5 Ways You Can Thrive During the Coming Financial Storm Ways You Can Thrive During the Coming Financial Storm For those—like Robert Kiyosaki—who have been studying the facts, they’ve seen the financial storm on the horizon for quite some time They know that the Great Recession of 2008 was just a harbinger of the larger financial crisis that lies ahead Manipulated markets Unsustainable economic trends Nations on the verge of bankruptcy All of it, and much more, points to global economic turmoil However, for all the fast approaching financial dark clouds, there is a silver lining The coming financial storm will not be one of wealth destruction, but a wealth transfer In other words, those who have built their financial shelter will be protected and benefit from the storm, while those who have done little to nothing will find themselves exposed to the harshest conditions Receive months of Rich Dad Coaching Absolutely Free when you enroll in a new program and mention this offer! Just call 1-800-240-0434 and mention extension 6267 to receive this special offer So how you put yourself on the right side of the equation? How you capitalize on the calm before the storm and construct your own financial shelter? In “5 Ways You Can Thrive During the Coming Financial Storm,” you’ll learn the steps you can take to help educate and prepare yourself Best of all, these are things that you can today to give you the confidence and peace of mind to weather any possible storm #1 - Set or Re-Evaluate Your Goals Building a financial shelter must begin with a blueprint Just like the carpenter’s rule of “measure twice, cut once.” You need to know what you intend to build before you begin Most financial plans don’t work because people don’t put the necessary thought required into it People pick a number out of thin air; tie it to an investment vehicle, and think that is their plan They declare, “I want to have $2 million in my stock portfolio when I am 65.” But if asked how much they need to invest and at what rate of return to achieve that goal, most will say that they don’t know If you are serious about constructing a financial shelter that will withstand the elements, then you must set goals with clearly defined steps and milestones along the way If you have not set your goals already, break out the spreadsheets and the calculator and determine how much your shelter will cost (Keep in mind that you don’t want to just survive the financial storm, but thrive during it.) Do you need $3,000 per month? $10,000 per month? $50,000 per month? Whatever you decide, that dollar amount is how much passive income you will need to generate © 2015 Professional Education Institute COACHING Ways You Can Thrive During the Coming Financial Storm Once you have a definitive dollar amount in mind, then identify investment vehicles and assign milestones to your plan Be sure to look at what you have or what you can leverage for investing, the needed rate of return, and what investment vehicle would provide that rate In other words, if you are hoping a $2,000 investment in a mutual fund will yield a 40% return, you had better go back to the drawing board Build Your Shelter • Determine how much money you need to live the life you desire • Research the historical rates of returns for the investments that interest you Figure out if those rates of return coupled with what you have available to invest will achieve the financial goals you’ve identified • Make a list of financial “bad habits” that you need to change in order to reach your goals Begin addressing those habits one by one Receive months of Rich Dad Coaching Absolutely Free when you enroll in a new program and mention this offer! Just call 1-800-240-0434 and mention extension 6267 to receive this special offer #2 - Generate Passive Income When the real estate bubble burst back in 2008, those who invested for capital gains found themselves struggling to stay afloat For capital gain investors, their investment strategy relied on selling their property for more than they paid for it They rationalized that if they had to “feed” their investment a few hundred dollars every month, they would recover that expense and more when they sold their property for a big payday in the future However, as soon as real estate prices fell, these investors found themselves upside down owing more than they could possibly recoup from the sale of their investment Conversely, those who invested for cash flow or passive income were able to ride out the storm While the market value of their investment may have dipped, they were still able to cover their expenses and buy themselves time while the markets stabilized They knew that creating passive income was key to building a shelter that would withstand a financial storm Most people think all “dollars” are created equal They think that profits from capital gains or cash flow are the same While having an asset appreciate is great, if it is the foundation of your financial shelter, you run the risk of your foundation crumbling out from beneath you the minute a market turns south However, if your foundation is built upon passive income, your shelter’s foundation is reinforced with assets covering expenses Investing for passive income necessitates that you look at investments in terms of what is happening instead of what might happen You focus on the actual financials of an investment instead of what you hope will happen in the future In other words, you make your money when you buy instead of when you sell © 2015 Professional Education Institute COACHING Ways You Can Thrive During the Coming Financial Storm The rich understand assets with cash flow make you rich Assets are those items that put money in your pocket—like rental real estate with a positive monthly cash flow If you can begin thinking about covering your expenses and new purchases by buying assets instead of relying on capital gains, then you have financial shelter that lasts Build Your Shelter • Review receipts, bills, and other statements to determine your total monthly expenses • Set a goal for how much passive income you need to cover your monthly expenses and exit the Rat Race • Research the advantages and disadvantages of the various asset classes (e.g real estate, starting a