Achieving Financial Literacy...
Rich Dad's CASHFLOW QUADRANT BY Robert Kiyosaki
A Guide, a journey, to Financial Freedom...
Freedom May Be Free, But it has a Price...
Minding your business is not hard to do, it's just common sense...
Diamonds in the sand... BY Robert Alagna
Among the blind the one-eye is king... Robert J. Alagna
55 wds
If it is to be, it is up to me... Robert J. Alagna, Fritz Reiter
"Without Financial Literacy, you will turn your hard earned cash to trash..." 
- Robert Kiyosaki
What I learned from this book - Robert Alagna
- Rich Dad's CASHFLOW QUADRANT - Rich Dad's Guide To Financial Freedom:
- Introduction:  - Which Quadrant Are You In? -----------------------P. 1
                   - Is It Right For You? ------------------------------P. 1   
62 wds
- Part One:     - The CASHFLOW Quadrant -------------------------P. 7   
- Chapter 1:   - Why Don't You Get A Job? -------------------------P. 7   
- Chapter 2:   - Different Quadrants - Different People --------------P. 17   
- Chapter 3:   - Why People Choose Security Over Freedom ------------P. 47   
- Chapter 4:   - Three Kinds Of Business Systems --------------------P. 69   
- Chapter 5:   - The Seven Levels Of Investors ----------------------P. 81   
- Chapter 6:   - You Cannot See Money With Your Eyes ---------------P. 97   
63 wds
- Part Two:     - Bringing Out The Best In You -----------------------P. 123   
- Chapter 7:   - Becoming Who You Are -----------------------------P. 123  
- Chapter 8:   - How Do I Get Rich? -------------------------------P. 137
- Chapter 9:   - Be The Bank - Not The Banker ---------------------P. 155
- Part Three:  - Defining Moments - Going Beyond Winning -------------P. 183   
- Chapter 10:  - Take Baby Steps ---------------------------------P. 183      
- THE SEVEN STEPS TO FINDING YOUR FINANCIAL FAST TRACK -   
- Chapter 11:  - Step 1: It's Time To Mind Your Own Business ---------P. 199  
75 wds
- Chapter 12:  - Step 2: Take Control Of Your Cash Flow --------------P. 203  
- Chapter 13:  - Step 3: Know The Difference Between Risk And Risky ---P. 211  
- Chapter 14:  - Step 4: Decide What Kind Of Investor You Want To Be -P. 215  
- Chapter 15:  - Step 5: Seek Mentors ----------------------------P. 223  
- Chapter 16:  - Step 6: Make Disappoint Your Strength ---------------P. 231 
- Chapter 17:  - The Power Of Faith -------------------------------P. 237  
- Chapter 18:  - In Summary --------------------------------------P. 243  
- Appendix:    - The Quick Reference Guide To Wealth ----------------P. 246  
81 wds

P. 1 
- Introduction - 
- WHICH QUADRANT ARE YOU IN? - IS IT THE RIGHT ONE FOR YOU? -
- The Words FINANCIAL FREEDOM are the key words of this book and an important
distinction about money.
- FINANCIAL FREEDOM is DIFFERENT from Financial Independence...
- The DIFFERENCE between FINANCIAL FREEDOM and FINANCIAL 
INDEPENDENCE is found in the Cashflow Quadrant...   
- "You can never have true freedom without financial freedom." - Rich Dad. 
62 wds
- "Freedom may be free, but it has a price..." - Rich Dad. 
- The CASHFLOW Quadrant is about four different types of cash sources, cash flows 
that exist in the world of business, in the world of money...
- A Picture Of The CASHFLOW Quadrant:
-
    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

What The Letters In Each Quadrant Represent:
1. "E" stands for Employee
2. "S" for Self-employed, for professionals
3. "B" for Business owner
4. "I" for Investor
69 wds

