Each quadrant has its own terminology and core beliefs. If you wish to jump to another quadrant then it requires you to move mentally.
Kiyosaki divides these four quadrants into two basic areas. The work/time dependant jobs and the financial rewarding and time free side. Kiyosaki obviously favors the business quadrant. Seeing both Multi-level marketing and franchises as good introductions. He proposes new mind sets into the mix, the most powerful being "you cannot have success without failure. So unsuccessful people are the people that never fail" or "success is a poor teacher" (P71), others include seeing the potential of a new business system combined with an idea, business structures that support investment or business have many more tax benefits, or using other peoples money.
I am changing my own mindset from a normal employee to a realestate investor. I have tried a number of times to break the barrier from my job to business without success. My failures weren't the problem, the problem was I couldn't continue to fail in order to learn and succeed. So I am the first to agree that the mind set and due diligence is everything. With that in mind I give this book an 8/10.
Like the first book, this is also light on a detailed plan. My own situation as an employee diving into realestate investing. Now Robert would put me as an employee/investor. Yet with the properties I will be renovating with hired help and my own hands. So I don't see the property buying I am doing as purely investing. I don't know if it fits in the quadrant? None the less the quadrants is a great theory that comes closer to realizing who you and are what you strive to be if you want to change your working life.
What did I get out of this?
- Employees have a mindset of security and risk free finances, which is against my property investment philosophy of needing lots of borrowed money or "Good Debt".
- Investors think in "Return On Investment", "Acceptable Risk", "Due-diligence", and researching rather than buying emotionally.
- Failure is needed for learning success, as bitter as that statement is, there is no substitute. So get thicker skin.
- Go over the numbers to any investment you are considering. If the numbers aren't there it doesn't matter how pretty the property is.
- Know the difference between facts and opinions, as an investor you have to think differently about property than a normal owner occupier.
Ian's Spin
If you expect to change quadrants these type of books are essential to break the hold of past conditioning. Don't just read the book, absorb the message. Although this isn't a property book, without the mindset change you will not be ready for the road ahead.
Might I also suggest trying games like Cashflow, also from Robert Kiyosaki. They provide education to both your conscious and sub-conscious. If your on a journey like me you need all the help you can get.
1 comment:
brilliant review and straight to the point.
Peter NSW
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