In this last of 8 discussions on Robert Kiyosaki’s 8 New Rules of Money in his online collaboarative work, soon to be book,  The Conspiracy of The Rich . This post focuses on his 8 aspects to integrity which he says if you follow you will be building your business of bricks that the next ‘big bad wolf’ can’t blow down.

His eight integreties are:

1. Mission – every business should have a mission. I have recently discovered my true mission for APeel Solutions which is to create as many wealth creation opportunities as possible for the disabled to raise them from the benefit trap. If you do not define your mission then you will feel off kilter and as if something is missing which is how I felt until recently. Now I have a mission it brings a whole new purpose to what I am doing in my business opportunities.
2. Team – This is not just your business team but teams for the other dimensions of your life – health and spiritual. I have recently witnessed first hand the power of spiritual coaching and the impact it can have on your business. Many people think that spiritual beliefs and making money are somehow incompatible. This could not be further from the truth. We exist as human beings to develop to the fullest extent of our personal development as Wallace D. Wattles say in, The Science of Getting Rich. To do this we need money, money is a form of energy just like any other form of energy and it allows you to grow and develop. Ask anyone who has no money and who is not supported by an organization like the Church how easy it is to develop without money? The same goes for health, the best health care costs money.
3. Leader – The way to become a Leader is first to learn to become a Team Member, and many so called Leaders miss this step out. Then they wonder why they have problems motivating their teams later. As a Senior Manager of some 18 years I have always seen Leadership as a function of team membership not above it. Yes you take the responsibility and ultimate decision but this should always be on the basis of having carefully considered and weighed the advice of your team. This is why the banking crisis went so horribly wrong they did not foster a team culture, where people felt they could be transparent and open.
4. Product – You must bring to the market a product that is relevant and up to date. If you do not continually strive to improve your products you will struggle to remain in business. In addition of your product is not in line with your mission then you will suffer. You will feel at odds with what your ‘gut’ is telling you. Your gut feeling is one of the best senses you have, if you walk away from a meeting about a product and your gut tells you it is wrong then trust your gut.
5. Legal – Like it or not we operate in a society with rules. This means setting your business up on a legal footing and following the rules as efficiently as possible. This means an Accountant and a Lawyer/Solicitor for advice as a minimum.
6. Systems – You have several systems and they must all function properly for you to be a success. As your business grows you will need more systems. This will involve some delegation but always remember you are responsible for ensuring your systems run smoothly.
7. Communication – As a Project Manager I would say every failing project I was asked to pick up was failing because of a lack of communication. It is the single most important aspect of your business but one that is often neglected. As an example, Habitat a huge brand name in the UK decided to dip it’s toe into the social media market by opening a Twitter account to advertise it’s lines. But they left it to someone who obviously had no business integrity because they preceeded each Tweet with a hashtag. A hashtag is a trending topic on Twitter and allows people to search on that hhashtag, so at the moment #MichaelJackson is a hashtag. The problem for Habitat was the hashtags being used had nothing to do with their brand and they were even using other brands hashtags. The backlash on Twitter was phenomenal. It could have destroyed a reputable UK household brand’s reputation permanently. They have since issued an apology bvut the damage is done.
8. Cash Flow – Learn to control your cash flow. This is the most important of the integrities because without controlling your cashflow the others will fail.

This is the seventh of an eight part series discussing Robert Kiyosaki’s new online collaborative work soon to be published book, The Conspiracy of The Rich.

This post discusses his new rule of money no. 7 – focus more on selling than buying . He explains the reason so many people are in financial difficulties is because they love to buy and hate to sell. He says if you wish to become rich then you have to learn to sell more than you buy. By this he does not mean living below you means, i.e. reducing your outgoings below your income, but actually deciding to become an entrepreneur and sell something.

As long as you remain an employee you are a the vagaries of decisions made by your employer. If you own your own business then you are your own boss and you can recruit like minded entrepreneurs who also have the desire to succeed.

There are two things needed to succeed in business – an absolute belief in yourself which you can get through training, personal development and a mentor (all of which I have  and have paid for to get in other words I invested in ME Inc.). The second thing you need is perseverance – as Mike Yarnell says in his best seller on Network Marketing -  Your First Year In Network Marketing. ‘each no you receive brings you closer to the first yes’. Og Mandino says something very similar in, The Greatest Salesman in the World . ‘I will bend the law of averages in my favour knowing that each no I receive will bring me closer to the next sale’.

Bob Proctor, famous from the film The Secret says this about Network Marketing, it’s the only business someone with no qualifications or experience can join, be mentored and then earn more than a Heart Surgeon.

If you are one of the 90% who are earning well below their potential then click here to find out more about an opportunity to sell more than you buy.

I have been following Robert Kiyosaki’s online collaborative work The Conspiracy of The Rich and this post reviews his new rule of money number 6 – Learn The Language of Money.

He argues that various professionals have their own language that people entering them quickly learn to adopt. It’s the same for the rich, only about 10% of the population know and understand the language of the rich. The remaining 90% have been through standard education where the rich removed the language of money and replaced it with calculus and algebra which are pretty useless to most people outside of school/college.

He advises spending a little time each day learning the language of the rich for two reasons. Firstly if you are going to become an entrepreneur then you need to speak and understand the language of the rich. Even if you are not going to become an entrepreneur learning the language of the rich will stop you being hoodwinked by that language.

He advises to avoid false prophets who advise you to, “Save money, buy a house, get out of debt and invest for the long term in a well- diversified portfolio of mutual funds.”

