The conspiracy

I have really enjoyed reading Robert kiyosaki's new book the conspiracy of the rich. It has taught me a lot
About how to think and do things in this new economy we are in. I hope you will enjoy it too. He is leaving on the Internet for free for another week and I want you to have access to it. Click on the links next to my Blog and get it for free before it gets taken down and sent to the publisher. When that happen you'll have to pay for it. PleAse take the time to read it. It will help you I your life.

-- Post From My iPhone

Why rat race?

I thought it would be good to define my blog and the reasons I'm writing it. The title is reference to Robert Kiyosaki's very fun game called Cashflow. The object of the game is to be financially smart enough to get yourself out of the daily grind of the rat race and into the fast track of the rich.
I have been studying how to be wealthy for a while as well as economics and thought why not share what I've learned and help others discover how they can get out of the rat race themselves. I hope you find the information worth while and applicable to your life.
Getting out of the rat race is not too hard to do. It is important to just create a plan and stick to it.

-- Post From My iPhone

Sell more tickets to have bigger balls

I know to some the subject of this blog sounds bad. Don't worry, it's not that. In conspiracy of the rich, an online book by Robert Kiyosaki, he talks about balls meaning dances. In the older days that is one way people would make money is to hold a ball and sell tickets to those who wanted to attend. The more tickets you sell, the more people at the ball, the bigger your ball will be and the more money you will make. This principle is a very key one to helping anyone out of the rat race. Having your own business or organization where you can sell a product or service will help by generating more money for you to not only get out of debt yet it will also give you more money to invest and help you get out of the rat race faster. I feel everyone should have a business of some sort they can do full or part time. Not only will it give you more money yet the tax advantages are wonderful as well as what you become and what you learn in the process of building a business. I am currently self employed with my own company called Got Help Fire Safety. I educate people about how to get out of their home during a fire and install high quality fire alarms in homes for those that want them.

I can sell more tickets by being in front of more people and selling more alarms in each home. I have control over how much money I make. I have a book keeper that helps me find deductions to help me lower my taxable income in legal ways. Sometimes I tease my brothers because I make a lot more than most of them and yet pay less in taxes than they do. That is my current business and way of selling tickets. I am a serial Entrepreneur by heart so I love to start new businesses. I have plans for other ventures I want to start also. I do love having my money work for me too. In Robert's book rich dad poor dad he talks about minding your own business meaning you should have a business of sorts and your money should have a business. If you think about your money as employees, it is your job to put them to work. What kind of work will they do? How well will they get paid (profits)? what kind of benefits do they get (discounts, time to double your money, etc)?

Find good work for them to do and they will treat you well. Having a business is one way to keep your money working. It is not an easy way to go yet is a great way to grow yourself and sell many more tickets. Another way to sell more tickets is to recruit others to help you sell them too. Then you can leverage other people to help you sell more tickets.

So go out there and get bigger balls and sell lots of tickets to help you get out of the rat race!

Ponzi Schemes

Today we are all learning once again that there is a problem with some get rich quick schemes. Doing nothing to earn something might not be the best investment opportunity around.

Ponzi Schemes are a common problem with these opportunities so I want you all to understand how these work and how to identify them. 

Basically the most recent people who get into the opportunity are having their money used to pay returns to those who have already been in the opportunity. There really is no business model or product or service that is provided to the investors. They just give their money up and hope they get as good of a return as the previous investors. These plans are completely illegal in the United States and are prosecuted harshly by the federal government. Just as Bernie Madoff. He is the most recent person to get caught running an investment that ended up being a ponzi scheme. The key to keeping a ponzi scheme going is you always have to have more people putting money in all the time. If the money stops going in the system falls apart.

These plans have been around for a very long time. Now I did say that these are illegal plans yet I have to qualify that statement and say they are illegal if the government does not sanction it. Yes there are "ponzi schemes" that the government does endorse. Take a minute and follow me now.

Social Security is a plan created from the depression that was used to help the people have some sort of government sponsored retirement. What would happen is all workers would put a little money into a trust fund and the government would take that money and hand it to current retirees. This was never meant as a government savings plan. The money you put in pays the benefits of the current retirees. 

When this plan was put in place there were more workers than retirees. As time progressed and the baby boomers came along there was a lot more workers than retirees. now as the baby boomers retire there are more retirees than workers. During the Clinton administration the GAO (Government Accounting Office) stated that social security could now sustain itself for much longer. Recently the government has admitted that by around 2030 social security will not be able to pay out money any more. 

I know it is a very simplified understanding of it yet I hope it helps you understand that taking control of your own finances is a good thing.

If you are looking forward to having Social Security to help you pay your bills when you retire you may want to think again since it probably won't be around much longer. I would recommend reading Robert's Book Conspiracy of the rich to learn more about how not to lose it all as the government figures out more ways to print and spend money. Click on the links and check it out.