Money Making Online

Based on Kiyosaki’s work

When the financial freedom is looked for, it is important to understand that the possibilities to reach it are reduced if we spend our time by minding the somebody else’s business. When we make it, we will probably be helping to enrich somebody else, while we trade our most important resource for money: the time.

We should learn how to mind our own business, because if we spend all the time minding the somebody else’s business, our financial statements will list our salary or the money that somebody pays us to make a specific activity or provide a specific service as the only income stream.

Most people are exactly in that position. And it is not necessarily bad. But the problems begin when we are tied to a consumption society which seduces us to spend out until the last cent we earn to live as slaves of a salary or a job. It is what is called the rat race. That is to say, the expenses eat up the incomes totally, and people sometimes spend even more than what they earn, by getting in debt with an indefinite quantity of bad debts.

Those debts correspond to some liabilities that are also expenses eating away at the incomes to such a point that a lot of people end up working for their banker or creditors although their daily activities correspond to a job that doesn’t have anything to do with the financial sector. It means, although they have a boss, and it is supposed they work for that boss, they really spend their time working to get money that finally will end up in the pockets of the bank.

But the worst thing is the impossibility of building assets when you are in this situation. In the rat race. The assets are the wealth source. If your only asset is your job or the house where you live, let me tell you this: you have absolutely no assets. Without assets it is very difficult to achieve financial freedom. I would say it’s impossible, at least in the capitalist world. Remember the assets are generally those that put money in your pocket, in a passive way. That is to say, you don’t have to constantly work and with your physical presence so the money flows. For that reason, I tell you your job cannot be an asset.

Act now! You need to begin to build your assets if you have none yet. Everything begins with a plan. There are some points here to begin:

1 - Elaborate your current personal financial statements. Write all the monthly revenues you have down, including your salary, rents or any type of passive income at the moment. And also, write all your monthly expenses down without forgetting anything. Then make the balance sheet among assets (they put money in your pocket every month) and liabilities (they take money out of your pocket every month). When you have done this, visualize your situation and establish the adjustments you should make.

2- Establish your financial goals. Define not only where you want to be financially in 5 years, but also you must establish where you want to be in 12 months. Your short-term goals are an intermediate step for your long-term goals.

3 - With their established goals, elaborate the financial statements you will have in 5 years if you end up completing the established goals.

With this information, we have enough mental fuel to move ourselves financially toward where we want to be. Now, we only need to act and perseverance. Go ahead!

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Robert Kiyosaki

Based on Kiyosaki’s work

One of the things we stress in this blog is the importance of the perseverance. Maybe it is a very simple concept but actually, the perseverance is the principle of the success in any aspect of the life. And of course, we need appropriate knowledge, appropriate actions and appropriate timing when we could have good luck helping us. But without perseverance, nothing works.

The road to financial freedom can be very long for many people. But, though this road is long, it is always possible to arrive to the goal if we are acting according to a master plan and fixing the detected errors on the road. The problem is when many people despair on the road and they start to run quickly. In this way, they don’t detect the errors and shortly they will be tired and disappointing. Finally, they will abandon the master plan.

The fundamental of everything on our road to financial freedom is the education. And we are not talking about a formal financial education. It is not needed a Financial or Business Administration degree to reach the financial freedom. What is needed is an appropriate thinking way. And it is achieved by an education you can obtain by yourself, for example by meeting the right people, reading the right books, checking your financial statements (meticulous and correctly), understanding what really are the assets, understanding which are the good debts and which are the bad ones, knowing the financial leverage and how to access to it, learning the words of the financial topics and being informed about what is happening in the world in order to detect necessities and opportunities.

Many people feel overburdened when knowing what should learn in order to have the appropriate mentality. And then they choose the worst option by making nothing at all. They prefer to continue as money slaves, working really hard in order to get money or suffering the consequences of not having enough money. They hope that maybe someday they will be very lucky or they hope that their pensions, their sons, the Government , or the company where they work will take charge of them in the future.

The road to financial freedom can be a 1000 miles road to walk by foot. And the only way to start to walk is: taking the first step. Don’t be overburdened by the distance. Don’t be overburdened because it could take you a long time. Just do it. Take the first step and design a realistic plan with short-term, medium-term and long-term goals and then focus yourself on reaching your short-term goals initially, because those are more realistic according to your current economic situation.

If you are a “debts slave”, your short-term goal will be to get out of debts as soon as possible. If you don’t get enough money from your job in order to cover all your expenses, your short-term goal will be to increase your incomes. Maybe you need a new job, or maybe you even could consider to get small assets that produce some additional dollars a month. If you are not able to make at least $100 extra a month with your initial plan, or to save them by cutting some unnecessary expenses, you are in trouble. Analyze. You can do it. $ 100 extra or $100 saved every month is something very simple. Doesn’t matter what is your current economic situation.

