Comments on: Increase Your Financial IQ - Book Review

By: Robert Kiyosaki: Increase Your Financial IQ ? Get Rich Slowly

Robert Kiyosaki: Increase Your Financial IQ ? Get Rich Slowly — Wed, 07 May 2008 12:00:43 +0000

[...] Cash Money Life (Like me, Patrick has mixed feelings about the book.) [...]

By: Business and real-estate: a marriage made in heaven « How to Make 7 Million in 7 Years™

Fri, 18 Apr 2008 12:06:39 +0000

[...] April 18, 2008 Business Tags: Business, money, net worth, real estate I was reading a review of Robert Kiyosaki’s new book, Increase Your Financial IQ, on Patrick’s blog (Cash Money [...]

By: Mark @ TheLocoMono

Mark @ TheLocoMono — Tue, 25 Mar 2008 00:54:39 +0000

@ Ken - First of all, I would like to give you a penny for your thought. There is no secret when it comes to making money. It is a math formula.

Make 1 product and sell it for double the cost of manufacturing it. If it cost 1 dollar to make it, sell it for 2. If two people want it, either make 2 products (like cars) or open up for bidding (like artwork).

With that in mind, Patrick, consider this, if the demand for the business product dies, the cash flow stops.

Where better to put that money you accumulate from your business than land, if not for tax purposes but for finite demand.

There is only so much land on Earth that as long as we keep growing our population, the demand for land will always go up.

So in the end, demand for land equals increase in land value which has the greatest potentional for additional income with the least amount of taxes.

As Einstein said, its all relative.

By: AJC @ 7million7years

AJC @ 7million7years — Mon, 24 Mar 2008 03:15:44 +0000

Perhaps … but, I never invest with the idea of minimizing taxes as my prime objective.

Rather, businesses do one thing really well: produce free cash (if your business doesn’t do this, then you really just have a job!).

Free cash is useless, except for three purposes:

1. Reinvesting in the business to make it grow even faster

2. Increased lifestyle for the owner

3. To fund property acquisitions (build up for a deposit and/or any paying mortgages if the rent doesn’t).

Of these, guess which ones I like!

By: Patrick

Patrick — Mon, 24 Mar 2008 03:01:34 +0000

AJC, I think your comment is interesting. Make money from a business and keep it in real estate - I’m assuming this is because it is easier to shelter the money from certain taxes, and if done correctly the money will continue to earn passive income through rentals, leases, etc.?

By: A Banana for Thought : A Roundup of Personal Finance Bloggers : Just Personal Finance @ TheLocoMono Website

Sun, 23 Mar 2008 20:35:54 +0000

[...] see many of his repeating themes show up in Cash Money Life’s review of yet another RK book, Increase Your Financial IQ. Now I can understand how best selling authors can generate passive income through royalty [...]

By: AJC @ 7million7years

AJC @ 7million7years — Sun, 23 Mar 2008 04:22:16 +0000

Rich people make their money in businesses and keep their money in real-estate … pure and simple. It’s what Robert Kiyosaki did (his business was writing books and making/selling ‘Cashflow’ games). Anybody can start a business, just try it part time and limit your financial risk … if it takes off, fine … if not, try again …

BTW: Ken, rich people DO write books and blogs - some to make money, others simply to teach … there are no ads or products for sale on my blog.

By: Mark @ TheLocoMono

Mark @ TheLocoMono — Sat, 22 Mar 2008 01:45:41 +0000

I am a middle ground person too.

By: Patrick

Patrick — Sat, 22 Mar 2008 01:39:59 +0000

Mark, Great reply. I like reading responses about Kiyosaki as well. There is usually no middle ground - people either love him or hate him. I’m actually one of the rare middle ground people. I think he has some solid ideas, and some of what he says can be dangerous if taken too literally. A selective filter needs to be installed before taking everything he, or any other financial guru, says as gospel.

You observations regarding schools are spot on. There are a lot of issues that can’t be fixed overnight, and there are a lot of problems that people may recognize, but not have the power or drive to change.

As for your last point, Kiyosaki actually mentions having money and needing it to work on your financial IQ. Experience does count for a lot! Thanks for the great comment!

By: Patrick

Patrick — Sat, 22 Mar 2008 01:35:36 +0000

Ken, in many ways, I agree with your statements. Kiyosaki is a sensationalist, because that is what sells. The media does it everyday. It’s all about doom and gloom, scaring people, then offering a solution. However, if you look at some of the principles, I believe they are good.

Curt, Kiyosaki’s writing is definitely geared toward entrepreneurship. But not everyone is, or should be, an entrepreneur. I think owning your business and teaching your children is a great way to go. Everyone involved will benefit. Good luck with your business!