsible in control investing
I’m looking forward to your other rules.
I think it's important to talk about how intricately our finances our woven into a global system. Also, it would be nice to hear what kind of new opportunities are available to us as the world shrinks.
Starting from scratch, just learning new rules…what do I do when I get my paycheck? Put it in the bank?...How much? I cash it…I spend it. How do I change this pattern? What should I do? I spend every penny on bills, food and gas and seldom go out or buy "DOODADS". People are stuck in the “old rules” thinking and a “new rule” habit needs to be formed. If putting money in the bank is worse than putting it under the mattress…what should I do with my only source of income at this time…my paycheck? What is the best way to save money from my paycheck to invest in assets? Its only a few dollars at a time. I need more fundamental education not concepts and leave me to figure it out for myself.
What do I need to do?
I need a thorough education. My parents were complete nitwits about money, always in debt up to their eyeballs, never had a clue how to stand on their own two feet. My grandfather supported them till the day he died.
As a result I hate taking any kind of risk, not wanting to think about even the possibility that I might be throwing money away. I don't gamble, but I also don't invest.
I need information to help me get past the old fears and get started on the way to being a "Rich Mom" rather than just a Mom who manages to pay the bills. Mental well-being will have to precede the financial well-being.
The most important thing is still my education! But it would be nice to get some ideas on where to start looking. My wife and I have been into real estate, and have had some success, but as the markets keep getting worse, should I be looking to put some eggs in another investment basket.? Gold/Silver?
WOW! I can only hope that in this book will teach us sound principles to advance our financial health! I am fortunate to be surrounded with many financially secure people. Most of them will not share their strategies. SO I continue to invest in my own companies and education... Will you please give us some how to's or Where to look or what to look for when... Etc????
THANK YOU
I believe protecting your purchasing power is important in today's enviroment. It seems hyperinflation is a possibilty, when they debase the current currency will they issue a new currency and does this allow them to keep the game going?
I think protecting your purchasing power is so important in this enviroment. I would like to learn more of what to expect during a hyperinflationary event which seems to be where we are heading after debasing the current currency would they issue a new currency? Does this allow them to keep the game going?
I am looking for information that would create my own retirement. For example creating an account that would sponsor my medical expenses for the rest of my life...another account that would create money for me to live on for the rest of my life...etc After reading a number of your books I understand the 30% idea...10% in each of the 3 piggy banks and I only wish I would have known 3-5 years ago but I have to focus on the future. I'm looking for a short term, mid term and long term plans.
Now that I have been studing the rules of money, I look for assets that will increase in value and that I can control most of the risk so that my finances are not at the mercy of a sales man putting my investment in something they know nothing about. also that it's important to keep your money moving and working for you.
In shaping these themes I think it is most important to site historical references, such as Grunch of Giants, how the FED came to be, a book on the choices Nixon was facing (not just the decision itself), and other relevant books that people can further their historical references, plus new suggested reading materials on where we are headed (outside of Conspirarcy). Keep it going, and thank you for sharing your thoughts.
We live in the Information Age. All kinds of information high (and lacking) in quality are available to use. I have found enough quality information, I believe, to point me in the right direction. What I need, more than information, are people. I need to be able to work with someone who knows how to take that information, turn it into cash in hand and, most importantly, is willing to share their knowledge. The information I want is where to start looking.
When discussing the old vs. the new rules of money, what type of information are you looking for which will help you advance your financial well-being?
I would like to know if real estate is a good investment even when prices are going down? I would like to learn more about the new rules and how to used them to feel financial secure. I would also like to know more about how the rules apply to investing in stocks and do you recommend investing in stocks at this time? I want to learn all I can about the New Rules!!
I'm currently a part time student at a university and it makes me laugh how important the professors think they are when nothing I'm learning is helping me with my current job or what I have learned from reading your books and material. Thank you for sharing your knowledge.
