One of the early eye openers for me is about this book of the famous author Robert Kiyosaki entitled RICH DAD POOR DAD. This book was a huge success with millions of copies being sold worldwide. In this book, Robert Kiyosaki had two dads, one is his biological dad tagged as “poor dad” and one is his friend’s dad tagged as “rich dad.” Both dads taught Robert Kiyosaki how to reach his financial goals and achieve success but with different approaches.
His poor dad spent so much time in school earning him a doctorate degree landing on a high paying job but ended with a lot of bills left unpaid while his rich dad did not finish school but ended up owning a business empire. How did this happen? Just look at the contrasting ideas each dad have:
His poor dad says: “I CAN’T AFFORD IT!” while his rich dad says: “HOW CAN I AFFORD IT?”
His poor dad says: “MONEY IS THE ROOT OF ALL EVIL!” while his rich dad says: “LACK OF MONEY IS THE ROOT OF ALL EVIL!”
By viewing these two contrasting ideas, his poor dad’s brain stopped working when he said those, killing his initiative and promoting negativity while his rich dad’s brain kept on thinking on ways creating initiative and promoting optimism. Which one is best? Of course, undeniably, it’s rich dad’s ideas! Here are some more comparison of Rich Dad vs. Poor Dad Thinking.
Robert Kiyosaki continued and coined the term RAT RACE. This is the race of our lifetime INCOME and SPEND. We receive our income regularly from our paychecks yet we spend the same to pay bills and satisfy our wants. We are now trapped in this rat race. We live our lives to pay our everyday bills! Now, how can we escape from this rat race trap? By understanding the The Cashflow Quadrant – Rich Dad’s Guide to Financial Freedom.
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This is understanding where our income flows. It was divided into two main sections. The left side called “Active Income” and right side called “Passive Income.” What’s the difference? Active Income says “You Work For Money” while Passive Income says “Money Works For You.”
It is then further subdivided into four quadrants. Quadrant 1 is the so-called Employees. Quadrant 2 is the so-called Self-Employed. Qudrant 3 is the so-called Big Business Owners. Quadrant 4 is the so-called Investors. Where do you belong to these four quadrants? Let’s examine it one by one