Rich Dad's Prophecy

by Robert Kiyosaki

Robert’s rich dad used to tell him, “If you want to be a rich business owner or investor, you need to understand the story of Noah and the Ark.” First, you got to have the vision to see the flood was coming and then the faith and courage to build the Ark to ride out the storm. The author details out in Prophecy why the biggest stock market crash is yet to come and gives an 8-step plan to build your financial ‘ark’.

How to Build Your Financial Ark
Robert says to build your financial ark so that you could ride out the coming storm you need to have control over 8 aspects:

Control #1: Control over Yourself
Control #2: Control over Your Emotion
Control #3: Control over Your Excuses
Control #4: Control over Your Vision
Control #5: Control over the Rules
Control #6: Control over Your Advisors
Control #7: Control over Your Time
Control #8: Control over Your Destiny

"A Change in the Law... A Change in the Future."

Rich Dad

"Losers cut their winners and hang on to their losers. Winners cut their losers and hang on to their winners."

"Excuses are the words coming from the loser in you."

"Cash flow determines if something is an asset or a liability."

"One of your greatest assets is time. One of the reasons most people do not become rich is because they do not make good use of their time."

"Inside each of you is a rich person, a poor person, and a middle-class person. It is up to you to decide which person you become."

"Take control of your own financial ark and buy or build assets that generate cash flow. Include real estate, business, and paper assets. as soon as your income from your assets (your money working for you) exceeds your expenses you are financially free."

Warren Buffett

"Diversification is a protection against ignorance. It makes very little sense for those that know what they're are doing."

"Wall Street is the only place that people ride to in a Rolls-Royce to get advice from those that take the subway."

"The market, like the Lord, helps those who help themselves."

Buffett likes to buy stocks "when the bears are giving them away."

"If you cannot control your emotions you cannot control your money."

Rich:
Good financial education
Build business
Large real estate investments
Private equity funds
Hedge funds
Personal money manager
Private placements
Limited partnerships

Middle Class:
Good education
High paying jobs
Profession
Home
Savings
Retirement plan
Mutual funds
Small real estate investments

Poor:
Large family
Government support programs

How to Get a Rich Life

• If you want to be rich, do your homework. Find out what, where, who, why and how to make the most money in the shortest possible time.
  
• Work to learn, not to make money.
  
• Make your day job what is truest to yourself.
  
• Have fun while you are at it, but make sure the fun is legal, ethical and does not harm anyone.
  
• Beware of being so busy at work that you end up being lazy about the other parts of life that matter.
  
• Focus on how much you keep, not how much you earn.
  
• Focus on acquiring more assets, not loading up on liabilities.
  
• Understanding that the point of money is not to make more money, but to gain you financial freedom so you are free to follow your heart.
  
• People, not money, are what count most in life. So, invest most of your time in good relationships.
• Invest in what you do today, not what might come tomorrow.
  

Financial IQ will determine one's wealth
HOW many people do you know who are successful academically or professionally, but not rich?

Very few. The reason is they do not have financial IQ. My own dad had a PhD and he was broke after he retired.

How do you take control of your financial future?

You have to take control of four things.

First, take control of your attitude. Many people have a poor person's attitude. They say: 'I'll never be rich', or 'I can't afford this or that.' To be rich, you have to reverse that attitude. Ask instead: 'How can I be rich?' and 'How can I afford it?'

Second, take control of your financial education. I consistently read, go to seminars, hang out with friends and talk about getting rich. It is 24/7. I choose to be rich.

Third, take control of a plan to get rich. Learn to be an entrepreneur, invest in real estate and stocks. People say investing is risky. It is not risky. It is they who are risky.

Fourth, control who your friends are. If you hang out with all the losers in your company, you don't have a chance.

You should talk to people who know what they are talking about. Most people are poor because they take advice from other poor people or sales people. Put together an adviser team, meet people who want to be rich and talk about money.

There are four types of people, and you can identify them by certain words they use.

Employees, whether it is the president or the janitor, say: 'I'm looking for a safe job.' Then there are self-employed people, business owners and investors.

If you want to see what your financial future is, think about who are the six people you spend the most time with. Are they employees, or self-employed people, or business owners or investors?

My friends are business owners and investors.