"6 Things Rich Dad Needs to Do to Become Rich" is written by Robert Kiyosaki, the author of the "Rich Dad" series of books. Be prepared to make efforts freely” “Don’t be afraid of making mistakes, but be good at learning from your mistakes” “Manage yourself financially according to the rules of the information age” “Learn to make money with good debts” “Eliminate bad debts as soon as possible” “Be brave enough to change yourself The six aspects of "Cash Flow Quadrant" trace the root cause of this economic decision-making and management problem. Through his iconic narrative method, Kiyosaki announced to the world that anyone can learn to solve economic and financial problems, improve their own economic situation, and achieve financial freedom.

In the United States, the government conducted a follow-up survey on people aged 20 to 65. The survey found that when they were 65 years old:

1% of people became rich, 4% of people became people with a prosperous life, 5% of people were still working due to livelihood constraints, 54% relied on family and government support, and 36% died.

In addition, more than 35% of the 1% of wealthy people obtained their wealth through inheritance. This situation also occurs in a large proportion of the 4% of people who live a prosperous life. So what do the richest 5% of people do that others don’t do? In other words, what kind of effort do those 5% of people put in compared with others?

It is desire that brings us into financial difficulties, so financial masters say to reduce credit cards, be frugal, buy second-hand cars, live in a small house, eat at home, dress your children in other people's leftover clothes, etc. .

There is no denying that being frugal can make you rich. But the problem is, even if you are rich, you are still "poor". You budget carefully, you practice frugality, and you buy the cheapest price for everything. For most people, these strategies are very good, but in this kind of "living in poverty" and high-quality life, what do you yearn for more?

Robert Kiyosaki said that you can become rich by living frugally, but the world does not agree with those who are rich but stingy. For example, some people always hope for a bigger discount, always complain about the bill, and always find reasons to refuse to pay the bill; some customers buy clothes, wear them to parties, and then come back to ask for a return; some people open Old cars, ill-fitting clothes, cheap shoes, they look poor but have millions of dollars in the bank.

Although these people became rich through frugality, the cost of this behavior was far greater than the money saved. For the author, he couldn't make up his mind about being frugal, but he found that when he was generous, people smiled at him more and liked him more. In other words, people prefer generous people to frugal people.

But for us ordinary people, frugality is the first step in accumulating wealth. Therefore, don’t be stingy when you should be generous, and don’t be generous when you should be stingy.

"Different people pay different prices."? This is the price of wealth. We all come to this world with unique talents, but even though God has given us these talents, we still need to work hard. Developing these talents and personal effort is the price you pay to become wealthy.

For most people, they want to find a stable job. But stability comes at a price, and its price is freedom. Without freedom, there are no dreams in life, and many people live just to make money. However, if you cannot realize your dreams in your lifetime, the price of comfort will be too heavy. But you can have both, comfort and freedom, if you pay twice as much.

The price for becoming rich through frugality is that you have to continue to frugally. Rich dad said: "The problem is not credit cards. Some people have credit cards but don't know how to manage money. That's the problem. If you want to be rich, you must learn to manage money."

Any Everything has a price, so are you prepared to work hard for wealth and freedom?

Rich dad said: ?

“One of the differences between successful people and ordinary people is how much criticism you can bear. Ordinary people cannot bear too much criticism, so they do nothing in their lives. , they cannot be leaders. Ordinary people are afraid of others' evaluation of themselves, but people will always criticize them. If you are criticized by others, it at least means that you are paid attention to by others. Bad, there are always one-third of people who don't like you, and there are still one-third of people who don't care about you. In life, all you have to do is ignore the one-third who never like you and do your best. Just try to win over the neutral third who likes you. What's worse than being criticized is having no one criticize you."

The truth is, we are all afraid of making mistakes. Afraid of being commented on and laughed at. But the fact is that both successful people and ordinary people make mistakes, but successful people learn from their mistakes. In other words, the price of becoming rich is not being afraid of making mistakes, complaining and not explaining them after you make them, admitting them, and learning from them. People who rarely succeed are those who dare not make mistakes, or who make mistakes and fail to learn from them. They get up the next morning and make the same mistakes again, never learning from them.

In one sentence, "Good grades are useful in school, and good financial status is useful in society."

