Lessons from Robert Kiyosaki
I have just come back from a fantastic weekend in London at the National Achievers Congress 2010 with Robert Kiyosaki, Kim Kiyosaki and the Rich Dad Advisors. It was a massive event with 3500 like minded individuals all interested in personal development and wealth creation. There were so many valuable tips and golden nuggets that I am going to share some of my key learning on this blog over the next few weeks.
To start with I want to tell you about the two most important things you need to Master if you want to become rich!
Robert Kiyosaki (author of Rich Dad Poor Dad) was very clear when he said there are two key areas you need to master if you want to come rich. These are managing debt and tax.
The quickest way to put more money in your pocket right now without doing any more work is to pay less tax. Many people focus on making as much money as they can but then go and unnecessarily give most of it away to the tax man. Tax laws have been set up specifically so that the rich pay less tax. Taxation in many cases is optional. The problem is many people rely on their accountants to advise them on how to save money. Most accounts (but not all) are reactive rather than proactive. They will give you the right answer, but you need to ask the then right questions, which means you need to educate yourself as to the correct questions to ask them.
I have spent a fortune on my personal Tax education and as a direct result I don’t pay much tax now. I legally use the tax laws in my favour as do all rich people. Luckily for you, my personal tax experts also regularly speak at the property investors network meetings which we hold every month all round UK. If you want to find out about the closest pin meeting to where you live check here www.pinmeeting.co.uk
The other key point was about managing debt. By using debt to purchase assets you can make a lot of money. As successful property investors we understand the concept of using other people’s money to buy investment properties. It was encouraging to hear Robert Kiyosaki share his investment strategy which is the exactly the same as the one I teach on my one day property investing Quick start seminar. The idea being that you buy an asset below market value and then you refinance as soon as possible to get your deposit back out. (even better if you uses someone else’s money for the deposit). This means you have an infinite return on investment if you don’t have any money left in the deal.
The main risk involved in this strategy is what happens if interest ratres go up. Well the fact is that interest rates will go up in the future so in the next article I am going to share what I learn from World Economist Richard Duncan and his top tips for investing in the next few years.
