SIMPLY WOW
I really enjoyed this book. What i learnt from this book was
Vince Del Monte, who recommended this book said:
"It'll get you thinking about money completely differently"
Well i totally agree! I read this book in two sittings! Which says something (as i find it hard keeping focused)
'Are you financially free? If your life has come to a financial fork in the road, Rich Dad's Cashflow Quadrant was written for you. If you want to take control of what you do today in order to change your financial destiny, this book will help you chart your course'
"It'll get you thinking about money completely differently"
Well i totally agree! I read this book in two sittings! Which says something (as i find it hard keeping focused)
'Are you financially free? If your life has come to a financial fork in the road, Rich Dad's Cashflow Quadrant was written for you. If you want to take control of what you do today in order to change your financial destiny, this book will help you chart your course'
Rober Kiyosaki gets you thinking about money in a COMPLETELY different way, he explains the diagram on the front of the book...
E = an employee earning money by holding a job and working for a person or company
S = for small business or self employed earn money working for themselves
B = for big business (500 employees) business owners own a business that generates money
I = for investors earning money from their various investments
He explains that you can become rich or poor in any quadrant but by living out of certain quadrants i.e. poor people 'poor and middle class' tend to be on the LEFT side in the 'E' and 'S' quadrants and rich people are in the RIGHT quadrant the 'B' and 'I' quadrants.
As i'm working in retail that places me in the 'E' quadrant.
Something he talks about early on which stood out to me is the education system in america BUT can easily apply to the english system. Talking about how the system punishes students who make mistakes and therefore 'A' grade students become 'A' students by making the less mistakes! The problem he goes on to say about this is that in the real world, people who take action are the ones who make the most mistakes and learn from them go on to win in the game of life.
This i found to be quite accurate as you hear time again, 'book smart, not street smart' and successful people who dropped out of school or who failed at school and went on to be very successful.
Another good part was when he explained people in the 'E' quadrant like myself, decide they want financial freedom set up a business and move from 'E' to 'S' when they really want to be going to the 'B' quadrant. He tells a good story about Hamburgers and McDonalds.
'Can you personally make a better hamburger than McDonalds?'
...... 'So far, 100 percent of the people i've talked with about their new idea or product have said yes. They can all prepare, cook and serve a better quality hamburger than McDonalds'
Next i ask them 'Can you personally build a better business system than McDonald's?'
This story opened my eyes, yes 99% of the time your idea or product could be better than whats in the market BUT can you get your product / idea to the market and have a better business system than whats already there! Most of the time is NO.
Next, he talks about money and bank sheets etc For me this is all new and confusing. However he makes it come across very simple explaining the 4 typical phrases on the bank sheet.
INCOME STATEMENT:
Income...
Expenses...
BALANCE SHEET:
Assets....
Liabilities...
After reading and understanding this the main point that comes across, is people on the LEFT side of the quadrant make their money via the INCOME so mine would typically look like this ...
INCOME STATEMENT:
Income... Retail job
Expenses...
BALANCE SHEET:
Assets.... NOTHING
Liabilities...
But he goes on to explain that to be financially free quicker, you need to earn your income from your ASSET column, which will feed your income.
NUTSHELL,
- More money i make, spend on assets which in turn will make me more money quicker than i can work for it.
- Physically i can only work so many hours in the day (my money or ASSETS can work 24/7 for me)
- THIS make a living from your assets seems to be a BIG point for me.
E = an employee earning money by holding a job and working for a person or company
S = for small business or self employed earn money working for themselves
B = for big business (500 employees) business owners own a business that generates money
I = for investors earning money from their various investments
He explains that you can become rich or poor in any quadrant but by living out of certain quadrants i.e. poor people 'poor and middle class' tend to be on the LEFT side in the 'E' and 'S' quadrants and rich people are in the RIGHT quadrant the 'B' and 'I' quadrants.
As i'm working in retail that places me in the 'E' quadrant.
Something he talks about early on which stood out to me is the education system in america BUT can easily apply to the english system. Talking about how the system punishes students who make mistakes and therefore 'A' grade students become 'A' students by making the less mistakes! The problem he goes on to say about this is that in the real world, people who take action are the ones who make the most mistakes and learn from them go on to win in the game of life.
This i found to be quite accurate as you hear time again, 'book smart, not street smart' and successful people who dropped out of school or who failed at school and went on to be very successful.
Another good part was when he explained people in the 'E' quadrant like myself, decide they want financial freedom set up a business and move from 'E' to 'S' when they really want to be going to the 'B' quadrant. He tells a good story about Hamburgers and McDonalds.
'Can you personally make a better hamburger than McDonalds?'
...... 'So far, 100 percent of the people i've talked with about their new idea or product have said yes. They can all prepare, cook and serve a better quality hamburger than McDonalds'
Next i ask them 'Can you personally build a better business system than McDonald's?'
This story opened my eyes, yes 99% of the time your idea or product could be better than whats in the market BUT can you get your product / idea to the market and have a better business system than whats already there! Most of the time is NO.
Next, he talks about money and bank sheets etc For me this is all new and confusing. However he makes it come across very simple explaining the 4 typical phrases on the bank sheet.
INCOME STATEMENT:
Income...
Expenses...
BALANCE SHEET:
Assets....
Liabilities...
After reading and understanding this the main point that comes across, is people on the LEFT side of the quadrant make their money via the INCOME so mine would typically look like this ...
INCOME STATEMENT:
Income... Retail job
Expenses...
BALANCE SHEET:
Assets.... NOTHING
Liabilities...
But he goes on to explain that to be financially free quicker, you need to earn your income from your ASSET column, which will feed your income.
NUTSHELL,
- More money i make, spend on assets which in turn will make me more money quicker than i can work for it.
- Physically i can only work so many hours in the day (my money or ASSETS can work 24/7 for me)
- THIS make a living from your assets seems to be a BIG point for me.
Top tips i'm taking away from this book
- My goal after reading this book is to get over to the RIGHT side of the quadrant 'B & I'
- Climbing the ladder and chasing promotions isn't best use of your time. OWN the ladder instead
- Build your asset column
- Only can work so many hours in a day, your money and assets can work 24/7 for you
- My goal after reading this book is to get over to the RIGHT side of the quadrant 'B & I'
- Climbing the ladder and chasing promotions isn't best use of your time. OWN the ladder instead
- Build your asset column
- Only can work so many hours in a day, your money and assets can work 24/7 for you
Summary
I'd rate this as a MUST BUY or certainly a MUST READ!
if i were to rate this out of 5 stars i'd give it a 6!!
This has certainly changed my ideas and views about money and the world
if i were to rate this out of 5 stars i'd give it a 6!!
This has certainly changed my ideas and views about money and the world
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