First Post

I am a follower of Robert Kiyosaki's philosophy when it comes to finances. I will be working from that prospective and you can find out more about that at Rich Dad (www.richdad.com). I have no connection, or receive any compensation from his company nor do I work for it or him. His and his wife's (www.richwoman.com) philosophy have changed my financial life and I wanted to give back to the community as a way of thanking him. Some of his philosophy includes:

1. The rich don't work for money.

• They work to build/buy assets so that money works for them instead.

• RK's definition - Assets put money in your pocket. Liabilities take money out.

• Buy your dodads with cash flow from your assets.

• Wealth is measured in time and not in money - he got that from Bucky Fuller.

• Depending on a job for financial stability in this day and age is risky.

2. Financial literacy is important.

• A financial statement is as important for a person as it is for a business.

• The cash flow pattern in a financial statement of the rich, middle-class, and poor differ and are very recognizable.

• The three piggy banks - "I Invest", "I Save" and "I Give".

• It is not how much money you make but how much money you keep.

• The rich buy assets, the middle-class and poor acquire liabilities.

• The cash flow of an asset and the cash flow of a liability differ.

• A financial statement tells a story.

• Money doesn't solve money problems.

• Your house is not an asset but your mortgage company's asset.

3. Mind your own business.

• One way to acquire assets is to build a business.

• He defines a "business" as one you can walk away from for a year and come back and having it working as well or better.
  

• A business is a system and leverages other people's time.

• Your profession is different than your business.

• Most of the rich made their money in business or real estate.

4. The History and Power of the Corporation.

• There are tax advantages to incorporate.

• There are legal liability advantages in incorporation.

5. The rich invent money.

• Money is an idea.

• An example: building a company and taking it public.

• Another example: Buying 200 acres, dividing it into 4 parcels and selling 3 to pay for the original 200 acres.

6. Work to learn - don't work for money.

• Pick those jobs where the knowledge you gain can be used in a business you start.

• Most people need only a couple of additional skills to be great.

• Get to know a little about a lot.

• Learning is more important than security.

• For a business sales and leadership are very important.

With these concepts in mind my intention is to create a place where we can work together to create and help each other create a personal financial cashflow statement on the road to financial freedom, that is being secure, comfortable and rich.