'Rich Dad's CASHFLOW Quadrant' will reveal why some people work less, earn more, pay less in taxes, and feel more financially secure than others. It is simply a matter of knowing which quadrant to work from and when. Have you ever wondered . . .7 What is the difference between an employee and a business owner? 7 Why do some investors make money with little risk while most other investors just break even? 7 Why do most employees go from job to job while others quit their jobs and go on to build business empires7 Why, in the Industrial Age, did most parents want their children to become medical doctors, accountants, or attorneys . . . and why, in the Information Age, are these professions under financial attack? Have you noticed that many of the brightest graduates from our universities want to work for college dropouts . . . dropouts such as Bill Gates, Richard Branson, Michael Dell, and Ted Turner? Dropouts who today are the mega-rich of society. This book will answer some of these questions and also assist in guiding you to find your own path to financial freedom in a world of ever-increasing financial change. It is a book written fo
WHO THIS BOOK IS FOR
This book is written for people who are ready to change quadrants. This
book is especially for individuals who are currently in the "E" and "S"
categories and are contemplating becoming "B's" or "I's". It is for
people who are ready to move beyond job security and begin to achieve
financial security. It is not an easy life's path but the prize at the
end of the journey is worth the journey. It is the journey to financial
freedom.
Rich dad told me a simple story when I was 12 years old that has guided
me to great wealth and financial freedom. It was rich dad's way of
explaining the difference between the left side of the CASHFLOW
Quadrant, the "E" and "S" quadrants, from the right side or the "B"
and "I" quadrants. It goes:
"Once upon a time there was this quaint little village. It was a great
place to live except for one problem. The village had no water unless it
rained. To solve this problem once and for all, the village elders
decided to put out to bid the contract to have water delivered to the
village on a daily basis. Two people volunteered to take on the task and
the elders awarded the contract to both of them. They felt that a little
competition would keep prices low and insure a back up supply of water.
The first of the two people who won the contract, Ed, immediately ran
out, bought two galvanized steel buckets and began running back and
forth along the trail to the lake which was a mile away. He immediately
began making money as he labored morning to dusk hauling water from the
lake with his two buckets. He would empty them into the large concrete
holding tank the village had built. Each morning he had to get up before
the rest of the village awoke to make sure there was enough water for
the village when it wanted it. It was hard work, but he was very happy
to be making money and for having one of the two exclusive contracts for
this business.
The second winning contractor, Bill, disappeared for a while. He was not
seen for months, which made Ed very happy since he had no competition.
Ed was making all the money.
Instead of buying two buckets to compete with Ed, Bill had written a
business plan, created a corporation, found four investors, employed a
president to do the work, and returned six months later with a
construction crew. Within a year his team had built a large volume
stainless steel pipeline which connected the village to the lake.
At the grand opening celebration, Bill announced that his water was
cleaner than Ed's water. Bill knew that there had been complaints about
dirt in Ed's water. Bill also announced that he could supply the village
with water 24 hours a day, 7 days a week. Ed could only deliver water on
the weekdays... he did not work on weekends. Then Bill announced that he
would charge 75% less than Ed did for this higher quality and more
reliable source of water. The village cheered and ran immediately for
the faucet at the end of Bill's pipeline.
In order to compete, Ed immediately lowered his rates by 75%, bought two
more buckets, added covers to his buckets and began hauling four buckets
each trip. In order to provide better service, he hired his two sons to
give him a hand for the night shift and on weekends. When his boys went
off to college, he said to them,
'Hurry back because someday this business will belong to you.'
For some reason, after college, his two sons never returned. Eventually
Ed had employees and union problems.
