Rich Dad Underground

Happy New Year!

2010-01-01T01:04:00.001-07:00

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http://johnseiferth.com Day 39 of the 39 Day Challenge. Happy New Year! A short and simple thank you to all who stuck with me through this challenge. I appreciate the comments and feedback. See you on the next challenge! http://johnseiferth.com

Merry Christmas!

2009-12-30T03:20:00.001-07:00

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http://johnseiferth.com Day 33 of the 39 Day Challenge. Merry Christmas! http://johnseiferth.com

Acheiving Your Goals by Using the PERT Method

2009-12-16T14:28:00.001-07:00

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http://johnseiferth.com Day 23 of the 39 Day Challenge. Achieving goals using PERT and the Critical Path Method. Blair Singer, author of Sales Dogs and The ABCs of Building Business Teams That Win, taught me an extremely valuable technique for setting and achieving goals. It is called PERT (Program Evaluation and Review Technique) and it is critical to ensuring your reach the goals you set for yourself or your business. Simply put, you start out in the future, at the point you've reached your goal, then you work backwards. Each time you work back a step you ask yourself the question "What happened just before that?" By using sticky notes on a wall or white board, you have the ability to move them around, add new steps between other steps, change the path of the goal, etc. It allows you to get extremely detailed about the steps you will take in acheiving your goal. It is very powerful and really takes the guess work out of setting a goal and working to achieve it. This process ensures you get what you want. To find out more about getting what you want and how to do it, visit http://johnseiferth.com. Enter your contact information and we will talk! http://johnseiferth.com

A Video About Nothing - A Seinfeld Homage

2009-12-16T11:21:00.001-07:00

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http://johnseiferth.com Day 22 of the 39 Day Challenge. A video about nothing. Jerry: They say, "What's your show about?" I say, "Nothing." George: There you go. (A moment passes) Jerry: (nodding) I think you may have something here. http://johnseiferth.com

Teenage Birthday Party - Watch At Your Own Risk

2009-12-12T14:26:00.001-07:00

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http://johnseiferth.com Day 19 of the 39 Day Challenge. Teenage birthday party. 14 years old. 35 of her closest friends... in our house. 'Nuff said. http://johnseiferth.com

Another Life-Changing Rich Dad Event

2008-11-03T13:56:00.002-07:00

Here is another update from the Rich Dad event out here in Arizona.

We had a phenomenal time and learned a TON throughout the weekend.

I tell you, there is NOTHING like a Rich Dad event. I've been to a lot of events, and nothing compares.

I believe this one was the best so far. It centered around issues and opportunities that are occurring in society right now.

The federal reserve, the environment, the shrinking dollar, inflation, recession, investing...

Survival!

There will be two products release later this year that you should look out for.

One is a highlight reel from the event. 45-60 minutes of the best moments at the event. Perfect for catching the high points.

The other is a full-length production of the event. Three to four hours of content that will cover every major subject we studied.

I'll have exclusive information on those products as soon as they are available for pre-order.

Stay tuned -

The Studying Never Stops

2008-10-25T19:22:00.003-07:00

I am in the back of the room at the latest Rich Dad event in Scottsdale, AZ. These events get better and better each time. I don't know how Robert does it.

In the last day and a half, we have studied the Mandrake Mechanism, the Federal Reserve System, R. Buckminster Fuller, The Dollar Crisis, PERT (Planning, Evaluation, Review, Technique), Synergetics, the dymaxion map, and a LOT more.

And that's just the first half.

The studying never stops.

A Human Touch

2008-10-03T16:11:00.002-07:00

It is amazing how a little personal attention goes a long way.

I just talked to two people that were so grateful just for the fact that I listened and was willing to help them.

What is even more amazing is how rare that is these days.

The Master Mindset - Emotions and Intelligence

2008-09-24T23:03:00.004-07:00

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During my time at the Rich Dad Company, I became friends with many of the advisors to Robert and Kim Kiyosaki. One of the advisors that I learned the most from is Blair Singer. He wrote the Rich Dad Advisor books, Sales Dogs and The ABCs of Building Business Teams That Win.

He is also one of the MOST incredible speakers I have ever heard. I attended one of his two day seminars FOUR TIMES in the last six years. He motivates, inspires and teaches real-life concepts that immediately produce results. I am very proud to call him a friend.

One of the most significant and simple lessons he taught me was the concept of emotions vs. intelligence You see, these two very human traits have an inverse relationship. In other words, when one is high, the other is low, and vice versa. This is evident in a number of every-day examples that I am certain we all have been through.

Have you ever heard someone on the radio that is willing to do ANYTHING to get a pair of concert tickets? Eat bugs, streak through the park, sing karaoke.

Most of the time, their emotions are extremely high. And needless to say, their intelligence is low. Duh! Would they normally do those things? Maybe.

Another example is the ubiquitous fight with a loved one. When emotions are running high, we tend to say some pretty stupid things. And we regret it later, when our emotions are low. We realize that at that moment, our intelligence was lower than a snake's belly.

Anyway, I wanted to share this important but simple concept so you can recognize when this is happening. What you do at that point is your choice. Leave a comment if you found this valuable. I want to hear from you!

The Power Of Social Proof

2008-09-17T12:28:00.004-07:00

I am on day 23 of my internet marketing career and already I've replaced the income from my J-O-B.

That's right.

In just under a month, my income is at (actually slightly above) what I was making as an 'E - employee' at The Rich Dad Company.

What does that say about the education I received while working for Robert and Kim Kiyosaki for the last six years? To me it says that I am one of THE LUCKIEST people on the planet.

Not only did I have the opportunity to study side-by-side with Robert, Kim and the rest of the Rich Dad team, I got the opportunity to jump out into the real world and put that education to work.

One of the most significant things I've learned so far, is the power of social proof.

What is social proof?

It is when someone well known in the circles you are looking to be successful in endorses you. I have an advantage over most others having Robert and Kim behind me.

However, social proof can come from anyone. And it is often just as powerful.

Check out this video Nic Mitchell made (without my knowledge!) and posted on YouTube.

Now THAT demonstrates the power of social proof. And the power of leading with the giving hand. Nic didn't ask for anything in return (although, I have recorded a response video that he does not know about yet).

Why Recognizing Feedback Is Critical To Success

2008-09-15T11:30:00.005-07:00

Robert just submitted an article to Entrepreneur.com that captures, in a concise, easy-to-digest fashion, the importance of recognizing, hearing, and acting on feedback.

When building a business, one of the KILLERS that often results in a failed business, is the inability of the leader to accept feedback. Remember the quote from rich dad?

"If you are the smartest person on your team, then your team is in trouble."

It is this attitude that causes so many businesses to flounder and ultimately end up in the toilet.

Each of us is receiving feedback every minute of every day. Winners know how to recognize and act on that feedback.

Seif

True Flexibility... Literally

2008-09-06T08:46:00.003-07:00

Talk about context before content...

Check this out.

This Time It Is For Real

2008-08-18T12:58:00.003-07:00

Remember the Apprentice Challenge? That was over two years ago, when I was still working at the Rich Dad headquarters in Scottsdale, AZ.

You heard me right, I no longer work at the Rich Dad headquarters. As of 31 July, I am officially on my own, building my own business.

I still do some work for Rich Dad, but remotely, as a consultant.

I've also moved myself and my family about 120 miles north of Scottsdale to Flagstaff, AZ. It has been our dream to move here for 3-4 years now (ask anyone at Rich Dad and they'll tell you how I've talked their ears off about this for a long time).

I want to be up front about how this all came about.

For the past six years I've managed the online presence (IT, web, RD Underground, etc) as well as the home office network for the Rich Dad Company. During that time I've received what I consider to be the most valuable education anyone could ever receive.

However, there was something I was missing. Sure, I could do the IT work and was extremely successful at building and fine tuning the systems, but there was a problem.

IT was not my passion.

As most of you know, I love making videos. Especially behind the scenes, fly on the wall-type videos of stuff no one else gets to see.

So, I decided to move out of IT and into media production. Well, my skill level and experience did not allow me to do that full time at Rich Dad.

Therefore, the decision was made for me to move on, and do things on my own. This is what I am calling 'The REAL Apprentice Challenge.'

Robert and Kim were incredibly supportive and encouraging. It was not easy to leave the folks at Rich Dad that I had come to think of as my family.

However, I believe it was the best thing for me and the best thing for the company. We both needed to grow beyond our current context.

So, here is the deal. I have teamed up with a friend of mine who is an incredible entrepreneur, online marketing expert and teacher. He and I are going to be building a team of people dedicated to getting financial education into the hands of the people that are ready to learn.

