Wealth Building 101 – You have to have boundaries
The thought of boundaries strikes fear into the heart of a freedom loving, renegade, dreamer/creator like me but I now realize why I need to have them if I am serious about wealth building. Energy that is not channeled by boundaries tends to be scattered and dissipates without much effect. Energy that is not channeled can even be destructive.
My Kiyosaki, Rich Dad education coach is helping me to understand the concept of boundaries on my path to wealth building. He has me working within a dream achievers program that forces me to break down my dreams into goals, projects and action steps. The action steps have priority of 1, 2 or 3.
A 1 must happen in a day, a 2 within a week and a 3 is on the someday list. The challenge for me is the 1s and 2s are generally not fun tasks but they must be done. It is much more fun for me to day dream about the 3s.
Once my goals are entered into my dream achievers program a schedule for each day is generated that sets my agenda. Agenda is another word I have not been fond of. All of these boundaries and agendas seem so anti-freedom. I expressed this concern to my Kiyosaki, Rich Dad education coach. He understood exactly where I was coming from but patiently explained that my true freedom and success with wealth building would come from setting and living within boundaries.
Here are some examples of boundaries:
Setting goals – Goals are a dream with a deadline
Deadlines – A date that a task must be completed or there will be negative consequences.
Agendas – Set the program for how something will be accomplished
Budgets – Set limits on the amount of money that can be spent on a project or within a set amount of time
Rules – Guidelines that must be followed
Laws – Rules with more severe consequences for not being followed
Values – Rules for behavior that benefit all concerned
So look at it this way. E + B = FM = S = F. Energy plus boundaries = forward motion = success = freedom. Enjoy the journey. Madalyn
Enjoy a similar post: Hope is not a strategy
Wealth Building 101 – Why you need a coach
Last Monday I had 3 coaching calls before noon. One with my Kiyosaki, Rich Dad education coach, one with my network marketing coach and one with my personal and business coach. Yesterday I took my horse and had a lesson with my barrel racing coach.
Why do I work with all these coaches? The answer is simple. All these people know more than I do about what I want to get better at. I want to become more money smart, be a stronger network marketer, a better writer and person and learn to barrel race. I sure can’t do these things by myself and be successful.
Being coached is not always a pleasant experience. I don’t particularly enjoy being told what I am doing wrong but I know my coaches have my best interests at heart and they give me positive feedback along with the constructive criticism.
My coaches see what I can’t see. For example, with my barrel racing, I am supposed to run my horse full speed to a spot a few feet from the barrel, slow down enough to turn, but not lose momentum. I find that when I slow my horse down we lose momentum and end up losing a lot of time in our turns.
My coach was able to see that I was stopping my body momentum instead to continuing to drive my horse forward even as we slowed down to prepare for the turn. She modeled what she wanted me to do on the horse she was riding.
My coach pointed out that I was thinking slow down when I really needed to be thinking gather and prepare. A Ha! I got it. I doubt I would have figured this out myself and even if I did it would have been after much stress for me and my horse.
I also tend to be off in my timing when I ask for my horse to get ready to turn. Unfortunately, this is not something my coach can teach me. Perfect timing has to come through feel and this will take lots of practice. What my coach can do, however, is help by calling out when to give the slow down cue until it becomes instinctive for me.
In summary, why you need a coach:
A coach knows more than you about the subject you want to get better at
A coach has your best interests at heart and gives you encouragement even as they point out your mistakes
A coach sees things that you can’t see
A coach will model the correct actions
A coach will point out your limiting or incorrect beliefs
A coach can cover for your lack of skill while you practice
I love my coaches. I would recommend the Kiyosaki, Rich Dad education training program to anyone looking to go to the next level in becoming money smart. I love my business coach. She is a true friend and mentor. I love my network marketing coach and would never try to work my business without her. My network marketing coach works with me and my group in the big business, network building model. I am looking for a few partners who are ready to increase their cash flow monthly quickly and predictably. Contact me. Madalyn
For similar information check out: Is you dream big enough?
Wealth Building 101 – Waiting for the best deal
Playing the Kiyosaki, Rich Dad education game, Cash Flow, has taught me about becoming money smart but even more value has come from the wealth building mindset the game fosters. The game teaches how to manage your cash flow monthly but it also teaches you to be patient and wait for the best deals to come along.
