by Eartha on January 1, 2010
I finally finished reading Cashflow Quadrant: Rich Dad's Guide to Financial Freedom by Robert Kiyosaki and I thoroughly enjoyed it. Just like Rich Dad Poor Dad: What the Rich Teach Their Kids About Money-That the Poor and the Middle Class Do Not!, it teaches you about the mindset of the average person when it comes to money. Most of us are taught to get an education and then a good secure job so we can retire in 30 years. As we know, there are no such things as a secure job. What Cashflow Quadrant teaches is to get from the left side of the quadrant (employee and self-employed) to the right side (business owner and investor.)
The cash flow and tax advantages are available on the right side of the quadrant. I thought the author did a good job in explaining the differences between both sides. He also went into detail about the various types of investors that exist, from the gambler to one that understands risk.
He also stresses the importance of becoming a business owner before jumping into investing. Developing a study cash flow as well as learning how to manage a business will help you to become a good investor.
Although the author wasn't in network marketing himself when he wrote the book, he states that it makes a great option for those who want to become business owners. I was happy about that since I have become involved with network markting as a Beachbody coach myself. I do feel it is a great way for most people to get started owning their own business without spending thousands of dollars to do so.
What I got from the book is that a business is one that can run even when you are not there. You would need to set it up so that it runs and generates income regardless of where you are. Being self-employed usually means you are still doing most of the work. For example, as a freelancer, you are usually performing multiple jobs from project managing to doing the actual work. You can outsource certain tasks but most self-employed individuals find it difficult to let go as the quality of work is a reflection of themselves so they continue to do it all.
After reading Cashflow Quadrant: Rich Dad's Guide to Financial Freedom, it has definitely got me thinking in a new way as far as self-employment and business are concerned. I suggest reading this book if you plan on working for yourself.
by Eartha on December 18, 2009
I know I'm a bit late in reading the popular Robert Kiyosaki books such as Rich Dad Poor Dad: What the Rich Teach Their Kids About Money-That the Poor and the Middle Class Do Not!
and Cashflow Quadrant: Rich Dad's Guide to Financial Freedom
but I'm glad I finally found the copies in the library and checked them out. I enjoyed reading Rich Dad Poor Dad very much and learned a lot about myself in terms of the way I view money.
Cashflow Quadrant is no different. I find myself unable to put it down. Learning what the letters mean in the quadrant and how you can use them to get from the left side to the right is very interesting. In fact, I find it motivating. I've always believed in the saying, "You'll never get rich working for someone else." The left quadrant which is the "E" and "S" stands for "Employee" and "Self-Employed." Kiyosaki teaches that in order to be financially well off, we should make it a goal to reach the right side which are "B" and "I" which stand for "Business" and "Investor."
The Difference Between Self-Employed and a Business Owner
The key difference between someone who is self-employed and a business owner is that most self-employed individuals are still doing all of the hard work. Meaning, you are doing the work, project managing, keeping the books, etc. A business owner has set up a system which works regardless if he or she is present. A business owner can do other things while the business runs.
I have definiely recognized this myself. No matter what you choose to do in terms of being self-employed, I think it's a good idea to set up some type of system. For example, if your thing is making money online, it's probably a good idea to figure out a system so that you are not doing the repetitive work. Many successful internet marketers outsource the work and make it so their business runs regardless of where they are.
Network marketing (which is mentioned in the book) is another great opportunity to reach over to the right side of the quadrant. Once you have worked hard in network marketing by reaching a high level of success with individuals running their own business in your network, the less work you have to do. That is what is so attractive about network marketing. You end up building long-term residual income. That is why I started network marketing myself as a Beachbody Coach and thankfully, I really enjoy the company I'm with.
Once you have set up a business, then you can begin learning how to become an "I" (Investor.) This is where you have your money working hard for you. I'm halfway through the book and am looking forward to finishing it. Once I do, I will write a brief book review.
If you have put off reading these two popular books like I have, get to a library or purchase them. You will probably learn a lot about your financial mindset as well.
by Eartha on October 19, 2009
I'm a big fan of reading books about finance, business, and personal development. I think all topics are extremely important for anyone that wants to be self-employed. This past weekend, I read Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money--That the Poor and Middle Class Do Not! by Robert Kiyosaki and really enjoyed it. It has been one of those books that I'd been wanting to read but never got around to it. Recently, while browsing the library, it was finally available.
It's a small book (around 200 pages or so) so if you're a fast reader, you can easily finish it over a weekend. The book starts out telling a story about growing up with his educated dad (his biological father) and his rich dad (his friend's father.) The difference in beliefs between the two dad's when it comes to money is what makes it a great book.
The educated dad believes strongly in getting an education, securing a good job, and retiring after 30 years. The rich dad knows that you won't get rich working for someone else. He teaches about how to create ways to make more money without depending on a job as well as the importance of buying assets (stocks, bonds, real estate, etc.)
The book also goes over the mentality of most people when it comes to money and spending. I could relate very well as I am one of those who has spent plenty of money on liabilities rather than assets.
One of my favorite parts of the book was the section which covered corporations and the advantages of having one. I know there is some controversy surrounding the teachings in this book but overall, I thought Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money--That the Poor and Middle Class Do Not! was an informative read and good for everyone to read - not just those who wish to be self-employed.