If you've subscribed to this blog, then you will receive a separate email explaining the whole thing.

In the mean time, I am going to keep you all posted on my progress. Hopefully via video, like the first apprentice challenge. The only difference is, this one is for real.

Do or die.

Disclipline pays off

2008-08-14T23:43:00.006-07:00

What I see today is that this Silver future contract what I plan to buy is today worth about 2 USD less than yesterday... and it basically means that if I had bought it yesterday (14th of August, as I have already 15th of August and now is 9:43 in the morning) I would have got today a new margin call... But I didn't :-)

SLV finished yesterday at price 14.06 USD... silver futures prices show me that silver will go to 12.5 or near today as September 2008 futures contract shows price 12.525 USD per ounce.

My focus from investement side is definetely Silver, so keep on commenting what my real life actions and result are. But my day-to-day activity is building up a Rich Dad's Franchise in Baltics.

Keeping fingers away from Investment account

2008-08-14T04:34:00.006-07:00

One of the reasons why I write this thing here now, is to keep me accountable and help me have some discipline :-)

So what's the problem?

The problem is that I got margin call when Silver was somewhere around 14.44 USD. Now in couple of last days it has gone up to 14.86... So I decided not use anymore strategy called buy and pray or wait and lose :-p

But in the back of my head my Little Voice is still telling "Jump in" or "Get an new position, because otherwise you will miss out the opportunity." etc.

So I decided that my strategy is:

Buy when Silver price goes over 14-day moving average. And where I look this information is http://www.lbma.org.uk/ and based on that create my own graph.

Sell when Silver price goes under 14-day moving average.

And I will change the strategy after Silver price will go over 200-day moving average.
In this point the strategy will be:

Buy when Silver price goes over 200-day moving average. (This last happened 9/20/2007)

Sell when Silver price goes under 200-day moving average. (This last happened 8/5/2008)

So in the end I will not have many buying/selling going on... and for selling probably I can put a Stop in place. I now found out how I could do that... I just need to try it out, how it works in real environment.

Last thing: I will continue with futures. The main thing why I like the futures is that gain or loss is accounted every day. So I can't hide myself somewhere and "decide" in some point that now I'm going to be a long-term investor, when my actual idea was to be a short term speculator.
The second point is that when things will go as planned and I create some money out of this strategy I can start removing the money from investing account and move it into other deals.

Creating a new Strategy for benefiting Silver futures

2008-08-12T05:27:00.004-07:00

Yesterday I wrote "I got a Margin Call on Silver Future position"

This is not End of Game situation for me. The good thing is that I have taken into account Robert's Big Idea that it's useful to move from 'E' or 'S' to 'B' first and then to 'I'.

In this point I'm talking about CASHFLOW Quadrant. The ones who don't know it yet, I will give the meaning of letters... To understand it better get a book called CASHFLOW Quadrant from Robert T. Kiyosaki and read it.

So I'm at the moment for various reasons in all of four quadrants.

In 'E' I'm just for one reason - my company hired me with minimum possible salary so I get to go to the doctors for free, at least that's the idea. It works with the family doctor but not with specialists as these guys have long waiting lists but it's possible to pay yourself and get the help needed same or next day :-)

I'm mainly in 'S' right now. And focusing of building up the Rich Dad Franchise here in Estonia, Latvia and Lithuania.

And I have some things going on I would call 'B' , at least from idea side. I have put up some IT systems where I collect monthly service fee, but as nothing happens mostly - it means these things work without me, then I don't have spend time other than writing Invoice once a month.
OK, in some rare case I have to act really fast and fix or update something.

And the 'I' is left. Here I'm with my learning how to invest... trying out things... like this Silver Future contract. Now I know from my experience what is Margin Call :-)

So the good thing is that nothing bad happens with me after this last deal... I still have money for living expenses and food and all that... so I will put some money which comes in every month to my investment account and jump in again :-) This time being smarter again... and it's all pre-tax money.

Now I will take into account more also market movements with my new strategy. Probably get burned again, but will learn faster and more :-)

I got a Margin Call on Silver Future position

2008-08-11T09:07:00.009-07:00

When I first talked about "Margin Call" and explained what it means to my girlfriend she understood that someone will call me say something like this: "Peeter, thank you for your money. You don't have it anymore."
The real truth is that no one calls you - just there is no asset anymore and no money also...
I have had two earlier posts on this:

So what happened?
After writing "Background story about buying Silver" in some moment I changed to Silver future from SLV position. First I bought one Silver Mini-Future contract which was approximately for same quantity of Silver than I had in SLV before, so for 2500 ounces. Then it felt good and I thought - let's take some more risk and I changed to one Silver Future contract, postion for 5000 ounces.

So bacically to make it simple, I put 20 000 USD to my investing account and did these earlier mentioned deals. Today just some moments ago I have 4054,69 USD on my account and no position in anything.

Couple of thing I didn't take into account:

Silver may go down in price. OK, I read a lot of articles about the price in future... and all those suggested rather higher prices... I even read a realistic article that the price should stay between 15 and 30 USD and hoped for 30 :-p
As long as Silver stayed above 15 USD I had enough funds to cover this position in my account. Today it went under... at least I see SLV price now 14,44 USD.
I didn't take into account that the Exchange NYMEX will lower the Margin needed... I went in knowing that it is 8000 USD and I thought that when my position is worth less it gets sold automatically. They lowered the Margin needed to 5000 USD and as I found out now it got sold automatically when I had 4000 USD left in my account. Good that I didn't had any other assets on that account :-)
I had no stop order on place... accually I even don't know how to put this into place :-/

Now I can say this was a costly wake-up call. I better start learning more...

At this point I have the plan to add some funds to this account and buy a new position in Silver Futures when Silver price will go over 14-day moving average or 200-day moving average whichever comes first. So I will at least have some kind of strategy other than buy and pray.

At this moment I'm looking this information at http://www.kitco.com/charts/techcharts_silver.html
And just now I also found out how I can create same graph :-)
Just need to take the information from http://www.lbma.org.uk

Gaming in Scottsdale at this time

2008-06-25T15:19:00.003-07:00

RichDad goes Global by Franchising

2008-06-24T20:08:00.002-07:00

Just look at the video and find out more...

Success Is Painful

2008-06-17T14:50:00.006-07:00

What Do Getting Into Shape and Building a Successful Business Have in Common?

Pain.

Believe me, I know first hand. Having helped build the Rich Dad company's IT infrastructure from the ground up and having gone from 28% body fat to just 14% in just 12 weeks.

I understand the meaning of the word pain. I understand what it means to push through the pain. To endure the pain.

The question is: Do you have what it takes to push through the pain no matter what? To see your goal so clearly that no amount of pain will stop you.

There were times during my 12 week training program where I said to myself, "What in the $^#& are you doing this for? What were you thinking?"

Each time those questions came up, I had one answer for myself, "Because this is what your goal was. This is what you told yourself you were going to do."

It also helped that I had announced my goal to the entire team at Rich Dad at one of our Tuesday Morning meetings. Once I did that, I was committed. I had to push through whatever pain the trainers threw at me.

The same goes for building a business. Is it always fun and games? Hell no! Building a business is painful. Sticking to a goal of making your business successful is sometimes painful.

The bottom line is that most things that are worth doing, are painful, or at least scary.

Imagine if climbing Mount Everest was as easy as a walk in the park? Then everyone would do it. In fact it is extremely difficult, requires a ton of preparation, a lot of pain and sacrifice. That is why so few people go through with it and reach the ultimate mountain climbing goal of standing on top of the world.

The same can be said for successful businesses. Imagine if it were a walk in the park to build a company like Apple? Then everyone would do it. There would be world-class companies on every corner. But that is simply not the case.

Imagine what Steve Jobs went through when the board of directors kicked him out... of the company HE FOUNDED. Pain? I guarantee it.

The caterpillar emerging from the chrysalis goes through an incredible struggle, an enormous amount of pain. The goal? Flight.

Talk about motivation.

Are you ready to step up and endure the pain you will need to push through in order to reach your goals?

Need vs. Power

2008-06-12T14:21:00.004-07:00

We just got out of a meeting with Robert and Kim where I learned a valuable lesson. The relationship between a person's need and their power.

So, here is how I understand it: when your need is high, such as you are in a position where you need the money, or need the job, or need a favor, you power is, as a result, low.

*Geek Alert*

I kept thinking about the scene in Star Wars Episode IV where Luke has to sell his land speeder because he is about to leave the planet forever and head off to Alderan with Obi Won Kanobi.
He is disappointed at the price his speeder demands due to the fact that a new model was just released. His power in the negotiation was very low because his need was very high.

