5 Ways You Can Thrive During the Coming Financial Storm

5 Ways You Can Thrive During the
Coming Financial Storm
For those—like Robert Kiyosaki—who have been studying the facts, they’ve seen
the financial storm on the horizon for quite some time. They know that the Great
Recession of 2008 was just a harbinger of the larger financial crisis that lies ahead.
Manipulated markets. Unsustainable economic trends. Nations on the verge of
bankruptcy. All of it, and much more, points to global economic turmoil.
However, for all the fast approaching financial dark clouds, there is a silver lining. The
coming financial storm will not be one of wealth destruction, but a wealth transfer. In
other words, those who have built their financial shelter will be protected and benefit
from the storm, while those who have done little to nothing will find themselves
exposed to the harshest conditions.

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So how do you put yourself on the right side of the equation? How do you capitalize
on the calm before the storm and construct your own financial shelter?
In “5 Ways You Can Thrive During the Coming Financial Storm,” you’ll learn the steps
you can take to help educate and prepare yourself. Best of all, these are things that
you can do today to give you the confidence and peace of mind to weather any
possible storm.

#1 - Set or Re-Evaluate Your Goals
Building a financial shelter must begin with a blueprint. Just like the carpenter’s rule
of “measure twice, cut once.” You need to know what you intend to build before you
begin.
Most financial plans don’t work because people don’t put the necessary thought
required into it. People pick a number out of thin air; tie it to an investment vehicle,
and think that is their plan. They declare, “I want to have $2 million in my stock
portfolio when I am 65.” But if asked how much they need to invest and at what rate
of return to achieve that goal, most will say that they don’t know.
If you are serious about constructing a financial shelter that will withstand the
elements, then you must set goals with clearly defined steps and milestones along
the way. If you have not set your goals already, break out the spreadsheets and
the calculator and determine how much your shelter will cost. (Keep in mind that
you don’t want to just survive the financial storm, but thrive during it.) Do you need
$3,000 per month? $10,000 per month? $50,000 per month? Whatever you decide,
that dollar amount is how much passive income you will need to generate.

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5 Ways You Can Thrive During the Coming Financial Storm

Once you have a definitive dollar amount in mind, then identify investment vehicles
and assign milestones to your plan. Be sure to look at what you have or what you
can leverage for investing, the needed rate of return, and what investment vehicle
would provide that rate. In other words, if you are hoping a $2,000 investment in a

mutual fund will yield a 40% return, you had better go back to the drawing board.
Build Your Shelter


• Determine how much money you need to live the life you desire.



• Research the historical rates of returns for the investments that interest you.
Figure out if those rates of return coupled with what you have available to
invest will achieve the financial goals you’ve identified.



• Make a list of financial “bad habits” that you need to change in order to reach
your goals. Begin addressing those habits one by one.

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#2 - Generate Passive Income
When the real estate bubble burst back in 2008, those who invested for capital gains
found themselves struggling to stay afloat.
For capital gain investors, their investment strategy relied on selling their property for
more than they paid for it. They rationalized that if they had to “feed” their investment

a few hundred dollars every month, they would recover that expense and more when
they sold their property for a big payday in the future. However, as soon as real estate
prices fell, these investors found themselves upside down owing more than they
could possibly recoup from the sale of their investment.
Conversely, those who invested for cash flow or passive income were able to ride out
the storm. While the market value of their investment may have dipped, they were still
able to cover their expenses and buy themselves time while the markets stabilized.
They knew that creating passive income was key to building a shelter that would
withstand a financial storm.
Most people think all “dollars” are created equal. They think that profits from capital
gains or cash flow are the same. While having an asset appreciate is great, if it is the
foundation of your financial shelter, you run the risk of your foundation crumbling out
from beneath you the minute a market turns south.
However, if your foundation is built upon passive income, your shelter’s foundation is
reinforced with assets covering expenses. Investing for passive income necessitates
that you look at investments in terms of what is happening instead of what might
happen. You focus on the actual financials of an investment instead of what you hope
will happen in the future. In other words, you make your money when you buy instead
of when you sell.

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5 Ways You Can Thrive During the Coming Financial Storm

The rich understand assets with cash flow make you rich. Assets are those items that

put money in your pocket—like rental real estate with a positive monthly cash flow. If
you can begin thinking about covering your expenses and new purchases by buying
assets instead of relying on capital gains, then you have financial shelter that lasts.
Build Your Shelter

• Review receipts, bills, and other statements to determine your total monthly
expenses.

