If you don't plan on working hard all your life... this book is for you. If you're ready to retire (or want to retire early enough
to enjoy your retirement years) you can learn from Robert's story of how he and his wife Kim started with nothing and 'retired'financially freein less than 10 years. This book makes the case for how a context shift in the way we think about money and investing allows us to see opportunities others miss and create the life you deserve.
|Publisher:||Plata Publishing, LLC.|
|Product dimensions:||6.00(w) x 8.90(h) x 1.10(d)|
About the Author
Read an Excerpt
How To Become Rich and Retire Young
The following is the story of how my wife, Kim, my best friend, Larry, and I began our journey from broke, to rich, to retired in less than ten years. I tell this story to encourage any of you who may be doubtful or in need of some self-confidence to begin the journey to retiring young. When Kim and I started, we were nearly out of money, low on confidence, and filled with doubt. We all have doubts. The difference is what we do with those doubts.
The Journey Begins
In December of 1984, Kim, my best friend, Larry Clark, and I were skiing in Vancouver, British Columbia, on Whistler Mountain. The snow was very deep, the runs were long, and the skiing was excellent, although very cold. At night, the three of us sat in a little cabin that was snuggled in between tall pines, barely visible because the snow was up to the roof.
Sitting around the fire every night, we would discuss our plans for the future. We had very high hopes but very little resources. Kim and I were on our last few dollars and Larry was in the process of building another business. Our discussions ran late into the night, every night. We discussed books we had recently read as well as movies we had seen. We listened to educational audiotapes we had brought along and then discussed the lessons on those tapes in depth.
On New Year's Day, we did what we do every year, we set our goals for the coming year. But this year our goal-setting session was different. Larry wanted to do more than just set goals for the coming year. Instead of discussing just our goals for the year, he wanted us to set goals that changed our lives by changing our realities. He said, "Why don't we write a plan on how we can all become financially free?"
I listened to his words and heard what he said. But I could not fit what he said into my reality. I had talked about it, dreamed about it, and knew that someday I would do it. But the idea of being financially free was always an idea in the future, not today . . . so the idea did not fit. "Financially free?" I said. The moment I heard my voice I knew how much of a wimp I had become. My voice did not sound like the old me.
"We've talked about it many times," Larry said. "But I think it is time to stop talking, stop dreaming, and start committing. Let's write it down. Once we write it down you know we have to do it. Once we write it down, we'll support each other on this journey."
Being almost out of money, Kim and I looked at each other. The glow from the fire illuminated the doubt and uncertainty on our faces. "It's a good idea but I think I would rather just focus on surviving for the next year." I had just left the nylon and Velcro wallet business. After it had crashed in 1979, I had spent the next five years rebuilding it and then walked away from it. I walked away early because the business had changed drastically. We were no longer manufacturing in the United States. In order to compete with increasing competition, we had moved our factories to China, Taiwan, and Korea. I left the business because I could no longer stand the idea of using sweatshop child labor to make me rich. The business was putting money in my pocket, but it was taking life out of my soul. I was also not getting along with my partners. We had grown apart and did not see eye to eye. I walked away with very little equity. I just could not continue to work in a business that violated my spirit and with partners I could not talk to. I am not proud of how I left, yet I knew it was time to leave. I had been there for eight years and I had learned a lot. I learned how to build a business, how to destroy a business, and then how to rebuild it. Although I walked away with very little money, I did walk away with priceless education and experience.
"Come on," said Larry. "You're being a wimp. Instead of setting simple one-year goals, let's go for it. Let's set a big multiyear goal. Let's go for freedom."
"But we don't have much money," I said, looking over at Kim, whose face reflected my concerns. "You know we're starting over again. All we want to do is survive for the next six months and maybe a year. How can we think about financial freedom when all I can think about right now is financial survival?"
Again I was shocked at how wimpy I sounded. My self-confidence was really low. My energy was really low. "Even better. Think of this as a fresh start," Larry was now on it. He would not stop.
"But how can we retire early when we don't have any money?" I protested. I could hear more and more of the wimp in me coming out. I felt weak inside and did not want to commit to something just yet. I did just want to survive for the financial short term and not think about the future. "I did not say we were going to retire in a year," said Larry, now irritated with my wimpy responses. "All I am saying is let's plan on retiring now. Let's write down the goal, create a plan, and then focus on the idea. Most people do not think about retiring until it's too late . . . or they plan on retiring when they're sixty-five. I don't want to do that. I want a better plan. I don't want to spend my life working just to pay bills. I want to live. I want to be rich. I want to travel the world while I am young enough to enjoy it."