He points out it would not cost a lot of money to educate kids in the language of money and in turn more of them would want to become entrepreneurs and create real jobs.

Ending on one example of how words form our reality and why learning the language of the rich is so important:

• Poor Person – I will never be rich
• Middle Class Person – I’ve got a high paying secure job
• Rich Person – I’m looking for good employees to work for me

To learn more about an excellent financial education program and to join a massively successful team of entrepreneurs click here.

We are now up to New Rule of Money No. 5 from Robert Kiyosaki’s online collaborative work, The Conspiracy of the Rich. This is in Chapter five of the book in which Robert discusses the evolution of money. he explains we have gone from real money to magic money.

The basic stages we have gone through are:

• Barter – Where no money was involved and we exchanged one type of goods for another. He does add an very interesting side note, if the economy continues to tank then there will be a re-emergence of bartering again even maybe exchanging working on someone’s house repairs for example in exchange for food – not that far fetched and shows how fragile our digital economy has become.
• Commodities – In order to speed up trade tribes/people got together and agreed on tangible items that ‘represented’ a certain value at first early forms were sea shells, beads etc. This sped up the process because you could carry the agreed commodity – glass beads for example in your pocket instead of hauling round chickens.  Today gold and silver are the only commodities that represent money internationally.
• Receipt Money – To keep precious metals safe rich people would hand it to people they trusted and in return get a receipt for it. They would then go to a representative of that trusted person elsewhere and exchange the receipt for precious metal. The Knights Templars were amongst the first to do this for pilgrims and it was the earliest form of banking. This evolved so that the receipt itself could be used to buy things – hence derivative – something from something else. Now rather than move the precious goods the bankers in the two cities would simply reconcile their record. We do the same today with cheques [note the correct English spelling in spite of Microsoft's attempt to make me change]
• Fractional reserve receipt money – This is where it gets tricky. The best way to explain is by example. The bank has £500 of precious commodities in it’s vault. But they have £1,000 receipts in circulations that could claim the £500. So in this case they created a fractional reserve of £2 for every £1 in circulation. The banks collected interest on the money they did not actually have – the £500 difference. As Robert says if you or I did this it would be classed as theft but for banks it’s perfectly legal.
• Fiat money – Technically before Nixon in America and Harold Wilson in the UK took their currencies off the Gold Standard their currencies were a derivative of gold. After being taken off the gold standard the currency becomes a derivative of debt. Fiate money is money backed by government good faith and credit. If anyone tries to alter that then the government has the power to put them in jail for fruad or counterfeiting. In other words the government has the juice to say you pay your taxes in our currency or else. So we arrive at digital money – money at the speed of light.

The reason for rule number 5 – The Need For Speed explains why some people become billionaires overnight and other still work for £4.50p an hour, it the differential in speed with which they acquire money. A high school child with a web business working 24/7 can make more money than a medical doctor. Crucially our thinking has in large yet to catch up in speed to this. People who make money on the web are working metaphysically the other is physical. Metaphysical work is creates wealth exponentially, whereas physical work creates wealth in a linear fashion.

I will end with the following quote from Robert, “Those who will succeed in the future will be the entrepreneurs who who understand how quickly business and money are changing, and who have the ability and flexibility to quickly change and adapt”

To learn more about how to create your own economy click here to attend one of 13 teleconferences that are being held globally on 17 June over a 24 hour period backed and based on work done by Bob Proctor.

This post is based on a conversation between The McKinsey Quarterly and two business strategists; Lowell Bryan and Richard Rumelt. It’s part of a series of conversations they had about how the current economic downturn came about and what management lessons can be learned.

The first thing they say is it takes about five years for these things to unfold so what we are seeing now is just the beginning.

What struck me most closely was the example Richard Rumelt used because it is something I have witnessed time and again when management do not understand what the true purpose of performance measures is – they are just information and should be added to the mix of things like common sense, environmental predictions and any other number of factors. The people that develop performance measures make one fatal assumption – and this is the single biggest lesson we should take from the crisis – that human beings act rationally. They are not rational and do not make rational decisions, they like to think they do but most decisions are based on advice received and ‘gut’ instinct. If you surround yourself with poor advisers, or even worse ‘yes men’, and have no ‘gut’ guess what? Your decisions will tank. It’s your responsibility to develop your gut no one else’s. You should also pick a Mastermind Group you can trust, this is what all successful entrepreneurs have always done.  Like the bank in the UK that put a Retail Chairman in charge of the Bank – that person’s gut was definitely on a holiday that day.

To prove the point Rumelt uses the Hindenberg Airship disaster to prove the point. He calls it the, “smooth sailing fallacy” and the public sector is one of the best at believing this particular fallacy. Prior to May 1937 when The Hindenberg Airship burst into flames in New Jersey it had made hundred of successful flights. If you had been on board on that last fateful flight no matter how hard you tried you would not have been able to predict the disaster. The smooth sailing fallacy is the fallacy that you can predict a future crisis by studying the bumps and wriggles of past flights.

If you want to see a disaster coming you have to look beyond the performance data and ask some simple questions like, “Is it really sensible to be flying this high in a wooden gondola slung under all that hydrogen gas?”.  Rumelt says you don’t need hard data before you think like that,  you just need common sense. It’s called risk management. some people get risk management some people don’t. The one’s that don’t are the one’s that buy into the ’smooth sailing fallacy’. Or as Rumelt puts it, they mistake performance measures for reality. Competent management always looks deeper than just the numbers and measures. Incompetent managers merely focus on measures, body counts and quarterly earnings. That’s how we got into the crisis – we have to learn how to manage by not just looking at the performance meter.