You’ve been told to work hard, save money, get out of debt, and live below your means. That advice is obsolete if you want to get ahead in life. Robert Kiyosaki argues these exact points in his new book, Rich Dad’s Increase Your Financial IQ.

Which is the latest volume in Kiyosaki’s popular “Rich Dad” series of books – two books include: Rich Dad Poor Dad, and Rich Dad’s Cashflow Quadrant.

Robert T. KiyosakiThese best-sellers have motivated many people (including my family) to take control of their financial lives. Both of these books have been summarized for you here.

Here’s My Rich Dad’s Increase
Your Financial IQ Book Summary!

Financial Intelligence

“It is not real estate, stocks, mutual funds, businesses, or money that make a person rich. It is information, knowledge, wisdom, and know-how, a.k.a. financial intelligence, that makes one wealthy.” – Robert Kiyosaki. 

Kiyosaki divides financial intelligence into five “Financial IQs”:

  1. Making more money. This is measured by how much money you earn. If you make $120,000 a year, you have a higher Financial IQ than someone earning $40,000 a year.
  2. Protecting your money. Once you earn your money, you need to hold onto it. So you need to protecting your money, especially from taxes.
  3. Budgeting your money. “Being able to live well and still invest no matter how much you make requires a high level of financial intelligence,” Kiyosaki writes. This Financial IQ is measured by how much money you have left after expenses.
  4. Leveraging your money. This Financial IQ is measured by return on investment. Answer this: How well do you make your budget surplus generate more money?
  5. Improving your financial information. Financial information doesn’t just mean knowledge of basic financial concepts, but also means detailed knowledge of the investments you make.

Most of the book is devoted to exploring these five aspects of financial intelligence in detail.

Financial IQ #1: Making More Money

Many people fail to acquire wealth, Kiyosaki says, because they want the money without the work. He writes,“What many people do not realize is that it’s the process that makes them rich, not the money.”

online profits in bags of money

It’s by learning to make money that you can continue to make money.

In order to make money, you must also learn to control your emotions. You must learn to defer gratification. Don’t sacrifice your financial future for a few bucks today.

According to Kiyosaki, the key to making money is learning to solve problems. “In order to grow wealthy you must come to terms with the fact that problems will never go away,” he writes.

Identify the problems preventing you from wealth, tackle them head-on, and the money will follow.

Financial IQ #2: Protecting Your Money

Once you’ve begun to make money, you need to protect it from the 7 financial predators.

  1. Bureaucrats — We need to pay taxes, but it’s our job to (legally) pay as little as possible.
  2. Bankers — Banks are constantly trying to siphon bits of your money in the form of fees. It’s important to watch out for and protect against this.
  3. Brokers — Like fees from brokers they can chip away at your wealth. He cites brokers who “churn” accounts, buying and selling stocks frequently in order to generate more commissions.
  4. Businesses — “All businesses have something to sell,” Kiyosaki writes. As their job is to part you from your money; yours is to keep it. He suggests asking yourself whether any particular purchase will make you richer or poorer.
  5. Brides and beaus — Money plays an key role in any relationship. You must trust your partner, must reach an understanding about finances.
  6. Brothers-in-law — Here, his point is that in order to protect your estate from family members you don’t intend to share it with, you need to plan for your death.
  7. Barristers — Finally, it’s important to protect yourself from legal difficulties.

Even though Kiyosaki lists seven possible pitfalls, he offers little practical advice for coping with them.

Financial IQ #3: Budgeting Your Money

million-dollar marketing on a budget

There are two ways to solve a budget crunch: decrease your spending or increase your income. Either will erase a budget deficit, but Kiyosaki believes (as I do) that in the long run, increasing income is a better solution.

Kiyosaki explains that it’s important to think of a budget surplus as a fixed expense. If you decide to save 10% of your income, then make this ten percent a fixed item in your budget.

Treat it just as you would any other bill. Pay yourself first. It’s also important to refuse to live below your means – instead increase your means.

Financial IQ #4: Leveraging Your Money

leverage moneyI found this chapter to be the longest and most frustrating chapter of the entire book. It represents the core of Kiyosaki’s financial philosophy. However it’s not presented in a way that makes it relevant to the average person.

Leverage — borrowing money to increase the power of your own cash is good. If you have the financial intelligence to control the investment. But if you’re not in control of the investment, then leverage is risky.