I have experienced the same thing, but on the other side of the deal.

When I walk into a car dealership, I am constantly talking to myself, saying "You don't really need this car. It is just fine if you leave here driving the same car you did when you came in."

When I am in that frame of mind, my power shoots through the roof! There is no pressure. The sales person has nothing on me because I am more than willing to walk away.

When you are negotiating a sale, or attempting to recruit someone into your business, being at low need gives you all the power.

The #1 Skill of an Entrepreneur...

2008-06-12T10:51:00.003-07:00

... is the ability to sell. Watch as Robert speaks with Sara Nelson of Publishers Weekly about the importance of learning how to sell. He talks about how he does not consider himself an author, but an entrepreneur whose responsibility it is to sell his books.

Hanging With Mike Dillard

2008-06-01T09:31:00.004-07:00

This weekend I was invited to be a student at the MLM Traffic Formula 101 Live event in Austin, Texas, USA.

Mike Dillard, who wrote MLM Traffic Formula (and many other books), has become a great friend and mentor over the past few months. He has provided extremely valuable lessons, feedback and advice that have changed the way we think about internet marketing at Rich Dad.

Being here as a student has been eye opening, to say the least. I have an entirely new appreciation for how effective internet marketing is done. And how much I don't know!

Here are a few of the basics:

* Your list... is everything.

* Establish a relationship with the people on your list - Speak to your contacts as individuals, not as a group

* Provide overwhelming value and education

* Be real - People can spot BS from a mile away

* Create systems that leverage your content

I am extremely excited about what I have learned so far and I am working very hard to implement it.

John

p.s. The photo above is of Mike's 2006 Aston Martin Vantage. He was gracious enough to let me sit down and fire it up last night at his house. Amazing!

The Psychology of Winning - Part 3

2008-05-28T12:52:00.000-07:00

The Psychology of Winning - Part 2

2008-05-22T11:20:00.002-07:00

The Psychology of Winning - Part 1

2008-05-21T11:02:00.000-07:00

Generation Rich Dad Invades Europe

2008-05-21T10:19:00.001-07:00

The Athlete Within - Episode 6

2008-04-21T08:48:00.001-07:00

Printing money by Federal Reserve in US and European Central Bank in EU

2008-04-14T13:44:00.006-07:00

First I heard about this topic from RichDad Insiders. Then I heard it again and again from different sources... most interesting story's have been when Mike Maloney is talking...

Today I would like to share with you two graphs:
M3 (money offering) of US Dollar:
Source: Seeking Alpha
M3 (money offering) of EURO:
Source: European Central Bank

What we see here?
Basically we see here that there is today 20% more US dollars and 12% more EUROs in circulation than one year ago!!!
Both of graphs show how many percents more currency is in circulation compared to a year ago.

To be honest both currencies have lost more value as these percents because central banks have sold at the same time also their assets - so there is less and less assets backing the same number of currency.

The Athlete Within - Episode 5

2008-03-11T10:24:00.001-07:00

In this episode, Chad Ikei walks through John's supplement protocol.

Background story about buying Silver

2008-03-02T02:01:00.004-07:00

Few days ago a wrote the story "Silver is going up :-)". But probably you are not so interested that somebody is getting richer, but more like how is somebody doing it... So I would like to share with you the background story what I had go trough to buy this silver...

First I got the idea...
Many times I heard Robert T. Kiyosaki talking about Silver... First time when I heard it, I was like ok... and did nothing. When I heard it again and again I got more interested about Silver... but I didn't find ways to buy Silver here in Estonia... Finally when I visited New York in end of 2006 @ The Real Estate Wealth Expo (as volunteer for RichDad company) I met also Mike Maloney because he was with hes companion out at the fair. Normally they sell Silver & Gold through their web page, but as I live in Europe and they only deliver in US I convinced them to sell me some Silver right away. But I was there with my small bag (which I carried as hand baggage in air plain), so I couldn't buy much anyway. Second problem which I had was that I didn't had enough cash with me... so we made a deal that on the second day I will bring some cash and they bring me some Silver. Then I had to get the cash... For me it was obvious that I can go to ATM and take it with my bank card... but it was not so simple at all. In Estonia it's possible to get from ATM pretty big amounts, but in US most of ATM only allowed to take 50 or 100 USD max. So I searched in Manhattan some bank offices where I could take bigger amounts at once... Finally using all my three bank cards (and three different ATM machines) I got the amount out what I needed... and I got my first Silver in the next Day :-)

This part was more or less not so hard... but I wanted more... so I did some research here in Estonia and found two companies which could deliver Silver for me. BUT there were problems... they have to add VAT (18%) to the price. OK, I figured out that I could buy Silver to my company and get the VAT back from Tax Office. BUT then there was second, much bigger problem... they would sell me Silver but wouldn't buy it back. The reason was that one of these companies sells Silver mostly as gifts and second as material for production companies and they have their own sources where they buy Silver and their clients would not accept Silver from anywhere else... (question of trust raised up).
And every time they suggested to my that I should rather buy Gold.

In some moment I heard about SLV (stock index). So made some research again... read about it's background... who manages it... who controls it and etc. ..and finally also how could I buy it.
That sorted out I had to decide which entity I will use to make the deal. Taking account many thing I choose one. Now I had open an investing account for that company. I had to fill about three formulas... and I made a mistake there, so this had get corrected afterwards...

Finally I was ready to buy SLV.
But how to do that? I transfered money needed for this deal into brokerage account. As I had never bought any stocks from US market I didn't know exactly how to fill the purchase order... so I called them. First I got the answer that I should still enter my order manually into their system at their web page... but after more questions this guy on the line says: ok, actually it's possible to make purchase orders over the phone also... "Yes" I thought "let's do it." He wanted to know how much I want it... I said the amount in Estonian Kroons (as I had Estonian Kroons at my account) which I wanted to use for this deal... he was confused. After some thoughts he accepted that he should calculate for me this amount into dollars and then say how much SLV I get... but before doing the deal, the broker found out that it's my only money at this account...

Stock broker tried to convince me that I should have well diversified portfolio.
So I had explain this guy that I'm sure what I want to do... and that no, I don't want to come to their counseling before... and once again that YES I want this SLV (Silver stock index). After 15 minutes of this call I finally got what I wanted :-)

Today I can say that you have to know yourself what you want, because the brokers try to mislead you all the time.

Silver is going up :-)

2008-02-28T21:40:00.006-07:00

I feel good...
Why?
Because I listened 2008 Predictions video - Part 4 of 4 in the beginning of this year at richdad.com.

Also I read often Mike Maloney's web page GoldSilver.com

I also have bought some silver and one ounce of gold in 2006...
But the Best thing what I did was buying more silver @ 14th of January 2008...
Do you remember the story Why I sold my rent condo?

What it has to do with this story?
On 14th of January I put all this money into silver... and silver has gone up from that day approximately 18%.

Unfortunately in European Union its not good idea to buy silver as metal because of VAT which would be added and because of poor opportunities to sell it later... so I had to buy it as index stock (SLV is the symbol). But SLV follows the price of real silver quite good :-)

The Athlete Within - Episode 4

2008-02-21T08:02:00.000-07:00

Back by popular demand...

Prediction Video #4 Posted on Ron Paul's Site

2008-02-17T11:22:00.002-07:00

I just received a Google Alert that pointed me to the Ron Paul for President site where they've posted part four of Robert's 2008 prediction video. This clearly demonstrates the power of social networking.

2008 Predictions - Part 4 of 4

2008-01-30T07:30:00.000-07:00

This is my favorite predictions clip. I have known Mike Maloney for a few years now and he never ceases to amaze me with his knowledge of economics, gold, silver and currency. Facinating.

2008 Predictions - Part 3 of 4

2008-01-30T07:27:00.000-07:00

Here are predictions for 2008 from Kelly Ritchie, Robert Kiyosaki's advisor on franchising and systems.

2008 Predictions - Part 2 of 4

2008-01-30T07:23:00.000-07:00

Here is Kim Kiyosaki's take on 2008 and what she sees coming this year.

The Psychology of Winning

2008-01-19T09:16:00.000-07:00

This is a preview of a three day seminar coming up in April called Rich Dad's Business School for Entrepreneurs and Investors: The Psychology of Winning.

2008 Predictions - Part 1 of 4

2008-01-18T16:47:00.000-07:00

In this clip, Ken McElroy, Robert Kiyosaki's advisor on real estate, gives his predictions for 2008. It is interesting to hear comments on the economy from the perspective of a professional real estate investor. You will NOT hear this stuff on CNBC, CNN or Fox!

