Rich Dad’s Cashflow Quadrant (Robert T. Kiyosaki)

6
View Random Post

About 2 years back i found myself in a 9 to 5, making my employers tons of money (iam a web designer/developer by profession). The websites i created for my employer made an average of R16 000 per project, whereas my salary was a measly R4000 a month: i knew right there and then that something was not right. In my search for financial insight or atleast trying to understand why the corporate world works the ways it does i came across a person who would change my life forever. He goes by the name of Paseka Lesolang, he introduced me to Robert T. Kiyosaki’s “Rich Dad Poor Dad”, one of the first books in the “Rich Dad’s Guide to Financial Freedom – Series” (after the first page, i was hooked!).

Back to the review; i eventually got to “The Cash flow quadrant” – i was dumbstruck by the revelations i discovered:

1) The difference between an asset (an asset is something that put money in your pocket wether you’re working or not) and a liability (a liability is something that takes money out of your pocket wether you’re working or not).

2) The fact that employees make up 90% of the corporate world and they earn 10% of the monies/income

3) The Rich Dad’s “Cash flow quadrant” which basically divides the corporate world into 4 quadrants including a) Employees b) Self-employed c) Business people d) Investors [in a nutshell you want to find yourself in the Investor or Business quadrants because that’s where assets are concentrated]. PS –  you could be in more than one quadrant.

4) The problem with being an employee and being self-employed  is that you do not own your time plus if you make money via using your hands for e.g. hair stylists and your hands get hurt or you get retrenched , than the income stops flowing.

5) I learnt about the dangers of greed and fear which according to Mr Kiyosaki is what drives an employee e.g fear = Job security and greed = Instant gratification (wanting things now)…a) so basically you’re afraid to quit your job because of the job security, you’re addicted to your salary [your life revolves around your salary]b) instant gratification, wanting to buy all “shiny” things which don’t really need (and eventually falling into bad debt).

6) If you want maximum security go to jail (one of my favourites), you need to invest in assets, because things that we’re generally told are assets e.g. a) House Bond b)Accounts at clothing stores c) cellphone contracts c) car instalments etc. are actually liabilities…thus if you were to lose your job or get hurt, they would still be taking money out of your pocket.

Those are just a few of the points i picked up, please note that this is my understanding of what i read (so the perspective is probably biased and subjective).

To cut a long story short: I quit my job, had enough cash to start a small business. It’s been a year now and it’s actually working out, i fall under the self-employed cateogry but atleast i own my time and i am able to follow my heart and focus on my purpose in life and not stuck in a 9 to 5.

 

VN:F [1.9.22_1171]
Rating: 9.3/10 (3 votes cast)
VN:F [1.9.22_1171]
Rating: 0 (from 0 votes)
Rich Dad's Cashflow Quadrant (Robert T. Kiyosaki), 9.3 out of 10 based on 3 ratings
9.0 Awesome

This book helped me to understand a bit of how things work in this monetary system. I still have a lot to learn in my quest for financial freedom. I recommend all Kiyosaki's books, this book in particular was an easy read, practical and humorous. Fact remains we won't all be business men/women or investors...and the latter can't exist without employees.

But the question is: If you had to choose between two problems 1) Having to little 2) Having too much. Which one would you choose?

  • Helpful 9
  • chris

    Guys chkout theBillionairesBrain.com – a TRULY MUST HAVE FOR EVERY HIGH PERFORMANCE ENTREPRENEUR..

    VA:F [1.9.22_1171]
    Rating: 0.0/5 (0 votes cast)
    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
  • I had an opportunity to listen to the audio version, it made me think a lot.

    VA:F [1.9.22_1171]
    Rating: 0.0/5 (0 votes cast)
    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
  • Quite an inspiring book, read it twice and still recommend it to people I meet occasionally. Nice review,

    VA:F [1.9.22_1171]
    Rating: 0.0/5 (0 votes cast)
    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
  • sylvester

    in my case, i just started reading it. it surely opens your eyes to a whole lot of things and as i read, i ask myself certain questions and my findings are really alarming.

    VA:F [1.9.22_1171]
    Rating: 0.0/5 (0 votes cast)
    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
  • Karabo Mkhabela

    nice one boet, i wish you all the best…i found this book really practical…i think we, as Afrikan youth have the responsibility of building our own hospitals, universities, retail shops, rugby teams, banks, brands etc.

    and i think this book does well in exposing the basics of this monetary system! we need to create our own and support our own.

    VA:F [1.9.22_1171]
    Rating: 5.0/5 (1 vote cast)
    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
  • You are spot on. I read that book in high school and from then on, though I already was somewhat of an entreprenuer by then, I picked up some oomph and steam to keep at it. My business though not a blue chip company on the stock exchange is gaining ground every day. I wish every African (and others) would read.

    VA:F [1.9.22_1171]
    Rating: 5.0/5 (1 vote cast)
    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
Share.


View Random Post
  • chris

    Guys chkout theBillionairesBrain.com – a TRULY MUST HAVE FOR EVERY HIGH PERFORMANCE ENTREPRENEUR..

    VA:F [1.9.22_1171]
    Rating: 0.0/5 (0 votes cast)
    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
  • I had an opportunity to listen to the audio version, it made me think a lot.

    VA:F [1.9.22_1171]
    Rating: 0.0/5 (0 votes cast)
    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
  • Quite an inspiring book, read it twice and still recommend it to people I meet occasionally. Nice review,

    VA:F [1.9.22_1171]
    Rating: 0.0/5 (0 votes cast)
    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
  • sylvester

    in my case, i just started reading it. it surely opens your eyes to a whole lot of things and as i read, i ask myself certain questions and my findings are really alarming.

    VA:F [1.9.22_1171]
    Rating: 0.0/5 (0 votes cast)
    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
  • Karabo Mkhabela

    nice one boet, i wish you all the best…i found this book really practical…i think we, as Afrikan youth have the responsibility of building our own hospitals, universities, retail shops, rugby teams, banks, brands etc.

    and i think this book does well in exposing the basics of this monetary system! we need to create our own and support our own.

    VA:F [1.9.22_1171]
    Rating: 5.0/5 (1 vote cast)
    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
  • You are spot on. I read that book in high school and from then on, though I already was somewhat of an entreprenuer by then, I picked up some oomph and steam to keep at it. My business though not a blue chip company on the stock exchange is gaining ground every day. I wish every African (and others) would read.

    VA:F [1.9.22_1171]
    Rating: 5.0/5 (1 vote cast)
    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
Consciousness Legacy Media 2017 ©