LETTER FROM SUCCESSFUL ENTREPRENEUR
Greetings ,
If you’ve ever wondered what makes Rich Dad different from everyone else, we’ve compiled those differences for you right here.
1. DECIDE WHICH QUADRANT ARE YOU IN
For years, Rich Dad has taught the CASHFLOW Quadrant. The hope is that, it will be the beginning of changing your mindset about money.
Here is Rich Dad’s view regarding the shortcomings of traditional education. Millions of people leave school, only to be trapped in jobs they do not like. They know something is missing in life. Many people are also trapped financially, earning just enough to survive, wanting to earn more but not knowing what to do.
Without awareness of the other quadrants, many people go back to school and look for new professions or pay raises in the E or S quadrant, unaware of the world of the B and I quadrants.
Each of us resides in at least one of the four quadrants. Where we are, is determined by where our cash comes from.
The CASHFLOW Quadrant is divided into four types of people.
- E is for Employee
- S is for Self-Employed or Specialist
- B is for Big Business
- I is for Investor
On the left side of the quadrant are Es and Ss. They pay the most in taxes and trade their time for money. That’s what most people do when they go to work; they trade their 8 hours a day (or sometimes more) for a paycheck.
On the right side of the quadrant are Bs and Is. They pay the least in taxes and create— or invest— in assets that produce cash flow for them even when they’re sleeping.
It’s Rich Dad’s view that the dividing line between those who are struggling in today’s economy and those who are prospering is the line between the two sides of the CASHFLOW Quadrant.
Are you ready to move beyond job security and begin to achieve financial security. It’s not an easy life path, but the prize at the end of the road, financial freedom, is worth the journey.
2. UNDERSTAND THE THREE TYPES OF EDUCATION
“What do you want to be when you grow up?” That is the question most of us have been asked at some point in our lives, and some are probably even asking themselves the same question as an adult.
One of the reasons the rich get richer, and poor get poorer, and the middle class struggles in debt, is that the subject of money is taught at home, not in school. Most of us learn about money from our parents. So what can poor parents tell their child about money? They simply say, “Stay in school and study hard.” The child may graduate with excellent grades, but with a poor person’s financial programming and mindset.
There are three types of education:
- Academic
- Professional
- Financial
Sadly, money is not taught in schools. Schools focus on scholastic and professional skills, but not on financial skills. This explains how smart bankers, doctors, and accountants, who earned excellent grades, may struggle financially all of their lives.
So what can a financial education do for you?
Money is one form of power. But what is more powerful is financial education. Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth.
All of you were given two gifts: your mind and your time. It is up to you to do what you please with both. With each dollar bill that enters your hand, you and only you, have the power to determine your destiny. Spend it foolishly, and you choose to be poor. Spend it on liabilities, and you join the middle class. Invest it in your mind and learn how to acquire assets, and you will be choosing wealth as your goal and your future.
3. THERE ARE THREE TYPES OF INCOME
Have you ever sat back and wondered how it is that someone who works two, three, even four jobs is always struggling with money while the person who seems to always be on vacation never seems to be working? To explain why this happens, you need to understand both the CASHFLOW Quadrant and the three types of income.
Each of us resides in at least one of the four sections (quadrants.) Where we are is determined by where our cash comes from.
- Employee: People who rely on paychecks
- Small Business or self-employed: Earns money working for themselves
- Big business owner: Owns a business that generates money
- Investor: Earns money from their various investments
Now that you understand the each of the quadrants, let us explain the three types of income:
- Earned: Money that comes from a paycheck
- Portfolio: Money that comes from stocks
- Passive: Money that generates more money
Those that earn money on the left side of the quadrant, are working for “earned incomes” while those that earn money on the right side of the quadrant, receive their money from portfolio or passive incomes.
By knowing the different features of each quadrant, you’ll have a better idea as to which quadrant, or quadrants, might be best for you.
For example, one of the many reasons the rich choose to work in the B and I quadrants is because of the tax advantages. The question to ask yourself is, “Why would you want to work and give a large percentage of your hard earned money to someone else?”
People often say, “It’s un-American not to pay taxes.” Americans who say this seem to have forgotten their history. America was founded out of tax protest. Have they forgotten the famous Boston Tea Party of 1773? This rebellion sparked the Revolutionary War and was all about taxation without representation.
Debt and taxes are the main reasons most people never feel financially secure or achieve financial freedom. The path to security or freedom is found on the right side of the CASHFLOW Quadrant. You need to go beyond job security and know the difference between financial security and financial freedom.
This is what makes Rich Dad different.
Sincerely,
The Rich Dad Company--
Purchaseing MG ABS
15 Effurun Sapele Road,
Warri.
ph: +234 803 282 9411,
+234 802 628 4253
http://www.tripleclicks.com/10097154.
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