“Most of the people being hurt by the real estate meltdown are people who were counting on the real estate market to keep going up and increasing their home’s value,” he writes.

They borrowed against their home’s inflated value, however had no control over whether the housing market rose or fell. This is a lack of financial intelligence.

Kiyosaki argues that one should use leverage to make low-risk investments, investments in which you, as the investor, have control. This sounds great, but he doesn’t provide any relevant examples.

He only discusses his recent purchase of a 300-unit, $17 million apartment complex in Tulsa, Oklahoma. I don’t know about you but I do not $17 million to invest into one investment. The average person might only have $17,000? or even $1,700 to invest with right now?

So we are left wondering at the end of this character on how does the average person make leverage work for them?

Financial IQ #5: Improving Your Financial Information

Financial Tools for Small Business
In order to improve your financial information, it’s important to:

  • Separate fact from opinion. Many gurus are happy to offer their opinions — “gold is going up!” — but it’s foolish to make financial decisions based on these. Base your decisions on facts.
  • Verify information. Don’t trust just one source of information, but seek confirmation from other parties.
  • Know the rules. If you don’t understand how an investment works, don’t make it. “Rules provide a valuable source of information about how the game of money is played,” Kiyosaki writes.
  • Understand trends. Trends are historical facts. Smart investors can use trends to make informed decisions. However, it’s important to note that trends do not project to future facts. Only to opinions about possible futures. Still, trends are valuable sources of financial information.

“Ultimately,” Kiyosaki writes, “it is not the asset that makes you rich. Information makes you rich.”

Though an overview of the five Financial IQs forms the bulk of this 200-page book, it’s actually the last fifty pages that hold the most value. Where Kiyosaki discusses “the integrity of money” and explains how to develop your financial genius.

Financial Integrity

I like the idea of Rich Dad’s Increase Your Financial IQ. The book fills a niche about which little has been written.

It’s motivational. It’s a breath of fresh air and offers a perspective often missing in personal finance discussion. I also like that his writing always motivates me to action, pushing me to pursue my goals.

However, there is #1 Point I Really Do Not Agree With…

Robert T. Kiyosaki

Diversification isn’t a hoax, or a scam. Other than Kiyosaki, it’s embraced by most financial authors I’ve ever read or heared about.

Diversification is a central belief of the modern portfolio theory. It’s backed by facts, not opinions.

In the book Kiyosaki says “The richest investor in the world, Warren Buffett, does not diversify.” His implication is that you should not diversify either, but that’s completely counter to what Buffett believes.

Warren Buffett quote make money while you sleep

For 99% of all investors, Buffett recommends diversified index funds. So It’s duplicitous of Kiyosaki to pretend otherwise.

I hope you enjoyed my summary of Rich Dad’s Increase Your Financial IQ. If you would like to read it yourself you can get a copy here.

As always with Kiyosaki, there were more golden nuggets of information to be found in his book to really get you thinking.

If you want or need any help connect with us on one of our social media platforms or just Messenger us (Private Message Us) on our Facebook Messenger link – m.me/EasyOnlineBizSolution

I will leave you with this message: ‘if you do what you love – money will follow.’

Talk Soon,
Nicky Cane

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You finally have a stable stream of income or fairly high paying job. You’re earning enough money for right now. You’re working hard and are now thinking about being set up for an early and comfortable retirement.

Investing into business could be the thing.

Yet, your mind is full of ideas but doesn’t what to invest into. Of course, you are taking consideration that you don’t want to lose all your hard earned money.

Thus, it’s time to hire a financial advisor.

Now choosing the right financial advisor is vitally important to your financial well-being. The stakes are high when you open your finances to a third party, so do your due diligence…

As this is someone you will be trusting with your investments, and your money for retirement in most cases which makes it a high-stakes decision. It’s a decision that you need to think over a lot of times as you require someone who you can trust with your money.

Taken into account that there are a lot of choices in the market with different expertise and qualifications, so who do you want to choose?

Let us help you narrow down the search when choosing the right financial advisor – here’s the checklist for you to go through before hiring one.

1. Run a Background Check on the Financial Advisor

Request for Background Check

Do a background check and make sure that they do not have a criminal record. It is better to be careful as you do not want to hire someone who had cases filed against them – especially if they are financially related.

