Posted: 2017-09-12 01:17
Surprisingly, Robert sees product as the least important component of the B-I Triangle. Accordingly, it occupies the smallest section. He recalls Henry Ford’s comment: “Thank God for customers. They buy the product when it is not quite ready.” Another Fordism worth remembering on this note is: “A business absolutely devoted to service will have only one worry about profits. They will be embarrassingly large.”
It was in Hawaii that Robert met his “rich dad”, the father of his best friend Mike. “My rich dad taught me that he who owns the gold makes the rules,” he says, recounting the story of how his rich dad agreed to pay him and Mike to pick up cigarette butts from the grounds around his hotel and restaurant. “The deal was $5 per gallon can. When we had collected three full cans, we went to claim our money. My rich dad said he would pay us the following week. When we returned, he again said that he would only pay us the week after. This went on for a while until we cried and he asked us if we would accept $5 if he paid us there and then. We agreed. The lesson, he told us was: “If you don’t have money, you will always work for less.”
For a start, you could go out to a coin shop and buy a one ounce silver coin. Then go online and look at the price of silver is it up today or down today? You&rsquo ll start to notice articles in the paper and magazines about silver suddenly you&rsquo re an expert. Now you&rsquo re into a game called Commodities. If you&rsquo re intimidated by words like &lsquo commodities&rsquo and other investment jargon &ndash go get and investment and finance dictionary and look them up &ndash its just words. People love to seem smart. Each day you could learn one word.
“At one point five of the six members of our family were in hospital and we were so poor that we could not afford the cost of medical care,” recalls Robert. “At the same time, my father was studying medicine.” Robert himself was suffering from a severe bout of chicken pox that nearly killed him his mother had rheumatic fever one sister had developed a serious allergy while the second had a growth in her neck and a brother had hurt himself badly falling out of a tree.
In this book, Robert discusses the cashflow quadrant, a grid consisting of the letters E, S, B, and I. The cashflow quadrant itself is just an illustrative tool to show the difference between Employees, Self Employed/Small Business owners, Business owners (not directly involved in the day-to-day operation of the company), and Investors. Kiyosaki discusses the differences between concepts and ideas characteristic of each quadrant, particularly as they relate to passive income and tax advantages.
After all, it s true financial literacy that allows us to pursue our dreams. Most of you would like to have more money, work less and enjoy life more. And some of you couldn t care less because your significant other takes care of all the finances right now or you are set in a great job with fantastic benefits. Well, what happens if your situation changes? What if there is an illness, job loss, or other, unexpected crisis in your family or the world s economy?
Robert and Kim both emphasise the importance of internal and external communication. “As an entrepreneur I have to understand many different languages so I can talk to all kinds of people,” says Robert. “I have to speak computer language, legal language, product language. None of the speakers of these languages can talk to each other – my role is that of interpreter. Think of doctors – they are so specialised they can’t speak to anyone,” he laughs.
“Eventually we moved from Honolulu to Hawaii where my dad took on a job at a school district as assistant to the assistant, earning $755 a month. I was seven at that stage, and to me that was a lot of money,” says Robert. As he was the eldest, his mother sat him down one day and explained the family budget to him. He saw that that she did not have money to pay the bills and this affected him profoundly. ”I wanted to protect my mother,” he says frankly. “She was emotionally and financially broken.”
I was the of three daughters, so I was told &ldquo go for your dreams and do what you want to do!&rdquo This was fabulously encouraging, yet behind these words there was always the unspoken idea that I would grow up and be married and be provided for by someone else. Times have changed, and not just for women and middle-aged divorcees many ladies in their 65&rsquo s and 75&rsquo s are losing their pensions. The idea &ldquo find yourself a rich man to look after you&rdquo doesn&rsquo t apply any more.
There are two types of investors &ndash the passive investor turns their money over to the active investor, who is hands on and makes their own decisions about how to handle the stocks. You&rsquo ve got to be an active investor today to be financially stable. Your goal should be financial independence &ndash which is when the passive income (or cashflow) generated from your assets is greater than your living expenses. Start small &ndash you don&rsquo t want to bet the ranch &ndash there&rsquo s a big learning curve and you&rsquo re going to make mistakes, so learn from experience. I bought myself a two bedroom property to start with. I learned the fundamentals and the basics of how you handle a rental property, then I built on my winnings and I became more confident. The important thing is not get caught up in analysis paralysis, ie don&rsquo t get so caught up in educating yourself that you can&rsquo t take the plunge. You&rsquo ve got to take action and get into the game &ndash sometimes you win and sometimes you lose.
Startling Statistics! Did You Know?
97% of women over the age of 55 are single.
55% of marriages end in divorce.
In the first year after a divorce a woman 8767 s standard of living drops an average of 78%.
Of the elderly living in poverty 8 out of 9 are women and 85% of them were not poor when their husbands were alive.
Nearly 7 out of 65 women will at some time live in poverty.
When Entrepreneur sat down on a crisp autumn morning in Johannesburg with world-renowned investor, author and motivational speaker Robert Kiyosaki and his wife and business partner Kim Kiyosaki, we had three goals in mind. Firstly to find out something about them most people don’t know, secondly, to explore the concept of the Cashflow Quadrant and thirdly to highlight the importance of the B-I Triangle in building a successful business.
The central concept of the book is an anecdotal comparison of his 8775 two fathers. 8776 His 8775 poor dad 8776 was his biological father, who became superintendent of the Hawaii State Department of Education but had very little real net worth. Contrasted with this is his 8775 rich dad, 8776 who became 8775 the richest man in Hawaii 8776 by investing his smaller income into income-producing investments. The book aims to help people rethink their idea of money and especially their concept of themselves as employees who will gain financial rewards from conformity and education.
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