Love Robert Kiyosaki? Don’t have the time to read the cashflow quadrant? Well I do 😀 here are a few takeaways from his Rich Dad’s CASHFLOW Quadrant: Rich Dad’s Guide to Financial Freedom
If you are waiting for the weekend then you certainly need a change. They key is to first find out what quadrant you are in. If you have read Rich Dad Poor Dad: What The Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! you may already understand this. If not here are the 4 quadrants
Small business or self employed (S)
Big business of 500 employees or more (B)
School teaches you that you should be in the E or S quadrants that this is the safest thing to do however schools have not changed since the industrial ages when jobs came with security and a pension. With Baby boomers about to retire it is clear that the government are not going to be able to handle that amount of debt, they simply do not have enough money to pay all the pensions they have been promising which is why the retirement age keeps going up. Employees of the Information Age no longer have job security, they don’t have pension plans and they are not expected or even wanted in the same role until they retire.
So what cashflow quadrant do you want to be in?
Well ideally you want your money to work for you. A good place to start is to build a system in which people work for you to bring you a passive income. Robert Kiyosaki is a huge believer in franchises and network marketing. He says these are businesses with systems already in place and all you need to do is to make it work for you. After all the secrets to riches and wealth are other people’s time and other people’s money.
The I quadrant is a difficult quadrant to break into. You cannot give your money to a stockbroker because they are simply an employee. They are not a professional investor as they are not doing it themselves. This is where education comes in. You have to learn and grow and make calculated risks on investments yourself.
Change your mindset around your cashflow
For years people have been taught that buying a house is the biggest asset you can own. WRONG! It is the biggest liability you can own. You do not own that house the bank does! A house is only an asset when it is bringing money into your income stream. A mortgage is an expense and therefore the house actually lays in the banks asset column not yours. The idea is to build assets that bring money.
You don’t have to work 9-5 to reach your goals. You don’t have to work for someone else in a JOB to be successful. There are other ways. The faster you realise and except this the faster you will be open to the opportunities around you.
So how do you swap cashflow quadrant?
- First determine which quadrant you would like to earn money from.
- Start by reducing your personal consumer debt – be it credit cards, store cards, overdrafts etc… Dedicate an amount each month to pay off one at a time. While you are doing this out a small amount in another fund to build an investment savings account. Once the debt has been paid off put that monthly amount into the investment savings account and soon you will have some money to start building your asset column.
- Commit 5 hours a week to your education. Read the business section of the Wall Street journal, listen to podcasts from industry leaders, attend educational seminars, consider hiring a coach.
It doesn’t have to be hard. In fact it is simple. Change your mindset change your life!
I hope that I have helped you a little with understanding the cashflow quadrant obviously Robert Kiyosaki’s Rich Dad’s CASHFLOW Quadrant: Rich Dad’s Guide to Financial Freedom goes into heaps more detail and it will really blow your mind.
If you are open to new opportunities comment below or send me a message I would love to have a more detailed chat with you 😀
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