”

Good grades are not useful in society, but good education is indispensable. A poor person does not like his children to be like him, so when he trains his children, he hopes that they will study well for exams Go to a good university, get a good job, and have a stable income.

Parents always care about our test scores and hope that we spend time on the test questions. Getting good grades is their biggest priority. Proud. I even firmly believe that reading can change my destiny.

But now, the times have changed, the Internet has emerged, the industrial age has ended, and the information age has officially arrived.

Simple transformation comparison: < /p>

Many parents grew up during the global economic recession between 1929 and 1933. This historical event had a serious impact on their spirits. This is why they always emphasize that "getting good grades will make you better." Only then can you get a safe and stable job. ”

But today’s issue is financial security, not job security.

What kind of education do we need in the information age:

1. Academic

Teach you reading, writing and arithmetic

2. Professional

Teach you job skills that can make you money, such as learning how to be a doctor, lawyer, or pipeline. Engineer, electrician, secretary or teacher

3. Finance

Teach you how to manage money

Rich dad often said: "Financial intelligence is not something you can earn. How much money you have, but how much money you can keep, know how to make money work for you, and how much money you can leave for future generations. ”

It is a fact that children from poor families and middle-class children tend to have a higher success rate in starting businesses. For example, when they face financial problems, middle-class people can always provide sponsorship. The poor don't have much money to save, so they can't help their children solve the crisis or give them financial help when they start a business.

The most basic education in finance is financial statements. How to improve your own financial statements? Different people focus on different aspects of financial statements, which are like recording your personal life.

Rich dad taught Robert Kiyosaki three different types of income:

General. Income;

Securities investment portfolio;

Passive income

The difference between good debt and bad debt: the former is someone paying you back, the latter is what you want Spend your hard work to repay the money. For example, if you take out a loan to buy a house and work hard to pay off the mortgage, this is a bad debt; if you rent out the house and let the tenant pay the mortgage for you (indirectly, the tenant's rent is used to repay the loan), The bank lends you the money, but the tenant pays it back for you. This is a good debt.

Also, it is not advisable to use a credit card to pay off the mortgage, because this will turn the credit card debt into a secondary debt. With mortgages, it's easy to fall into debt.

Pay for the things you want to buy in life by using the cash flow from the asset. The cash flow from the asset means you have money. Works for you.

If you want to get out of the rat race, you'd better start understanding the different forms of income: wages, portfolio investments, and passive income, whether it's investing in real estate or doing business. Or in other fields, you will soon find that there are many easier and more effective ways to make money than having a stable job, and your family's financial situation will become better and better. .

The four main asset classes in which individuals can invest:

Business;

Real estate;

Paper assets;

Commodity futures.

Accumulate capital quickly and find investments that can leverage

Before you start on the road to financial freedom, you must first do it. Know your debt.

A quick quiz from the book:

Do you often pay your bills late?

Have you ever hidden bills from your spouse? Ever?

Have you ever stopped repairing your car because you had no money?

Have you recently bought something you didn’t need and couldn’t afford?

Have your credit cards been downgraded?

Have you ever won a lottery ticket to get out of your current debt?

Do you delay saving when money is tight?

Is your total debt (including mortgage payments) greater than your emergency reserve?

If your answer is yes, add 1 point. If your score is 0, which is very good, you have mastered your cash flow. If your score is between 1 and 5, maybe you should consider reducing your bad debt. If your score is between 6 and 9, a financial disaster may be waiting for you.

Three key points to control cash flow:

Use financial statements to understand your financial situation.

Self-discipline.

A comprehensive plan can help you achieve your goals.

You don't need to cut up your credit cards, but you do need to follow a debt reduction plan.

The first two steps to do are:

1. Pay yourself first

When you get your salary, the first bill you have to pay is yourself. Not a car loan, not a mortgage, not rent. Pay yourself a small amount and put that money into a separate investment savings account. Don't touch the money until you've figured out what to invest in it.

2. Reject secondary goods

Secondary goods are superfluous things, those things that we long to have in life but do not actually need.

The next step is to follow the "Control Your Cash Flow" formula in "Rich Dad's Book of Financial Freedom".

First, review the financial statements you just filled out.

Second, determine which cash flow phenomenon your current cash flow comes from.