2. Review Qualifications

“As a consumer, you should understand what qualifies the person advising you to give such advice, and how much work it took to allow them the ability to do so,”
– Kelly Campbell, founder of Campbell Wealth Management.

How do you make sense of the alphabet soup in financial advisor designations?

Do your homework, and find out which titles, such as certified financial planner, offer the kind of expertise you’re looking for. Many designations sound impressive, but they don’t require more than a couple of two-hour classes.

3. Ask to See Evidence of Past Client Successes

quarterly reports and proof of successes

Ask the adviser about their typical clients. This will help you judge whether they are experienced in dealing with people who have similar issues and goals to you.

For example, are the adviser’s other clients planning for retirement or are they young families wanting to save for their or their children’s education?

Ask to see an example of a quarterly report.

Ask the advisor to provide you with an example of a client’s quarterly report with the name redacted. Ask the advisor to walk you through each line, explaining the rationale behind the asset mix and the results.

If you were thinking of hiring a caterer, you’d try the food first, right? Along the same lines, it makes sense for an investor to see an example of a financial advisor’s work before hiring him or her.

4. Read the Entire Contract

Financial Advisor and Business Contract

Before engaging yourself in a contract of agreement, you should always have the understanding of every clause in the document.

Read the fine print…

Examining such clauses is like focusing on a prenuptial agreement. A splash of reality hits you the moment you are ready to choose someone you think will be a good fit.

Does the advisor include a mandatory arbitration clause in his or her contract?

Read the contract to find out if the advisor indicates if you’re willing to invest in speculative investments, for example. If you sign that piece of paper, you may not have a defense if you pursue arbitration for mismanagement of your portfolio.

Remember, anything can happen especially when it involves money matters so you should always have some reference to support your claims if ever you get to the point that you will pursue legal actions.

It’s best if you consult a lawyer to proof read the entire contract and to fully explain to you all the terms and conditions that you are about to sign.

5. Ask for an Fiduciary Pledge

A financial advisor takes a fiduciary pledge where they agree to act in the client’s best interest at all times.

A registered investment advisor, who is held to a “fiduciary standard of care”, looks after the assets of another person on that person’s behalf. They are fully transparent and required to disclose any potential conflicts of interest.

6. Consider the Pay Structure

In a perfect world, the way your financial advisor is compensated wouldn’t affect the quality of advice you receive. But since that’s not a reality, us as investors must understand how money motivates advisors.

Buyer with Cash and Piggy Money BankThe pay structure of financial advisors can be either be fee-based or commission based.

Commission based financial advisors can have less radical motives to drive a certain fund if they are getting a cut from that investment.

Advisors paid on commission must meet a suitability standard, meaning they must reasonably believe any recommendations made are suitable in terms of the client’s financial needs, objectives and unique circumstances.

Fee-based advisors have their own motives too if their earning a percentage of your annual assets. They might not be willing to advise you to have a better investment moves that would affect their fee to decline.

So really the difference between these two pay structures is the motives of the advisor that’s earning from the investments they make on behave of their client(s).

It would best to consider advisors who charge on an hourly rate if you are still starting out and you still have less assets. They are those who are likely to take care of your finances as they are still trying to impress you with how they handle in helping you invest your money properly.

7. Find an Attentive Advisor

Attentive Financial Advisor

In the world of work, providing professional service should be accompanied by good customer service trait. Of course, you wanted to have a financial advisor who attends to your needs.

One who picks up your calls, return our emails, and keeps you updated with your financial activities.

If you have this kind of advisor, they probably would try to gain your trust and so you would be very happy to keep them for a long term basis.

8. Make Sure You Understand Their Language

In a financial industry, there are a lot of terminologies and concepts that are confusing. It is the role of the financial advisor to explain to you those terms and make you understand the situation.

If this role is not performed well by your financial advisor, it is best if you try another one who can do this for you.

9. Determine if the Advisor Can Speak Your Language.

Communicate with Multiple Languages

Investment communication is riddled with confusing terms, big words and complicated concepts. It’s your financial advisor’s job to translate those ideas and terms into language that is both understandable and relevant to your situation.

Do you want an advisor to use financial jargon, such as “secular trend” and “organic growth” without explaining what the terms mean?

If an financial advisor isn’t willing break down these terms for you, it may be a sign you should keep searching for a better fit.