Well you have been preaching the old rules vs the new rules of money since Richdad Poor Dad....Which is great because the more I meditate on that thought....the more I start to see new things....I haven't read all of the books, but maybe a discussion on wave patters would be helpful....Your predictions in Prophecy were dead on...it was amazing....the 20-10-5 cycle in who took my money was great...I love to see your outlines of how you use wave cycles and patters (the Chaos Theory) to make your predictions.....I am sure all of this has been covered in the Predicting the Future DVD.....but I haven't purchased it......YET
First of all, let me say that I have heard and read about the abuse and depreciation of our currency from other sources than the ones I advocate: Robert Kiyosaki and Mike Maloney. To me, it just make logical sense that the more money you print at will, without anything backing it, will just decrease its value. (In today's world, more and more of it is created electronically, which concerns me for various reasons). The more rare something is, the more valuable it is-duh! Times like we are experiencing now, I feel more comfortable with tangible assets. I recently made a bold move and took all my money out of my 401k and bought some real estate with it, with the intent of using it as a passive income source. The way I look at it is, I took my money from one (investment?) that I don't have any control over, to an investment that I can have more control over. To me, inflation is like a cat and mouse game with money. Workers demand higher wages, then companies charge higher prices for things and round and round it goes. Without the value of products and services necessarily going up in value. I have not studied the history of fiat currency, but I can't see how creating more money at will can last forever.
I like the comparisons of old versus new on the level I can understand. I have explored enough to have learned that doing the new is exposing me to new RISK. Controlling risk is what I need to learn to convince my husband to invest--and yes, I am working my way out of debt, and trying to be creative to get out faster. I was a bit influenced by Think And Grow Rich by Napoleon Hill.But Rich Dad, Poor Dad series gave me the confidence to believe that even I could do this. I am looking for a course, or direction to follow ( MY OWN course)--but the education gives me the understanding and the ability to make tough decisions and stay the course. Thank you Robert!
Agree that gathering investors is of paramount importance. Therefore, learning marketing is side-by-side with that. And, then the question of how to "sell" any expertise I may have gained from my Rich Dad education, so that other investors trust what I am proposing -- for example, proposing that you put your dollars together with others, to gather the down payment for a multi-family property.
Another important piece of education and/or marketing (paper? website?) would be: getting people to understand self-directed IRAs.
Number three: Robert, in "Guide to Investing", you write how intensely complicated and expensive it is to be a selling shareholder, to get all the way to IPO. Think you can make that information understandable? Would such knowledge then make the process less expensive?
A loosely related matter: I know that Ben & Jerry lost control of quality because of taking their ice cream company public. Any hints on preventing such a hostile takeover?
Donna
I think that the work that you are doing in terms of sharing your knowledge is invaluable. I would like to THANK YOU for taking the time to share your understanding of the situation with us. I think that with the knowledge people have the ability to make their own choices, but without right knowledge one cannot make a right decision. I value your views and look forward to reading more. Keep up the great work!!
When it comes to the new rules of money I am looking for a way to gather investors. This is one of the most difficult endeavors in working with the new system. I have been told buy so many banks and venture capital firms that there is lots of money out there but no one is investing in the new markets yet. Does anyone see a new system for gathering capital in order to take advantage of fresh ideas based on peak oil, wavering currency and new energy production?
Robert, your books are sold in many countries and translated into different languages. It'd be good to extend the idea of old vs new not just for US but for latinamerica, EMEA, APAC, etc.
I certainly am excited to know more about new rules. I am practicing them and getting results too. As a matter of fact ever since I read in your books about the core values and how they effect our thinking I no longer am afraid of spending money in my assets column(investing). My assets are already taking care of my liabilities.
I still want to learn more. Thank you in advance.
I would like to hear more about the commodities markets, how they work, and how I make investments in commodities. Most commodities, like gold and silver have never been worth zero. As more and more people live on our tiny planet, it seems clear they will all need commodities such as grains, metals, cotton, sugar, lumber, and so on. The commodities market strikes me as having potential. I am reading a book now called “Hot Commodities: How Anyone Can Invest Profitably in the World's Best Market” (Paperback) by Jim Rogers, and find it to be a wealth of information.
