11 Paragraphs from the book “Rich Dad’s Cashflow Quadrant: Guide to Financial Freedom“, By Rober T. Kiyosaki
1. For those who wish to acquire assets faster, I again emphasize the need to first learn the skills of the B and I quadrants. I recommend learning how to build a business first because it provides vital educational experience, improves personal skills, provides cash flow to soften the ups and downs of the marketplace, and provide free time. It is the cash flow from my business that brought me the free time to begin looking for the financial problem to solve.
2. Today offshore is not a country. It’s cyberspace. Money, being an idea and invisible, can now hide in the invisible electronic realm. Soon, if it is not already being done, people will do their banking on a geosynchronous satellite orbiting in space free from any laws, or they may choose to operate in a country whose laws are more favourable to rich people.
3. Once a person gains experience and a good reputation. It takes less and less money to create bigger and bigger investments. Many times it takes no money to make a lot of money. Why? Experience is valuable. As stated earlier, if you know how to make money with money, people and money will flock to you. Start small, and take your time. Experience is more important than money.
4. Thought you’d never stop me.” Rich dad said, smiling. “The point is that most people’s lives are determined by their opinions rather than the facts. For a person’s life to change, they first need to change their opinions and then start looking at the facts. If we can read financial statements, we all be able to see the facts of an individual’s or a company’s financial success rather than going by opinions – yours or somebody else’s. As I said, one is not better than the other. But, to be successful in life, especially financially, you must know the difference. If you can’t verify something is a fact, then it’s an opinion. Financial statement. Leaving them to rely on someone else’s opinion. Financial insanity is caused when opinions are used as facts. If you want to be on the right side of the Cashflow Quadrant, you must know the difference between facts and opinions. Few lessons are more important than this one.
5. That’s why nine out of 10 investor’s don’t make money said rich dad, “While they might not lose money, they don’t make any either. They just short of break even, making some and losing some. That’s because they invest with their eye’s and emotions rather than with there mind. Many people invest because they want to get rich quickly. So instead of becoming investors, they wind up being dreamers, hustlers, gamblers and crooks. The World is filled with them. So let’s sit down, go back to this losing deal you just bought, and I’ll begin to teach your mind to see what your eyes can’t.
6. Rich Dad often said, “You will never know true freedom until you achieve financial freedom.” By this, he meant that learning to invest is more important than learning a profession. He said, “When you learn a profession, let’s say to be a doctor, you know how to work for money. Learning to invest is learning how to have money work for us. The moment we have money working for us, we have our ticket to freedom. “He also said, the more money we have working for us, the less we pay in taxes – if we are a true investor.”
7. That is why our maker gave us two legs. If we had only one leg, we would feel wobbly and insecure. By having knowledge in two quadrants, one on the left and one on the right, we tend to feel more secure. People who know about their job or their profession only have one leg. Every time the economic winds blow, they tend to wobble more people with two legs.
8. Regardless of what we decide, please remember this: Financial freedom might be free, but it doesn’t come cheap. Freedom has a price, and to me, it’s worth that 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, desire and the ability to overcome disappointments that occur along the way. Are you willing to pay the price?
9. People who seek security use the word,” diversification” a lot. Why? Because the strategy of diversification is an investment strategy for “Not losing.” It’s not an investment strategy for winning. Successful or rich investors don’t diversify. They focus their efforts.
10. Let’s look at a person who buys a house as an investment and rents it out. If the rent collected is greater than the expenses to operate the property, that income is coming from the I The same is true for people who receive interest from savings or dividends from stock and bonds. So the qualifier for the I quadrants is how much income we generate from the quadrant without working in it.
11. For people in this group, money isn’t the most important thing about their work. Their independence, the freedom to do things their way, and being respected as experts in their field are much more important than mere money. When hiring them, it’s best to tell them what we want done and then leave them alone to do it. They don’t need or want supervision. If we meddle too much, they‘ll simply walk off the job and tell us to hire someone else. Remember, independence trumps money for this group.