P. 2 
- 4 Different Kinds Of People Found In The Worlds Of Money And Business: 
1. Employees : People who work for money, working for someone...
2. Self-Employed : People who work for money, working for themselves...
3. Business Owners : People who make money work, someone others work for...
4. Investors : People who make money work to make more money...
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- 4 Different Kinds Of People Found In The Worlds Of Money And Business: 
-
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- The Cashflow Quadrant is a conceptual tool for increasing financial intelligence...
69 wds
- Financial Intelligence, Financial IQ is NOT measured by how much money you make...
- Financial IQ is measured by two criteria : 
1. How much money you keep... 
2. How hard your money works for you... 
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-
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- "You know your financial intelligence is increasing if as you get older your money is 
buying you more freedom, happiness, health, and choices in life." - Rich Dad. 
- Which Quadrant am I in? 
- Which Quadrant is better for me?
73 wds
- Each Quadrant is unique and has different rules...
- Financial Freedom can be found in all quadrants, but the skills of a "B" or "I" will help 
you reach your goals more quickly.
- A successful "E" can also become a successful "I"...
- What do I want to be?
- Deciding a life path...
- Each of us resides in at least one of the FOUR quadrants of the CASHFLOW 
Quadrant...
67 wds
- Four different quadrants also means four different sets of tax rules, 
   four different types of people, four different types of mind sets...
- Financial Freedom can be found in all four quadrants, but the requirements are 
different for each quadrant...
- The skills of the the "B" and "I" quadrants can get you financially free faster...
- The quadrant(s) we are active in can be seen from where our cash flows...
69 wds
- The Cashflow Quadrant has a right side and a left...
- The Left Side is made up of individuals who rely on a paycheck, either employed or 
self-employed...
- The Left Side is where people get paid at the end of each month...
- The Right Side is made up of individuals who receive a cashflow from businesses or 
investments they own...
- The Right Side is where people get paid at the beginning of each month...
73 wds
- WHAT DO YOU WANT TO BE WHEN YOU GROW UP? -
- The CASHFLOW Quadrant is also a book about different lessons...
- The CASHFLOW Quadrant is also a book about Lessons of Money and Choices...
- The standard life path advice for most of us and what we advise our children is, 
"Go to school, get good grades, and find a safe secure job..."
61 wds
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- POOR DAD'S ADVICE: The Standard Life Path Advice And Choices For 
   Most Of Us:
-
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- Poor Dad, educated Dad, advised a path of : "Go to school, get good grades, find 
a good secure and safe job...
- On the left side of the Quadrant choices are : becoming a high or low-paid "E" , 
employee, or a high or low-paid "S" , self employed professional (laborer, teacher, 
medical doctor, engineer, lawyer, accountant, small businessperson etc.)
70 wds
- Important factors on the Left Side of the Quadrant are steady paycheck, 
benefits, and job security...
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- The Standard Life Path Advice And Choices For Most Of Us:
-

P. 3 
- Poor Dad, educated Dad, advised choosing to become either a highly paid "E", employee,
or a highly paid "S", self-employed professional, such as a medical doctor, lawyer, or 
accountant... 
- Poor Dad, educated Dad, had to be concerned with a steady paycheck, benefits, and job
security...
72 wds
- "Go to school, graduate, build a business, and become a successful investor..." 
- Rich Dad.
- RICH DAD'S ADVICE:
-
- The Cashflow Quadrant is a concept about financial literacy...
- This Book is about the mental, emotional, and educational process necessary become 
financially free... 
- WHO THIS BOOK IS FOR - 
- This Book was written for people who want become financially free... 
- This Book was written for people who are STUCK in the "E" and "S" Quadrants... 
73 wds