I found the Rich Dad books regarding real estate, property management, and the legal and tax consequences to be outstanding.
For me, I would like to have a better understanding of the underlying fundamentals of the economy, as that will allow me to derive or assess the demand and supply situation (and thus the value/ potential value of the assets/ businesses that I invest in).
For example, most would say that if a man on the street with no real knowledge of the economy also buy a certain asset, equity, etc, then, that asset would have reached the peak of its bubble (and it's time to cash out). The fundamental factor of that is because a large part of the value of many investment products today are driven purely by the anticipated value, rather than real underlying value.
I would like to know about finding cash flowing investments, besides real estate
Do you take into account what happens to income-producing assets if or when a national emergency is declared? I think it would be wise to address the executive orders (laws) that are on the books and how they affect personal property. This is the ultimate "Monopoly" maneuver.
I agree with your sentiment and appreciate your simple language and approach. However you need to be careful to provide sufficient examples and details of what you are trying to express with your new rules. At present I assume you will elaborate on these in future chapters but be aware that it is spending and not saving(investing) which is what gets most people into debt, so you need to say what to invest in and how to go about it. Also diversification in the past has protected many people from complete financial ruin. If investors move away from diversification it becomes essential to understand the product they are investing in and why that product is the best for them. Unfortunately the education system does not teach investment and most people are ignorant of economic products so perhaps your book needs to teach or at least point to, some of the basics before people can embrace your new rules with success and confidence.
Robert,
I really appreciate this new forum. It gives us the opportunity to become more engaged in the discourse about money and wealth creation. The more we are able to articulate ourselves in discussions about money, the more competent we will become as investors.
When discussing the old vs. new rules of money, I would like to learn more about trends in Permaculture and how to profit from Permaculture ventures. I have read a few websites on the internet about permaculture, but I am still not clear how you can actually make money at it.
I would like to learn how to profit from the trend towards localization. In particular, I am interested in learning if there is an opportunity in local community organic farming.
My theory is that local community based organic farms can offer a price and quality advantage over vegetables sourced from farms located across the country.
* How do you calculate the cash flow potential for this type of business venture?
* How significant is the trend towards permaculture practices, including local organic farming?
* Explain the economics of permaculture.
* What is the definition of permaculture?
* Will services be traded in place of money as the US dollar becomes less valuable?
* What are the possibilities for a radical shift in the way our economies operate, whereby we return to more traditional collaborative communities?
* What tools and methods can be employed to build a "power team" of permaculture investors?
* What real estate investing skills do we need for investing in permaculture and organic farming in urban or suburban areas?
I am looking forward to your response.
Dustin Mattison
Sleepy Hollow, IL
Concrete examples through short anecdotes would help bring the points you are making closer to home. The information you are providing is critical. Cash flow is king. The individuals I speak to always say they understand, however they want many examples of how to implement the new rules of money...
I have been learning about how money works, and making money work for me over the past few years (after reading Rich Dad, Poor Dad, of course!). I definitely am "getting it", that I need to learn how to invest, control my own investing and that I am fully capable of this- which is the opposite of what I have always believed. Now I am looking for the best ways to invest; specific ways to invest that produce cashflow now and that will be profitable in the future. I have learned about real estate investing and have had some success in that area, and am eagerly learning everything I can about wealth building, business building and how to build teams to that end. Sometimes I watch as my friends put their children in college, struggle to help them through with some sort of misaligned faith that this will be all their kids need to have a future, and I wince. My children will be learning right along with me how to be responsible with finances and how to make our money work for us.
Two comments so far:
I know that the marketing edge here is conspiracy. And it's good. I'd like to see another paragraph just under the one where you talk about "is there a conspiracy or not..." that resets the reader. The understanding should be along the lines of "just because there's a conspiracy, doesn't mean you're excluded - When you know the rules of the game, you can play".
