Steps to becoming financially Free (WHAT Robert Kiyosaki, taught us about Financial Literacy)

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If you know us, you will know when we discuss becoming financially free or owning your own business we always mention the book Rich Dad Poor Dad: What The Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!  This book taught us about business ownership, Investments, Assets, and Liability.
 
The things we have learned from Robert Kiyosaki’s book were never taught to us in school or at home. We were fortunate enough to have this book brought to our attention a few years ago and with the information we’ve obtained regarding financial literacy, we have never looked back.
 
We went from a poor mindset to a rich mindset. We were able to understand how people really get rich and how rich people think. It blew our mind that this wasn’t taught in schools and especially in our communities that lack the knowledge of how money works. We knew if more people can learn and understand this system there can then be change in their mindset of so many families. Which can actually help inner cities to understand financial literacy. Most people in inner communities think the government can make a difference or by getting more degrees will help. It’s very alarming to still hear I need to go back to school to make money but in honesty, we are lacking understanding how money really works.
 
This problem doesn’t only exist in the inner cities or communities but also in the dying middle class. So many people in our society have been conditioned to believe getting a good paying job or getting a stellar college education will do justice. However, It won’t. As we move further towards the development of A.I. (Artificial Intelligence) and less Job security more and more people are coming to realize that if you want security, you have to rely on yourself.
 

This problem doesn’t only exist in the inner cities or communities but also in the dying middle class. So many people in our society have been conditioned to believe getting a good paying job or getting a stellar college education will do justice. However, It won’t.

This blog wasn’t only for our legacy but to help to educate the massive on Entrepreneurship, Business Ownership, Wealth and Building your Legacy.
 
To understand how the rich people think you will need to know how money works and the Cash Flow Quadrant. As you can see in the picture below, this is our income flow.  It’s divided into two sections. The left side is “Active Income”, which says “You Work For Money” and the right side is called “Passive Income” which says “Money Works For You. “

 

 

Steps to becoming financially Free (WHAT Robert Kiyosaki, taught us about Financial Literacy)
Cash Flow Quadrant

 

 

The four sections are divided into four quadrants. E-Employees. S- Self-Employee. B-Business Owner. And I-Investor. The question is which quadrant do you belong to? Let’s review one by one.

 

The E Quadrant – Employee

After school, most people end up here. We go to school, get good grades, and begin our career working for a corporation. We work hard, follow instructions from our bosses and superiors and get paid. This is what you call trading time for dollars. It’s also called the wage system. The majority of people in this bracket are working for security or tenure. They work long days to move up the corporate ladder. In the book, Robert Kiyosaki refers this as the poor mentality.
 
The problem with this lifestyle is you have no freedom, no time with your family. You cannot create financial wealth as an employee. You believe working for someone else will lack the risk factor but in reality it actually a much bigger risk to solely depend on someone else for your survival. Anything could happen, you can get laid off, or get fired or economy has changed.
 

 

The S Quadrant – Self-Employee

What’s the difference? Self-employed are their own boss, they work for themselves. When you are self-employed you get your time back, you call the shots and gain a level of freedom to work from home and travel. People that are self-employed are very independent. They hate the fact to work for others; instead, they want to work for themselves. Usually, these are people like doctors, lawyers, and small business owners.  And if they stopped working their income will also stop.
 

“The rich buy assets. The poor only have expenses. The middle class buys liabilities they think are assets. The poor and the middle-class work for money. The rich have money work for them.” ~Robert Kiyosaki

The B Quadrant – Business owner

As a business owner, you work on your business, not in your business. They create systems, delegating the task, and focus their efforts on money-making activates which produce profits. The systems they have created are solid and automate their business in ways that ensure the business work day-to-day without their presence. They can also focus on other operations, open up others stores or build a team, which does the work for them and gives the business owner freedom of time. The B quadrant is the area you want to strive for, and is know as the ‘rich mentality,’
 

 

The I Quadrant – Investor

After you have built a good business foundation and you are not working for money anymore. The assets you accumulated start working for you, providing you with a consistent income even if you don’t work. As an investor, you take your money and invest in other businesses. Investing in real estate, stocks and other recourses that will provide you with passive income. You become financially free when your passive income exceeds your monthly expenses. This is how you truly build wealth and become rich.
 
Becoming both a  business owner and Investor are the keys to financial abundance. Some people go beyond the four stages of Robert Kiyosaki Cash Flow Quadrant – Rich Dad’s Guide to Financial Freedom. They believe there is a 5th stage. This stage or quadrant is known as a philanthropist.
 

The P Quadrant – Philanthropist

People like Oprah Winfrey who opened up an all girls school in Johannesburg, South Africa to more than 150 students to give them a chance for a better future.
 
Bill Gates and Warren Buffet gave away more than half of their wealth to causes like medical research, education, poverty and etc… When you created so much wealth, the question is where do you go from here? People that have no value for money anymore and can do whatever their heart desires, become givers or philanthropist.
 
You reach this stage when all your needs are taken care of. Your fulfillment now comes from giving back. Using your resources to make a bigger impact on other lives by changing the world, leaving a LEGACY.
 
Now, to make things clear, you don’t need money to change the world and make a difference or leave a legacy. You can do this by teaching but by having money and finances makes it much easier to serve the world.  This is what it’s all about at the end. Serving others, helping others and teaching others to make the world a better place.
 

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Build your legacy today!

Best,

Melissa & Rodney

Co-Founders, Diamond Legacy Group

P.S. If you want to learn more about this model, we recommend you download your free copy and listen to Robert Kiyosaki Cashflow Quadrant: Rich Dad’s Guide to Financial Freedom.

When we travel, we turn our vehicle into a moving classroom! Enjoy!!




P.P.S. Are you looking to start a business? If the answer is YES!! check out our 8 ways to create side hustle. This will give you some ideas to begin your journey towards entrepreneurship.

We hope you enjoyed reading this blog post, until the next time!

Please leave us your feedback or a comment as we appreciate our audience, Thank you again for reading this post. Until next time, Happy Reading!!

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