As I sat there listening to Larry sell me on the benefits of setting such a goal, I could hear the little voice inside of me telling me why setting a goal to be financially free and retiring early was unrealistic. It even sounded impossible. Larry continued. He did not seem to care if Kim or I were listening so I tuned him out as I began to think about what he had said. Silently, I said to myself, "Setting a goal to retire early was a good idea . . . so why am I fighting it? It is not like me to fight a good idea."
Suddenly, in my silence, I began to hear my rich dad saying, "The biggest challenge you have is to challenge your own self-doubt and your laziness. It is your self-doubt and your laziness that define and limit who you are. If you want to change what you are you must take on your self-doubt and your laziness. It is your self-doubt and laziness that keep you small. It is your self-doubt and laziness that deny you the life you want." I could hear rich dad driving home his point, saying, "There is no one in your way except you and your doubts about you. It is easy to stay the same. It is easy not to change. Most people choose to stay the same all their lives. If you will take on your self-doubt and your laziness, you will find the door to your freedom."
Rich dad had had this talk with me just before I left Hawaii to come on this trip. He knew I was probably leaving Hawaii for good. He knew I was leaving my home and a place I felt very comfortable in. He knew I was venturing out into the world without any guarantees of security. Now just a month after my talk with rich dad, I found myself sitting on this tall snow-covered mountain, feeling weak, vulnerable, and insecure, listening to my best friend telling me the same things. I knew it was time to grow up or give up and go home. I realized that it was this moment of weakness on the mountains that I had come for. It was decision time once again. It was time to choose. I could let my self-doubt and laziness win or I could go on and change my perceptions about myself. It was time to move forward or to go backward.
As I tuned back into Larry talking about freedom I realized that he was not really talking about freedom. At that moment, I came to realize that taking on my self-doubt and my laziness was the most important thing I could do. If I did not take it on, my life would go backward.
"Okay, let's do it," I said. "Let's set the goal to be financially free." That was New Year's Day 1985. In 1994 Kim and I were free. Larry went on to build his company, which became one of Inc. magazine's fastest-growing companies of the year in 1996. Larry retired in 1998 at the age of forty-six after selling his company and took a year off.
How Did You Do It? Whenever I tell this story, the question I am asked is, "How? How did you do it?"
I then say, "It's not about how. It is about why Kim and I did it." I go on to say, "Without the why, the how would have been impossible." I could go on to tell you how Kim, Larry, and I did it, but I won't. How we did it is not that important. When it comes to how we did it, all I will say is that from 1985 to 1994, Kim, Larry, and I focused on rich dad's three paths to great wealth, which are:
- 1. Increasing business skills
- 2. Increasing money management skills
- 3. Increasing investment skills
There are many books written on each of these paths, and if I did the same, this would be just another how to book. But what I think is more important than how to, is the why we did it, and the why is because I wanted to challenge my own self-doubts, my laziness, and my past. It was the why that gave us the power to do the how. Rich dad often said, "Many people ask me how to do something. I used to tell them until I realized that even after I told them how I did something, they often did not do it. I then realized that it was not the how to but why I do something that is more important. It is the why that gives you the power to do the how to." He also said, "The reason most people do not do what they can do is because they do not have a strong enough why. Once you find the why, it is easy to find your own how to to wealth. Instead of looking inside of themselves to find their own why they want to become rich, most people look for the easy road to wealth, and the problem with the easy road is that the easy road usually ends in a dead end".