P. 4
- The Cashflow Quadrant is also the story of buckets and pipelines...
- The BUCKET STORY: The Bucket Story is a story of buckets and pipelines, 
a story of a path to financial freedom... 
- Two Kinds Of Bucket Story Business Models: 
Business Model 1 Characteristics 1. PRODUCT BUSINESS SYSTEM
Business Model 2 Characteristics 2. B-BUSINESS SYSTEM
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- Two Kinds Of Bucket Story Business Models -
-
61 wds
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- A PRODUCT BUSINESS SYSTEM Of A SELF-EMPLOYED INDIVIDUAL 
Or SMALL BUSINESS OWNER. Business Model 1 - 
Business Model 1 Characteristics 1: 
Characteristic 1. The Bucket Story Character Ed bought buckets for his water 
business system...
Characteristic 2. In a business that is based on a PRODUCT SYSTEM, the owner 
is the product...
69 wds
Characteristic 3. Without the expertise of the owner, the PRODUCT- based business 
fails...
Characteristic 4. The Bucket Story Character Ed has to borrow money from himself to 
grow and maintain his business because he has a private water business company...
Characteristic 5. The Bucket Story Character Ed's self-employed Small Owner 
Business was stuck in the small village where he received a water business contract...
64 wds
Characteristic 6. The Bucket Story Character Ed could only improve his business 
by working on a better product system...  
Characteristic 7. The Bucket Story Character Ed could not get his children to 
take over his small scale, hard to manage, small town S Business...
- A B-BUSINESS SYSTEM Of A CASHFLOW PIPELINE for a B-BUSINESS 
    OWNER. Business Model 2 - 
58 wds
Business Model 2 Characteristics: 
Characteristic 1. The Bucket Story Character Bill wrote a world-class business 
plan for his water business system and recruited investors to provide money...
Characteristic 2. In a business that is based on a BUSINESS YSTEM, the SYSTEM 
is the product...
45 wds
Characteristic 3. With the expertise of the SYSTEM, the BUSINESS SYSTEM-based 
business succeeds WITHOUT the owners...
Characteristic 4. The Bucket Story Character Bill can to borrow money from a world of 
Other People to grow and maintain his World business because he has a PUBLIC company...
47 wds
Characteristic 5. The Bucket Story Character Bill borrowed money from  a world of 
Other People to create a World-wide water B-Business...
Characteristic 6. The Bucket Story Character Bill improved his B-Business by 
improving his business system...
Characteristic 7. The Bucket Story Character Bill's children inherited a world 
class B-Business...
49 wds
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- Two Kinds Of Bucket Story Business Models: 
- 
P. 5
- The Bucket Story ends happily for Bill and sadly for Ed...
- Two Bucket Story Business Model Questions: 
Ques 1. When you work, are you BUILDING a BETTER BUCKET or A BETTER 
           PIPELINE?
Ques 2. When you work are you WORKING HARDER or SMARTER?
- The answers to these questions will help make you financially free...
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- Two Bucket Story Business Model Questions -
-
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- THIS BOOK IS DIVIDED INTO THREE PARTS -
- The story of the path to financial freedom is a story of working harder, or 
working smarter...
74 wds
- The Book Cashflow Quadrant is divided into 3 parts:
Part 1. : Core Differences
Part 2. : Personal Changes
Part 3. : 7 Steps to the Right Side of the Quadrant
- Part 1. : Core differences between people and each of the four  
        quadrants...
- Part 1 will discuss core differences between people and the four quadrants...
- Part 1 will discuss why people end up, get stuck in a quadrant unknowingly, unwillingly... 
67 wds
- Part 1 will help identify where someone is today in the Cashflow Quadrant, and where 
one can be in five years... 
- Part 1 will help you identify and plan where you want to be in 10 years... 
- Part 2. : The personal changes necessary to make in order to move from one 
    Quadrant to the other...
- Part 2 is about making personal changes...
- Part 2 is about "WHO" someone must become, NOT about WHAT one must do...
69 wds
- Part 3. : Defines 7 Steps to take on a path to the Right Side of the 
     Cashflow Quadrant...
- Part 3 will define Seven Steps to learning to generate income in the right side...  
- Part 3 is about Financial Intelligence, operating in the "B" and "I" Quadrants 
requires being smarter than being smart in the "E" and "S" Quadrants... 
58 wds
- Part 3 is about being able to control where your cash flow is flowing if you want to
operate in the "B" and "I" Quadrants...

P. 6
- Cashflow Quadrant was written for people who want to build pipelines to financial
freedom rather than buckets to job security...
- The Age of Information is defined by the speed of change...
- The speed of change redefines realities and requires new educational systems 
and new content... 
- This is the Age of Information. 
79 wds
- The school system is still one Age behind; still in the Industrial Age...
- To be successful in the Age of Information, students will need to be educated and 
informed in all four Cashflow Quadrants...
- Today, schools still only train for the Left Side of Cashflow Quadrants...

P. 7
- Chapter One - WHY DON'T YOU GET A JOB? -
- In 1985, Kiyosaki and his wife Kim were homeless, unemployed, with a little savings 
left, living in an old used car...
- The Kiyosakis lived 2 weeks in their car, nine months at a friend's house...
75 wds
- Most people advised getting a job...

P. 8
- IT DOESN'T TAKE MONEY TO MAKE MONEY -
- Most people say, "It takes money to make money."
- Most people say, "It takes a good education to make money."
- A college education is important for traditional professions, but not for people who
finding and creating great wealth...
65 wds
- Many great business successes (Bill Gates, founder of Microsoft; Steven Jobs, 
Apple Computer; Michael Dell, Dell Computers; Henry Ford, Ford Motor Company; 
Ralph Loren, founder of Polo Clothing) all left school to become financially free...
- SO WHAT DOES IT TAKE? -
- It does not take money to make money...
- A college degree may never have any relationship with becoming financially free...
- It does not take a college degree to become financially free...
70 wds
- A few wealthy people who did not finish college : Thomas Edison, Henry Ford, Bill 
Gates, Ted Turner, Michael Dell, Steve Jobs, etc...
- Five Things It Takes To Become Financially Free:
It Takes 1. A dream. 
It Takes 2. A Lot Of Determination
It Takes 3. A Willingness to learn quickly
It Takes 4. Identifying and using your born with assets
It Takes 5. Knowing which quadrant of the Cashflow Quadrant to generate your 
               income from...
75 wds
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- Five Things It Takes To Become Financially Free -
-