The Athlete Within - Episode 3

2008-01-16T09:28:00.000-07:00

Two days with accounting :-)

2008-01-09T14:51:00.000-07:00

I haven't wrote about it yet, but something happened end of last year (few months ago) which is changing everything in my life...
I got an job offer to do a project in an accounting company. I refused, but made a counteroffer: give me ownership in this company and count me in.
So they (this small company had 3 owners) discussed it and then it happened: they welcomed me into their team :-)

My role in this company is now to develop everything: their working process, change the software etc. I started to prepare these things end of last year (in December) and now back to the title of this posting: it has been two great, I would even say fantastic days working with this team (with me now there is 6 people). I honestly have to convince that I never have worked in such a organization with so good working climate. It's just fantastic. I'm already waiting to get back to office... (what I can do Friday, as I have to do an exam in my university Thursday in another city) .

Why would somebody be so greasy that they would give away ownership in their company?
With this concrete example I can explain that.... in 2006/2007 I made my Final Paper for my bachelor studies at Estonian Business School. I made it about financial accounting and it's future opportunities using more IT possibilities. The instructor from university side was Enel-Eha Ristkok. At the same time she owned this particular accounting company. So basically this making of this Final Paper (research and discussions) built trust between us. So now she asked me to come and bring it into reality what I wrote... And also she is in my Cashflow Club :-p

Basically we have now an accounting company where people understand the logic behind Cashflow game.....

And as Robert Kiyosaki wrote somewhere 6 habits of getting rich and staying rich, I remember the first one: Hire an accountant. Now I have team of accountants :-) (some with experience more than 20 years).

The Athlete Within - Episode 2

2007-12-20T20:27:00.000-07:00

You asked for it, so you got it. Enjoy!

Rich Dad Paintball Day

2007-12-16T09:52:00.000-07:00

Join us for some team building on the paintball field!

Talk About Putting Yourself Out There...

2007-12-08T11:55:00.000-07:00

This is the premier of a web series called The Athlete Within. I am terrified that this is out there, but we'll see what the precessional effects are. Enjoy -

I Know What I Need To Do

2007-11-26T11:34:00.000-07:00

First of all, thank you to everyone that commented the last time I posted about my situation. It is very humbling to know that so many of you out there are concerned and interested in what is happening with me (I've never received more feedback on any post). It is like I have a worldwide support system. Thank you.

After a lot of talking, studying, searching and listening, I know what I have to do and it is simple. I have to do what is in my heart - what makes me feel good - what attracts more good. It is so easy to get stuck, isn't it? It is so easy to get blinded - just going through the motions every day. It is easy to forget what makes you happy and what draws more opportunity to you.

I don't know if I am making sense, but to me it is simple. I came to Rich Dad five years ago. At that time we were launching the (now previous) new web architecture. It was horrible. The team was bad, the technology was bad, the position I was in was bad. Since that time, I have been striving, pushing, cajoling, begging, planning for a replacement architecture. Well, that new system was launched at the beginning of this month (November 2007).

I commented in our Tuesday morning meeting following one of the longest weekends of my life that I was feeling a bit of postpartum depression. We had given birth to our baby. A baby with a five-year gestation period. I was whipped. I was done. Bucky Fuller talks about precession - the "side effects" of striving for a goal. In all cases, your true purpose is not in reaching the goal, but in the precessional effects of reaching the goal. This is why when a goal is reached, you feel depressed or unsatisfied. That was not your true purpose. Your true purpose was the precessional effects you created along the way.

That being said, I truly believe that a precessional effect of launching the new web system was me realizing my excitement and love for video production. And what I have realized in the last few weeks is that I need to follow that passion. In fact, just by making that known to people around me, more opportunities have come up (I may have the opportunity to work on a filming with Donald Trump on The Apprentice set in Trump Tower). The magic is beginning to happen again.

I am encouraged. I am ready for a change. I truly believe that the next big leap is straight ahead.

Special Event with Robert Live

2007-11-26T11:06:00.000-07:00

Some friends of mine are sponsoring an event on Saturday 1 December in Mesa, Arizona. Robert will be speaking at the event about the B-I Triangle, being an entrepreneur and the number one skill of every entrepreneur - sales.

I am proud to be associated with the folks that are sponsoring this event. They are long-time Rich Dad students and have been through a lot of the training with me. I am excited also to be a part of their group in this venture. Please take a minute to learn more about the group and the event they are presenting. It will be a great day of learning and fun.

Self Defense Class with Robert and Kim

2007-10-11T07:59:00.000-07:00

Time to Open Up

2007-10-10T13:46:00.000-07:00

As you can tell by the image, I am ready to be completely transparent with you all.

Things are not good. Each month, my wife and I are in the hole deeper than the month before. We have had medical expenses in the past few months that have really taken us off our normal routine and they are consuming us. I am also dealing with corporate taxes right now (due next Monday) with a new bookkeeper and a new accountant. We are also dealing with a refinance on our home (5-year balloon due early next year), which we did not expect to be in this long. Add on top of that everything that is happening at Rich Dad right now (the impending buy-out, new web site architecture due on 28 October, and many, many other projects that are just as important), and you have a recipe for depression, anxiety, and despair.

On the good side, I have never had so many opportunities for business and personal growth in my life. I am learning how to be a television and film producer from our in-house expert, Richard Taylor. I have several opportunities to expand my business outside of Rich Dad that could be huge depending on how they go. I am ready to launch a documentary series on the health and fitness process I have been going through since May of this year. My kids are doing incredibly well in school and their extracurricular activities. My wife is pursuing her passion by volunteering at a local restaurant, just so she can learn from them. Robert wants me to be the designated teacher for Rich Dad Education. Etc, etc, etc.

So, what is wrong with this picture? Robert mentioned yesterday a story from R. Buckminster Fuller who said to himself in 1927, I am going to stop working for money and do what God intended me to do. In focusing on my purpose, the money should follow...and it did. Robert made the same decision in 1980...and it worked for him as well. Is that what I need to do? Am I focusing too hard on the money? Am I attracting more of what I don't want?

Cashflow 101 in Tallinn

2007-10-10T13:06:00.000-07:00

Last Friday we had highest amount of people, 40, playing Cashflow 101 at the same time in the same place :-)
Most of them were new players... we had 7 games in use. So I was already worried about the amount of old players who could teach... but finally we had 8 of them - so each table had one + I was everywhere where were problems with translations or understanding of rules.
But now to the problem - we have to find a bigger place in the future... will see what we will think out. So far all the games have been free for players as I have found places for free to use... as a proof I have recorded a short video clip:

As a Drummer...

2007-10-04T13:20:00.000-07:00

I can truly appreciate this short clip.

Economics Study Group with Robert - Part II

2007-10-01T09:22:00.000-07:00

Here is part two of the study group I participated in last week with Robert. Check out the post for Part I for links to download the printed materials.

Economics Study Group with Robert

2007-09-26T18:07:00.000-07:00

Robert called an impromptu meeting today to study an article from a newsletter he subscribes to. The newsletter is Richard Russell's Dow Theory Letters. You can download the section we studied here. Part II of the meeting will be posted soon.

Rich Dad in Poland

2007-09-22T13:29:00.000-07:00

Addicted to Poverty?

2007-09-11T15:02:00.000-07:00

The First Step

2007-08-31T10:44:00.000-07:00

I received this great article today from Jack Canfield called "Good Things Come to Those Who Ask". Here it is:

Asking for what you need is probably the most underutilized tool for people. And yet, amazing requests have been granted to people simply because they've asked for it!

Whether its money, information, support, assistance, or time, most people are afraid to ask for what they need in order to make their dreams come true.

They might be afraid of looking needy, ignorant, helpless, or even greedy. More than likely, though, it is the fear of rejection that is holding them back. Even though they are afraid to hear the word no, they're already saying it to themselves by not asking!

Do you ask for what you want? Are you afraid of rejection?

Consider this: Rejection is just a concept. There is really no such thing as rejection! You're not any worse off by hearing no than you were before you asked. You didn't have what you asked for before you asked and you still don't, so what did you lose?

Being rejected doesn't hold you back from anything. Only YOU hold yourself back. If you are told no, ask for what you'd have to do to get it, or ask again at another time when the circumstances have changed. Ask if they know someone else who might say yes. When you realize that there's no merit to rejection, you'll feel more comfortable asking for things. But you may need a bit of help learning how to ask for what you want.

