Let Us Get Back To Money Basics Shall We?
What does money represent to you? Choices? Security? Luxury?
It was Robert Kiyosaki who first popularized what we know today as the cash flow quadrant.
Did you know that Robert Kiyosaki origninally got it from his "Rich Dad" Keith Cunningham. Yes Rich Dad is actually a real person.
Believe it or not , the two men differ on the concept of the cashflow quadrant.... I will explain what I mean in a bit.
Essentially, the cash flow quadrant describes the 4 main ways people acquire money.
However, I must point out that currently, about 1% of the population ( the top1%) control 99% of the world's wealth.
While the rest of the world try to divide the remaining 1% of the wealth.
In upcoming posts we are going to dive deep in to each quadrant. But today I just want to share my two major mind shifts I got from Keith Cunningham regarding the cashflow quadrant.
So what brought this on.....
Simple.... recession, stock market down, bitcoin down, jobs being replaced by technology and the list goes on.
In many of the Facebook groups, I have seen so many stories where people have lost their jobs and have very little to no savings.
Do not even mention the word retirement money ok.
Many of these people are between their 40's and 60's.
You might even say that they did not manage their resources well. Right?
But without the details....it would be speculation
You might say they should have built a business instead of having a job.
What about having a franchise business? It is often seen as a turnkey business with near guarantee for success..... not so?
But a lady in her late 50's had to close down her franchise business December 2017 because, it was not making any money and she went broke. Now she has to start all over again from scratch rather than the easy and free lifestyle she might have banked on.
Talk about crushing disappointment....
I do admire her for still having the guts to keep going.
Now, Robert Kiyosaki has advocated for years that to be truly wealthy you must be a business owner or an investor... the right side of the quadrant.
Let us face it, the right side has much more benefits than the left side of the quadrant.
But really, aren't we in more than one quadrant ?
For example you may have a job and a side hustle like a store or nail tech.
In fact you can operate in all 4 cashflow quadrants and there is nothing wrong with that.
So while Robert Kiyosaki focuses on the right side of the quadrant, Keith Cunningham says why not both.
The second key point is that the skills to operate in each quadrant are different.
Yes each quadrant may have a different mindset but you must have the right skills and education to be successful in any of the quadrants.
As Mr. Rich Dad pointed out, there are rich persons in each cashflow quadrant.
But there are also poor persons in each cashflow quadrant.
And that is where financial education comes in.
In order to be truly wealthy, you have to manage your cash flow but You must also have the financial knowledge and strategy to keep your money.
SO make sure to invest in your financial education and multiple streams of income.
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