Five Levels of Investors sales-training program. Again, this was all part of my rich dad’s educational program to train me to become a capitalist. By 1994, Kim and I were financially free, never needing a job or a company or government retirement plan. Rich dad was correct: My education could set me free—but not the education found in traditional schools. When the markets began to crash in 2007, rather than crash with the rest of the economy, our wealth skyrocketed. As the stock market and real estate markets crashed, great deals floated to the surface, and banks were more than eager to lend us millions of dollars to buy and take over their investments gone bad. In 2010 alone, Kim and I acquired over $87 million in real estate, using loans from banks and pension funds. That year was our best year so far. As rich dad often said, “If you are a true investor, it does not matter if the markets are going up or coming down. A true investor does well in any market condition.”
Where Are You? Take a moment and assess where you are today.
Are You at Investor Level 1? If there is nothing in your asset column with no income coming in from your investments and you have too many liabilities, then you are starting at the bottom level, ground zero.
If you are deeply in bad debt, your best investment might be to get out of bad debt.
There is nothing wrong with being deeply in bad debt, unless you do nothing. After I lost my first business, I was nearly a million dollars in debt. It took me almost five years to reach zero. In many ways, learning from my mistakes and taking responsibility for my mistakes was the best education I could have asked for. If I had not learned from my mistakes, I would not be where I am today.
Kim and I put together a simple program and workbook explaining the process we used to get out of hundreds of thousands 224
by Rich Dad, Robert Kiyosaki