P. 9
- WHAT IS THE CASHFLOW QUADRANT? -
- The Cashflow Quadrant represents 4 different methods money is made...
- The Four CASHFLOW QUADRANT Differences:
Quadrant Difference 1. The EMPLOYEE earns money by holding a job and working 
for someone else or working for a company...
Quadrant Difference 2. The SELF-EMPLOYED earn money by WORKING FOR 
THEMSELVES, WORKING FOR their own company...
Quadrant Difference 3. The business owner earns money by creating or owning a 
business that generates money...
74 wds
Quadrant Difference 4. The investor earns money by creating or purchasing an 
investment, an asset, that generates money...
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- The Cashflow Quadrant:
-
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- The Four CASHFLOW QUADRANT Differences:
Quadrant Difference 1. The EMPLOYEE earns money by holding a job and working 
for someone else or working for a company...
Quadrant Difference 2. The SELF-EMPLOYED earn money by WORKING FOR 
THEMSELVES, WORKING FOR their own company...
Quadrant Difference 3. The business owner earns money by creating or owning a 
business that generates money...
80 wds
Quadrant Difference 4. The investor earns money by creating or purchasing an 
investment, an asset, that generates money...
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- The Four CASHFLOW QUADRANT Differences -
-
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- WHICH QUADRANT DO YOU GENERATE YOUR INCOME FROM? -
- The CASHFLOW Quadrant represents different methods by which income or 
money is generated...
- The Six Different CASHFLOW QUADRANT Requirements: 
1. The different methods of generating income (money) require different 
    frames of mind...
2. The different methods of generating income (money) require different 
    technical skills...
3. The different methods of generating income (money) require different 
    educational paths...
82 wds
4. The different methods of generating income (money) require different 
    types of people...
5. The different methods of generating income (money) require different
    strengths...
6. The different quadrants attract different people...
- The money is all the same but the way it is earned, way it is generated, is 
vastly different...
- Each quadrant is different and requires different skills and mind sets, even 
if the person in each quadrant is the same...
69 wds
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- The Six Different CASHFLOW QUADRANT Requirements -
-

P. 10
- THE FOUR METHODS OF INCOME GENERATION -
- Most of us have the potential to generate income in all four quadrants...
- Choosing a quadrant to generate income in is more about what we are at our core, 
our core values, strengths, weaknesses, and interests...
- Choosing a quadrant to generate income in is NOT because of what we learned in 
school...
- Our core values, strengths, weaknesses, and interests attract us to or repel us 
from any quadrant...
- Our economic activity does not prevent us from any of the four quadrants...
88 wds
- An employee can invest or own a business...
- A self-employed can invest or own a business...
- An investor can be self-employed...
- A business owner can be an employee, etc...
- It is not so much what we do, but how we generate income...
- The important word is : WHERE  we generate income from, NOT WHAT, 
    or HOW MUCH...
- Being successful in the four quadrants requires redirecting some internal core 
values...
69 wds

P. 11
- YOU CAN BE RICH OR POOR IN ALL FOUR QUADRANTS -
- You can make millions of dollars in any of the four quadrants and still go bankrupt in
all four quadrants...
- Being active in a quadrant does guarantee success...
- NOT ALL QUADRANTS ARE EQUAL -
- The 4 Quadrants are NOT equal...
- The Quadrants on the left are "tax-heavy", while the Quadrants on the right are 
"tax-light"...
64 wds
- While there are few tax breaks in the "E" and "S" quadrants, the "B" and "I" 
quadrants offer many kinds of tax breaks to investors and B-business owners...
- In the "B" and "I" quadrants, you can acquire money faster and keep that money working 
longer for you without losing large amounts to pay taxes... 
- DIFFERENT WAYS OF EARNING MONEY -
- Money is important, but you do not need to spend your life working for money, working
for a job...
78 wds
- You want to have your money work for you rather than spend the rest of your life...
- CASHFLOW is important because it distinguishes between the different ways in which 
money is generated...
- It distinguishes that there are ways to be responsible and creating money, other than 
physically working for it...  
- DIFFERENT FATHERS - DIFFERENT IDEAS ABOUT MONEY -
- Kiyosaki's highly educated dad strongly believed that money was evil...
66 wds
- Kiyosaki's highly educated teacher dad was embarrassed to earn more than other 
teachers...
- Kiyosaki's highly educated dad told people that money was not important to his life...  