As for the Gold standard discussion. It was not clear to me what you were getting at. I think another sentance or two about the effect of the switch (when it's discussed the first time) would be useful. You reference the other book (IQ). A quote from that where you describe the effects of the switch will help the reader to understand better where you are going.
Well, I wish to have practical expamples that we can apply the next day in our daily life. I've read most of your books and I avoided many mistakes such as buying a brand new car, but I still don't own much assets. It would be good if you give easy example on how to apply the news rules. It's good to know the rules, but it's useless to know it without applying it!
I suppose the most burning question I have is about people knowing what they need to do, but feeling unable to get started, usually because they are in mortgage stress (even while still renting) and have no disposable income.
Some concrete steps couples can take to reduce debt and be on a more solid financial footing would be great. How can we stop playing by the old rules? A two-income family with a relatively low amount going out on servicing debt each month still doesn't have much room to get creative with the family finances. Or do we?
Great delivery. Great timing. Our country isn't facing a new game, the rules have just been changed. I've read most of your books, and the single most important idea to grasp was moving to a creative mind set. When I still was in the competitive a lot of the other information was still a little hard for me to except. Having read many books on the "creative" I would add something to get the reader in the right mind set. It's clear that buy just opening the book that the reader feels that there is somthing in the book that will inlighten them, but the right mindset is esenntial for total understanding.
I live in South Africa, I believe we still adhere to the gold standard with our currency. In my 'wet behind the ears' brain it does seem that this has and will case a major headache for the dollar.
I am 24 years old, I have just started working and I am considering investing in real estate. However, our housing market boomed the last 5 years and has now slowed down, and when I say boomed I mean in certain areas almost a 100% increase over those years. I am afraid to go make 'good debt' seeing as we have no idea of what will happen in this downturn pertaining to house prices globally.
I heard that some house prices fell by 43% in some states in the USA, I think it was Idaho or Ohio.. not sure.
We sadly cannot apply the rollover technique here, however we have other options available such as refinancing on a growing property as a deposit for the next property--however given the times, this sounds risky.
Information I would like would be:
1) How to identify good investments in these times, both real estate and perhaps stocks which took such massive dives.
2) Things seem pretty bleak, I wonder if things will ever truly recover.
3) Most 'gurus' say these times are the best to invest 'rule of reversal' because no one is investing, you should invest now.
Looking forward to all of this.
Leon
Hi, Robert,
That is a very good question since I have read all the books you wrote. For this question, I would say nothing as of this time, but at the back of my mind, of course, there is a type of information which is relevant to financial literacy.
I guess it would be about Time versus Control. How do you balance timing of opportunity versus the control of money? Is there such a thing as balancing of time and control?
Regards,
Francis
Several months ago, I started my search of how money is created. I found few educative videos on the subject. I can't remember how the first video was called, but it explained how FED works. The second one called Zeitgeist, and it has several versions. The last version, is less educative and too much propaganda. Then I've read a booklet, Modern Money Mechanics. It was quite hard to understand, but as I read it again and again - I started to understand it. The whole thing is based on so called - "Fractional Reserve System". It is actually this system that allows money to be created out of thin air. Money - is someones debt.
So after this research, which I'm still doing, I started to develop several systems that can be used to actually create money. I absolutely understood how money can be created, without being a bank.
Right now, I'm looking for patterns I didn't figure out.
Several months ago, I started my search of how money is created. I found few educative videos on the subject. I can't remember how the first video was called, but it explained how FED works. The second one called Zeitgeist, and it has several versions. The last version, is less educative and too much propaganda. Then I've read a booklet, Modern Money Mechanics. It was quite hard to understand, but as I read it again and again - I started to understand it. The whole thing is based on so called - "Fractional Reserve System". It is actually this system that allows money to be created out of thin air. Money - is someones debt.
So after this research, which I'm still doing, I started to develop several systems that can be used to actually create money. I absolutely understood how money can be created, without being a bank.
Right now, I'm looking for patterns I didn't figure out.
