Why is Kiyosaki a guru at Yahoo! ?

I don`t quite understand why Yahoo! folks are promoting Robert Kiyosaki.

Well, I think they just want more traffic.

More traffic means more advertising revenues but it works only until people think that your expert is a real expert.

If you want to see extensive critical review of Kiyosaki`s ideas and books I guess John T. Reed is a good hint.

I just wanted to say I don`t like people who brainwash other people and mislead them.

I sometimes read his column but find it confusing.

Two days ago he wrote his article again.


He writes:

"I'm currently millions of dollars in debt, but it's good debt invested in income-producing real estate. While millions of homeowners are threatened with foreclosure, my investment real estate is doing very well. In fact, I'm doing even better because more people are renting than buying."

No comments.

Look at another extract:

"bad financial advice tells us to get a safe job, save money, live below our means, buy a house, get out of debt, and invest for the long term in a well-diversified portfolio of mutual funds."

I agree that there`s nothing like a safe job, but what`s wrong with spending less than you earn, saving money and investing ?

These are basics of getting rich.

Some other guys boast of Rolex.

Now the part about diversification:

"Warren Buffett has said that diversification is for people who don't know what they're doing. And my rich dad once told me, "Diversifying is like going to a horse race and betting on every horse. The only way you win is if the darkest of dark horses wins." So my concern is that people who follow this second type of financial advice may actually wind up poor in the long term."


First of all, Berkshire Hathaway has a portfolio of at least 18 stocks. Why haven`t they chosen 1 or 2 ?

Buffett always advises small investors to diversify and buy no-load index funds.
This is in accordance with Benjamin Graham`s ideas.

Secondly, diversification isn`t just picking random stocks and other assets.

I wouldn`t be moved if it hadn`t been published in such a busy place.

One positive thing is that Kiyosaki makes many people think of their finances and help them get out of rat race.

I don`t mean by buying his seminars, books or games.

It`s a rather question of sparking some positive impulse.

So it`s time to put aside another $100. I encourage you to save it and pay off your credit card balance or invest it - provided you`re debt free.

Find a new cash stream flowing into your pocket

First of all, try to spend less than you earn from today on.

All financial success stories are based on this simple assumption.

It looks easy but it`s so hard to execute for the most of people.

When you accomplish this goal, next step is to find a new source of income.

It could be anything from selling your old stuff at EBay to setting up a new business.

It`s not just creating an extra job and working 16 hours a day. NO !

The best idea is of passive income when money flow even if you stop activity.

For instance buying stocks with a high dividend yield doesn`t require much later on.
Just place a stop-loss order in case anything goes wrong with a market and wait for a cash in your account.

The most important thing is to invent this cash stream as soon as possible.

Set your mind working on that and you`ll create a good idea.

I`m sure.

Time to get out of rat race and set off on a path of financial independence.

How to be wealthy ?

Just follow the rule to spend less than you earn.

Put aside 10 % of your income every month and you will accumulate a huge amount of money.

Remember, you have to be patient and wait at least 10 years to see.

Save and invest. Don`t spend a penny of your savings. That`s crucial not to waste a single dollar.

You can`t rely only on one single source of your income.

Multiply the number of ways in which you generate cash flowing into your pocket.

I prefer it much more to working sixteen hours a day seven days a week.

Now we live in completely different times than even ten years ago.

Your job is not secure anymore.

You have to look for more and more alternatives.

It doesn`t mean you have to start another job or create a new one for yourself.

No!

You should think up a new business.

You have to develop an entrepreneur`s mind in yourself.

Of course, in most cases you will fail, but you have to keep trying.

However, always start with a good business plan.

First of all, figure it out how much you can lose in case anything goes wrong.

If you are able to afford it, you may dig deeper.

For me the best idea is to make money on things you like doing.

For example I started blogging.

I can`t say it gives me a lot of money because I`m still learning it.

I`m just trying to turn my hobby into some positive cash flow.

Look around you. I`m sure you will find a way to generate extra cash.

You don`t have to invent iPhone.

Start with something small and build it patiently. If you have no idea what to do, just pay off your credit card with extra $50-100 tomorrow or start your emergency fund and deposit $50 into a saving account.

Don`t delay ! Act now !

Gold, stocks or real estate ? What to buy ?

People say that gold and real estate are considered to be safe heavens for our money.

Of course it`s false.
Gold has been in favor of investors only for a couple of years when it started its rally from $250 level.A weakening dollar helped a lot.

I`m not really a big fan of aurum but I just think that if trends are longer than analysts predict and now we see a correction movement.
You should always control the risk definitely so I know when I will give up (about 7-8 % down from the current level).

Real estate is in trouble. If you are going to buy something for yourself it`s a perfect time.
So many bargains. Great opportunities!
I don`t mean that it`s a bottom. Absolutely no ! It`s a tricky situation and bargain hunters who you can meet at foreclosure auctions might get hit.
I`m not in a position to tell anybody that the crisis is over.
I`m just saying it`s a good moment to buy an own house. That`s all.

I believe that stock market still offers more risk than profit but I`m sure I`ll purchase some index fund in May. One thing is timing, another consequence and regular investments. I know it`s really hard to predict what will happen next.

I`m rather a pessimist about upcoming recession. I`m not as deeply concerned as Nouriel Roubini but I don`t think it`s an ideal moment to buy.

However, fund managers pump up the prices and some of my money should go with them.
I guess George Soros said that you should recognize a false market movement, follow it, make money and abandon it in time. It means that you don`t have to agree with fundamentals but your task is to make money and not to be a prophet.

What to do with extra $600 ?

IRS started sending money a few days ago and many folks wonder what to do with it.
My suggestion is to be sensible but not too sensible.
Suppose your family consists of 2 adults and 2 children under 17. You`ll get $1,800 in total.

It`s quite a decent sum as a gift.

If I were you, I`d use some of the money to pay credit cards` balances or mortgage.

The other idea is to invest in your education or put money in index funds.

However, I suggest that a fraction, say 20 % should be spent on some consumption.

How about a new electronical gadget or a weekend trip ?

Get some life !