Author: Robert Kiyosaki

Summary

  • A detailed overview of the 4 main ways to generate cashflow, with a lovely generous lemon twist of the necessary psychological character strengths, skills and personality profiling garnished throughout this excellent introduction to taking financial responsibility.

Comments

Robert Kiyosaki continues in this successful theme (his best-seller Rich Dad, Poor Dad is a must-read for anyone new to the business world) on how to gain financial freedom.

This is a terrific overview of the four main ways to generate cashflow – but in fact, it’s been a seminal book for me personally in the sense that some of the things he (so aptly described by his not-so-ghost writer Sharon Lechter) writes about have really switched the light on in some up-to-now darkened corners of my mind.

The Four Types of Cashflow Generation

Specifically, Robert shows what skills and mental attitudes are needed to move from one type of generating cashfow to another. He overviews the four main areas (as taught by his rich dad) as:

  • Employee (E)
  • Self-emplyoyed (S)
  • Business owner (B)
  • Investor (I)

In his opinion, he believes that the vast majority of employees never make the transition into being finiancially responsible, remaining trapped in a continuous cycle of pay -> spend -> debt.

Seven Steps to Financial Freedom

The ways he outlines on breaking out from this debt trap are tremendously useful for anyone who hasn’t yet got the luxery of being able to chop up their credit cards. He primarily focusses on the practical steps needed to fast-track your life into financial freedom. Specifically:

  1. Mind your own business
  2. Take control of your cashflow
  3. Know the difference between risk and risky
  4. Decide which of 3 kinds of investor you want to be – (i)Those who seek problems, (ii)Those who seek answers, or (iii)Those who don’t know what to do & they hire others to help
  5. Seek mentors
  6. Make disappointment your strength
  7. The power of faith – ie believe that you can change things, if you believe in yourself.

Other themes discussed

Robert Kiyosaki details the three main types of businesses & the differences between them. He strongly differentiates between the self-employed sole-traders (sometimes known as small business owners) & true business owners in this major regard: If a sole-trader leaves the business alone for 6 months, it will collapse, but if the same person lets a real business run on its own, it will carry on without his/her direct intervention.

This is the important concept of building business systems – ie self-sustaining organisms in which people (who are employees) work for the system you’ve set up. He also calls this a pipeline – I won’t say why (read the book!) – but it’s an analogy he returns to throughout the book, and a theme in which I’m increasingly wanting to plan into realisation myself.

Network Marketing – an ideal transition mechanism

Of the three business types, Robert maintains that the one which most easily enables the transition from S -> B casfhlow generation is Network Marketing.(or “NM”).

Needless to say, this was music to my ears, as someone who has recently started out in NM. But before you decide that the book has nothing to add to your knowledge – remember this: Robert talks as much about Mindset as he does Methodoloy, so by reading the book you are faced with the opportunity to gain a whole new set of attitudes essential for business survival & growth.

You can tell that I highly recommend this book – so why don’t you try it out for yourselt too – if you’re ihe UK, click on the Amazon link above & make this small investment towards your future success.

Getting the Rocket off the Ground

Getting the Rocket off the Ground

Sometimes, getting started in something new can seem like a very frustrating experience: you spend a lot of time and energy building the foundations of your business/career/whatever, and yet there doesn’t seem much to show for your efforts. Whilst there are possible quick ways to build, they often involve an initial upfront financial outlay that is beyond people’s cashflow, and there’s no guarantee that you’ll have the technical skills needed to make such high octane methods actually work.

I’m not saying that it’s not possible – you just need to be careful that you don’t try & get the rocket off the ground before it’s ready. If you think of all the preparation that goes into a typical rocket launch – the number of people involved, the careful preparation, the seeming endless checking & re-checking, maybe it’ll help you from letting impatience get the better of the sober judgment that can be all too easily thrown out of the window for the sake of some possible shortcut.

Most of the fatal historical space missions were, after all, much to do with people trying to take shortcuts. So don’t you fall into the same trap when considering amazing opportunities.

Don’t skip on the preparation. It may seem slow, and sometimes it’s hard to maintain your focus when you don’t see the outcome of your efforts soon, but remember that the most amazing things take the longest to build. Or get to the launch phase, ready for take-off.

Lastly, (as I’m a physicist by training!) – don’t forget that the rocket has the most mass at launch…it only starts really accelerating once quite a bit of the fuel has been used…then things start to change at an amazng pace 🙂

For most of us, there has never been a more challenging time to be entering into. With financial institutions crumbling around us on an almost daily basis, and many of us wondering how we’re going to cope or adapt to such uncertainty, it’s tempting to do either one of two things: bury our heads in the sand or worry our way into oblivian.

Obviously neither approach will work.

So what is the alternative?

Rober Kiyosaki recently gave his thoughts on the whole matter: whatever your background, professional experience or current job, you should seriously consider what he considers to be the only viable, long-term successful business model that will not only survive such rocky times, but will actually thrive in them: network marketing.

He belives that this is actually a time more serious than just a recession: a global depression is on its way, and we’re all going to have to face some very stark choices. I know what I’m going to do. How about you?

I’m evaluating a multi-media course on blogging from the folks at Simpleology. For a while, they’re letting you snag it for free if you post about it on your blog.

It covers:

  • The best blogging techniques.
  • How to get traffic to your blog.
  • How to monetize the results.

I’ll let you know what I think once I’ve had a chance to check it out. Meanwhile, go grab yours while it’s still free.

Welcome

Welcome to my personal blogging site. This is the place to come to find out what makes me tick, why I do what I do & think what I think. “Busy” personifies my lifestyle at the moment – but I plan, God-wiling, to calm down by the time I’m 43. In case you’re wondering how far into the future that is, well, not too long 🙂

By reading what’s here, I hope you’ll gain some insights into the different spheres of life, work, and play that dance together to form the oh-so-short time I’m around on the planet. Join me in this adventure if you like – in any of those spheres, or none. I hang out on Facebook & other social networks too, if you just want to chat.

Dez.