Robert Kiyosaki’s famous book, Rich Dad, Poor Dad has sold over 17 million copies, and is considered one of the best personal finance books written of all time. Perhaps Robert’s most important principle revolves around the fact that those who have achieved success do not work for their money, but instead, make their money work for them. In his book, he puts great emphasis on working to learn rather than working to earn money. He also points out that success is not about how much money you make, and if you place your level of importance and happiness on the amount of money you can bring home each day, then there is a possibility that you will never achieve true freedom.
However, there is always a chance that anyone who is willing to learn will become rich. Robert talks about his infamous “cash flow quadrants” in his book and explains them in great detail. The four quadrants include E for employee, S for self-employed, B for business-owner, and I for investor. When you hear someone talking about “getting a job” they are talking about becoming an employee and unfortunately, positions working as an employee usually do not last. Something happens and the company goes under or the employee is laid off and oftentimes fired. An individual who lives as an employee lives as a “slave” and is never free. They aimlessly hop from one job to the next in an attempt to find happiness and keep food on the table. This is not where Robert Kiyosaki suggests anyone should be.
The individual who is self-employed is much better off. However, it is very important that if you’re going to become self-employed that you have a set of skills that will take you far. Let’s assume that you cut grass for a living. While you may do well during the summer months, consider the winter. What will you do when you run out of work? Most self-employed individuals run into this issue at least a few times per year and the vast majority of them opt for a regular “day job” as an employee, which in turn puts them back into the “E” quadrant once more, back to where they started and eating from the bottom of the barrel all over again.
Then there are those who are in the “B” quadrant. These individuals have put forth the effort (blood, sweat, and tears) to pull their act together and find a business that works for them. They’ve also got employees. Someone who has done their homework will find a business that is reliable – one that the people will turn to for reliable services and/or products. A business owner is required to pay their employees. Although if they put together a brilliant operation, they’ll achieve great success.
Investors are the “I” of the “cash flow quadrant and have also put forth a great deal of effort as well as took the time to read and find out where they should put their money. Understanding how to invest takes time. However, while you’re still in the “E” and “S” quadrant, you can put all of your free time toward learning how to land yourself in the “I” quadrant, and once you do, you’ll become successful. It may take some trial and error, but nothing compares to watching your money grow.
Robert Kiyosaki’s book is for anyone who is tired of working for their money. There is a tremendous amount of anxiety that accompanies self-employment and employee positions because you never know when you’re going to be out of work. Furthermore, if you do not enjoy what you do, a deeper level of misery is sure to set in. The best solution to the problem is to find the time to sit down and learn about the ways you can turn your financial situation around, do something you love, and make a living.
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