I love it Robert, what I love is how you repeat things, people may think that oh yeah you said that in other books. The new way I believe Robert is showing us is in our mindset. We have to look deep inside ourselves and change the way we perceive things, before we can add action to it. So to me the new way is to get rid of the old way first, then keep reading and reading to reprogram yourself to the new way. Auto suggestion then takes over.
We should all be looking for education and examples to piggyback ride and learn creative and effective ways to acquire assets and be in sync with the new rules of money…
iam looking at what can i invest in , in this credit crunch crisis. also how to practically apply the new rules , give practical realistic examples for people like me who dont earn a lot
What I am looking for is clear, grounded information which gets me started on path of using the new rules. The 2 examples so far are pretty good. I understand those. Keep the information clear so that I can translate it into strategies and assets in the real world. As I said the 2 examples meet this criteria. Real world information. Street smart information. Good basic ideas and strategies is what I want to read about.
Hi Robert,
At the end of para 2 on page 7 I think you meant to say 'put money in their pocket'. The word 'in' was missing.
On the subject of old vs new rules; I'd like to know how long these new rules are likely to last? The last time fiat currency, i.e. paper money was tried back in the 1700's it didn't last long. Caused a massive uncontrollable boom, and then obliterated everything, and everyone went back to real money, i.e. gold and silver. How long is it before the world loses faith in the $US as the default reserve currency? What will the consequences be? I'd like to know your view on the current Government sponsored theory that we should all just borrow and spend without a care in the world. It's like they think the cure for a heroin addict is to take 10 times as much heroin. In the economic situation we find ourselves in now, they tell us the cure to too much debt is to borrow every more debt. Madoff only ran a small ponzie scheme, the US Fed and Tresury runs the biggest ponzie scheme the world has ever known. The only thing that keeps this moneygoround going is borrowing more/selling more bonds to pay off the old ones, and even Corporate America went along for the ride, and took the same advice. Which is why they are in trouble now, they can't borrow to pay back their old debts. 1930 could be a small drop in the ocean compared to this. With $40trillion of CDS's out there, it could all come tumbling down like a house of cards, an implosion similar to a black hole.
So far your old vs the new rules of money is good.
I would like to see additional discussion on how these rules would apply and suggestions on where to position for the future for two major groups.
The baby boomers who are and will continue to be retiring and the Gen X, Y and people who come after the baby boomers. And the ones who will be inheriting and be taking over the controls of power and have to "really" deal with the mess that has been created with
if we are following the path of Japan, do you believe that we will enter a stagflation of over a decade of recession or economic depression. Where would you position yourself? If the dollar is going to hyperinflate gold and silver will store wealth, but where do we invest or "spend" money if we the world is going into a recession and then depression?
I absolutely agree on what you said, Mr Robert. So, what advise do you have for fresh graduates that intends to move on to tertiary education diplomas, when I only earn SGD800 per month? I was thinking, for the next three years in my life, which I'll spend specializing in a diploma course of my choice, I would want to get ahead of the pack and get more financial literate than others. So the plan will be, after graduation, I will be ahead of others, in terms of financial literacy. Would you agree with me?
Some financial experts stick to the old rules of money and they swear by them. I think the opinions of these "experts" should be exposed and measured against the new rules. I might not be correct about this, but I think Suze Orman always mentions savings and getting out of debt and living below your means as well as Dave Ramsey.
Maybe if a comparison could be made between what they say and do people would understand better or at least be make them think.
I suppose the comparison between a world without borders (present world) vs. years past would be interesting. It could broken down further - import/export (how interdependent we are on others these days) & the currencies (how interconnected they are). I also would be curious to know more of the changes that have been done to hide knowledge from the unsuspecting man.
I watched a good video a while ago that talked about resources and I believe it was on GoldSilver.com I was amazed at how creative the American government is in hiding certain facts. More on this kind of stuff would be great.