Third, which quadrant do you want most of your revenue to come from in the next five years? Make your decision.

Fourth, start your cash flow plan: Pay yourself first and focus on reducing personal debt.

"Rich Dad's Road to Financial Freedom" writes that in this society of money and business, there are four types of people. The following figure shows the four different types of heat in the cash flow quadrant:

The four letters represent: employee, self-employed or small business owner, Big business owner, investor. The book provides an in-depth analysis of the core differences between the four types of people in the quadrant and the changes that need to be made to break out of the quadrant. More details will be found in the next update of reading notes.

Other Ways to Control Your Cash Flow

▲ Pay all your bills on time to avoid defaults.

▲ Find a credit card with low interest rates and no annual fees or handling fees. You can then consider using this credit card to pay off other credit card debt. This way you pay less in interest and fees.

▲ Stop using ATMs, they charge fees and you spend your own money!

You may need to change some spending habits

▲ Develop the habit of paying in cash. Credit cards are for emergency use only.

▲ Learn to restrain your impulse to buy. Say "no" to your desires!

▲ Act strictly according to the budget. If your $200 food and beverage limit has been reached, skip the chips and ice cream.

▲ Buy generic drugs instead of brand-name drugs, or go to affordable pharmacies.

▲ Find a part-time job or increase your income in other ways.

▲ Turn off the air conditioner and turn on fewer lights to save electricity bills.

▲ Learn how to make comprehensive preparations for winter, such as insulated pipes and leaky windows, to eliminate all hidden dangers that may lose heat.

▲ Reduce the use of mobile phones and landlines. Many people forget that they can save money on this.

▲ Check the terms of your insurance. See if there are any insurance plans with similar terms and the same cost. Increase your deductible items and reduce your monthly expenses.

Here are Robert Kiyosaki's detailed tips for regaining control of your monthly cash flow:

1. Take all your credit cards out of your wallet. Follow the "Take Control of Your Cash Flow" formula and review all outstanding debt on your credit cards.

2. Choose the least bad debt and pay it off in one lump sum.

3. Once you’ve paid off your credit card debt, put the credit card away. Or, if you don't have the self-discipline to stop racking up credit card debt, call the credit card company and cancel it.

4. Other credit cards are also handled in the same way. Continue to reduce bad debt until it is completely paid off.

Newton's law of conservation of energy: "What is still remains at rest, what moves is always in motion."? In other words, if a person finds it easier to do the same thing all the time, then he will Doing the same thing over and over again makes it difficult for him to make changes and start a new life, and he will become increasingly content with the status quo.

And the price of becoming rich is to do something different - start from scratch, start a new life, not be afraid of making mistakes and learn from them, and ultimately become smart in the new environment.

Going from the E quadrant on the left to the B and I quadrants on the right requires a huge change and requires too much ability. For those who are unwilling to make changes, the best way to become rich is: 1. Cut off your credit cards and live frugally. 2. Marry a rich man.

Why knowledge from books or classes is not enough for people to achieve complete financial success. The author uses the "learning pyramid" icon to explain what kind of changes a person needs to become more financially successful. rich.

Some people call this tetrahedral structure with four sides and four points a pyramid.

Dr. R. Buckminster Fuller said the tetrahedron is one of the most stable structures in the universe, which could explain why the Egyptian pyramids survived for such a long time.

Regardless, the tetrahedron can explain the effort it takes to make the changes necessary to become rich, and it can also explain why people have difficulty making the necessary changes.

Elbert Lovestein said: "Great ideas are always opposed by mediocrity." If you do something that you rarely do or see others doing in life, your family may say that you Crazy. But when you do, you may gain more. Because, you have both a right point of view and a stupid point of view.

When you look at the Learning Pyramid chart, one of the big problems for people who don't get rich is that even though they are intellectually willing to take action, they are emotionally afraid of failure. Rich dad often said: "It is the fear of failure that causes most people to fail." The fear of failure is an emotion that needs to be corrected, because this emotion is often more powerful than reason.

The price of becoming rich, for many people, is to examine their old beliefs and find those that need to change. But please remember that when a person's intellectual outlook changes, he also needs to change emotionally, behaviorally, and spiritually.

Life comes from change. From now on, learn financial intelligence, face your own financial problems, and find solutions.

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