First, ask as though you expect to get it.

Be confident in your request coming from a perspective that there's no reason why you wouldn't get it. Or they say no, you can ask them why, or what you would need to do to get a yes. You might need to form a better business plan before you will get a loan. You might need to take a course in computers before you will get a promotion. You might need to spend more quality time with your family before you will get the loving support you need. By getting this feedback you are able to make adjustments and ask again with better chances of getting a yes.

Second, assume you can get what you want if you only ask for it.

You want a window seat? Assume all you have to do is ask for it. You want an ocean view? Cheaper tickets? A scholarship? A better deal? Just ask for it as if that's all you have to do to get it.

And finally, be specific about what you want or need.

Do you want to make $5,000 more a year? Then don't just ask for a raise. Ask for $5,000 more a year. Vague request produce vague results. Don't just ask for more time with your spouse, ask for a date on Friday night. Don't ask for help on a project, ask for what you want that person to take care of.

Getting a good perspective on rejection and learning how to ask will make a world of difference for you as you work toward your goals. Practice asking and you'll get very good at it! You'll even speed your progress by getting what you need, or improving yourself in order to get it later.

Make a list of what you need to ask for in all areas of your life, then start asking!

Jack Canfield, America’s Success Coach, is the founder and co-creator of the billion-dollar book brand Chicken Soup for the Soul and a leading authority on Peak Performance. If you're ready to jump-start your life, make more money, and have more fun and joy in all that you do, get your FREE success tips from Jack Canfield now at: www.FreeSuccessStrategies.com

How I made a sale (again)

2007-08-29T09:14:00.001-07:00

One of my (small) businesses is company called Kliko Safety, which deals with fire safety. You know... these red thing on the wall - 6 kg powder fire distinguisher is the most sold product :-)
But now to the sales... often I get mails where somebody ask about the price at certain quantity. They except a sales offer from me which points out the price. Most of the times when I do that - send back an e-mail with the price then I can already be sure that I never hear from them again...
So what I do differently and did again today?
I send a reply with only one question: How much do you want to pay?
Normally I don't get a reply to that kind of e-mail, but I call them few hours later and ask if they have decided how much they want to pay... they are always supriced (probably because normally you don't hear that question if you buy something). Then a hear a story that they sent this e-mail with price question also to other companies. Sometimes they have some replies, but mostly not yet... When they have I ask what others offered, if not then the question remains: when you need them and how much you want to pay? When will probably answered like yesterday (as they got a warning from the fire safety control person) and how much get's answered with much higher number that I would otherwise offer.
At least here, in Estonia, people are little bit shiny and they don't want insult people by asking a very low price... and this is okay for me :-) They are happy, because I cared to ask from them and I'm happy because I get more payd than otherwise.

Tightening Up: An Update

2007-08-28T10:21:00.000-07:00

Well, I presented a "job description" (I hate that term) to the leadership team last week. Here are some snippets:

- Establish design guidelines for all web environments
- Maintain consistency across all web sites
- Continue to drive a paperless, virtual, global office environment

- Create and execute campaigns that establish and foster long-term relationships with our customers/visitors/members
- Optimize buying process on all web sites ensuring maximum conversion from visitor to customer

- Create edgy, inspiring and captivating online media that will drive return traffic and memberships
- Create new series content for INSIDERS that will keep members engaged

- Create and drive the use of blogs, web content syndication outlets, and video channels

This gets me out of the day-to-day IT support tasks that we can either bring in someone to handle or create systems for. In doing that, it allows me to be much more creative and to actually drive and measure value. I have not heard anything back yet. We'll see what they say...

A Brand New Club!

2007-08-27T11:28:00.000-07:00

I was privileged to help in the launch of a brand new CASHFLOW club in Scottsdale, Arizona, USA on Friday night. About 25 people joined us for the inaugural meeting of the New Vision CASHFLOW club. We had a great time with mostly all first-time players. I was amazed at how quickly the group picked up on the concepts in the game and were at times completely engrossed (it got a bit loud in the room... yeah!).

At 9:30pm, after three hours of play, no one wanted to stop! We truly have a group hungry to learn more about money, investing and raising your financial IQ!

Congratulations to the group - We look forward to playing again in September!

Feedback Please...

2007-08-23T09:10:00.000-07:00

We are in the middle of the design phase of our new web architecture project. This includes back-end and front-end systems that operate richdad.com and richwoman.com - our two major web environments.

Above is a screen shot of a design concept for richdad.com (click the image to enlarge). It is simply a framework for the home page. Content of any type (text, image, video, RSS, etc) can be dropped into any part of this design. In fact, RSS will play a major role in the site overall. We want to leverage Robert and Kim's blogs as much as possible.

Please give your feedback, suggestions, criticisms, concerns. We are hoping the community will contribute to the new design in a big way. Now, just because you provide feedback does not mean that we will implement it. We have to settle on a design at some point and cannot accommodate every idea or wish. Thank you for taking the time to comment.

Biggest Opportunities

2007-08-22T09:39:00.000-07:00

A question was asked of all of us yesterday in our weekly "Tuesday Morning Meeting". From your perspective, what do you think are our biggest opportunities right now?

I spoke up and gave two areas where I think we can make the most impact fairly quickly: creating a web-based version of CASHFLOW The E-Game and diving head first into the spanish-speaking market.

Having a web-based version of the E-Game will provide us much more opportunity. We can allow web visitors to play the game (or sections of the game) for free. We can track all games in real time. We can more closely tie the game to the Online Business School (INSIDERS). We can more easily develop challenges, tournaments, and online clubs.

The spanish-speaking market is a clear choice when it comes to expanding globally. With more than 1 billion people that speak Spanish globally, this market is huge. Also, we already have a good start in the translation of our products into Spanish. We need to focus more on the translation of our online web sites, materials, and games.

What are your suggestions?

Very special day...

2007-08-20T10:50:00.000-07:00

Today is a very special day for me. My home country, Estonia, got it's independence back 16 years ago. If you have more interest then look at the time line of Estonia.
At 1991 I was just 7 years old, but I still have some memories which I would like to share with you very shortly.

In Soviet Union everybody had work and money :-) You think it's a good thing? Think again... Having lot of money was useless because the shops were almost empty. What I mean by empty? Just imagine, if you can (it's hard, but try for a minute)... You have your wallet, it's full of money :-) You go to the store or supermarket and all you see is empty shelfs - there is almost nothing :-( You ask from the clerk: where is all the food? And the clerk answers: you should have came earlier, it's all sold out. Just dry again tomorrow, why should get some fresh bred again. Exaggeration? Maybe a little bit (memories from childhood), but it was pretty realistic dialog.
I have good memories also :-) For a bottle or two of vodka you could get a group of Russian soldiers to help you at the farming work in the country side. My grandmother used it often :-)

This changed drastically after 20th of august 1991... Almost nobody had money (every Estonian was allowed to change rubbles so much that they got 150 Estonian Kroon in 1992, which was about 10 USD). So I can say that all the Estonians started at 20th of June 1992 with 10 USD - of course now there is a big difference. What about the shops? Hey... we got democracy back and also capitalistic and pretty liberal economy :-) so there is more shops, supermarkets, whatsoever than ever before and it's possible to buy whatever, if you have money... so today we are a part of Western World with all it's pluses and minuses.

And why I started to think all of that once again... I took a city tour today with audio guided bus in my home city, capital of Estonia, Tallinn. I heard stories about beautiful parts of the city which existed in the beginning of 20th century when Estonia was a free country and I saw how many parts were destroyed in 50 years of occupation time and new ugly houses were built. But the main point what I learned today is how little I know about my hometown history. Also I travel a lot in the World but sometimes I just forget to look at the next door...

It Starts With The Core

2007-08-14T16:31:00.000-07:00

So, one of the first steps in tightening up the company is to make certain the core individuals are where they are most valuable and more important, where they want to be.

I had a meeting yesterday with the team that is heading up the restructure of the company. The question asked of me was simple: If you could have any role inside the company, what would it be and why? Not expecting this question, it took me a minute to formulate my answer.

If you've read the book Good To Great by Jim Collins, you know that he poses the idea that all you have to do to have a great company is get the right people on the bus and get the wrong people off the bus. Once that happens, all the right people need to do is figure out what seat they want to sit in. It is then up to the team to determine what course the bus should take.

I answered by saying that my true passion is creating media - audio and video. Especially edgy, behind-the-scenes, on the street content (see Rich Dad Underground). I love storyboarding, directing, shooting, and editing video. I love creating video that is in-your-face and out of the norm. I love provoking the viewer into thinking and exploring.

