To get your copy of Rich Dad Poor Dad, go to http://tinyurl.com/ptmcapm We’re rapidly approaching half distance in the Elite Investor Club A-Z of investing and I’m doing something unusual with this episode because I want to share the teachings of one of my most important mentors. K is for Robert Kiyosaki. I love reading books. Especially books about personal development, building businesses and creating wealth. I tend to have three books on the go at any one time and probably average thirty books a year. My credo is that if I can learn one pearl of wisdom from each book and implement it then I have thirty new ideas working for me each and every year. But all books are not created equal. Some have the ability to fundamentally change the way you think and act forever. One such was Robert Kiyosaki’s first and best book, Rich Dad, Poor Dad. His genius is to use the power of storytelling to make sometimes dry world of saving and investing more engaging. While his natural father worked in the education sector earning a pittance, his best friend’s father was a business owner and property developer in Hawaii. Robert spent a lot of his childhood around this successful entrepreneur and took on board the free lessons he was given. Kiyosaki then had the classic entrepreneur’s experience of building a business only to see it fail. Painful lessons were learned about cashflow and managing suppliers. Lessons that found their way into Rich Dad Poor Dad as the cashflow quadrant. Real wealth lies in moving from the employee class to the business owner class, and ultimately in moving from the business owner class to the investor class. Long term, sustainable wealth comes from owning a portfolio of income generating assets. Arguably the most important lesson of the book, and certainly the most controversial when it first appeared almost twenty years ago, is that your main home is a liability, not an asset. I bet that statement still caused you to do a mental double take. It runs so counter to everything we’re indoctrinated with about getting onto the property ladder. And yet the principle is simple. If something regularly puts money in your pocket, it’s an asset. If something regularly takes money out of your pocket, it’s a liability. Now do you see why your main home cannot qualify as an asset? If you have a lot of equity in your home and you downsize to a cheaper home to release that equity, then you can invest the leftovers in assets that will provide income. But while you still live in that inert pile of clay, slate and concrete, all it’s doing is leeching money on council tax, maintenance and energy even if you’re not mortgaged to your eyeballs for the privilege of living in it. Kiyosaki shares my mission to end financial illiteracy in the world. While I focus on those in their forties and fifties, he’s done a lot to get financial education onto the curriculum in schools. He also invented the Cashflow boardgame to reinforce the need to accumulate assets if you want to win the game of life. He even showed the power of personal branding by charging two hundred pounds for a board game when all the rest were a tenth of that. In reality it doesn’t really teach anything that you couldn’t learn playing monopoly, but there are Cashflow clubs springing up all round the world where people meet not just to play the game but to be around like minded folks. Exactly the reason people join Elite Investor Club. If you have yet to read Rich Dad Poor Dad, why are you still watching me? Mouse across to Amazon and order it now! I Robert Kiyosaki changes your life as much as he’s changed mine.