Wednesday, July 17, 2013

This is where Rich Dad, Poor Dad was born

Excerpts from Richdad.com...
( http://www.richdad.com/Resources/Rich-Dad-Financial-Education-Blog/july-2013/taking-the-fear-out-of-investing.aspx)

"
...I started with real estate. That made the most sense to me. I bought my first rental property in 1989. It was a small, cute, two-bedroom, one-bath rental house in Portland, Oregon. It was only two blocks away from where we lived. I have to tell you, it was the most frightening thing I had ever faced. I was scared to death. I was worried. I was afraid of making mistakes that would cost us money. I really didn’t know what to expect.
I was ecstatic when after my first month of ownership I received a whopping $25 in cash flow from that property. I was hooked at that moment. Today, I control many millions of dollars worth o f real estate, as well as other investments. And it’s through my investments – which throw off ample amounts of cash flow every month – that I am completely financially free and independent today.
Buying and holding
When many women hear the word “investing,” they think of mutual funds, or stocks and bonds, not real estate. The buying and selling of houses seems daunting, but investing in real estate doesn’t necessarily entail multiple transactions. It’s about buying and holding, not buying and selling.
What retiring is and isn’t
When Robert and I retired, we didn’t just retire to the poolside with margaritas in hand. That year we bought an 85-acre ranch in a small town called Bisbee. Bisbee is an artsy community up in the mountains of Southern Arizona. There was a broken down shack on the property that was actually an old stagecoach depot in the days of the Wild West. We rebuilt it into a wonderful one-bedroom house with a separate artist’s studio on the stream. There was no TV, no radio…only peace and quiet.
Rich Dad Poor Dad
It was in the quiet of Bisbee that Robert wrote Rich Dad Poor Dad. In April of 1997, we self-published Rich Dad Poor Dad, printing 1,000 copies of the book. To be honest, we thought we’d have Christmas presents to last us the next ten years. No bookstore wanted the book. No distributor would touch it. No wholesaler would even return our calls. So we began marketing it ourselves. The first place we had the book for sale was in our friend’s car wash. We put it wherever we could. The book slowly started to sell. Word of mouth spread, and within two years Rich Dad Poor Dad was on The Wall Street Journal’s bestseller list. We were high as kites!..."

So , where will from Bisbee be? In your study room,  1 hour every night?

And how they went to hell and return back to heaven... from 1985 to 1994.... nine years of solid work, tears, sweat, blood....


(  http://www.richdad.com/Resources/Rich-Dad-Financial-Education-Blog/july-2013/1985-the-year-from-hell.aspx )

" ...
In December 1984, Robert and I sold all we had and left Honolulu to begin building our business in Southern California. It didn’t take long—two months to be exact—before we had gone through the money we had. We were broke and without jobs or work. We had a long way to go before we were ready to launch our business. At times we were even homeless, sleeping in a beat-up Toyota Celica. I can honestly say 1985 was the worst year of our lives.
Rock bottom
When Robert and I had nothing, we argued with each other and blamed one another. Resentment built up. We were definitely not at our best. We were stressed beyond belief.
The worst part of it all for me was that my self-esteem hit rock bottom. Before 1985, I was always a very optimistic, happy, decisive, and confident woman. But when we went through this taxing period, I began to question and doubt everything I knew and believed in, including my ability to accomplish anything. I’d ask myself, “Do I know anything at all?” What started as a few self-doubts quickly spiraled into what at the time seemed like a huge, dark hole that was impossible to climb out of...."
 

"...We finally came to the point where we simply had had enough of this chaos that we created. Robert came to the conclusion that no one was going to make his life better except him and that it was time for bold measures. I decided to stop feeling sorry for myself. I stopped blaming everyone else for my circumstances. And the two of us simply made the decision to take control of our future and to get to work. So we did.
Through it all, we built an education company focused on entrepreneurship. While Robert built several businesses in Honolulu before our move to California, he was studying for years how people learn, and new and innovative methods for teaching. Our business grew to eleven offices in seven countries throughout the world. We were constantly on the road, mostly overseas.
In 1994, after nine years of running the company, we sold it and retired. I was 37 years old. Robert was 47. The best part about it was that we were free—financially free. We no longer had to work for money. It was a great feeling.  ...."


And what Robert has to say for people who leaves money into mutual funds and hope for the best...

 ( http://www.richdad.com/Resources/Rich-Dad-Financial-Education-Blog/july-2013/why-you-must-be-a-c-student.aspx )

"..If this is true, it might be stated another way: Those who choose not to become financially educated or play an active role in their investments and, instead, turn their money over to professional money managers, are abdicating responsibility for their financial future—and, if Buffett is on target, getting little value for it. How great is the risk of turning your money over to a “professional” who brings little value to the undertaking of making your money work for you? .."

And a very good article on Fed at 100 years old...

( http://www.richdad.com/Resources/Rich-Dad-Financial-Education-Blog/july-2013/the-fed-at-100-omnipotent-or-senile.aspx )

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