So I put that out there. We'll see what happens. I am supposed to come back to the team with a description of what that would look like and how I would transition out of my IT responsibilities. I'll keep you posted...

Why I sold my rent condo?

2007-08-13T10:33:00.000-07:00

I will give you some numbers and tell you a story behind them.
Purchase price @ 28th of September 2004: 30677 €
Down pay 30%: 9203 €
In 2004 I had Cash Flow at this property about 72 € in a month, which makes 9,38% ROI.
In 2007 before I sold it I had Cash Flow about 114 € in a month, which makes 14,86% ROI.
Quite good? Think again... I did. What I had forgot and found out in the beginning of 2007 where the prices of that kind of a Condo, which had risen drastically over this time period here in Tallinn, Estonia.
Selling price @ 13th of July 2007: 59438 €
Some money went to the broker and I had to pay back the loan, so I was left with 36365 €.
How much could this money make for me?
@ 5% interest rate it would be about 151 € in a month. (5% is the highest interest of a one year savings account in a bank what I could get here, that's guaranteed interest)
From original investment (9203 €) it makes the ROI 19,69% (and differently from rent income it could be guaranteed and is tax free).
But in reality I have found other opportunities to lend my money to people (who I trust) and their companies with higher interest rates...

Tightening Up

2007-08-13T10:23:00.000-07:00

Lots of change here inside the Rich Dad Company. In order for the company to expand and get bigger, the core of the company must tighten up. The "washer and string exercise" is a perfect visual for what is happening and why.

1) Tie a washer to the end of a piece of string
2) Hold the string in one hand allowing the washer to dangle about 3-4 inches
3) Begin to swing the washer in a circular motion

The first thing you'll notice is that the center (your hand) must remain in a very tight circle in order to keep the washer in its orbit.

Now, let more string out expanding the distance between your hand and the washer. Do your best to keep the washer in a tight orbit around your hand. What happens as you let the string out? Does it become easier or more difficult to keep the washer in orbit? What is your hand doing? Is it getting tighter or looser in its motion? What happens if your hand gets sloppy in its circular motion? How is this reflected in the orbit of the washer?

That is what is happening here at Rich Dad. With the team expanding exponentially - Franchising, Rich Dad's Coaching, Rich Dad's Education, international publishers and partners, etc - it is absolutely critical that the center of the organization become tighter and tighter. We must establish structure (what novel idea!), standards, guidelines, accountability, consequences, and rewards in order to keep this organization moving in the right direction.

More on this as the details unfold...

Sense

2007-08-02T13:46:00.001-07:00

I'm feeling a bit punchy today...as you can tell.

Rich Dad Strategic Partners Meeting

2007-07-31T16:27:00.000-07:00

Check out this joint on the recent Rich Dad Strategic Partners meeting held in Scottsdale, Arizona in July 2007.

Context and Content: The B-I Triangle

2007-07-31T14:19:00.000-07:00

This is a great article on the power of the B-I Triangle and how it can help you design a strong internet business. B-I stands for "Business and Investor". The shape is a triangle because according to R. Buckminster Fuller, the triangle is the perfect form. Once the shape is established, it cannot be changed or distorted.

The triangle was chosen for this business icon because once the rules (what the shape is really defining) are in place, holding the shape of the business is effortless. The rules do the job for you. Examples of rules are a code of honor, legal agreements, time agreements, etc.

The most important thing I have learned about the B-I Triangle is that the outside (Leadership, Team, Mission) sets the CONTEXT for the business. In other words, what is the space we are playing in? What are the rules we are playing by? Who is our opponent(s)? These are all contextual things. They hold the space. They shape how the business will operate, hence the position on the sides of the triangle.

The CONTENT of the business is contained within the triangle, held together by the CONTEXT. Product, legal, systems, communication (marketing), and cash flow. All very, very important. Each one fulfilling a specific need within the company.

The bottom line, is that if you have a loose CONTEXT, the rest does not matter. The business will be loose and will eventually blow apart. Holding the space within which the business will operate is the most important job of the business owner. Something they do not teach you in MBA programs.

More Than A Great Vacation Spot

2007-07-29T09:14:00.000-07:00

Cashflow in Barbados. Financial independence in the Caribbean. Cool!

Take 100% Responsibility For Your Life

2007-07-20T16:08:00.000-07:00

After my lowest day in a few years yesterday, the rebound was quite exciting. I had the opportunity today to meet Jack Canfield, co-author of the Chicken Soup books, speaker, educator, and star of The Secret. I have been a fan of Jack's since I saw The Secret last year.

Yesterday I bought Jack's book The Success Principles and signed up for his private, 21-day mentorship program (free btw). I got exactly what I needed. The first lesson in the book is that in order to move forward, you have to first accept 100% responsibility for your life and the choices you've made up to that point. Boy, that grounded me really fast. But it was exactly what I needed to hear. Now I can begin moving forward.

Feedback from Zac

2007-07-17T11:12:00.000-07:00

I just received this from Zac Bissonnette:

Hi,

Thanks...Yeah, we did [play the game]...twice... :( I'm afraid we weren't too impressed.

We all felt that the game was a little too arcane to be fun and that the $200 price tag is insane... I opted not to review it because I didn't see any benefit to "trashing" it.

Sorry.

Thanks,

Zac

Once again, backing up the notion that your perception is your reality. Finding lessons, nuggets of knowledge or inspiration to change the way I think has been something I have internalized since I have been here. I do not agree with everything I see, hear, or read, but I can certainly take a lesson or piece of information from every interaction I have. That is the difference.

BTW, thank you for the feedback Zac.

The Test of a First-Rate Intelligence...

2007-07-17T09:22:00.000-07:00

This is great. Today, in the SAME Google alert (one email referencing two articles with the term 'Robert Kiyosaki' in them), you get two viewpoints opposing each other. Remember the quote from F. Scott Fitzgerald?

"The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function."

The first article gives a recap of the Beat The Street (a fantasy stock trading game) week two winner. The winner attributed "the best investing advice you've ever received" to a quote from Rich Dad Poor Dad where Robert says, "Before you invest your hard-earned money into someone who promises you the world, find out how his personal portfolio is doing." Good advice, IMHO.

In the second article, Zac Bissonnette (who clearly fails Fitzgerald's test), trashes Rich Dad Education's seminars, even though he has never been to one.

These two opposing viewpoints are further proof that your reality is what you make it.

BTW, I sent Zac a Cashflow game so he could play with his friends and write a review. I still have not heard back from him (not even a thank you). Hmmm...

Grass Roots

2007-07-17T08:29:00.000-07:00

This article underscores the real reason the game was created. Rich Dad's Franchise is simply allowing people passionate about teaching, who would have created a club anyway, to monetize their efforts.

Shameless, I know...

2007-07-12T08:15:00.000-07:00

This story came up today in Google Alerts, and I could not deny the temptation to post it here.

Harry Potter And The Order Of The Phoenix released worldwide yesterday. This article is about the difficulty translators had in India with the word "Phoenix". What does this have to do with Rich Dad you say? Well, the same person that eventually came up with a suitable word is the same person that translated Rich Dad Poor Dad into Hindi.

Robert and J.K. Rowling with something in common? Wow...

Reality is Negotiable

2007-07-10T11:38:00.000-07:00

I just started listening to The Four-Hour Work Week by Timothy Ferriss. In the introduction, he says that "Reality is negotiable. Outside of science and law, all rules can be bent or broken and it does not require being unethical." This line takes me back to our studies of What The Bleep Do We Know and The Secret. Perception IS reality. We all have our own perception and we all can modify, update, and change our perception...of anything.

He goes on to state that he is not about getting a better job, or saving for retirement, or giving up something you want today for something you will get 50 years from now. Sound familiar?

Overall, the book is good so far. I'll post a full review when I am done.

As Underground As It Gets

2007-07-05T09:30:00.000-07:00

Bob works in our accounting department here at Rich Dad. He is our in-house expert on peak oil, the decline of suburbia, and anything remotely related to a possible conspiracy. Below are his thoughts on a newsletter entry from James Howard Kunstler.

This guy Kunstler is a big critic of the automobile suburbs. Once he found out about the concept of peak oil, he incorporated that concept into what his opinions are relating to the suburbs.

The idea here is that without cheap gasoline and diesel, the suburbs would be impossible to live in.

The current blog this week deals with the idea that if oil production is declining in the nations that export it, at some point those countries may stop exporting oil to the U.S. (or any other nations) so that they will be able to secure their own needs. JHK thinks that an oil crisis
could happen sooner because of this trend.

