Monday, December 22, 2008

Robert Kiyosaki and Todays Recession

Like most people that have read Robert Kiyosaki's book Rich Dad Poor Dad, I have been inspired to learn exactly what it is that the wealthy know about money. In today's economic recession, it is apparent to me that the masses are struggling even here in Knoxville, because unlike the wealthy the masses have not been taught to have money work for them.

Kiyosaki points out that: "The main reason that the masses struggle financially is because they have spent years in school but have learned nothing about money." This point rings true today because every person that I talk to, every newspaper that I read, and every news/ radio station blasts the same headline of how the worldwide economy is in a recession. One by one the masses are being laid off from their jobs, loosing money in their retirement accounts and are chirping like chicken little saying that "the sky is falling." Fear is definitely in the air. But the wealthy are taking advantage of this economic crisis.

Today physical and paper assets, such as real estate and equities, are being purchased at deeply discounted prices. As the masses are running for the exits, the wealthy are lining up one-by-one to take advantage of the golden opportunity at hand. This particular era is being touted as the "Largest Redistribution of Wealth" in history. If there is one thing that I have learned from this financial crisis, it is that in order to be successful and weather the storm one must do something different from the competition. By this I mean that you must not be like the masses.

Kiyosaki supports investments that yield positive cash flow in not only economic downturns but also when the economy is booming. If he were writing this today, then he would be telling his students where to find positive cash flow investments. The most noted would be physical assets, such as real estate which is acquired by leveraging other peoples money. He strongly believes that real estate investing for cash flow is one of the best means for generating passive income. It allows the investor to benefit from tax advantages of a business without having to buy a building, rent space or pay employees. Best of all, real estate investing can be started with one person on a limited budget.

It can be done in any town across America, including Knoxville, TN. How nice is that? If you would like more information, you can get your FREE real estate investing newsletter. Learn two dozen investor mistakes to avoid. Simply enter your name and email address below for timely real estate investing tips, information and cutting-edge marketing strategies to help you become a better investor.

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