Develop Financial Literacy
Rich Dad’s Cash Flow Quadrant, Robert T. Kiyosaki
This quote profoundly resonates with me; I’m one of these people. Perhaps you are too?
If so, Kiyosaki’s Rich Dad’s Cashflow Quadrant may be a good book for you to study.
Understanding the basics of each of the four options is a great place to learn how to reach your personal and professional financial goals.
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Over time, one may become wealthy by being an employee, self-employed, a business owner, or an investor, but may do so faster by choosing to be on the right side of the quadrant and becoming a business owner or an investor; there are several benefits, especially taxes.
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The tax laws allow for more benefits for business owners and investors, then self-employed, followed by employees.
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Each of the four categories has associated tax laws. To better understand how you can best work within the law, we must become more familiar with each or work with a qualified and experienced tax professional for proper guidance to ensure we legally maximize said benefits.
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Keep in mind the difference between an asset versus a liability from previous lessons inspired by Kiyosaki’s Rich Dad Poor Dad. An asset puts money in your pocket, and liabilities take money out.
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Being on the right side of the quadrant helps you build assets, create leverage via systems, maximize tax benefits, and build wealth quicker; they act as more efficient vehicles.
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Setting up a solid foundation for a successful business owner or investor may take time and money. Still, once the initial groundwork gets established, one can repeatedly reap the rewards of your initial efforts.
These are some of the key points I gathered from this book.
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Please read or listen to Rich Dad’s Cashflow Quadrant if you haven’t already, and if need be, please be sure to take plenty of notes.
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You’ll enjoy it.⠀