• Set a goal for how much passive income you need to cover your monthly
expenses and exit the Rat Race.

• Research the advantages and disadvantages of the various asset classes
(e.g. real estate, starting a business, stocks, etc.).

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#3 - U
 nderstand the Difference Between
Good and Bad Debt
Any structure intended to last needs to stay away from inferior materials. When it comes
to constructing your financial shelter, the worst material you can use is bad debt.
You create bad debt anytime you purchase something on credit that does not create
passive income for you. That brand new flat screen television? Bad debt. That weeklong vacation? Bad debt. Rich Dad calls these doodads and they all compromise the
integrity of your financial shelter.

Now, this doesn’t mean you can’t have any fun. In fact, you should live the life you
want. Just don’t take on bad debt to get it. Instead, determine how you can buy
assets to fund these luxuries.
The great thing about this approach is that if you buy assets to fund your purchases,
once you have paid for the purchases, you still have the asset producing positive
cash flow. If you acquire more and more assets, you will be well on your way to
generating the passive income needed to reach the milestones you established when
you set your goals.
Build Your Shelter

• Review your debts and classify each one as good debt (debt that pays for
income producing assets) and bad debt (debt that pays for liabilities).

• If necessary, create a plan to get out of bad debt.

#4 - Diversify Your Financial Plan (the Right Way)
Sit down with a financial planner and he will tell you to diversify. He will then go on
to talk about small-cap and large-cap funds. He will then explain why you will need
funds that focus on this sector and few from that sector. He will also encourage you
to invest internationally too.

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5 Ways You Can Thrive During the Coming Financial Storm


There is only one problem with this strategy. It is not true diversification!
If you follow this advice, all you will do is spread your money across one investment
vehicle. While it is better than investing 100% of your money in one company’s stock,
this type of diversification strategy is the strategy of the poor and the middle-class.
True diversification comes from investing across different investment vehicles.
No one investment class will be unaffected by the financial storm. All have strengths
and weaknesses, but if you only diversify within one asset class, you are exposing
yourself completely to the weaknesses of that asset class.
The rich understand that true diversification comes from investing in real estate,
commodities, businesses, and paper assets. They understand how each market
affects the other. They know when to get in and when to get out. They can move
their money from the asset classes that might be struggling at the moment to one
that is poised for huge gains.

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Coaching Absolutely Free when
you enroll in a new program and
mention this offer!
Just call 1-800-240-0434
and mention extension 6267
to receive this special offer.

Build Your Shelter

• Look at your current investments and determine what percentage each asset
class makes up in your portfolio.

• If there are asset classes in which you are not investing, determine how you
will increase your financial education in those assets classes.


• Identify the rates of return you are receiving from your investments. Decide if
that money could serve you better in another investment.

#5 - Educate Yourself
The final way to build your financial shelter is investing in your own
financial education.
Most people have not received any financial education at all in their lives. The
educational system does not teach people where to invest let alone how to invest.
As a result, most people just hand their money over to people who sound like they
know what they are doing. Unfortunately, too many people pray on the naiveté of
individuals and sell them a bill of goods that leaves them exposed when financial
storms come.
People with a financial education know what to look for and what questions to ask.
By listening carefully to the words people use, they can discern whether someone
has a poor or middle class mentality or whether he or she understands how the
rich think about money. They also understand that part of the education process is
surrounding themselves with team members like an accountant, real estate agent, or
coach that can help them learn along the way.

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5 Ways You Can Thrive During the Coming Financial Storm

Build Your Shelter
Ask yourself…


• What ways can I further my financial education?

• What team members do I need to surround myself with in order to further my
financial education? Do these team members think like the rich?

• How would I benefit from having my own “rich dad” in my life?

The Bottom Line
While the coming financial storm will leave the unprepared exposed, those who have
built a shelter will not only be protected, but will find themselves in a better position
once the storm has passed.

Receive 6 months of Rich Dad
Coaching Absolutely Free when
you enroll in a new program and
mention this offer!
Just call 1-800-240-0434
and mention extension 6267
to receive this special offer.

Instead of picking up the pieces, they’ll be on solid ground. All because they’ve
educated themselves and applied what they’ve learned.
You, too, can do the same simply by beginning to build your shelter today.

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help you invest smarter, build and protect your wealth, and create the cash flow you
need to live the life you desire. Remember, Robert’s Rich Dad was his first coach and
helped him become successful by teaching him how to make his money work for him.
Who’s helping you? Get your free introduction to Rich Dad Coaching and learn how a
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