A good candidate for the best-known Robert Kiyosaki Quote is: “The poor work for money; the rich have money work for them.” I am going to make the assumption that most readers of this are familiar with his writings, and will ask the following question, what is your Robert Kiyosaki net worth?
What’s the going value for the sale of a business? Isn’t it often the projected two years’ profits of the business being sold? Okay, then. If you were to ask me what my personal net worth is, according to Robert Kiyosaki, I would have to take the net earnings I made last month from the business I have been building recently, and multiply it by twenty four. That simple equation would be my personal net worth, since I currently have no additional passive sources of income to add to this.
That certainly disqualifies a lot of the usual contributors, like for example the equity in my home. Let’s say I own a $150,000 home with a $100,000 mortgage, thus giving me presumably $50,000 in value. I have just cut myself out of that $50K. Why in the world would I do that?
Answer: it keeps me honest. This used to be a radical concept, but those with a reading of the housing bubble ought to understand that a $150,000 home today might not be worth $150,000 tomorrow. Why would I include in my current personal value the proceeds of a home I likely have no intention of selling anytime soon? So let’s not count it.
By contrast, let’s pretend that I have owned my internet business for the past year which is netting me $2000 per month. In this example, the business I am building is structured in such a way that, after one year, half of my sales is generated actively (perhaps through initial enrollments in a service program of some sort), and the other half is earned passively (maybe I had the foresight to develop an auto renewal program for this business.) What does this mean for my net worth Wiki?
Clearly there would be exceptions to this rule, but if I were to sell my business, I could not presume that the buyer had yet developed the selling skills that I have developed in building my business, so we cannot use the active income as a factor. The passive income is all the buyer could count on. So, here is my Robert Kiyosaki Net Worth