Regarding the housing bubble, he could be correct that the bubble coincided with the peaking of world oil production.

Things "seem" to be ok but I think there's a lot going on in the background that we aren't told about. I'm sitting tight and seeing what happens!

The Clusterf*#k Nation Chronicle - 25 June entry - "Peak Suburbia"

Bob

Estonian Cashflow Club: new record of simultaneous Cashflow players

2007-06-30T02:31:00.000-07:00

On the 29th of June Estonian Cashflow Club gathered once again to play the Cashflow Board Games. We had 28 players from two nationalities (Estonians and Russians) and we were playing at the same time 4x Cashflow 101 and 1x Cashflow 202 Board game.
Players were from school students, even a policeman up to already millionaires. For me to organize these playing events has always been very exciting because I have met with so many new interesting people...
So I also invite all of you who are reading this blog to start or join with some existing Cashflow club... you just get smarter by playing the Game and also meet new people...
You can find more information about Cashflow Clubs here. If you understand Estonian then it's possible to join Estonian Cashflow Club mailing lists here.

Save Internet Radio

2007-06-29T08:14:00.000-07:00

"The future of Internet radio is in immediate danger." -- SaveNetRadio.com

I listen to internet radio just about every day. If the bills in the house and Senate fail to pass, most internet radio broadcasters will be forced to shut down. That would suck big time.

Please support the bills by contacting your congressperson and senators!

Paris Hilton: The Newest Learning Annex Speaker?

2007-06-27T08:35:00.000-07:00

Its true. Bill Zanker, long time friend and business partner of Robert and Kim Kiyosaki, has hired Paris Hilton to speak at Learning Annex events in Seattle, New York, Chicago, and Boston. Price tag? $1 million.

After last night's Larry King interview, I am compelled to attend one of these events to hear her speak on her business prowess...

Quit the Dead Ends

2007-06-25T08:58:00.000-07:00

"It's the incredibly difficult challenges, the "dips", that give you the opportunity to pull ahead. In a competitive world, adversity is your ally. The harder it gets, the better chance you have of insulating yourself from the competition. If that adversity also causes you to quit though, its all for nothing." -- Seth Godin from "The Dip".

This quote hit me hard when I heard it (I bought the audio book). It further refined the idea I was first exposed to in Good To Great by Jim Collins. It is more about quitting what you are good and and concentrating on what you are great at.

It hit me hard because I am at this point right now. I currently have a dozen opportunities to step out of the 'S' quadrant and into the 'B' quadrant. Most people would say to themselves, "What's the problem then? That is great!" However, I am at the point of inaction because there is so much going on that I cannot give enough attention and action to any single opportunity.

Hearing this quote from Godin solidified the idea that I need to quit the things I know I am, and always will be, good at and focus on the things I know I can be great at. The other realization I've come to is that pushing through the dip in these areas is not going to be easy. In fact, if it is easy, then I am probably too late to the market.

New Business Opportunities

2007-06-22T11:12:00.000-07:00

Exit Strategy

2007-06-21T17:35:00.000-07:00

A question was asked in the comments of a previous post about a potential legal battle between Robert and Sharon. I can talk about it because Robert, Kim and Sharon have been very open with the company and our partners about what is happening here.

The bottom line is that for years, there has been a difference of opinion as to the direction of the company. Sharon is very passionate about educating kids. Her focus has always been on products, events, programs, curricula, etc for schools, clubs, elementary schools, middle schools, high schools and colleges. It is an inspiring thing to see her passion toward wanting to educate kids so they will be better off financially than their parents.

Robert and Kim, however, do not have kids. Therefore, their focus has always been on sales to markets that yield the biggest return. Back to my earlier post about sales - either you sell or you suck. Now, that is not to say they are not concerned with education. That is their main driver for sales. The idea is to generate sales by providing education. It is clear when you see either of them on stage. They are there to educate.

So, you have these fundamental differences that have been festering for a long time. The issue simply came to a head. At first, Sharon offered to buy the company from Robert and Kim. Then, Robert and Kim decided they wanted to buy the company from Sharon. So, that is the situation we are in right now. No one knows who will buy whom. The rest of us are simply doing our best to keep the business running and to make sure our customers are taken care of.

The lesson this brings up for me is the importance of having an exit strategy, in any transaction. Whether it be real estate, business, a partnership, a trip to the mall with my wife, etc. Imagine how clean this process would be if a clear exit strategy would have been in place.

Lessons From Apple

2007-06-19T17:21:00.000-07:00

In Tuesday's morning teaching session, Robert discussed an article about Apple Inc. and how other companies can learn at least four lessons from the way they operate.

1) Invention can come from without as well as from within

Many of the iconic products people associate with Apple and its ability to innovate have actually been developed outside of the Cupertino headquarters. For instance, the iPod was a product developed by a consultant. iTunes was also brought in from the outside. The article called it "network innovation" and it is something Apple encourages. Check your egos at the door please.

2) Focus on the needs of the user, not the demands of technology

To me this is clear in the little things Apple focuses on when designing a product or system (magnetic power supply, ambient light sensors, built-in cameras, etc). We are currently developing an all new richdad.com site from the ground up and the needs of the user are at the top of our priority list.

3) Smart companies should sometimes ignore what the market says it wants today
This speaks clearly to the power of a visionary and a dynamic leader. The job of the leader is to see the future and take the company there. Steve Jobs is clearly in that space. This is a great lesson for me as one who is trying to break out of the 'S' quadrant and into the 'B' quadrant. To be a business owner, you must act on inspired thought, and you must lead the team into the future.

4) Fail wisely
Of all the lessons I have learned since coming to the Rich Dad Company, the idea of failing faster is the most powerful. The faster I can accelerate my failure rate, the faster I will get to the successes. If I can only succeed 1 out of 100 tries, then I better make those 99 mistakes very quickly.

If You Are The Smartest Person On Your Team...

2007-06-18T10:42:00.000-07:00

... then you are in trouble.

One of the backbone concepts of the Rich Dad philosophy is the idea of creating teams - investment, business, real estate, accounting, life. None of us can be the smartest in every single area of our lives. The idea is to bring people to your team(s) that ARE the smartest in their own area.

I have been building my team for the past 5 years. I just hired a bookkeeper and found a new accountant. The idea is that I have no desire at all to understand everything there is to know about bookkeeping and accounting. Therefore I hire people to do it for me. My time is much more valuable to me than the money.

An article appeared in the Arizona Republic Business Section this weekend about an SEC probe of Whitney Information Network, Inc. Late last year, The Rich Dad Company embarked on a joint venture with Whitney to form Rich Dad Education, a subsidiary focused on seminar-type education. The article provides more detail about the nature of the investigation and its current status.

The reason I bring this up is that The Rich Dad Company has known about these investigations since early this year, after the partnership was created and has still maintained that the partnership creates value for a vast majority of its customers/students. The one thing we kept hearing was "We want more focused training on specific areas of investing, such as foreclosures, land development, options trading, etc." However, Rich Dad did not want to develop that business, those processes, that infrastructure inside (like me with my bookkeeper). Therefore, Rich Dad partnered with Whitney because they already had the business, processes and infrastructure in place. All Rich Dad needed to do was create the context that would support the specific training content and educate the instructors to teach the Rich Dad way.

With any new partnership, each side will bring along some baggage. This partnership is no different.

Is Your Dad A Capitalist Or A Socialist?

2007-06-13T09:33:00.000-07:00

Robert asks this question in his new article for gather.com. My gut reaction to any article or speech is fueled by my current definition of the words being used. Capitalist? Socialist? I think of the USSR or China when I hear the word socialist. I think of communism. Is that what Robert meant? When I hear capitalist, I think of Rockefeller, Morgan, Carnegie, etc. Capitalist or socialist - they both, at least from my current understanding of the words, conjure negative thoughts. Right or wrong?

I love the quote Robert uses from F. Scott Fitzgerald.

“The test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function.”

We have talked about that here at The Rich Dad Company since the day I arrived. If I cannot open my mind to see, understand and at least respect another point of view, then I have lost. My job (as a person) is to try to understand all points of view, then establish my own. I can't stand it when people write off a subject or idea or point of view simply because of the affiliation(s) of the person saying it. Talk about closed minded. That bugs the crap out of me.

According to Carol Dweck in her book Mindset: The New Psychology of Success, we all have either a growth mindset or a fixed mindset. I have always had, and always will have a growth mindset.

Rich Women

2007-06-06T10:46:00.000-07:00

In Kim Kiyosaki's first article for womenentrepreneur.com, she says "I write and speak this message because I believe that today, more than ever, women must take charge of their own financial lives. In my opinion, a woman can't be free until she's financially free."