Copyright © 2002 by Robert T. Kiyosaki and Sharon L. Lechter
Table of Contents
Introduction: Why David Met Goliath 1
Section 1 The Leverage of Your Mind
Chapter 1 How to Become Rich and Retire Young 15
Chapter 2 Retire as Young as You Can 25
Chapter 3 How I Retired Early 33
Chapter 4 How You Can Retire Early 47
Chapter 5 The Leverage of Your Mind 61
Chapter 6 What Do You Think Is Risky? 77
Chapter 7 How to Work Less and Earn More 91
Chapter 8 The Fastest Way to Get Rich 107
Section 2 The Leverage of Your Plan
Chapter 9 How Fast Is Your Plan? 117
Chapter 10 The Leverage of Seeing a Rich Future 135
Chapter 11 The Leverage of Integrity 161
Chapter 12 The Leverage of Fairy Tales 173
Chapter 13 The Leverage of Generosity 193
Section 3 The Leverage of Your Actions
Chapter 14 The Leverage of Habits 221
Chapter 15 The Leverage of Your Money 237
Chapter 16 The Leverage of Real Estate 251
Chapter 17 The Leverage of Paper Assets 271
Chapter 18 The Leverage of a B-Quadrant Business 311
Chapter 19 Hot Tips 327
Chapter 20 Different Realities 355
Section 4 The Leverage of Your First Step
Chapter 21 How to Keep Going 361
In Closing 369
Most Helpful Customer Reviews
This book is basically a story telling book. It serves the purpose to inspire other people to get rich but to actually instruct people on a 'How To Do' basis, it lacks all the information required. It is also frustrating to read that the book advises the reader on how to acquire services of a lawyer / accountant, and other professional type person if you do not have the finances to hire them much less try to associate with these type of people that you want to help you. Usually in the real world, most people with professional careers and are usually in a better financial situation associate with other people in the same or similar type of class status as they have. How a person with no money but just the idea that he can start a business based on real estate is ludicrous and literally impossible. Somehow there are missing parts of information in this book. This book is just trying to inspire people and is also trying to encourage people to buy their other products as well as the board game CASHFLOW 101 which is ridiculously overpriced in my opinion. It serves no purpose for the person with nothing at all. If gives the false impression that anyone without money, no education and no job can become so ridiculously wealthy. A person with those qualities in real life would basically be homeless, living on the streets or in shelters and panhandles for food or eats at soup kitchens.
Overall, this is a good book for helping you examine the path you have taken and a better path that could be followed relating to your financial future. It describes in general terms how others have achieved success and encourages the reader to follow similar paths. This is what I got from the book: If you are relying on your 401(k) or social security and a few small investments in the stock market to become wealthy, you will likely be disappointed. You need to use leverage using 'other people's money'(mortgages) and other people's time' (starting a business) if you want to have a chance at becoming rich. Also . . . expect some set backs on the journey and prepare yourself to get up and try again. I thought the title was somewhat misleading however. 'How to Get Rich Quickly and Stay Rich Forever' does not really describe the information in this book. The book does not give specifics on where to begin and how to stay on course. If you are looking for details on how to achieve financial freedom step-by-step, this is not your book. However, if you are looking to better understand where you are and the general steps you need to take for financial success, this book will encourage you to start learining and put you on a proper course. It's not a cure-all book, but it is worth reading.
This 1 Star review will probably be deleted just like the previous 1 Star review that I read before purchasing this book. This book is an advertisement for additional books, games; etc, which may or may not provide you with the information that you thought would be contained within this book.
Right up top with such greats as Napoleon Hill, Steven Covey, and Donald Trump, Robert Kyosaki has the ability to quickly and succinctly communicate his success advice. Steven Covey may have built the quintessential treatise on success with his "Seven Habits of Highly Effective People", but Robert Kyosaki provides here a system which is simple and effective while also being easy to learn and to apply. This CD program provides great financial advice for all individuals, but is especially appropriate for those engaged in Multilevel Marketing. Mr. Kyosaki's discussions of "Good Debt vs. Bad Debt", and "Good Income vs. Bad Income" are worth the price of the set alone.
Although many people talk about Kiyosaki never telling you directly how to do certain things, there is a reason for this. Instead of giving everyone advice that could hurt some and help others, he gives a blunter more general understanding of various subjects so that you can add the final part of it out of your own logic-which specifically comes from you and is prone to help you out the most. I liked this book-the advice was helpful, and there were almost never any dull moments. I recommend this book to any middle class person looking to raise their financial status.
What you think and how you act is going to determine your financial situation. This book will lead you to shift your thinking and act as if...
This book is great to get motivation but it is not very instructing. It's a good book to read b/c it's very storytelling and interesting. He knows what he is talking about but just pretty much gives you pointers to get up and do something. He found out his investing through experience and expects you to do the same. He states it's not all easy and won't find in a book. There's no set answer but just go out and do what you gotta do. It's an inspiring book if you're comitted!
This book is good for getting you into the proper mindset to be an investor. It doesn't give very much 'how to' information at all. It touches on several subjects, but going into technical details about all of the various investment vehicles available is beyone the scope of this book. You'll want to get another book for reference. This book will get you motivated and change the way you think about money, investing, and working for someone else. It's a great mental launching pad.
