Tag Archives: Rich Dad

Financial Fun and Games for Kids

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Now that school is out, most children will be looking forward to participating in enjoyable activities throughout the summer. If you’re a parent of kids with an overabundance of energy, you know how difficult it can be to keep them engaged in useful endeavours during the holidays.

If your vacation budget is tight and you don’t want your children to spend countless hours glued to the TV screen, tablet or telephone, you will have to get creative in serving up summer fun. Here are a few ideas that will keep your kids entertained, while learning about money and finance.

Explore our money history

Our coins and banknotes can provide a wealth of information about our history and national facts for younger children. By creating entertaining activities around the units of currency, you will help them to recognise them and appreciate interesting tidbits about our country. Continue reading Financial Fun and Games for Kids →

Financial Freedom

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The Universal Declaration of Human Rights states that: “All human beings are born free and equal in dignity and rights,” and the desire for freedom is entrenched in the hearts of people worldwide. While we may enjoy personal liberties here in Jamaica, how many of us can say that we are financially free?

Freedom is usually defined as being devoid of restraints on thought, speech or actions. To be free, you must be able to make choices for your life without any restrictions, apart from legal considerations. When it comes to money, do you believe that you have the ability to determine your financial destiny?

If asked “What does financial freedom mean to you?” different people will provide diverse definitions. One basic concept of money freedom is the ability to finance your preferred lifestyle without stress or debt. To be financially free, you should have autonomy in your income and time to live as you desire. Continue reading Financial Freedom →

What’s Your Net Worth Really Worth?

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As we strive to move up the ladder of success, one of the benchmarks that we can use to gauge our progress is our net worth. Your net worth is a measure of your financial value which is calculated by subtracting your total liabilities from the total value of your assets. In essence, it is the net value of all the things you own, less all the things you owe.

According to T Harv Eker, best-selling author of the Secrets of the Millionaire Mind, net worth is a fundamental measure of wealth. Eker reveals that persons who are determined to be rich will focus their efforts on increasing their net worth.

So if one of your money goals for this year is to build your wealth, you should be paying close attention to your net worth. Continue reading What’s Your Net Worth Really Worth? →

Investing Is Not Rocket Science

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Many persons think that investments are mega money-making deals that can only be carried out by wealthy individuals such as financier Michael Lee Chin or hotelier Gordon ‘Butch’ Stewart. It’s also commonly believed that investing involves very technical and complex financial transactions that are outside of the understanding of the average person.

These mistaken notions often lead persons to become intimidated by the thought of investing, and this unfounded fear often prevents them from creating wealth with the use of solid investments. The reality is that once you have a desire to learn about investing, it is possible to find out all you need to know to become a competent and successful investor.

My personal experience offers living proof that anyone, regardless of background, education, age, or sophistication, can figure out the intricacies of investing. Just over 10 years ago I had no idea that there was even as concept called investing; in fact, I didn’t even practise the simple habit of saving my money. Continue reading Investing Is Not Rocket Science →

How to become a successful investor

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Last week we looked at several investor personalities which Robert Kiyosaki describes in his best-selling investing book, CASHFLOW Quadrant. While examining the attitudes and actions of different types of investors, he explains that most of them will only achieve minimal success because they lack the financial intelligence required to become wealthy.

Kiyosaki outlines three investor types that will become successful with money. The first is the long-term investor that is actively involved in making investment decisions. He explains that these persons invest in their own financial education before they buy an investment, so that they can fully understand how to make appropriate choices with their money.

These investors are financially disciplined; they live within their means and minimise their liabilities. Once they have identified their goals, they find out how much they need to invest to attain their objectives and create realistic action plans. They seek advice from competent financial advisors, are usually conservative, and avoid complex investing options. Continue reading How to become a successful investor →

What type of investor are you?

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Too many people live out their lives without setting financial goals or thinking of ways to get ahead in life. Like the ancient Arabic saying, “He who knows not, and knows not he knows not, is a fool,” they are dangerously unconscious about the importance of creating and carrying out a plan of action to become financially secure and successful.

One of the strategies that can help you to finance your dreams and achieve your objectives is investing. Investing is simply the act of putting your money to work in some type of endeavour with the expectation of making profit. The idea is that you are actively trying to increase the value of your initial investment and/or earn an income from your efforts.

While investing can be a key component in creating wealth, persons who decide to invest may receive vastly different results than they had expected. Although it may be relatively easy to put your money into some type of investment, it is not a given that you will make a profit.

The level of success you obtain will be largely dependent on your investing expertise.

Continue reading What type of investor are you? →

How to build a business with little time or money

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“You have advised that if I want to increase my wealth I should focus on earning income from my own business. I have a full-time job and I don’t have much time or extra funds to put towards starting a business or making any investments. Given these limitations, how can I possibly own a business?”

We have been looking at some of the steps recommended by several financial experts that can help you to increase your wealth and achieve financial security. Robert Kiyosaki, in his insightful book, CASHFLOW Quadrant, advises that owning a business should be an important element in your personal wealth accumulation plans.

If you really want to be financially free, it’s important to create an income source that is independent of your personal work efforts.

According to Kiyosaki, owning a business system is an integral part of creating this freedom. However, running a successful business is not a hobby or part-time exercise; it takes time, courage and determination. Continue reading How to build a business with little time or money →

Fun ways to teach kids about money

Kids & Money, , ,

May is observed as child’s month, so I decided to search the Internet for interesting and fun ways to teach our children about money and personal finance. Equipping our kids to handle money wisely is one of the most important skills we can give them.

It is my dream that one day, there will be a financial literacy curriculum in all schools, so that our children will be fully prepared to deal with managing, multiplying and maintaining their money as adults.

Let’s look at some websites that offer stimulating money lessons and products: Continue reading Fun ways to teach kids about money →

Watch Your Cash Flow

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“I work freelance and my income comes in at different times over the month. I’ve done my budget and it shows that my income is more than enough to meet all my expenses. I really try not to spend money carelessly. However, every month I’m always short of funds to meet my obligations, and I end up having to borrow from my family to tide me over. I don’t know what I’m doing wrong. Help!”

At a recent business seminar, I had the privilege of listening to a wealthy Texan businessman, Keith Cunningham reveal some of his secrets of success. Cunningham was one of the ‘rich dad’ mentors of Robert Kiyosaki, bestselling author of Rich Dad, Poor Dad. In his presentation he highlighted the importance of reading and understanding financial statements.

Cunningham pointed out that most people go straight to the profit figure on an income statement, to decide if a business is performing well, but neglect to focus on the cash flow statement. This ‘rich dad’ declared that while the profit and loss statement could be called a theory, cash flow was the reality.

“Profits do not sustain a business, for it can live for years without a profit,” he said, “but it will fail if there is no cash.”

Continue reading Watch Your Cash Flow →

Money Management for Teens

Kids & Money, , ,

“My 18 year old son is driving me crazy. He has a great summer job and every cent he earns is spent on clothes, cell phone calls and parties. I’ve tried to encourage him to save some of his pay, but he refuses to listen to me. How can I get him to understand the importance of good money management?”

Talking to your teenager about money management can be a thankless task. I remember my mother’s pleas several years ago as she tried to encourage me to save, and I recall that her advice went in one ear and out the other. The good news is that at some point I saw the light, so there’s always hope!

How can you get your teenager to grasp the importance of starting an early savings and investment plan? As with any other communication issue with a reluctant listener, it is crucial to present your discussion from his point of view.

If you try to force your ideals and tell him why you think it’s essential to save, he might just tune you out as I did many years ago.

Continue reading Money Management for Teens →