In the medium-term the goal must be to build assets. But don’t confuse yourself. Remember the meaning of assets according to the Rich Dad’s philosophy: Asset is something that puts money in your pocket. Usually, neither a car nor a plasma screen TV are assets. An asset could be a website making money by the advertising, maybe $100 extra at the beginning. Or a house to rent is an asset if what the tenant is paying is enough to cover the expenses of the property and besides you obtain a gain.

Start now to plan your financial freedom. No hurry. But don’t pause. Every day must have a small advance. A tiny advance is enough. Every time that you stop the process on the road to financial freedom, it will be lost time that you will never be able to recover and maybe you will need that time in the future. Just relax and walk slowly on your road to financial freedom, but don’t stop because you have difficulties or because the things or people distract you.

Maybe, you are one of those people who are surprised because the time seems to lapse very quickly. Probably also you will be surprised when you see the traveled distance on your road to financial freedom if you have walked perseveringly: No Hurry / No pause.

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Robert Kiyosaki

Based on Kiyosaki’s work

Currently, United States are in the middle of presidential campaigns again while there are reports of a fiscal deficit greater to the expected one and the candidates avoid the more difficult questions with regard to the financial situation of this country.

There is an inconvenient truth and the politicians don’t want to talk about it, maybe due to the shame that they would have to face if they would decide to talk with total honesty: the enormous costs for the budget caused by the aging of the postwar generation or baby boomers.

Medicare and the costs of the pensions will grow to unsustainable levels for the current fiscal system of the United States, and if the Government don’t take the necessary actions, then we are about to enter in a dark period for millions of people who are nearing their retirement age and other people belonging to the middle class, due to the necessary taxes in order to finance the inadequacy of funds.

That is to say, eventually we will see a financial massacre for the middle class that tends to disappear with devastating financial consequences for those who have their employments or their professional services as the only income source.

During years, the governments have hidden the truth. The people believe the politicians and the corporations will take care of them if they cannot by themselves in their old ages, when it is evident it won’t happen.

Unless we take the financial control of our lives, we could live some difficult times soon because our incomes will be exposed to the money thirst of the Government in order to solve the fiscal problems.

There is a big lie inherited from the industrial era: people must find a great employment with excellent benefits. Then, hopefully the companies or the Government will take charge of them with a pension. Maybe this was true for a while, but now it don’t work anymore. Right now we can see a lot of people criticizing the financial system because, according to them, it is made for favoring to the rich people while it is harming the poor people and middle class people.

Actually, the fault is not in the rich people or in the financial system. The fault is in the scarce financial education learned by the people in order to be able to take the financial control without depending on a salary only. The fault is in the ignorance that maintains the poor people in a hole with no exit while the middle class is sinking in consumption debts in order to buy things they don’t need instead of making investments or using the money to create some businesses.

Increase your financial IQ as soon as possible! Now, we only have two ways to make the things related to the money: the quick road and the slow road. Only two roads. And without financial education it is impossible to be in the quick road.

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Robert Kiyosaki

Based on Kiyosaki’s work

You want to HAVE a lot of wealth: a spectacular car, a big and beautiful house, a successful business, frequent travels, luxuries, exquisite food all the time. Who doesn’t want all these things? Yeah, almost all the people want these things.

However something happens: there are many people who want to HAVE wealth and there are few people who end up BEING really rich without having been rich since they were born and without having had a lot of good luck in their lives.

What is the difference between those people and the other ones? Knowledge? Yeah, partly. But only partly. The fundamental difference between those people and the other ones is who they are: their thinking way, their personality, the way how they control the emotions, their self-control.

They were not only focused on their desires of wanting to HAVE things, but they were focused on being the person who would end up having what they HAVE now. That is the principle of the things: concentrate on being the person that you need to BE.

Usually, when we are fat and want to lose weight, we design a plan that includes gyms and some healthy food. It is a to-DO list in order to end up HAVING less weight. It’s good, because it is always better to have a plan. However, sometimes we forget to work in who we need to BE: somebody who overcomes to the laziness and get up to work out, somebody who resist the temptation of a flavorful and fatty meal, somebody who has willpower to make the exercise routines day after day. Consequently, one month after designing our plan, a rainy morning we get up and say: “the physical exercise is not for me”, and all is over.

In the world of the money, the same thing also happens many times. We concentrate so much on what we have to DO to HAVE wealth and we forget to work on our BEING way in order to change our mentality in such a way that we can abandon the search of financial security by taking some risks to get the financial freedom.