business, stocks, etc.) Receive months of Rich Dad Coaching Absolutely Free when you enroll in a new program and mention this offer! Just call 1-800-240-0434 and mention extension 6267 to receive this special offer #3 - U  nderstand the Difference Between Good and Bad Debt Any structure intended to last needs to stay away from inferior materials When it comes to constructing your financial shelter, the worst material you can use is bad debt You create bad debt anytime you purchase something on credit that does not create passive income for you That brand new flat screen television? Bad debt That weeklong vacation? Bad debt Rich Dad calls these doodads and they all compromise the integrity of your financial shelter Now, this doesn’t mean you can’t have any fun In fact, you should live the life you want Just don’t take on bad debt to get it Instead, determine how you can buy assets to fund these luxuries The great thing about this approach is that if you buy assets to fund your purchases, once you have paid for the purchases, you still have the asset producing positive cash flow If you acquire more and more assets, you will be well on your way to generating the passive income needed to reach the milestones you established when you set your goals Build Your Shelter • Review your debts and classify each one as good debt (debt that pays for income producing assets) and bad debt (debt that pays for liabilities) • If necessary, create a plan to get out of bad debt #4 - Diversify Your Financial Plan (the Right Way) Sit down with a financial planner and he will tell you to diversify He will then go on to talk about small-cap and large-cap funds He will then explain why you will need funds that focus on this sector and few from that sector He will also encourage you to invest internationally too © 2015 Professional Education Institute COACHING Ways You Can Thrive During the Coming Financial Storm There is only one problem with this strategy It is not true diversification! If you follow this advice, all you will is spread your money across one investment vehicle While it is better than investing 100% of your money in one company’s stock, this type of diversification strategy is the strategy of the poor and the middle-class True diversification comes from investing across different investment vehicles No one investment class will be unaffected by the financial storm All have strengths and weaknesses, but if you only diversify within one asset class, you are exposing yourself completely to the weaknesses of that asset class The rich understand that true diversification comes from investing in real estate, commodities, businesses, and paper assets They understand how each market affects the other They know when to get in and when to get out They can move their money from the asset classes that might be struggling at the moment to one that is poised for huge gains Receive months of Rich Dad Coaching Absolutely Free when you enroll in a new program and mention this offer! Just call 1-800-240-0434 and mention extension 6267 to receive this special offer Build Your Shelter • Look at your current investments and determine what percentage each asset class makes up in your portfolio • If there are asset classes in which you are not investing, determine how you will increase your financial education in those assets classes • Identify the rates of return you are receiving from your investments Decide if that money could serve you better in another investment #5 - Educate Yourself The final way to build your financial shelter is investing in your own financial education Most people have not received any financial education at all in their lives The educational system does not teach people where to invest let alone how to invest As a result, most people just hand their money over to people who sound like they know what they are doing Unfortunately, too many people pray on the naiveté of individuals and sell them a bill of goods that leaves them exposed when financial storms come People with a financial education know what to look for and what questions to ask By listening carefully to the words people use, they can discern whether someone has a poor or middle class mentality or whether he or she understands how the rich think about money They also understand that part of the education process is surrounding themselves with team members like an accountant, real estate agent, or coach that can help them learn along the way © 2015 Professional Education Institute COACHING Ways You Can Thrive During the Coming Financial Storm Build Your Shelter Ask yourself… • What ways can I further my financial education? • What team members I need to surround myself with in order to further my financial education? Do these team members think like the rich? • How would I benefit from having my own “rich dad” in my life? The Bottom Line While the coming financial storm will leave the unprepared exposed, those who have built a shelter will not only be protected, but will find themselves in a better position once the storm has passed Receive months of Rich Dad Coaching Absolutely Free when you enroll in a new program and mention this offer! Just call 1-800-240-0434 and mention extension 6267 to receive this special offer Instead of picking up the pieces, they’ll be on solid ground All because they’ve educated themselves and applied what they’ve learned You, too, can the same simply by beginning to build your shelter today Special Offer: Take Control of your Financial Destiny and Increase Your Cash Flow by Working with a Certified Rich Dad Coach ACT NOW and Receive Months of Coaching Absolutely Free! Discover the power of working one-on-one with your own certified Rich Dad Coach to help you invest smarter, build and protect your wealth, and create the cash flow you need to live the life you desire Remember, Robert’s Rich Dad was his first coach and helped him become successful by teaching him how to make his money work for him Who’s helping you? Get your free introduction to Rich Dad Coaching and learn how a Rich Dad Coach can help you the same Call 1-800-240-0434 and mention extension 6267 to receive your FREE introduction to Rich Dad Coaching and to get months of FREE Coaching with any new program © 2015 Professional Education Institute COACHING