10. Will they Review your Tax Return?

Tax rates are set to go higher. A planner that looks beyond the financial tools and evaluates their effects on tax returns is a smart idea. Then it’s a net-return, not gross-return focus.

Take a Closer Look - Tax Report

An adviser should review your tax return at least annually. This is necessary prior to making informed recommendations on tax subjects.

11. Focuses on more than 1 Investment Product

Many advisers focus on one class of financial tool whether it is banking, insurance, or investment assets.

A comprehensive planner uses a variety of financial products, when warranted. It allows the planning to determine the necessary tools to construct your financial house.

Financial Advisor - Investment Products

There is not a one-size-fits-all in a holistic approach. Watch out for a salesperson who recommends the same solution for every client.

If your recommended portfolio is made up of just one type of investment, for example all mutual funds or all annuities…run. Nothing screams “product salesman” more than a financial adviser that offers the same advice to all clients.

12. Do They See Your Big Picture?

Get Setup for Early Retirement
Comprehensive planning is more than just maximizing investments.

It is coordinating your investment portfolio with other important factors such as your overall income plan, your tax plan, and your estate planning that will ultimately decide your best approach to retirement planning.

Find a comprehensive retirement planner who can design the best unique plan for your situation and retire securely. They must know what you want to be doing when it comes to your golden years.

In the end, it is still up to your determination to find the best financial advisor to help you with your financial investments.

You need to know what you want, identify the core values you wanted your financial advisor to possess. Always keep in mind that you need to consider the quality of performance of the advisor that you will hire. If they cannot meet what you expect, try to look for another one.

Avoid settling for someone just because they have low cost. You might want to extend your budget for their fee if you want to get the best of what you want.

Remember, aim for those who are efficient and effective with their job.

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Keeping up with the financial side of owning a small business can feel like a never-ending job.

From invoices to expenses to day-to-day accounting and dealing with the Tax Department, it’s a wonder that entrepreneurs ever find the time to deal with actually providing goods or services.

Fortunately, technology has offer a variety of tools to save small business owners time and headaches on daily financial tasks.

Here’s 9 Financial Tools…

1. Budgeting Tool

Creating a realistic budget — and sticking to it — is crucial to your small business’s financial success.

Depending on your accounting software, you may be able to create budgets for your business right there without needing a separate tool. If you do need a separate, stand-alone budgeting tool, you should definitely check out PlanGuru.

planguru budging tool

2. Accounting Software

QuickBooks has long been the gold standard for small business accounting, but online accounting solutions such as Xero are gaining traction in the last few years.

Quick Books & Zero Accounting Software

Whatever program you choose for your accounting, make it work for you by choosing a tool that’s both as robust and as flexible as possible.

The software you choose must these basic accounting tasks;

  • Invoicing
  • Expense tracking
  • Client/vendor contact management
  • Automation of billing and recurring payments
  • Quote and estimate creation
  • Tax preparation
  • Multiple-user access
  • Payroll processing
  • Mobile access
  • Integration with programs such as point-of-sale software, credit card processing, and Google Apps.

For us, we use…MYOB Accounting SoftwareThere’s a reason more than one million Australian businesses trust MYOB. From start-up to grown-up, it’s an business software that actually lets you run a business and will grow with you.

3. Payroll Management System

Payroll management is time-consuming and prone to mistakes. So having a payroll/HR systems like ZenPayroll and Zenefits can help you streamline the payroll process and eliminate costly inefficiencies.Zenefits Payroll Management System

These are just two of many payroll management tools. Frequently these systems easily integrate with other accounting or storefront tools you’re already using.

How much easier can payroll get?

4. Agile Billing

The smoother and more nimble your billing process, the quicker payments will be made and processed — and the faster the cash will flow into your business.

With a quick, cloud-based billing system (try FreshBooks) you can shorten the billing process and even increase customer satisfaction.Fresh Books Painless BilingBy implementing agile billing tools and processes, you’ll both improve customer experiences and shorten accounts receivables delays.

5. Cash Flow Analysis

Whether you use your accounting software’s cash flow statement capability, a cash flow-specific tracking tool such as Float, or a simple Excel spreadsheet.

Float App
Accurately measuring your cash flow on a regular basis is crucial to keeping your business prepared for any financial eventuality.
Cash flow analysis helps you to weather ups and downs in your cash balance by using past patterns in data to forecast your financial future.

