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There Is A Rich Woman In Each And Every Woman
In the Spotlight | 01 May 2009
By: Soo Yin Ling
Articles (20) Profile

Kim, wife of Robert Kiyosaki (renowned author of “Rich Dad, Poor Dad”), draws on a lifetime of experience in business, real estate, and investing in her mission to support financial education. She shares the same passion as her husband to educate people, especially women on achieving financial independence.

Her first book “Rich Woman – A Book on Investing for Women” hit the Business Week bestseller list the month it was released and has held a spot there for the past 11 months. “Rich Woman” is a bestseller in Mexico, South Africa, India, Australia and across Europe. Kim and Robert, together with his elite group of advisors, will be holding their seminar “Why the rich get richer and how you can be rich too!” at Singapore Expo Hall 2, from 26 – 28 May 2009. Shares Investment is a supporting partner of the aforementioned event.

Through an exclusive interview via email, Kim shares with us her insights on the current economic situations and her investment philosophies.

kim-1Shares Investment: Already, women are balancing between carving out a career for themselves and taking good care of their families. To add in a third component, taking care of one’s own financial independence, some may say it is too much to bear. How would you convince women to make taking charge of their own financial independence one of their top priorities?

Kim Kiyosaki: First let’s look at the statistics – these are US statistics and although the specific numbers may be different, the trend that these statistics show is similar in most countries throughout the world.

• 47% of women over the age of fifty are single.
• 1 out of 2 marriages ends in divorce.
• It’s estimated that only 20% of female baby boomers will be financially secure in retirement (and that 20% figure may be high given our current global economic crisis).
• Of the elderly living in poverty, 3 out of 4 are women.

These are just a few statistics that illustrate the lack of financial knowledge that many women have today. So many of us have not been educated to take care of ourselves financially. We’ve actually been taught to depend upon someone else – a husband, a father or family member – for our financial well-being.

The only question I have for women is do you want to be one of those statistics? Do you know a woman who falls into one of those statistics? Being financially responsible for yourself is not a luxury, it’s a necessity. It’s a valid point that many of us have so much going on in our lives – we’re extremely busy taking care of everything and everyone else. At some point though you’ve got to take care of yourself.

You mentioned in your book “Rich Woman” that women need wakeup calls (a divorce, illness) to spur them into taking charge of their financial independence. What was yours?

My wake-up call occurred after a series of events which led me to an “aha” moment, where I realized that even though my husband, Robert, and I were equal business partners, and I worked all my life to not be dependent on anyone, I was in many ways dependent on my husband. We created our company, The Rich Dad Company, around Robert as the celebrity, the spokesperson and the visionary. It was a smart business move. However, my “aha” moment came when I realized that if for any reason Robert was no longer in my life, then I lose not only my husband, but most of my business as well. That was the defining moment when investing stopped becoming a hobby for me and became my driving means to financial independence.

With the sub-prime crisis and tight credit environment, is it still advisable to invest in real estate?

I believe this could be the best time to invest in real estate…if you know what you’re doing.

When I purchased my first real estate investment; a small 2-bedroom, 1-bath house in Portland, Oregon, the real estate market was very depressed. People kept telling me, “Don’t invest in real estate now, the market is terrible. It’s too risky.” It’s in the down markets when people should get into the market…again, if you have some knowledge of what’s a good deal and what’s a bad deal. This is the time when the prices are low and probably going lower. This is the time for cash flow investor to at least start looking.

This is not the time for the capital gains real estate investor. These are the people who buy a property, put a little work into it and then quickly sell it for a higher price. These are the people who are getting hurt in this global recession. They only make money when the market is going up. A cash flow investor, who buys and holds and rents out the property, is not much concerned whether the market is up or down. They’re only concerned whether the property has a positive cash flow.

How do you pick yourself up after making bad investments and losing confidence?

I hate making mistakes, but the reality is in order to be a better investor, or to be better and more successful at anything you do, you’re going to make mistakes. You have to, because mistakes are how a person learns and grows. The key to mistakes is that you have to step back and ask yourself, “What did I learn from this?” Once you get the lesson from the mistake then you take that knowledge with you to your next investment.

In my book “Rich Woman”, I wrote about the biggest investment mistake I made and how it led me to my best-performing investment property to this day. Had I not made the mistakes I did then I would never have ended up purchasing the property that today gives me the greatest return on my money as well as my largest monthly cash flow.

Do you have your own “Do” and “Don’t Do” list when it comes to investing?

Here are a few “do’s” and “don’t do’s” that I follow:

• DO get financially educated.
• If you’re just starting out, DO start small.
• DO be an active, versus passive, investor. In other words… DON’T blindly turn your money over to a so-called “financial expert” (no one will pay more attention to your money than you will).
• DO trust yourself.
• DO learn the numbers of any investment. It truly is not rocket science. But…DON’T get stuck in analysis paralysis.
• Above all, DO know that you can be a highly successful investor if you’re willing to become financially educated through study and experience.
• DON’T buy an investment off of a “hot tip”. Do your homework.
• If it sounds too good to be true, DON’T buy it.
I DO believe there is a Rich Woman in each and every woman.

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