Finance/Business :: Other |
|
Robert Kiyosaki's Teachings |
| In Robert Kiyosaki’s best selling books “Rich Dad, Poor Dad” and “CashFlow Quadrant”, he explains how the rich don’t work for money – they get money to work for them. Let’s take a closer look at a model Robert Kiyosaki refers to as the “Cash Flow Quadrant”. |
|
The teachings of Robert Kiyosaki focus largely on generating passive income by means of investment opportunities from real estate and small businesses. The ultimate goal generating passive income is being able to support oneself by such investments alone. In tandem with this, things that generate money, Kiyosaki defines as "assets" such as rental properties or businesses, and things that cost money as "liabilities" such as house payments, cars and so on. He also proclaims financial leverage to be critically important in becoming rich.
Kiyosaki stresses "financial education" as a means to obtaining wealth. Those life skills are often best learned through experience and that these are important lessons that are not taught in school. He says that formal education is primarily for those seeking to be employees or self-employed individuals, and that this is an "Industrial Age idea". According to him, in order to obtain financial freedom, either one must be a business owner or an investor, generating passive income.
"The Cashflow Quadrant" is what Kiyosaki speaks often. It is a conceptual tool that aims to describe how all the money in the world is earned.
The Cashflow Quadrant
Depicted in a diagram, this concept entails four groupings, split with two lines (one vertical and one horizontal). In each of the four groups there is a letter representing a way in which an individual may earn income. The letters are as follows.
E: Employee - Working for someone else
S: Self-employed or Small business owner - where a person owns their own job and is their own boss.
B: Business owner - where a person owns a "system" of making money, rather than a job to make them money.
I: Investor - spending money in order to receive a larger payout in return.
For those on the left side of the divide (E and S), as Kiyosaki says, they may never obtain true wealth. (See "Capital Gains vs. Cash Flow (Wealth through passive income)" section of this article).
Conversely, those on the right side of the divide (B and I) are supposedly following the only road to true wealth. See ("Capital Gains vs. Cash Flow (Wealth through passive income)" section of this article).
And "The Cashflow Quadrant" is what Kiyosaki calls a diagram designed by him depicting this system "The Cashflow Quadrant" is in the name of many of Robert Kiyosaki's books or other merchandise. ?The Cashflow Quadrant? is the name given by him to the system in which all the money in the world is earned... (Robert Kiyosaki 2000 Cashflow Quadrant)
90% of the population is on the left side, leaving 10% on the right and only 10% of the total money made is on the left side, leaving 90% of the money made by the people on the right (only 10% of the population). These numbers are meant to depict the United States although the source of this information is simply word-of-mouth.
Kiyosaki remarks, ""Cashflow" is the most important word in the world of money.", "The second most important word is "leverage". "True leverage is the ability to do more and more with less and less.? says Robert. ?Here?s a suggestion. Get a clean sheet of paper and begin to write your answers to this question. How can I do what I do for more people, with less work, and for a better price? Rich Dad called this ?the million dollar question?.? Leverage is the reason some people become rich, and others do not. Some know how to leverage because leverage is power, some abuse it and others fear it. The reason less than 5% of all Americans are rich is because only 5% know how to use the power of leverage.?
His primary examples of using leverage are in utilizing "OPM" that is Other People's Money and "OPT" that is Other People's Time
The Ultimate Leverage is "How To Attract Other People's Money For Your Investments?"
The reason most entrepreneurs stay small is they?ve been trained by their parents to work hard. The real entrepreneur doesn't work hard, the real entrepreneur knows how to leverage, either through people, through other people?s capital, or through different business associations ? for example, Donald Trump and he are coming together. Both of them don?t need the money, but when they joint venture a project they make millions, but we think bigger. There are other guys who would like to do that, but they just don?t think big enough. So it really comes down to that old book, Think and Grow Rich. It really must "Think big and grow rich". So you have to think big and being trained the formal business leveraging systems to become richer and richer and take the businesses wider.
There are two subjects. I don't care... if you?re going to be an entrepreneur but there are two subjects you need to study. One is accounting and one is business law because when you have those two subjects you can see what your eyes cannot see. So the reason most people invest in mutual funds is because they?re blind. They cannot see. A mutual fund company does not have to give you a financial statement. They give you some bogus financial statement. But most people can?t read, so they can?t see it anyway. And the reason ? built this law is you need to know the rules of the game, just as when playing rugby, one got to know the difference between the rules of rugby and the difference between the rules of soccer. And personally you like the rules of rugby a lot better than the rules of soccer, because in soccer they don?t let you tackle and punch and kick people. However for rugby, they let you pound, kick, stomp and beat the other guy up. It's a different set of rules, and you?ve got to play by the rules.
For Your Financial Freedom,
Lay Peng
Learn from the World Class Gurus Now!
http://www.videoonlineseminar.com
P.S: Mr. Robert Kiyosaki has his Rich Dad as his mentor while I have him and other Top Speakers and World Class Gurus as mine. **** DISCLAIMER *****
The author, publisher and distributors particularly disclaim any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. All readers must accept full responsibility for their use of this material.Copyright © 2007 topspeakeronline.com/blog
I'm tired after thirty years working in the corporation world. It is better to start my first step to be an entrepreneur and take massive actions.
Article Source: www.activehowto.com
| Share this article with others. Bookmark it at these sites: |
         
         
      |
READ NEWEST ARTICLES HERE
Posted 2007-02-02 06:36:52 By Lay Peng Goh
Views: 567
Submit Article
 ? |
|
|