6. Inventory Management

Efficiently track your inventory all the way from your purchase of resale items to a customer’s order fulfillment with cloud-based solutions like SOS Inventory.

SOS Inventory LogoIn addition to tracking your goods, these tools can generate sales reports, set up automatic low inventory alerts, and manage order packing and shipping.

7. Business Credit Card

We recommend opening a business credit card in order to:

  • Improve your business credit history
  • Track business expenses
  • Gain access to higher credit limits for business borrowing
  • And receive business-specific rewards and discounts.

Chose a business credit card account with the capacity to easily manage employee cards (with relatively small credit limits). Not only does this system make it more convenient for your business to cover employees’ expenses such as travel, but it also can boost morale.

8. Expense Tracking

expense report tool

Little business expenses such as gas, meals, and cabs add up quickly and are hard to track.

With an expense report tool such as Expensify or Xpenditure.

Where employees can scan receipts or add cash expenses from their mobile devices and upload them; then you can easily import the information for approval, rebilling, expense accounting, and reimbursement.

9. E-commerce and Digital Payment Solutions

Taking Payments for all businesses especially E-commerce is essential.

square credit card transactionMore and more customers expect to be able to pay for products and services instantly (whether using credit cards or from their mobile device). Square, and PayPal are just a few tools to help customers pay on the fly.

Mobile with Card Readers and POS, Point of Sale we have find the SquareUp.com offer a Quick Setup. No Monthly Costs, Get Paid fast with most credit cards.

Set Up a FREE SQUARE Account – Click Here – 

Customers also want to be able to find your business and make purchases online. Tools such as Stitch and Vend make it easy to make sales, whether in-store or from an online storefront, while also tracking inventory, streamlining order fulfillment, and tracking sales data.

Now, you have an assortment of Financial Tools to choose from. It’s time to scale up your existing business and get more leads. Don’t you want more potential customers to turn into lifetime customers?

We know you do.

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We are here to help. If you want any help, just Messenger us (Private Message Us) at our Facebook Messenger link – m.me/EasyOnlineBizSolutions

If you haven’t already, it’s time to streamline your financial management process – so you can get back to your real job.

Talk Soon,
Nicky and Dave

Although it may sound overwhelming (and expensive) to purchase new technology to improve your business or start an online one.

You probably currently have the largest investment in your pocket already: your smartphone. With an enormous collection of business-focused apps, businesses (especially small ones) can profit from mobile technology easier than greater companies with infrastructures that still rely on older tech or on paper systems.

A recent study shows how reliant small businesses have become on mobile technology. The 2013 AT&T Small Business Technology Poll says 85 percent of small businesses now use some kind of smartphone in business.

Read more

Every major marketing campaign has a few important elements. Large companies may spend a lot to incorporate them into their marketing, but you can do the same thing with a much smaller budget.

The reason for this is that the power of these elements isn’t tied to the amount spent on them. The following are a few of the most useful.

At some point, most businesses require an in-depth look at their financial structure. An expansion project, low cash reserves or a jump in expenses can prompt you to conduct such an exercise.

One way to analyze your financial health and identify how it might be improved is by looking closely at your financial situation. Do You Know Yours?

Start by Assessing your Financial Situation.
Here’s how to do it, in 3 easy steps.

If you’ve been reading our blog articles for a while, you’ve probably realized by now that we are passionate about helping people overcome their financial challenges and create a better lifestyle for themselves and their families.

Being able to talk to different people with life stories is a rewarding and eye-opening experience.

Today we want to share with you a few honest truths we’ve learned from helping people with their money worries. Read more

“Operation Money Suck” is a concept to help you focus all your time, energy, and attention on extracting the maximum amount of money possible from your marketplace.

Your goal is to be the dominant player in your market. That means you must aim to take the biggest slice of the pie for yourself. Of course you need to do this Legally, Morally, and Ethically.

There’s a lot of disposable income being spent by your prospects and customers in the marketplace you service. You are surrounded by competitors who are aggressively going after the same people you’re trying to sell to. If you don’t aggressively show them why they should spend it with you, then your competitors will. Read more

Finding financing in any economic climate can be challenging. It doesn’t matter if you’re looking for start-up funds, capital to expand or money to hold on through the tough times. But given our current state of affairs, securing funds is as tough as ever.

You’ve probably heard the saying,
“You’ve got to spend money to make money.”

And it’s true, at least if your intention is to make money through your own business. Read more