Her drive is more than teaching and inspiring women to make money and become rich, it is about freedom. Not just financial freedom, but freedom from the stigma and stereotypes surrounding women that have been around since the beginning of time. Women are dependent - women are not smart enough to step into the investing world - women would be better off finding a man to marry that can bring in the money. All BS according to Kim (and me).

She also gives a great interview to Lee Maribal of wsradio.com, which is available on her article page. Check it out - you won't be disappointed.

An Underground View

2007-05-23T08:51:00.000-07:00

Steve Blair, our new hotshot graphic designer and uber gadget dude, created a time lapse video of a full day at the Rich Dad Company. The vantage point is from a floor lamp in front of Steve's desk. You can see many people pop in and out throughout the day including Robert and me (striped shirt)!

Having Fun With The PC Guy

2007-05-02T15:52:00.000-07:00

At the 3-Day Business School there was quite a battle in the back of the room...

And we had some great fun with it...

More On Mutual Funds And The Lottery

2007-05-01T20:12:00.000-07:00

I love the rating one Yahoo! Finance reader gave Roberts latest article:

"RK haters prove his commentary is provocative by making him the most rated "Expert", garnering 5 to 10 times the votes of the others. Only the mighty Ben Stein competes. I guess there are that many people making money from the mutual fund establishment that need to spend their time rating RK."

The article was published yesterday and already has been rated over 2100 times. Now, most of them are 1 star (the worst), but that is the whole point. Feedback.

Rich Dad Visit to Partners in Salt Lake City

2007-04-29T11:41:00.000-07:00

Robert, Kim, Sharon and the team visit Rich Dad Coaching and Rich Dad Academy in Salt Lake City for the day.

Rich Dad's 2 Day Real Estate Workshop

2007-04-28T08:50:00.000-07:00

Today is the first day of the Real Estate Workshop here in Scottsdale, Arizona. The principal speaker (aside from Robert, Kim and Sharon) is Wayne Palmer. He will be sharing his creative real estate genius with 163 people from all over the world.

We have people here for the workshop from:

Ecuador, Guam, Ireland, Sweden, Norway, Finland, Poland, Switzerland, Grand Cayman, Mexico, Japan, New Zealand, Australia, China, Canada, USA

The required reading for the course was The Best Real Estate Advice I Ever Received by Donald Trump. Although not a large portion of the content or context of the event, the book helped me to get into a real estate frame of mind. Blair Singer (author of Sales Dogs) shared with the room the piece of the book that stood out most for him. It was a quote from Lester Crown (chairman of Henry Crown and Company): "The best real estate advice I ever received pertains not just to real estate but to any transaction - you can't make a good deal with a bad partner." Amen to that.

More updates as the weekend moves along.

Here Is Your Chance

2007-04-25T15:51:00.000-07:00

In an effort to be more targeted to what his readers want, Robert has asked me to pass along an invitation to share your thoughts on the subject of his next book as well as the subject of the next book he will co-write with Donald Trump.

What are you dying to know? What is going on in your own investment world that you would like to learn more about? What subject can Robert and Donald offer their perspective on? What can they teach you? Let us know. Thank you!

The Rich Dad Television Show

2007-04-25T09:50:00.000-07:00

Here is a compilation of show clips from the Rich Dad Television Show. It gives you a really good flavor for the content and context of the show.

We would love to hear your feedback! This show is all about providing the financial education that you did not get in school. Therefore, we want to know if we are hitting the mark. Let us hear it! Post a comment.

Just for adding your comments, I'd like to provide you with a free 'Getting Started' packet. Just click here to download the PDF. Thank you!

Also, a ton of people have said that they cannot get the show where they live. However, you can! Simply become a member of Rich Dad's Online Business School and you get the show, full screen via the internet each week. Plus all the other content and value for being an OBS member. Check it out!

The Business School for Entrepreneurs - Part 3

2007-04-23T11:36:00.000-07:00

Robert once again speaking about the upcoming events focusing on building a brand, creative real estate financing and building a business. He walks through the pieces of the CASHFLOW Quadrant and the B-I Triangle.

Wayne Palmer 185 Unit Self Storage Deal

2007-04-23T11:28:00.000-07:00

Wayne and Robert discuss another deal for a 185 unit self storage facility. This one is unique due to the financing options available.

Rich Dad Education Crosses The Pond

2007-04-18T09:27:00.000-07:00

What I Heard

In an article/news release on 18 April, Canada's CNW announces Rich Dad Education's plans to expand to the United Kingdom. They describe RDE as "a postsecondary education company that delivers actionable, life-changing financial philosophies and content from the Rich Dad books and products through the proven educational model developed by Whitney Information Network."

What I Think

A vast majority of the feedback I have received from students who have taken courses offered by RDE (I have taken one myself) has been positive. Have there been students that have benefited from the training and have improved their investing, business and personal lives? Absolutely. Have there been dissatisfied students? Absolutely. Will there always be dissatisfied students. Definitely. There is no getting around this.

The bottom line is that in any situation or opportunity in life, you get exactly what you need at that particular time. The trick is to have your eyes open and be willing to take the feedback. We are constantly receiving feedback, every minute of every day. What I have been getting better at is recognizing the feedback and learning from it. There is always a lesson to be learned.

I am excited for the students in the UK and am certain they will benefit from the training RDE provides. After all, this is the type of training Rich Dad customers, followers, readers, viewers have been asking for from the beginning. Now we are able to deliver it.

The Military-Industrial Complex And The Rich Dad Mission

2007-04-17T10:12:00.000-07:00

OK so, you never really know what you are going to get on Tuesday morning here at The Rich Dad Company. We meet each Tuesday at 7:30am for a study session and a business briefing run by Robert. In the room physically are those in the company that wish to be there (attendance is "optional"), our Coaching partners in Utah (via video conference) and our Education partners in Florida (via telephone). The topic is supplied by Robert usually the day before in the form of an article or excerpt from a book, magazine or web site. This morning the topic was an article in Vanity Fair magazine titled "Washington's $8 Billion Shadow" (Vanity Fair, March 2007).

What I Heard

The article is about how US Government contractors, such as Halliburton, Bechtel, and Science Applications International Corporation (SAIC), are able to write their own tickets by hiring ex-military officers who still have influence in the government. The article goes as far to say that the Iraq war and the war on terrorism were engineered (or at least heavily promoted) by these quasi-military organizations for their own benefit and for the benefit of their employees.

Comments were given by several in the room with naval backgrounds that had seen the influence of SAIC in person during their careers. They described a "creepy" feeling when in the presence of the company and/or its employees. Like something was not right.

One quote from the article that really stuck out, and that Robert made sure to voice was "...contractors absorb the taxes paid by everyone in America with incomes under $100,000. In other words, more than 90 percent of all taxpayers might as well remit everything they owe directly to SAIC or some other contractor rather than to the IRS." The point being that most of us (in the E or S quadrants - Employee or Self Employed) spend 50% of our time (or whatever tax bracket you are in) working indirectly for government contractors that can write their own checks. Think about that for a second.

Robert also added that R. Buckminster Fuller once said that the only purpose for government is to vacuum money from your pockets (I cannot find the quote).

What I Think

First, being the spy movie junkie I am, I enjoyed the article. I am always intrigued by stories of behind-the-scenes (or completely out of the theater) government shenanigans. This went a bit deeper though. It brought the message directly home to me. I am in that category of people working 100% of my time to support these companies that can literally script their future without fear of, well anything. That does not sit well with me.

So, how do I deal with that? From my perspective, one thing: pay little or no taxes (legally of course). How do I do that? Step one is get out of the S quadrant and into the B and I quadrants (Business owner and Investor). Step two is to invest in businesses and real estate, the two investment classes the tax laws were written for.

What Do You Think?

The Business School for Entrepreneurs - Part 2

2007-04-17T10:04:00.000-07:00

Robert goes further into detail on the CASHFLOW Quadrant and the B-I Triangle and how the students at the event 30 April to 2 May will learn how to build a brand.

Wayne Palmer Self Storage Deal

2007-04-13T11:41:00.000-07:00

Robert and Wayne discuss a deal involving 163 storage units. Wayne will be at the Real Estate event at the end of April. Don't miss this event.

Launch of the Rich Dad TV Show

2007-04-04T20:42:00.000-07:00

2007 Rich Dad Events

2007-04-04T20:24:00.000-07:00

For more information on the Rich Dad events with Robert Kiyosaki LIVE in April and May, click here.