The business of the
21st century
About Author
Robert Toru Kiyosaki (born April 8, 1947) is an American
businessman and author. Kiyosaki is the founder of Rich Global LLC and the Rich
Dad Company, a private financial education company that provides personal
finance and business education to people through books and videos. The company's
main revenues come from franchisees of the Rich Dad seminars that are conducted
by independent individuals using Kiyosaki's brand name for a fee.[citation
needed] He is also the creator of the Cash flow board and software games to
educate adults and children about business and financial concepts.
Summary of Book
Here's a book called The
Business of the 21st century by Robert Kiyosaki. Have you ever stopped
climbing a ladder to ask yourself, where is this ladder planted? Well you
probably haven't because maybe your question was really how I am I going up?
Robert Kiyosaki presents this question to help the reader have a better sense
of where they are truly at with their financial standing. Could it be that the
ladder you're climbing in your life it's placed on the wrong spot. Back when
Robert Kiyosaki was younger his friend's dad that he called rich dad, taught
him an important concept that there are four distinct sources of cash flow in
the world. He showed what he calls the cash flow quadrant so we have four
distinct sources.
The first one starts with E which is employee the overwhelming majority of us learn and live
this life next is the S quadrant
stands for self-employed and small business owner. Think of small business
owners, lawyers and private doctors for example. Over here we have the B quadrant which stands for business
owner, so think of manufacturing business, real estate business, mining
companies and other things. Lastly is the I
quadrant for investor think of investors who deal with real estate property, stocks,
bonds and mutual funds. The idea for them is having money to make more money so
then the real question for you presents itself. From which quadrant do you
receive the majority of your income? As you think about that, let me share you
an interesting fact. Let's say we add up all the money in the US. About eighty
percent of all the US population are living in the E and S quadrant. How
much you think they have altogether? Did you know they have only twenty percent
in total of all the US money? On the other hand there's the rest of the twenty
percent of the population that lives in the B and the I quadrant.
Can you guess how much they have? That's right that you're ready probably
figured out, they own eighty percent in total of all the US money. For the E and the S it's like seeing eight hungry guys having to share two slices of
pizza. So how and why does this happened? How are the B and I financially
successful? It starts with what our mindset values let's take a look! What are
the core financial values of each of these quadrants? For someone living in the
E quadrant, their core value is
security, for people into S quadrant
their core value is independence, for anyone in the B quadrant their core value is wealth building and the people in
the I quadrant what they value the
most its financial freedom.
Let's simply analyse how these values come into play for
each of these quadrants. Starting off a person in the E quadrant often thinks or says I'm looking for a safe and secure
job with a pretty decent steady pay with great benefits. These are the things
they value but their biggest issue with this is they have to trade their own
time for money. Now we go to the people living in the S quadrant striving for independence they often take great pride in
the work of their own hands or brains, being their all boss in other words. The
S quadrant can be filled with
professional people such as doctors, lawyers, and accountants who do not belong
to a large medical, legal or accounting firm. The problem for them is they are
a slave to their own business the main reason is simply they are the heart of
it and if they stop working the business won't continue on thus there won't be
any more income until their work is resumed. While a person into S quadrant wants to be the best and his
or her field, A B quadrant person
wants to build a team out of other people who are best in their field. business
owners are often people with powerful life mission who value a great team and
efficient teamwork and want to serve and work with as many people as possible
this is where power in numbers come into play in great length. They utilize
passive income which is money coming into thier pockets whether they work or
not. Lastly the investors are usually B
quadrant people who further progress their wealth building by the tactic of
using their own money to work for them instead of him or her working for money
but in the I quadrant you need a
great deal of money to start investing. If you were wondering, okay let's say
I'm in the E and the S quadrant how can i make a successful
transition to the B and the I quadrants Well, the biggest reason
most people believe they cannot transition over is because they cannot invest
due to not having a business to begin with and they don't have enough money to
start due to other things like taxes, dept, inflation and retirement savings
that are killing them. So now what? Am i screwed? Not to worry because Robert
covers that question entirely with an answer for the people that want to cross
over the answer is there is a business model that can help you learn to create
passive income and it requires relatively little cash investment to start up
and it can be operated on a flexible part-time until it generates enough cash
flow for the person to transition one day from his full-time job. The business
model is called network marketing. Network marketing has been around in various
forms since the middle of the last century. You get the taste what it's really
like building a business through teamwork and making business by word-of-mouth
aka networking. The author explains that the beauty of network marketing is not
just focusing on making money but a bigger picture of helping other people
become successful making money in their own business so they can become
financially free and accomplishing their life goals and dreams. At the end of
the day what makes it person truly rich is not how much he or she makes because
it's really about their mindset, if your mind is like the B and the I quadrant,
money is going to attract you around like a magnet whether you think about it
or not.
Comments
Post a Comment