P. 12
- Six Comments Highly Educated Poor Dad Constantly Made: 
Poor Dad Words 1. "I'm not interested in money."
Poor Dad Words 2. "I can't afford it."
Poor Dad Words 3. "I'll never be wealthy."
Poor Dad Words 4. "Investing is risky."
Poor Dad Words 5. "Money isn't everything."
Poor Dad Words 6. "I'm too busy making a living to play with my kids."
89 wds
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- Six Comments Highly Educated Poor Dad Constantly Made -
-
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- DIFFERENT FATHERS - DIFFERENT IDEAS ABOUT MONEY -
- Rich dad thought it was foolish to spend your whole life working for money and pretend 
that money was not important... 
- Rich dad thought life was more important than money, but money was important to 
support life...
- MONEY SUPPORTS LIFE -
77 wds
- Kiyosaki's uneducated (rich) dad strongly believed that it was foolish to spend your 
whole life working for money...
- Kiyosaki's uneducated (rich) dad strongly believed that money was important for 
supporting life...
- "You have only so many hours in a day and you can only work so hard, so why work 
hard for money...? - Rich Dad.
- Learn to have money and people work hard for you, and you can be free to do the 
things that are important..." - Rich Dad. 
- Five Rich Dad Priorities: 
Rich Dad Priority 1. Having lots of time to raise kids...
Rich Dad Priority 2. Having money to donate to charities and projected...
Rich Dad Priority 3. Bringing jobs and financial stability to the community...
67 wds
Rich Dad Priority 4. Having time and money to take care of physical and 
                         mental health...
Rich Dad Priority 5. Being able to travel the world with family and friends...
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- Five Rich Dad Priorities -
-
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- Priorities are why money is important, why money counts...
- Instead of learning how to work hard for money, learn how to make money and 
people work hard for you, in order to be free to do the things that are important 
to you...
73 wds
- CHOOSING THE QUADRANTS -
- Kiyosaki and his wife focused on the "B" and "I" quadrants because they had has more
training and education in those quadrants...
- Through rich dad's guidance, Kiyosaki knew the different financial and professional
advantages of the "B" and "I" quadrants...
- At the age of 37, Kiyosaki had experienced failure in all four quadrants, giving him
a knowledge of self (personal temperament, likes, dislikes, strengths, weaknesses) 
that allowed him to leverage himself better in the quadrants...
78 wds
- PARENTS ARE TEACHERS -
- Kiyosaki's rich dad introduced Kiyosaki to the world of the CASHFLOW Quadrants...

P. 13
- Kiyosaki's rich dad taught Kiyosaki the differences between being successful on the
LEFT SIDE vs. the RIGHT SIDE...
- Kiyosaki's rich dad taught Kiyosaki the differences between an employee's MIND-SET
and a BUSINESS OWNER'S MIND SET...
- Two Different Mind-Sets Between Employees and Employers:
Mind Set 1. Employers offer.
Mind Set 2. Employees serve.
69 wds
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- Two Different Mind-Set Between Employees and Employers -
-
----------------------------------------------------------------------------------------------- 
- One big difference Kiyosaki experienced about one dad and the other was TIME...
- Kiyosaki's poor dad was always working and brought his work home, having little time 
for his kids as his salary grew...
- Kiyosaki's rich dad always had TIME to teach he and his own son business as his 
financial success grew... 
- The more successful Kiyosaki's poor dad became, the further into BAD DEBT he got...
65 wds
- Kiyosaki's poor dad would pay more taxes with every salary raise and his accountant
and banker would recommend more debt to get "tax breaks"...
- Kiyosaki's poor dad was trapped in the MONEY TRAP...
-  Kiyosaki's poor dad was working harder and harder with more income...
- Kiyosaki's rich dad paid less and less taxes as he made more money, getting different
advice from his accountants and bankers...     
65 wds
- Two Lifestyle Differences Between Employees and Employers:
Lifestyle Difference 1. The more money Employees earn, the harder they work,
                             with less time for themselves...
Lifestyle Difference 2. The more money Employers earn, the less they work, 
                             with more time for themselves...
----------------------------------------------------------------------------------------------- 
- Two Lifestyle Differences Between Employees and Employers -
-
----------------------------------------------------------------------------------------------- 
- THE MAIN REASON - A REASON STRONGER THAN REALITY -
- A major event in Kiyosaki's father's life pushed Kiyosaki to decide which quadrants 
he would be in for his life... 
- Kiyosaki's father lost his job and was blacklisted, while Kiyosaki was in the military... 
78 wds

P. 14
- Kiyosaki's poor dad was motivated by idealism and assumptions, rather than realities
and facts...
- Kiyosaki's poor dad's idealism and assumptions killed his "E" quadrant status and activity...
- Kiyosaki's father lost his job and was blacklisted, and moved from one private sector
job to another... 
- Kiyosaki's father had spent most of his working life in public service and teaching...
- Kiyosaki's father was now operating in the "S", "B", and "I" quadrants with the mind
set and education of an "E" quadrant person...
- Kiyosaki's father failed in his business ventures, growing older and poorer...
65 wds
- Kiyosaki's father was a successful "E" trying to survive in the "S", "B", and "I" 
quadrants, where he had no education and training...    