The object of the Kiyosaki, Rich Dad education game is to get your cash flow monthly higher than your expenses. If you spend every penny you have the first opportunity you get the chances are you will be disappointed when a better cash flow monthly deal comes along and you have no money to invest.
While there are characteristics of a good deal that are specific for certain assets such as businesses or real estate, there are also characteristics of a good deal that seem to hold true for all endeavors.
For example, does your deal withstand evaluation of the details:
In relationships it is wise to get to know someone before you make any commitments.
In real estate, you want to get to know a property well before buying it.
In the stock market, you want to look at the balance sheets and management of any company you buy stock in.
For example, compatible friends, neighbors and sectors:
In relationships you would want to look at the kind of company a person keeps to get a better understanding of their true values.
In real estate, you would look closely at the neighborhood before making a purchase.
In the stock market, you look at other companies in the same sector and see how you company compares and how the whole sector looks in relation to other sectors.
For example, good cash flow:
In relationships you would look at the persons financial status and beliefs about money and assess the person’s ability to contribute to any joint project.
In real estate you would want to determine the cash flow monthly you would be able to count on from the property after taking into consideration all expenses and possible periods of vacancy.
In the stock market, you would expect you stock to rise in value or bring in cash flow monthly via dividends or covered call options.
For example, staying power:
In relationships you would want to invest your time in someone only if you felt they would hang around long enough to be worth the investment.
In real estate you would want a property that was well built and in good repair if you intend for it to pay you consistent cash flow monthly.
In the stock market you would want a stock that you are comfortable holding long term even if the market takes a dip. A good stock will pay you cash flow monthly even in a flat or down market if you get dividends or option income.
For example, good values:
In relationships you want someone who shares your values.
In real estate you want a property that offers good value to your tenant.
In the stock market you want a company that offers a product of quality that is in great demand.
In summary, the best deals have these common characteristics:
Require you to do your due diligence to get to know them personally
Surround themselves with other good deals
Contribute back what you put in
Have real value and willingly offer real value to others
The Kiyosaki, Rich Dad education game, Cash Flow teaches how to find good cash flow monthly deals and avoid the bad ones. You can learn these same lessons in real life but real life is not nearly as forgiving as a board game. Madalyn
For additional thoughts on wealth building get our free e book.
Want additional financial education check out these money smart skills:
Reduce debt
Increase cash flow monthly by $500
Invest in assets
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Kiyosaki Rich Dad Education: Cash flow monthly gets you out of the rat race
Your underlying beliefs about money show up like crazy when you play the the Kiyosaki, Rich Dad education game, Cash Flow. My new Xango business partner came over with a friend last Friday and we all played for about 3.5 hours. I love to watch the reactions of new players.
The Kiyosaki, Rich Dad education Cash Flow game is designed to teach the importance of getting your passive monthly cash flow higher than your expenses. Debbie drew the doctor card and her friend, Bruce, played as a truck driver. I was a lawyer this time. Debbie, with her high doctor paycheck got off to a roaring start and quickly purchased an apartment complex bringing in a whooping $1,700 passive cash flow monthly.
Bruce made a good stock trade and bought a nice 3/2 rental house. I bought a condo but it did not bring in much passive cash flow monthly so I was behind the others. Debbie eventually sold her apartment complex because she needed much more passive cash flow monthly to cover her high expenses. After she paid off many of her expenses she started over to purchase the additional assets needed to bring in high passive income. As a doctor, I can sure relate.
Bruce in the meantime, with his lower monthly expenses, sold his 3/2 rental house and bought the apartment complex and just that quick he achieved the goal of getting his passive cash flow monthly higher than his expenses and was out of the rat race. The look on Debbie’s face was priceless. I can tell this woman likes to win. I love that in a Xango business partner.
I usually get out of the rat race quickly but this game was an exception. When we stopped playing I had just landed on the downsizing space for the 3rd time and was completely broke even though I still owned the condo. The next morning I asked God what had happened to me in the game. God explained gently to me that basically my attitude had sucked. I have had some financial disappointments in the last few weeks and evidently they have made me cynical.
I had to admit grumbling when I landed on the baby space which immediately lowered my cash flow monthly by $380. Then I said something to the effect, “this always happens to me” when I got downsized. I promptly got the game back out and started where I had left off, dead broke.
