In his book, Rich Dad's Retire Young Retire Rich, Robert Kiyosaki added 11 more tips to retire young and rich.
Robert Kiyosaki: These are things I do on a regular basis. These are things that have assisted me greatly in retiring young and retiring rich. I trust they can also be of use to you. Always remember that the process of retiring young and retiring rich is primarily a mental and emotional process. Once you begin that journey in your mind and in your heart, the rest of you should soon follow.
1. Decide. Every day I get up and I choose who and what I want to be. I ask myself, "Do I want to live today as a person with a poor context, a middle-class context, or a rich context?"
Remember that a person with a poor context will say something like, "I'll never be rich." A person with a middle-class context might say, "Job security is important." A person with a rich context might say, "I need to increase my financial IQ so I can work less and make more money."
2. Find a friend or loved one who wants to go on the journey with you. I know that I would not have made it without my wife, Kim, and without my friends. Be sure to have friends who demand more of you, rather than tell you why you cannot do what you want to do.
Choosing the right friends or lifetime partners is very important to a successful life. If you have friends or family who are not committed to improving their financial IQ, life can be a long financial struggle, regardless of how much money you make.
3. Seek competent advice and begin building your own team of financial and legal advisers. Always remember what rich dad said, "Your most expensive advice is the free advice you receive from your financially struggling friends and relatives." Rich dad later expanded his statement to include financial advisers who do not practice what they preach or do not buy the investment products they sell you. Again, choosing the right people is a very important skill. People can be either assets or liabilities.
4. Set a retirement date. Sit down with your loved ones and your advisers, and set a date for your early retirement. If you will actually do this process and discuss an actual date with these people, your present context will begin to argue with your future context. It is a great and fun process to go through. You will definitely hear many different realities and different contexts.
Hold quarterly meetings with this group, and continue to discuss your early retirement date.
5. Write down a plan on a piece of paper once you have set the date for your early retirement. Put that plan on your refrigerator so you have to look at it every day. Update the plans as you progress and learn more and more.
Just because you may be poor today does not mean you have to be poor tomorrow. Becoming rich and staying rich requires a plan and the determination to follow it, one day at a time.
6. Plan your early retirement party. Be excessive and be lavish. Once you can retire early, money will no longer be a problem. Even if you do not achieve your goal, you will have great fun going through this process. And who knows? You might even have to throw that early-retirement party early!
7. Look at a deal a day. It costs you nothing to go shopping. The point is to do something every day to improve your financial intelligence for at least ten minutes a day. It may be something as simple as reading one article from the money or business section of your online news site, even if you are not interested in it. It will begin to improve your vocabulary. Listen to financial or business information recordings while you drive or work out at the gym. Attend a financial seminar at least once a year. If you do not want to pay for a seminar, just look in the financial section of your local newspaper, and you will find many free investment seminars. Even if yo do not learn anything, you are bound to meet other people just like you.
8. Remember that all markets follow three main trends: up, down, and sideways. Some markets go up, down, and sideways over years. Sometimes markets can trend up, down, and sideways in less than a minute. That is why, when someone advises you to "Invest for the long term," ask them what they mean. Ask them for a more detailed explanation. Most financial advisers are simply parroting what they have been taught by their sales manager, so they may have difficulty explaining what they say.
If you want to get rich and stay rich, you must be aware of trends and have three different strategies for three different trends. I have met many people who made money on one trend, and went bankrupt when the trend changed.
9. Always remember that words are free. If you want to get rich, you need a rich vocabulary. Always remember that there are four basic classes of assets: business, paper assets, real estate, and commodities. Each of these assets uses different words. Each of these assets is like a foreign country with a foreign language. Begin to learn the vocabulary or the jargon of the asset class you are interested in. Once you learn the words, you will be better able to communicate to yourself and others in that asset class.
Words are the most powerful tools we have as human beings, so choose your words carefully. Always remember that there are two basic types of words:
One type is content words.
For example, "internal rate of return" is an important group of words, especially for real estate investors who use a lot of leverage to invest with. Internal rates of return are content words.
The second type is context words.
For example, when someone says, "I'll never understand internal rates of return," this person is describing their mental context about the content words.
Be aware of constantly improving your content vocabulary and watching your context vocabulary because words are the tools that power one of your most powerful assets--your brain. That is why I suggest you forbid yourself from ever saying, "I can't afford it," or "I can't do it," or "I could never learn that."
Ask yourself instead, "How can I afford it?" or "How can I do it?" or "How can I learn it?"
Remember that a big difference between a rich person and a poor person is simply the quality of their words. Your financial IQ begins with your financial vocabulary. So watch your words because words do become flesh and do become your future. If you want to retire young and retire rich, your words hold the key... and words are free.
10. Talk about money. If your friends don't want to talk about it, you may want to find a new group of friends. In my group of friends, we talk about money, business, investing, successes, and problems. Most of my friends are also very rich and do not have the context that talking about money is evil or dirty. Kim and I talk about money constantly. To us, making money, getting rich, and having an abundant lifestyle is fun. And we enjoy the game of money so we talk about money. We enjoy the game of money just as people enjoy other sports. Because we have money as a game in common, our marriage is closer, educational, exciting and fun. Money is a subject all people all over the world have in common, so why not talk about it?
11. Make a million dollars starting with nothing. One of the reasons I do not need a job or a paycheck is because rich dad trained me to make money from nothing.
A classic example is the story of the McDonald brothers and Ray Kroc. Ray Kroc took a small hamburger stand run by two brothers and turned in into the very, very, very big worldwide business we know today as McDonald's.
So the last tip is, with your loved one or friends who are on the journey with you, spend time together brainstorming how you can take an idea and turn that idea into millions of dollars, starting with no money or very little money. This process is like going to the gym for your muscles. This regular exercise strengthens your brain and gets it ready for the moment you make your move.
Retire Young Retire Rich is about how Robert and Kim Kiyosaki started with nothing and retired financially free in less than ten years.
Find out how you can do the same.
If you do not plan on working hard all your life, this book is for you.
Why not Retire Young and Retire Rich?
Order Rich Dad's Retire Young Retire Rich
Source: Rich Dad's Retire Young Retire Rich: Page 448-462
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