P. 15
- Kiyosaki's father died frustrated and angry...
- Kiyosaki's father was Kiyosaki's "REASON STRONGER THAN REALITY" to succeed...
- While Kiyosaki's real, poor dad was struggling as he got older, Kiyosaki's rich dad was
doing better and better, a model of success for Kiyosaki...
64 wds
- Kiyosaki's rich dad plan of building businesses and creating and buying assets was 
working...
- At the age of 54, rich dad was becoming one of Hawaii's wealthiest people...
- At the age of 50, poor dad was getting poorer...  
- SMALL DIFFERENCES BECOME LARGE DIFFERENCES -
- When measured over the years a person spends working, Small differences grow into 
Large differences...
- It is better to KNOW WHAT YOU WANT TO BECOME than knowing what 
     you want to do... 
74 wds
- IT IS MORE THAN A QUADRANT -
- The CASHFLOW Quadrant is more than two lines and a few letters...
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- A Picture Of The CASHFLOW Quadrant:
-

P. 16
- The CASHFLOW Quadrant is 2 completely different PHYSICAL WORLDS (Right and 
Left Sides), and two completely different WAYS OF LOOKING AT THE WORLD... 
- There are four different worlds, four different realities found in the CASHFLOW 
Quadrant...
- What is important about the quadrants is knowing the differences, knowing the 
different realities on both sides, and choosing to be active in each side for different 
reasons...
- The world changes with the rules and realities of the quadrants you are active in...
65 wds
- One quadrant is not more important or better than the other...
- Different people are found in each, or all, four quadrants...
- Different capacities and realities exist in each quadrant...
- Financial success requires the necessary PERSONAL DEVELOPMENT...
- Most of the skills required in operating in the RIGHT SIDE of the CASHFLOW
Quadrant ARE NOT TAUGHT in school...  
70 wds
- The Five Differences Found In The CASHFLOW QUADRANT:
Difference 1. Differences in personal values.
Difference 2. Differences in the level of financial intelligence required.
Difference 3. Differences in tax liabilities.
Difference 4. Differences in time spent.
Difference 5. Differences in wealth (the amount of time you can live off of 
                 your assets without working for a salary).
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- The 5 Differences Found In The CASHFLOW Quadrant:
-
70 wds
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- You can choose one or all four quadrants to operate in...
- By studying the CASHFLOW Quadrant, you can change the way you earn and spend 
your money... 
78 wds
- As you age and as you gain experience, your quadrant choices, your needs, and your 
interests change...
- All four quadrants are necessary for financial stability of a community...

P. 17
- Chapter 2 - DIFFERENT QUADRANTS - DIFFERENT PEOPLE -
- Without a ATTITUDE TO LEARN, it is harder to accept and learn 
     new and different contents and contexts as you grow older...
- CORE: heart, nucleus, nub, kernel, marrow, meat, essence, quintessence, crux, 
        gist, pith, substance, basis, fundamentals...
- Core values, core beliefs, are who you are, your real feelings...
76 wds
- If you operate in one quadrant with core beliefs of another quadrant, you will fail
with mismatched values and actions...
- You can know something intellectually, but not know it with your mind (body)...
- You can know something in your mind (body), but not know it intellectually...
- Strive to know things intellectually and bodily...  
- Performing successfully in a quadrant depends on your core values, core beliefs, who 
you are at your core...
71 wds

P. 18
- TWO CORE VALUE EXPRESSIONS: 
Expression 1. Core beliefs are EXPRESSED IN WORDS: 
                 Security, freedom, take a chance, go for the sure thing, etc.
Expression 2. Core beliefs are EXPRESSED IN EMOTIONS: 
                 Reactions to situations we face, these are called core emotions.
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- TWO CORE VALUE EXPRESSIONS -
-
--------------------------------------------------------------------------------------------
- Our RESPONSES to our EMOTIONS also strongly decide what quadrant we 
generate our money in...
- Our RESPONSES to the EMOTIONS WE ATTACH TO MONEY also strongly 
decide which quadrant we generate our money in...
77 wds
- Four Characteristics Of Changing quadrants: 
Characteristic 1. Changing Quadrants is not like changing jobs or careers, but 
                     changing who you are at your core, how you think, and how you 
                     see and look at the world...
Characteristic 2. Changing quadrants is a life-changing experience, like 
                     caterpillars to butterflies...
Characteristic 3. Changing quadrants changes friends, too, requires new kinds of 
                     friends...
Characteristic 4. Changing quadrants involves big changes that few are willing to 
                     make...
79 wds
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- 4 CHARACTERISTCS OF CHANGING QUADRANTS -
-