Question: the highest order of the world is "creating" hyper-inflation to make people poor and hopeless. From now on, can we say 'in gold we trust' regardless what price is today? Guessing: perhaps in one day the funny money devalued, country bankrupted, and even Fed collapsed, what will be the foreseeable new wallet for those highest order? Thanks.
When discussing the old vs. the new rules of money, what type of information are you looking for which will help you advance your financial well-being?
One rule or should I say skill that is important to develop is asset evaluation skills. That people need to understand and accept they’re not born with a “Knack” for buying assets. I started in shares at 13, I brought based how impressive a company looked (I’d love to say there was more to my decision making but there wasn’t). Little did I know I was playing Russian roulette with my hard earned paper-run money. It wasn’t till I studied accounting in my late-twenties and reading finance books such as yours that I discovered more responsible in control investing
I’m looking forward to your other rules.
I think it's important to talk about how intricately our finances our woven into a global system. Also, it would be nice to hear what kind of new opportunities are available to us as the world shrinks.
Starting from scratch, just learning new rules…what do I do when I get my paycheck? Put it in the bank?...How much? I cash it…I spend it. How do I change this pattern? What should I do? I spend every penny on bills, food and gas and seldom go out or buy "DOODADS". People are stuck in the “old rules” thinking and a “new rule” habit needs to be formed. If putting money in the bank is worse than putting it under the mattress…what should I do with my only source of income at this time…my paycheck? What is the best way to save money from my paycheck to invest in assets? Its only a few dollars at a time. I need more fundamental education not concepts and leave me to figure it out for myself.
What do I need to do?
I need a thorough education. My parents were complete nitwits about money, always in debt up to their eyeballs, never had a clue how to stand on their own two feet. My grandfather supported them till the day he died.
As a result I hate taking any kind of risk, not wanting to think about even the possibility that I might be throwing money away. I don't gamble, but I also don't invest.
I need information to help me get past the old fears and get started on the way to being a "Rich Mom" rather than just a Mom who manages to pay the bills. Mental well-being will have to precede the financial well-being.
The most important thing is still my education! But it would be nice to get some ideas on where to start looking. My wife and I have been into real estate, and have had some success, but as the markets keep getting worse, should I be looking to put some eggs in another investment basket.? Gold/Silver?
WOW! I can only hope that in this book will teach us sound principles to advance our financial health! I am fortunate to be surrounded with many financially secure people. Most of them will not share their strategies. SO I continue to invest in my own companies and education... Will you please give us some how to's or Where to look or what to look for when... Etc????
THANK YOU
I believe protecting your purchasing power is important in today's enviroment. It seems hyperinflation is a possibilty, when they debase the current currency will they issue a new currency and does this allow them to keep the game going?
I think protecting your purchasing power is so important in this enviroment. I would like to learn more of what to expect during a hyperinflationary event which seems to be where we are heading after debasing the current currency would they issue a new currency? Does this allow them to keep the game going?
I am looking for information that would create my own retirement. For example creating an account that would sponsor my medical expenses for the rest of my life...another account that would create money for me to live on for the rest of my life...etc After reading a number of your books I understand the 30% idea...10% in each of the 3 piggy banks and I only wish I would have known 3-5 years ago but I have to focus on the future. I'm looking for a short term, mid term and long term plans.
Now that I have been studing the rules of money, I look for assets that will increase in value and that I can control most of the risk so that my finances are not at the mercy of a sales man putting my investment in something they know nothing about. also that it's important to keep your money moving and working for you.
In shaping these themes I think it is most important to site historical references, such as Grunch of Giants, how the FED came to be, a book on the choices Nixon was facing (not just the decision itself), and other relevant books that people can further their historical references, plus new suggested reading materials on where we are headed (outside of Conspirarcy). Keep it going, and thank you for sharing your thoughts.
We live in the Information Age. All kinds of information high (and lacking) in quality are available to use. I have found enough quality information, I believe, to point me in the right direction. What I need, more than information, are people. I need to be able to work with someone who knows how to take that information, turn it into cash in hand and, most importantly, is willing to share their knowledge. The information I want is where to start looking.
