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Robert Kiyosaki is an investor,
businessman, self-help author, and motivational speaker.
Although best known for his successful Rich Dad, Poor Dad
motivational series, he has written eighteen books that have
sold over twenty-six million copies. Three of Kiyosaki’s
books have been on the top ten bestseller’s lists of The
Wall Street Journal, USA Today and the New
York Times. In an effort to teach valuable financial
concepts to children, Kiyosaki published a book called
Rich Kid Smart Kid in 2001. Thereafter, he went on to
create three board games called Cashflow and has a
series of Rich Dad audio lessons.
The majority of Kiyosaki's teachings
deal with using investment opportunities like real estate or
owning small businesses to create “passive” income with the
long-term goal of actually living exclusively on these
sources of income. In his books and teaching sessions,
Kiyosaki also talks about two terms, assets and liabilities.
In the context, he explains that one’s assets are those
things that produce money while liabilities are merely
things that cost you money. Kiyosaki asserts that when you
money coming in through such passive means, as well as
initially continuing to work at another job, you have the
extra resources to start building your wealth.
Kiyosaki stresses what he calls
"financial education" as a means to obtaining wealth. He
says that life skills are often best learned through
experience and that there are important lessons not taught
in school. He says that formal education is primarily for
those seeking to be employees or self-employed individuals,
and that this is an “Industrial Age idea”. And according to
Kiyosaki, in order to obtain financial freedom, one must be
either a business owner or an investor, generating passive
income.
Kiyosaki also talks a great deal about
a concept he calls The Cashflow Quadrant. It is a
diagram that he uses to represent the system by which all
money in the world is earned. This diagram is made up of
four specific groups representing ways, designated by
letters, in which individuals make money. The groups are all
separated horizontal and vertical lines. Employee:
The most common way is working for someone else. Self-employed
or Small business owner: The job is yours; you’re
responsible for making the income yourself. Business
owner: Here the person owns separate means or system of
earning income, rather than working for someone else. Investor:
You spend money to make money and with the hope of making
far more in return than what you spent.
Kiyosaki suggests that if you are an employee or
self-employed you will never obtain any significant wealth,
you will more than likely help ends meet, but that is about
all you can expect. Conversely, those who either own
businesses or invest in various ways will have much greater
chances of becoming wealthy individuals. Understanding how
wealth is generated and the risks that are involved with
reaching such goals, form the basis of many of Robert
Kiyosaki’s teachings and they have made him a very
successful and very rich man.

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