P. 19
- WHAT ARE THE DIFFERENCES? -
- How do we know which quadrants people operate in or are suited for? Listen to their 
words...
- The skill of reading people is based on listening to the words people use...
- The skill of reading people is based on listening for the core values people have, 
expressed through their words...
55 wds
- 4 DIFFERENT KINDS OF CASHFLOW QUADRANT WORDS:
Different "E" Quadrant (Employee) Words 1. 
- I am looking for a safe, secure, a job, good pay, good benefits... 
- I don't want to work overtime, or nights.
Different "S" Quadrant (Self-Employed) Words 2. 
- My rates are $35 an hour...
- My commission is 5% of the total price...
- Good staff is hard to find...
- Can't find good people to do the job right... 
- I've got more than 20 hours in this project...
Different "B" Quadrant (Business Owner) Words 3. 
- I'm looking for a new president to run my company...
Different "I" Quadrant (Investor) Words 4. 
- Is my cash flow based on my internal rate of return or net rate of return?
- How fast is money working?
- I'm looking for a 12% return on my money...
74 wds
-----------------------------------------------------------------------------------------------
- 4  DIFFERENT KINDS OF CASHFLOW QUADRANT WORDS -
-
-----------------------------------------------------------------------------------------------
- WORDS ARE TOOLS -
- You need to become a good listener by asking good questions to know who a person 
really from the words they use, not the message they are trying to say...
P. 20
- Words are powerful tools...
- Understanding people's cores allows knowing what people are really looking for, 
what you can offer, and what words to use when speaking to people...s 
- If you want to succeed as a leader or succeed in the B-Business Quadrant, you
need to be a master of words...
- Success in the B-Business Quadrant depends on knowing which words work on 
which kinds of people...
- TRAIN yourself CAREFULLY to LISTEN to the words people use in order to 
choose  your own words to use and respond in the most effective way...
- Words can turn people on and off...
- Listening to a person's words means listening to their soul to know the person
you are talking to... 
- CORE DIFFERENCES -
- Hear a person's words, feel their souls...
- Behind a person's words are their CORE VALUES and CORE DIFFERENCES...
- Four Tenets About Words:
Tenet 1. To be a successful leader of people you need to be a master of words...
Tenet 2. To be a successful leader of people you need to be a great listener 
           of words...
Tenet 3. To be a successful leader of people you need to be a great listener of 
           words to feel a person's soul...
84 wds
Tenet 4. To be a successful "B" person, you need to be a master of words, 
           knowing which words work with which kinds of people...
------------------------------------------------------------------------------------------------
- Four Tenets About Words -
-
------------------------------------------------------------------------------------------------
- A great listener of words can feel a person's soul, which allows you to know to 
whom you are really talking to...
- Hear a person's words, feel their souls...
- The words a person chooses reflect the core values and core differences of that 
individual...
- Words Found In The Four CASHFLOW Quadrants:
Quadrant 1. The "E" (Employee) Word Characteristics
Quadrant 2. The "S" (Self-Employed) Word Characteristics
Quadrant 3. The "B" (Business Owner) Word Characteristics 
Quadrant 4. The "I" (Investor) Word Characteristics
------------------------------------------------------------------------------------------------
- Words Found In The Four CASHFLOW Quadrants:
Quadrant 1. The "E" (Employee) Word Characteristics: 
A safe, secure, a job, good pay, good perks, good benefits...
80 wds
- The word secure is often a word used in response to the emotion of fear...
- The feeling of fear is a word very commonly used in the "E" Quadrant...
- As an employee, money, benefits, and jobs become reasons for uncertainty...
- The word benefits means an additional reward - a defined and assured extra 
compensation, health care or retirement plan...
- As an employee, uncertainty is an undesirable condition, certainty is the desired condition 
of working...
73 wds
- As an employee, the mind-set might be, "I'll give you this... and you promise to give 
me that in return..."
- As an employee, security and strong agreements are the desired condition of living...
- As an employee, security and strong agreements may be more important than money...
- An employee can be a company president or a janitor...
- An employee is determined by the contractual agreement they have with the individual or 
organization that employs them...
74 wds
----------------------------------------------------------------------------------------------------
- Quadrant 1. The "E" (Employee) Word Characteristics -
-

