The more money people make they increase two expenses.
1. Interest on debt
3 of the easiest ways to move from the left to the right side of the quadrant:
- Find a Mentor not Adviser – A mentor is someone who has what you want
- Franchise – Employee to system – Expensive
- MLM – Network Marketing – Passive – Inexpensive
Remove fear of objection.
Learn to lead people.
Look for companies that develop you as a human being rather than sales person.
Work with people you respect and enjoy being with.
Then look at the product.
7 Levels of Investors
Level 0 – Negative income – More expenses than income monthly.
1 – Borrowers – Robing from Peter to pay Paul – Low money down, No interest for 12 months.
2 – Savers – Fear based – CD’s, Money Market.
3 – Smart investors – Mutual funds – Middle class – Lack investor sophistication.
4 – Long term investors – Education – Tax advantages – Seek Pro advisement
5 – Sophisticated investors – Long track record of winning – Financially sound.
6 – Capitalist – B & I quadrants equally – Create investments and sell them to the market.
Investment is only risky if you don’t have the knowledge. No education and bad advice is risky.
Your home is not an asset if it does not produce income.
The game is: Whom is indebted to whom.
Profit is made when you buy not when you sell.
Know the facts not opinions (due diligence)! You need to be able to read financial statements.
How do you get rich? Play Monopoly – buy many green houses and trade for hotels.
It’s not what you do, it’s how you think.
BE – DO – HAVE!
Strengthen your thoughts. Be emotionally neutral with both winning and losing.
You have 2 choices in life
Security – Employee, or Self-Employed.
Freedom – Business Owner, and or investor.
7 Steps to finding financial fast track
1. Mind your own business –
Focus on your business and set goals.
Financial goals 5yr – 1yr – monthly.
2. Cash-flow management.
Reduce personal debt.
3. Know the difference between risk and risky.
Uninformed is risky.
4. What kind of investor are you?
Seven levels of investors above.
5. Seek Mentors.
Be selective. Only listen to people who have what you want.
6. Make disappointment your strength.
If you are calm you think better.
7. Power of faith.
Face your doubts and fears.
I hope you enjoy this book as much as I have. The key as always is in your implementation of what you learn. These were my takeaways from Rich Dad’s Cashflow Quadrant Robert T Kiyosaki Audiobook, please let me know yours.
Contact me direct here. Or comment below.