Here are the lessons I got this time from playing the Kiyosaki, Rich Dad education game Cash Flow:
Stay in gratitude
Wait for the best deals
Focus on cash flow monthly
Let go of fear
The bank is your friend
With an improved attitude I promptly hit the baby space twice more and was downsized again but interestingly I had my passive cash flow monthly over expenses and was out of the rat race in about 1 hour. Attitude may not be everything but it sure helps. Madalyn
Want additional financial education check out these money smart skills:
Reduce debt
Increase cash flow monthly by $500
Invest in assets
Wealth Building 101: Is your dream big enough?
One of the biggest challenges to wealth building is not having big enough dreams. After all wealth building is all about reaching your dreams and mediocre dreams do not inspire enough to motivate action.
I had a session with my Kiyosaki Rich Dad education coach and he made an interesting comment. He said so many of the people he coaches spend way too much time focusing on dreams that aren’t big enough to cause them to do the hard work required to reach them.
Here are some examples of dreams that tend not to inspire consistent wealth building actions:
Get out of debt
Save money for the kid’s college
Have money for retirement
Give more to charity
While all of these dreams are good I don’t see many people missing American Idol to work on them. They are important, worthy dreams but not big and exciting enough to motivate us to do the daily wealth building activities to achieve them.
On the other hand, here are some big, personal dreams that are more likely to stimulate the effort of wealth building:
Own your own farm
Take a year off work and travel around the world
Work entirely from home so you can spend time with your family
Become a professional golfer, rodeo contestant, race car driver, etc.
Big dreams, that are personal, will get you off your butt and into your office, on the computer or out finding business partners or customers. Big, personal dreams burn at your heart and keep you restless until you achieve them. They force you to focus on those boring details you don’t really want to pay attention to. The interesting thing is that when you become the person you need to be and do the things you need to do to realize big dreams often your other dreams happen naturally.
Next time you find yourself restless and unmotivated to improve your life, look at the dreams you have chosen and ask if they are big enough. Do you care enough to reach them. If not, search your heart for dreams big enough for you to take the wealth building actions to reach them. Madalyn
Like this post? check out Wealth building – Why Bother
Money Smart Skills: When cash flow monthly turns negative
When I started writing this blog I thought I was doing pretty well with my money. I was due to have my credit card debt paid off in a few months and I was ready to start investing. Most of my businesses had break even or positive cash flow monthly. I paid to join the Kiyosaki Rich Dad education program so I could go to the next level with my money smart skills. This course put me back into credit card debt but I felt the Rich Dad education would be worth every penny.
Well, how quickly things can change. Within 2 weeks of starting the Kiyosaki Rich Dad education program my tax bill came in twice what I expected, the timing belt broke on my diesel Jetta, destroying a perfectly good engine. Suddenly my positive cash flow monthly was significantly negative. I was reeling from these events, but the final straw came when my property manager called and told me my renters had skipped. My only rental property has already been a challenge because of the economy and losing the renters may cost me the house.
So, how did I handle these setbacks? I cried. Yep, it took me 24 hours to digest this last blow and then I had a major meltdown. Unfortunately, my good friend and business partner took the brunt of it through absolutely no fault of her own. She handled it well. Everyone should be blessed with such a good friend.
Crying let off some pressure but did not make the problems go away. The saving grace is that I have been in this place before and I know this too shall pass.
My plan to regroup looks like this:
1. Pray - Not for God to rescue me from my mistakes, but for Him to guide, support and love me through the process of dealing with the fallout.
2. Cut every expense possible – I will sell my car after it is repaired. This will give me a small amount of cash and save on insurance. I do have my 1 ton truck to drive. I have cut my direct TV to absolute minimum and there will be no eating out for a while. While these steps will not get my cash flow monthly positive, every dollar counts.
3. Increase cash flow monthly – Having several businesses allows me to increase my efforts when I get in financial trouble. I have to resist taking on more veterinary clients because this work will take me away from my efforts to increase my cash flow monthly. This concept was one of the most difficult ones for me to grasp in my Kiyosaki Rich Dad education. Working harder on my S quadrant self employment job will not increase my long term cash flow monthly. No more casual business building with my Xango networking. Many or the most successful leaders in the company came into the business with severe financial challenges. I will have to get busy and work harder and in a money smart fashion.
4. Seek help from professionals – I plan to take full advantage of my Kiyosaki Rich Dad education coaches to help me figure out how to handle my rental property. It is hard to admit all the mistakes I made when I bought this property but now I know.
