Tuesday, June 8, 2010

Cashflow Quadrant – Understanding & Interpreting Rich Dad, Poor Dad’s Guide to Financial Freedom

All of us in one way or another desire financial security and many of us dream of attaining financial freedom. Robert Kiyosaki’s Rich Dad, Poor Dad’s Cashflow Quadrant book and board game teach the principals of income, assets and cashflow. Understanding the different methods by which income or money is generated and how it is utilised in essentially what Cashflow Quadrant is about.

The basic premise of the Rich Dad, Poor Dad
series of books is that the business world is made up of largely 4 types of individuals:

CashFlow Quadrant Rich Dad Poor Dad

CashFlow Quadrant Rich Dad Poor Dad

1. Employee (E) – has a job.
2. Self-Employed (S) – owns a job.
3. Business Owner (B) – owns a business system.
4. Investor (I) – makes money work for them.

Identifying where you are in thisCash-flow Quadrant can largely be determined by where most of your income comes from. What affects which quadrant we decide to generate our income from is a due to internal differences in our core values, interests, outlook, life stage etc.

We can actually earn income from each of these 4 quadrants simultaneously if we so choose but most of your income will likely come from one quadrant. Whilst financial security can be found in each of the 4 quadrants, the skills and tools required and attained in ‘B’ or ‘I’ quadrants will help you achieve financial freedom more rapidly.

Traditional schooling teaches us largely to focus on become an Employee (E) or a high-paid Self-Employed(S) individual such as a doctor, lawyer or accountant. Whilst there is nothing wrong per se in this idea, it becomes a problem if your primary goal is to attain financial freedom.

Financial freedom is seldom to be found in the Employee (E) or Self-Employed (S) quadrants.
The attainment of financial freedom requires a high level of financial intelligence. You need to be ready to move beyond job security (in the ‘E’ quadrant) in order to begin your journey towards financial freedom. Be under no illusions though, it is a bumpy, windy road laden with risks that need to be constantly managed; it is NOT for you if you want a secure, normal life. However, if you are prepared to make the leap, the prize at the end of this particular journey is financial freedom. ( Read More Here)

If you’re searching for new avenues of growth, challenges and knowledge in your business and financial life you will get access to very helpful information by signing up NOW for free at www.MillionaireMindsetSecrets.com

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