Undoubtedly Robert Kiyosaki is one this era's best know authors on personal finance. His book 'Cash Flow Quadrant' is a classic. Today, I want to share with you 20 of the many gems I gleaned from this bookIt does not take money nor a good formal education to achieve financial freedom e.g. Thomas Edison founder of general electric Henry Ford founder of Ford Motor Bill Gate Ted turner Michael dell Steve founder of apple and Ralph Lauren founder of polo.
It takes a dream a lot of determination, a willingness to learn quickly, and the ability to use your God-given assets properly and to know which sector of the cash flow quadrant to generate your income from
More than anything, it is the internal difference of our core values, strengths, weaknesses and interest that affect which quadrant we decide to generate our income from. Some people love being employees while others hate it. Certain people love investing, while others only see the risk of losing money. Most of us are a little of each of these characters being successful in the four quadrants often means redirection some internal core values.
Money is important ,yet I did not want to spend my life working or it.
Rich dad though that it is foolish to spend your life working for money and to pretend that money was not important.
Learn to have money and people work hard for you, and you can be free to do the things that are important.
There is a difference between being rich and being wealthy.
The definition of wealth is the number of day you can survive, without physically working and still maintain your standard of loving, wealth is measured it time not dollars or cedis.
Ultimately it is not how much money you make that matters, but how much money you keep and how long that money works for you. Every day I meet many people who make a lot of money, but all of their money goes out the expense column.
Are stockbrokers investors? They buy stocks low and hope to sell high. In reality their profession is trading much like a person who owns a retail shop and buys items at wholesale and ells them at retail.
One of the reasons the rich get richer is because they sometimes can make millions and legally not pay taxes on that money. That’s because they make money in the assert column not in the income column or they make money as investors not workers.
The difference between a gambler and an investor is this for a gambler, investing is a game of chance. For an investor investing is a game of skill. And for the people who turn their money over to someone else to invest, investing is often a game they do not ant to learn.
The idea of go to school and get a safe secure job was a good idea or people born before 1930 today everyone needs to go to school to learn to get a good job, but we also need to know how to invest ,and investing is not a subject taught in school.
People who seek security use the word diversification a lot why? Because the strategy of diversification is an investment strategy for not losing. It is not an investment strategy for winning. Successful or rich inventors do not diversify. They focus their efforts.
The problem with the left side or the cashflow quadrant is that most people go there to avoid financial risk. Instead of avoiding risk, I recommend learning how to manage financial risk.
People who take risks change the world. Few people ever get rich without taking risks.
Financial freedom might be free, but it does not come cheap. Freedom has a price…and to me it is worth the price .the big secret is this .it takes neither money to be financially free nor a good formal education .it also doesn’t have to be risky. Instead freedom’s price is measured in dreams, desires and the ability to overcome.
Knowledge is power all they have to do is wait for the opportunity to use their knowledge and then you will have the money.
Even if you do not have much money it is important to invest in your education for when the changes come, you will be better prepared for them. The game and rules are different for each of the quadrants … which is why I recommend education over ego.
A big secret is that true inventors make more money in bad markets .They make their money because the non-investors are panicking and selling when they should be buying. That is why I am not afraid of the possible coming economic changes….because changes mean wealth is being transferred.
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