This book teaches people better ways to go through life. It teaches some of the things you need to know to be succesful, and tips on how to conduct/run your business properly. This book is NOT meant to take you step by step and hold your hand. It's intent is to inform the readers how the rich differ in their perspectives and goals from the 'poor' and 'middle class'. It is meant to teach those willing to learn how to best go about their life if they want to get out of the 'rat race'. True, Kiyosaki does focus on assets/liabilites, and investing and real estate, but that is the point. There are other ways to make money. He just shows you what he knows best. Real estate and investing are not for everyone. Kiyosaki just tries to show you the positives of using them. This book should be read more for perspective than for information. If you run a business, or plan to some day, I recommend you read this. If you are going to be stubborn and close minded, I recommend you don't read this at all. This book is teaching perspective and mangagement. It's not teaching you a specific field, or how to start a business. It teaches you how to RUN a business. It teaches you to EDUCATE yourself in your career. And this is to JimB. You can start with nothing and make money in Real Estate. Don't be someone who tells everyone something can't be accomplished. Join the ones already doing it. To succeed, you must have ambition, determination, and the ability to learn from your mistakes. You must also know how to LOOK and learn. The book gives the impression that if your willing to learn (educate yourself) you can get FARTHER ahead in life. It isn't implying you'll be a millionaire. That depends on you.
A very solid book that's enjoyable to read. Some good take aways from it that helped me and my clients along the way.
Kiyosaki¿s inspirational, easy-to-read books are written to excite the reader about available financial opportunities. And they do excite the reader. It is easy to get caught up in the author¿s enthusiasm. The generalizations are great, but these books lack specifics and more details are needed. In this recent book, Kiyosaki stresses the need to protect your assets. He spends an entire chapter (17) on how stock options can, and in his opinion, should be used by all investors to gain that protection. His discussion was convincing, but again, there were not enough details. I recommend THE SHORT BOOK ON OPTIONS to learn those details. The reader would then be in position to follow Mr. Kiyosaki's good advice.
Everyone is entitled to an opinion and this is mine. The persons giving this book a bad review have completely misread, misunderstood the whole point of this book and frankly couldn't have read any of the other Rich Dad books! This is simply the best book ever written on the mental aspects of investing in changing times, period! These principals work because I see people using these principals daily and they are getting out of the "rat race"!
This book contains very little useful information. 99% of this book is story telling and than retelling and retelling the same useless story of when the auther decided to retire. The author reveals very little information on the steps a person needs to do over a period of time to achieve retirement at an early age. If I had a strong interest in retiring at an early age I would not rely on this book as a guide
I'm sorry to say that this book is filled with misinformation and errors of omission and that I would not recommend it. For instance, the Author(s) go on and on about tax consequences of owning mutual funds(mucho discouragement), yet fail to mention the remedies. A well written book would explain holding these funds in Roth IRA's OR Coverdale savings plans OR using tax efficient mutual funds. All these vehicles will save you from most if not all of the tax cost one would incur. Author also butchers discription of P/E ratio's. Bottom line: Author has a poor working knowledge of BASIC financial planning, stocks, taxes, yet tries to give the illusion that he has 'inside' information which is not available to the general public. This fellow is a writer and not the financial expert he claims to be.
This book deserves more than five stars for its exceptional clarity, authenticity, relevance and eloquence. Those who love the Rich Dad, Poor Dad books will adore this one. I found it to be the best book in the series since Rich Dad, Poor Dad. Mr. Robert T. Kiyosaki speaks with the authority of experience. He did retire young at 47 while his wife was 37. At that time, his expected annual income was between $80,000 and $125,000. Many people yearn for early retirement with wealth, mostly because they hate their work. Mr. Kiyosaki was soon back at work, establishing new businesses. Most of his wealth was created after he retired. 'I keep working because there are so things that need to be done.' So, he has clearly moved from earnings a living, to living a mission of self-expression. That's very wonderful, and I hope you will accomplish the same result! Although the subtitle says this is 'how to' book, it's really more of a 'what to think' book. The fundamental concept is to leverage your mind, your plans, your actions, and your priorities to get wealth faster and more easily. The first books in the Rich Dad, Poor Dad series have been about cash flow. This one shifts over to leverage. Section 1 is about leveraging your mind, section 2 looks at leverage from a plan to retire, section 3 addresses leverage from actions. The book goes on to give you a final exam on your attitudes and a challenging thought to chew on to help get you focused properly: making lots of money with no money to start with. Now, any book about leverage would normally have lots of pages on how debt leverage works. In fact, that is only a small part of what this book talks about. You are also given a list of good habits to pursue. And top tips from the prior books are repeated in a convenient section near the end of the book. By contrast, at age 65 only 5 percent of all Americans will be able to afford to live a wealthy life style. Most will be looking for more income. Which group do you plan to be in? Think and live the thoughts that will make you as rich as you want to be! The solutions are there if you look for them. Donald Mitchell, co-author of The 2,000 Percent Solution and The Irresistible Growth Enterprise