That is why the idea of quitting the job and starting a company is so difficult for many employees who even have knowledge about business administration. They are terrified of the sensation. For this reason, they need to become other person. To change from being an employee to business owner is not only a work change: it is an emotional and inner change for the person.

The employees, self-employees, business owners and investors have different mentalities, and sometimes we can see some conflicts between these different people. For example: The employees discuss with the business owner because they want more economic benefits while the business owner wants more productivity.

You should concentrate on being the person that you need to BE with regard to the money: look for financial education, prefer the financial freedom to the conditioned security, take risks, understand that to lose is part of the process of winning, just focus your mind on the facts and not so much in the opinions of the people, think the business in a rational way, and not emotionally. BE - DO - HAVE. Follow that sequence every time and you will achieve your goals.

Tags:
Robert Kiyosaki

Based on Kiyosaki’s work

We all could agree: we have risks if we are going to create a business or make investments. Undoubtedly. If those things were not risky and you could always be successful, all the people would be safely rich.

However, the biggest percentage of the risk doesn’t come implicitly from the fact of creating a business or making investments. The true risk comes from the ignorance. And not only in the financial field, but in any aspect of the life.

The most bigger risk is be an ignorant person. If you try to create a business and you don’t worry about learning the basis (at least) about administration, marketing, finances, accounting, and computer science, your risk is big. It is possible you have success, but it will happen because you was lucky, not due to your skills as manager.

In the same way, if you make investments without understanding them fully, either in the stock exchange, in financial papers or in real estate, you have a great risk because the most probable thing is you are trusting blindly in the opinion of somebody: a newspaper, a magazine, a stock broker or your banker. And the opinions are only opinions. The opinions are not facts. The opinions can be guessed right or mistaken.

Many people criticize Robert Kiyosaki because, according to them, he doesn’t approve in his books the fact of going to the school. The truth is that I have read several of his books and I don’t think he doesn’t support the education. In fact, in his books it is frequently affirmed that in this information age, the education is much more important than never.

The other thing is the educational system. People confuse education with educational system. Our educational systems have not evolved. They are obsolete. The educational system is still teaching things to people in a passive way, without passion, boring. The students feel like in a jail where they inhibit their expression and their creativity. Besides, people are trained to look for employments that maybe won’t exist when they become graduated. Few schools are taking actions to prepare people for this new global world full of computer technology. Only few schools are showing to the youths all the opportunities that the Internet and the technology offers to them in order to do what they want with their lives, even if they are not Engineers or technical professionals. In fact, nowadays with Internet, some careers (like being a writer) can have a very important resurgence.

And we are not mentioning the financial education yet. It is rare to find it in the schools. Most of the young people continue graduating themselves with the mentality of going out and finding an employment where they can earn a lot of money to work there for many years, to sustain their families and finally become a retired with a guaranteed pension.

The problem is nowadays the job market is very volatile, the wages are lower than thirty years ago (adjusting the inflation), the families are not able to live with only a salary and the pensions are not the responsibility of the government or the companies anymore: it is our responsibility. And because the jobs market is so volatile, it is very difficult for us to maintain an employment during five or more years.

Why do the schools continue preparing people for a world that no longer exists? Why don’t they teach some basic business administration skills to the people in the high school? Why don’t they teach basic marketing lessons? Why don’t they teach to the students the abilities to manage the finances correctly by acquiring assets and avoiding liabilities? Why don’t they teach to the students strong basis of the accounting? Why don’t they make sure that all the youths learn the ecommerce basis and the Internet businesses? I don’t have concrete answers, but I think those issues are there because the schools have been bound to the government’s programs and the government is full of inefficient and slow systems with a lot of bureaucracy. While the information age is moving forward with constant acceleration (growing speed), the political system and the educational system are moving forward with constant speed (no acceleration), and this speed is not actually the quickest.

Nowadays, the true financial risk is don’t have the necessary abilities to take care of our own future. We have a true risk if we are trusting that we always will have an employment and a safe salary. The true risk is that our youths graduate themselves from the school and they find a very different world than the one they hoped to find: this could make a crude and suffering life for them. The true risk is not produced by creating a business or investing the money. The true risk comes by not being educated in the appropriate matters in order to make those two things in a way which you can minimize the risks. The true risk comes by not trying to find the financial freedom by fearing the failure. The true risk comes by looking for the security in a job by sacrificing our freedom (and sometimes our health). The true risk is the financial ignorance maintaining us living from one check to another.

Tags:
Robert Kiyosaki