For many this kind of roller coaster financial ride may be too uncomfortable but for me I see it as a learning process. I have made many financial mistakes but each mistake has eventually brought me closer to my goal of having my cash flow monthly higher than my expenses. Until I get my cash flow monthly where it needs to be I will still struggle with finances. The Kiyosaki Rich Dad education program has helped me understand this. Madalyn
Negative cash flow monthly does not turn positive by hoping. Check out this post. Hope is not a strategy
Working more hours may not be the long term answer. Check out Cash flow monthly in your mailbox
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Rich Dad Education: When to grow and when to change
Growing is hard enough but changing bad habits just plain sucks. The Winslow personality test I just took, as part of my Kiyosaki Rich Dad education program, sure pointed out some major areas in my life where I can grow and others that need to change.
The most obvious area where I must change, to be successful in my Kiyosaki Rich Dad education, is order and organization. God has been on me about this area of my life for years but when I got the Winslow computer printout that spells out exactly how my behavior was hurting me and others I had to sit up and take notice. Of course, I know God is speaking to me now through this test. Thank heavens He has not given up on me.
Other aspects of the test are intriguing but less troubling. I also scored low on sociability. I accept that I am not a very social person yet I love people. I have several very close friends and many good friends. That being said, I prefer to spend more of my time alone than with other people. I am OK with this aspect of myself. I want to grow to be more accepting and friendly.
The Winslow test showed me to be rebellious and resistant to authority. I am guilty as charged. I would be a horrible employee and have often joked that, if I could, I would fire myself. This is why I am so drawn to Kiyosaki and the quadrant concept. I signed up for the Rich Dad education because I want control of my time and money.
On the topic or authority, I have found several coaches that I respect and I do follow their guidance. One is Stephanie, my computer guru. Stephanie has proven to me that she knows what she is doing and has my best interests at heart. She sometimes has to be tough with me and I have no trouble accepting her direction.
The test said I am a dreamer and can get lost in a fantasy world rather than bringing my dreams to reality. That stung but it is true. I believe, though, that when I change my bad habits around organization and trust more the authority of Stephanie and my new Kiyosaki, Rich Dad education coach I will see more of my dreams coming to fruition faster. I am excited. Madalyn
Check out our free e book Journey to Enlightened Wealth
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Wealth Building 101: Why Bother?
Ninety five percent of people are only uncomfortable enough to complain. This is what my Kiyosaki Rich Dad education trainer said to me in my first interview. He asked if I was really serious about wealth building. Most people don’t want to bother with doing what wealth building requires.
Most people would rather wait for something outside of themselves to happen to make their life better. If this does not happen then they are OK to suffer and be a victim. These are not bad or lazy people they are normal people. This is human nature to do as little as needed.
That being said, wealth building is about being challenged to be your best and stretch your limits. This builds character and confidence. Reaching for more is also in our DNA. So, we must choose.
Do you choose
a secure job?
a pension or managed retirement account?
vacations that must be taken when you can get time off work?
health care that is provided when you need it?
Or do you choose
freedom to work hard and build your own business?
cash flow monthly that will continue to come whether you work or not?
time freedom to do what you want to do when you want to do it?
means to take care of yourself and balance in your life?
The Kiyosaki Rich Dad education plan is for those who choose freedom, which ultimately leads to real security. Wealth building is a choice. It won’t happen to you. Madalyn
Let me know how your choices have worked out for you.
Are your working hard to make your business work but not getting ahead?
Are you underwater with an investment property?
Have you found an investment that is really rockin? Let me know.
This post got you interested? Check out Change your stinkin thinkin
Money Smart Skills: Kiyosaki Rich Dad Education – Orientation
Today I got my first taste of working with the Kiyosaki Rich Dad education team. I had hit a wall in trying to put all the Kiyosaki principles into action based on personal study. I was sick of making mistakes because of inexperience even though I know so much more than I used to.
I was ready to have a mentor to take me to the next level where I was afraid to venture on my own. I felt like a kindergarten student as I was guided step by step through the process of filling in all my contact info, current stats and goals. After all the years of struggling on my own, the hand holding felt good.
My emotions were all over the map as I filled out my personal financial information. Some areas felt good and others were demoralizing. I am putting the past behind me and treating this as day one of my Rich Dad education journey. Now to start on my first reading assignment. Madalyn