When discussing the old vs. the new rules of money, what type of information are you looking for which will help you advance your financial well-being?
I would like to know if real estate is a good investment even when prices are going down? I would like to learn more about the new rules and how to used them to feel financial secure. I would also like to know more about how the rules apply to investing in stocks and do you recommend investing in stocks at this time? I want to learn all I can about the New Rules!!
I'm currently a part time student at a university and it makes me laugh how important the professors think they are when nothing I'm learning is helping me with my current job or what I have learned from reading your books and material. Thank you for sharing your knowledge.
Well you have been preaching the old rules vs the new rules of money since Richdad Poor Dad....Which is great because the more I meditate on that thought....the more I start to see new things....I haven't read all of the books, but maybe a discussion on wave patters would be helpful....Your predictions in Prophecy were dead on...it was amazing....the 20-10-5 cycle in who took my money was great...I love to see your outlines of how you use wave cycles and patters (the Chaos Theory) to make your predictions.....I am sure all of this has been covered in the Predicting the Future DVD.....but I haven't purchased it......YET
First of all, let me say that I have heard and read about the abuse and depreciation of our currency from other sources than the ones I advocate: Robert Kiyosaki and Mike Maloney. To me, it just make logical sense that the more money you print at will, without anything backing it, will just decrease its value. (In today's world, more and more of it is created electronically, which concerns me for various reasons). The more rare something is, the more valuable it is-duh! Times like we are experiencing now, I feel more comfortable with tangible assets. I recently made a bold move and took all my money out of my 401k and bought some real estate with it, with the intent of using it as a passive income source. The way I look at it is, I took my money from one (investment?) that I don't have any control over, to an investment that I can have more control over. To me, inflation is like a cat and mouse game with money. Workers demand higher wages, then companies charge higher prices for things and round and round it goes. Without the value of products and services necessarily going up in value. I have not studied the history of fiat currency, but I can't see how creating more money at will can last forever.
I like the comparisons of old versus new on the level I can understand. I have explored enough to have learned that doing the new is exposing me to new RISK. Controlling risk is what I need to learn to convince my husband to invest--and yes, I am working my way out of debt, and trying to be creative to get out faster. I was a bit influenced by Think And Grow Rich by Napoleon Hill.But Rich Dad, Poor Dad series gave me the confidence to believe that even I could do this. I am looking for a course, or direction to follow ( MY OWN course)--but the education gives me the understanding and the ability to make tough decisions and stay the course. Thank you Robert!
Agree that gathering investors is of paramount importance. Therefore, learning marketing is side-by-side with that. And, then the question of how to "sell" any expertise I may have gained from my Rich Dad education, so that other investors trust what I am proposing -- for example, proposing that you put your dollars together with others, to gather the down payment for a multi-family property.
Another important piece of education and/or marketing (paper? website?) would be: getting people to understand self-directed IRAs.
Number three: Robert, in "Guide to Investing", you write how intensely complicated and expensive it is to be a selling shareholder, to get all the way to IPO. Think you can make that information understandable? Would such knowledge then make the process less expensive?
A loosely related matter: I know that Ben & Jerry lost control of quality because of taking their ice cream company public. Any hints on preventing such a hostile takeover?
Donna
I think that the work that you are doing in terms of sharing your knowledge is invaluable. I would like to THANK YOU for taking the time to share your understanding of the situation with us. I think that with the knowledge people have the ability to make their own choices, but without right knowledge one cannot make a right decision. I value your views and look forward to reading more. Keep up the great work!!
When it comes to the new rules of money I am looking for a way to gather investors. This is one of the most difficult endeavors in working with the new system. I have been told buy so many banks and venture capital firms that there is lots of money out there but no one is investing in the new markets yet. Does anyone see a new system for gathering capital in order to take advantage of fresh ideas based on peak oil, wavering currency and new energy production?
I'm looking for any info i can get. I beleive there is no bad info, only bad responses.
I would like to know the new rules of money and how I can use it in today's society.