Scouting out books on entrepreneurialism from the shelves of bookstores always disappoints. On one hand, there exists a vast selection of books on tiresome topics such as how to write a business plan or the mindset of an entrepreneur. Worse still included a series on the cut-throat, unmerciful Dragon Den’s advice, of which I own one book. On the other hand, most befitting of my tastes, a treasure trove of books on online sales and the world of social media occasionally appear. Yet, Rich Dad Poor Dad, a book by Robert T. Kiyosaki proves to be one of the best finds of all.
Passive Income: What to Do Instead of Work a Day Job
Kiyosaki outlines some prevalent ways of making money work for you instead of you working for money. Yes, the daytime job is frowned upon as anything more than a means to aid investments into projects such as real estate, stocks, and intellectual property. It’s passive income?not labor intensive income?that should fuel your fire.
Kyosaki (2012) outlines several means for gaining income, particularly passive income. These include running businesses that you own but do not work at, investing in stocks or bonds, investing in real-estate for revenue, providing IOUs, and, my favourite, gaining “royalties from intellectual property such as music, scripts, and patents” (p. 101).
But why is this so revolutionary? In my previous articles, I’ve already outlined a number of ways you can increase your revenue generation through passive income. Whether selling affiliate products or your own short books, videos or music clips, through Amazon, or building a Zazzle store to gain revenue. You don’t need to be present to do any of this?and the income you generate grows with each additional download you provide. It requires some time investment and creative energy, as well as some means of promoting your store, but then all you need is a website, and a WordPress blog can be set up as easily as a click of a button, guided by the Bluehost.com sales representative. The money follows.
But the easiest way to go mobile with making income, while less passive of all the above, involves simply setting up a Fiverr.com account. As I mentioned in a previous article, on Fiverr.com, you offer a gig, or service, for $5 and add additional features for additional cost to the purchaser. Copy editing services, for instance, ideally lead to big revenue turnaround once you gain popularity with your Fiverr.com account.
So we already have a myriad of ways to make passive income. But to internalize this information requires you put it into action. By taking initiative, you can start padding your pocket sooner than the opportunities may otherwise arise.
Investing in Stocks and Bonds
I invest in stocks and bonds?delighting when an investment turns a 30% or more profit in a matter of a month. Kiyosaki alerts to the benefits of investing in stocks and bonds, and especially places testimony on the benefits of learning the art of investing through books and courses.
My particular strategy for wrapping my head around the market resides in paying for a market strategy commentary. The commentary costs over a thousand a year, or slightly less than $150 a month, but provides education and sound advice beyond the value of the cash investment. Through the market strategy commentary I subscribe to, I gain a solid education on current market conditions globally while gaining insights into the undergirding of stocks, bonds, currency, and so forth, in addition to cause-and-effect patterns that comprise market predictability, although the market remains the most unpredictable beast on Earth.
Without the guidance of a market commentary subscription, I would surely blow up in the market, even after reading Tony Robbins’ new book on wealth management.
About the market, Kyosaki says invest when the market is down, sell when the market is up. Most investors like to jump on the bandwagon when the economy is booming, but everyone knows that a booming economy means expensive stocks at their peak. You want to buy when the market is at its lowest points, as the only way for the stock to go is up.
An even better strategy is to delve into options trading, which can yield profit even when the market sinks. You can choose options on the bet that the investment will either improve or decline?or both. A basic understanding of stocks essentially paves the path for learning more about options. Yet, a solid foundation in options trading is necessary to make profit-generating strategies on a fairly regular basis.
Investing in Real Estate
Investing in real estate is something I unashamedly have no insight into outside of Kyosaki’s rendition of how to invest. He urges the reader to go and buy inexpensive real estate on a down payment and sell for a higher price, recovering your full costs and padding your wallet with extra income. He advises to jog around the neighbourhood for at least ten minutes a month, gaining insight into what properties are for sale, what the rental costs of properties amount to, and so forth. By doing such market research, you may come across the opportunity of a lifetime, especially if a home stays unsold, and you offer the desperate seller a significantly lower bid than requested. Always make a bid, exhorts Kyosaki; that’s the heart and soul of profit potential.
The Philosophy
Perhaps the greatest vehicle of wisdom used by Kyosaki is his advice to pay yourself first, never thinking “I can’t afford that”, but instead thinking, “How can I make more income to afford that?” I love these words of wisdom. Always diversifying your talents, you can engage in passive income generating projects that bring in extra cash. With a book that sells a meagre $5 a week, that adds up to $260 a year. With four books generating a meagre $5 a week, that amounts to $1040 a year, and so on. Add on additional passive income strategies, and your take-home rises even more handsomely.
References
Kiyosaki, Robert T. (2012). Rich Dad Poor Dad. Scottsdale, AZ: Plata Publishing