Notes on The Business of 21st Century Written by Robert Kiyosaki, the author of Rich Dad, Poor Dad
20th century was Industrial
Age and 21st Century is the Information Age where perceptions of job security,
pensions, social security are just not effective. What is perceived as a secure
job is in effect working for an employer. In such jobs, financial security and
stability is at the of the employer.
There are four distinct
sources of cashflow. Each defines and determines a very different lifestyle.
The cashflow quadrant represents the different methods by which a cash income is
generated.
E = Employee (earns money by
holding a job and working for someone else or a company)
The majority live within the
E quadrant.
S = Self-employed or
Small-business owner (who earn money working for themselves, either as solo
operators or through their own small business)
Have urge for more freedom
and self-determination
B = Business owner (owner
owns a large business)
Business works for the people
in this region
I = Investor (earn money from
their various investments)
People in the I quadrant
value financial freedom the most.
People are reluctant to
change from E/S to B/I. Entrepreneurial mindset can help one achieve financial
freedom. Entrepreneurship is the key to financial independence and lasting
success which should be seen as more “normal” than the conventional job. Personal
success is nice but enabling others to thrive and succeed is gratifying. It
takes courage to discover, develop and donate your genius to the world.
Network
marketing — the vehicle to passive income — based on relationships — one of the
fastest growing biz models. This creates
passive income with relatively little cash investment to start up and low overhead.
It can fucntion on a flexible part-time
basis until it generates enough cash flow for the entrepreneur to transition
out of his current full-time job.
In
Network Marketing one will need to sell the opportunity to many people in order
to build a successful business. Connecting to people ones already know is easier
than to absolute strangers. At the same time not everyone in the network of contacts
needs to be a close friend. If one is comfortable to approach them with a
business proposition is enough.
Leadership
builds a great business. Leadership plays huge role in business. Money flows to
businesses with the best leaders.
The
eight wealth-building assets which really matter:
1)
A Real-World Business Education (practical, accountability
skills, money management skills)
2)
A Profitable Path of Personal Development
(soft skills, approach to life)
3)
A Circle of
Friends Who Share Your Dreams and Values (real connection with likeminded
people)
4)
The Power of Your Own Network (network grows exponentially)
5)
A Duplicable,
Fully Scalable Business (henry ford Edison all invested in scalability)
6)
Incomparable
Leadership Skills (helping and motivating others plus further development
through networking)
7)
A Mechanism for
Genuine Wealth Creation (path to financial freedom)
8)
Big Dreams and the Capacity to Live Them (making
dreams a reality)
Financial
intelligence includes knowing how to make more money, knowing how to protect
your money, knowing how to budget your money, knowing how to leverage your
money. More than academic intelligence and talent plain honesty and financial intelligence
is quired to achieve real wealth.
Important quotations
“Your mind is infinite, it's your doubts that
are limiting.”
“It's not about income, it's about assets that
generate income.”
“If you are considering building your own
business, you need to be acutely aware of who you're spending your time with
and who your teachers are. It's a crucial consideration.”
“Wealth is the product of man's capacity to
think.”
“It is not real estate, gold, stocks, hard
work, or money that makes you rich; it is what you know about real estate,
gold, stocks, hard work, and money that makes you rich. Ultimately, it is your
financial intelligence that makes you rich.”
“Have you ever wondered where the idea of
retirement at the age of 65 came from? I'll tell you where: Otto von Bismarck,
the president of Prussia, in 1889. Actually, Bismarck's government: At the
time, the life expectancy of the average Prussian was about 45. Today, so many
are living well into their 80s and 90s that the same promise might well
bankrupt the federal government within the next generation.”
“The corporate myth is over. If you’ve spent
years climbing the corporate ladder,
have you ever stopped to notice the view? What view, you ask? The rear end of
the
person in front of you. That’s what you get to look forward to. If that’s the
way you
want to view the rest of your life, then this book probably isn’t for you. But
if you
are sick and tired of looking at someone else’s behind, then read on.”
“It was not until the Industrial Age, that a
new demand began growing: the demand for employees. In response, the government
took over the task of mass education, adopting the Prussian system, which is
what most Western school systems in the world are still modeled after today.”
“When you research the philosophy behind
Prussian education, you will find that the purpose was to produce soldiers and
employees, people who would follow orders and do as they were told. The
Prussian system is for mass-producing employees.”
“I came to realize that while personal success
is fulfilling it's much more fulfilling when you can help many others create
their own success as well.”
“The key to long-term success in life is your
education and skills, your life experiences, and most of all, your personal
character.”
“Learning how to tell a powerful story is
learning how to show up as the winner you are.”
“It's only losers who think that winners never lose, who think that mistakes must be avoided at all costs. Mistakes are priceless opportunities to learn essential lessons.”
