Have you read the Cashflow Quadrant by Robert Kiyosaki? Get yourself a copy right away its a must read!
In the last three months I read three books this been the third and I tell you, its one thing to be an employee in one sense, and to be an investor in another. In-fact it’s a book whose time had come in recognizing where i am coming from and where i want to go. This is the rich dad's guide to financial freedom. Robert Kiyosaki is an American investor, businessman, self-help author and motivational speaker, best known for his Rich Dad Poor Dad series of motivational books and other material published under the Rich Dad brand. In Cashflow Quantrant he vividly explains the different money types of people and how we can go about becoming a different type if we so desire.
In his book the Cashflow Quadrant he specifies where our primary source of income comes from. There is the Employee who works for income; there are the Self-employed who work for themselves for income; there is the Businessperson who gets income from his businesses and then there is the Investor whose money works for him and brings him more income. There might be some confusion as to the difference between the Self-employed and a Business person and Robert Kiyosaki states it thus: "...true B's can leave their business for a year or more and return to find their businesses more profitable and running better than when they left it." So the Businessperson develops systems and the Self-employed are the system.
Does this diagram say something about you?
Robert Kiyosaki goes on to explain the seven levels of investors in the world. They are:
Those with nothing to invest. They spend everything they get or more than they get.
Borrowers. They borrow from one creditor to pay another.
Savers. These people put aside money regularly to consume later and they pay cash for everything.
"Smart" investors. These investors know that they must invest. There is three categories in here: A - I can't be bothered; B - Cynic: They know why investment won't work; C - The Gambler: They "invest" because it is the smart thing to do, but they don't bother with the details and often end up gambling on these investments.
Long-term investors. They are actively involved in their own investment decisions and are aware of the tax consequences of their investments. They are not big-time investors but know where they are going in the long term.
Sophisticated investors. These are the people that can afford 'riskier' investments because they have good money habits and a solid financial base. They are clear on their own principles and rules of investments.
Capitalists. These are the people that use other people's money and other people's time and create their own investments.
As you become a better investor you move up in these levels till the stage where you can call yourself a capitalist. In terms of the quadrants, a level six will be a businessperson that sells the business as an investment.
I say it's time to get smarter with Robert Toru Kiyosaki. it's time to get smarter with your money.
Source: http://www.woopidoo.com/biography/robert-kiyosaki/index.htm