P. 21
- Words Found In The Four CASHFLOW Quadrants:
Quadrant 2. The "S" (Self-Employed) Word Characteristics: 
- "S" Quadrant people are people who want to "Be their own boss.", or "Do their 
own thing."
- The "S" Quadrant is the "Do it yourself" quadrant...
- "S" Quadrant people do not like to have their income dependent on other people...
- "S" Quadrant people say, "My rates are, My commission is, good staff is hard to 
find, I've got more than 20 hours in this project..."
- Self-Employed respond to fear by taking control of the situation...
- Self-Employed respond to fear by doing it on their own, solo players...
- Fear and financial risk move the self-employed to take control and go it alone...
84 wds
- The hard-core self-employed does not like to have his income be dependent on other 
people...
- The self-employed works hard and expects to be paid well for it...
- The self-employed are fiercely independent souls...
- Many traditional, well-educated "professionals" are self-employed people, who spend 
years in school, such as doctors, lawyers, dentists, computer software engineers...
- Many self-employed are from the non-traditional educational paths, such as
"professionals" who are direct-commission salespeople - real estate agents, small 
business people, people in trades...
- Many self-employed are hard-core "perfectionists"...
69 wds
- Many self-employed are dedicated and committed to doing things their way...
- Many self-employed believe they are the best ones for the job and do not trust 
anyone else to do it...
- Many self-employed are true artists with their own style and methods of doing 
things...
- Many self-employed are the best in what they do...
- Clients hire the self-employed because they are the best...
63 wds
- For many self-employed, independence and the freedom to do things their own 
way is more important than money...
- For many self-employed, to be respected in their own field is more important 
than money...
- For many self-employed, the money really does not come first, their 
independence comes first...
- Many self-employed have difficulty in hiring others...
58 wds
- For many self-employed others are not up to the task...
- With many self-employed, their employees usually leave them after they are up 
to the task, to become independent themselves...
- For many self-employed, their employees usually become their competition...
- The self-employed have to work harder to stay one step ahead of their 
competition, their employees, avoiding the hiring of capable others, to be stuck in a 
vicious economic circle...
68 wds
----------------------------------------------------------------------------------------------------
- Quadrant 2. The "S" (Self-Employed) Word Characteristics -
-

P. 23
- Words Found In The Four CASHFLOW Quadrants:
Quadrant 3. The "B" (Business Owner) Word Characteristics: 
- "Why do it yourself when you can hire someone else smarter to do it...?"
- "I'm looking for a new president to run my company..."
- "B" Quadrant Business Owners are almost opposite the self-employed...
- "B" Quadrant Business Owners try to surround themselves with smart people from all 
four categories "E, B, S, I"...
68 wds
- "B" Quadrant Business Owners concentrate on BUILDING SYSTEMS...
- For the "B" Quadrant Business Owner, BUILDING and REFINING the SYSTEM of
the business is more important than the product...
- For the "B" Quadrant Business Owner, a SUPERIOR SYSTEM will BEAT A SUPERIOR
PRODUCT, as a pipeline will be better than a bucket...
- "B" Quadrant Business Owners hire people who can do the work better...
63 wds
- "B" Quadrant Business Owners delegate work...
- "B" Quadrant Business Owners consider THINKING their most important task...
- Successful "B" Quadrant Business Owners train themselves and emphasize LEADERSHIP...
- For "B" Quadrant Business Owners, BUSINESS and LEADERSHIP are ART and SCIENCE...
- Successful "B" Quadrant Business Owners need to know how to bring out the best in people...  
54 wds
----------------------------------------------------------------------------------------------------
- Quadrant 3. The "B" (Business Owner) Word Characteristics -
-

P. 24
- LEADERSHIP IS BRINGING OUT THE BEST IN PEOPLE -
- LEADERSHIP is an ART and SCIENCE...
- Both business and leadership skills can be learned...
- Successful "B" Quadrant Business Owners need to have both business and leadership skills...
- Technical Skills Of Successful "B" Quadrant Business Owners:
1. Reading financial statements.
2. Marketing.
3. Sales.
4. Accounting.
5. Legal. 
6. Management.
7. Production.
8. Negotiations.
9. Working with people.
10. Leading people.
76 wds
--------------------------------------------------------------------------------- 
- Technical Skills Of Successful "B" Quadrant Business Owners:
-
---------------------------------------------------------------------------------
- The Business and Leadership are subjects and arts of lifelong study...
- Many people believe that the way to financial security and happiness is to do their 
own thing, or develop a new product no one has...
- Most people are focused on the "building the PRODUCT to success", rather than
concentrating on "building the SYSTEM to success"...
64 wds
- "The technical skills of the business are easy, the hard part is working with 
people..." - Rich Dad.
- For Leadership, read Stone Soup...
- ENTREPRENEURIAL DEVELOPMENT-
 - "I am going to start my own business..."
- Many people think that the way to FINANCIAL SECURITY is to "Do your
own thing..." or "Develop a new product nobody has..."
- People push out in BLIND determination to start their own business, right into the 
"S" Quadrant...
70 wds

P. 25
- The ENTREPRENEURIAL Path of an "E" person from the "E" Quadrant moving 
    to the "S" Quadrant:
-
- The "S" Quadrant is not better or worse than any other quadrant...
- All quadrants have their risks and rewards...
- You can be in all four quadrants...
- The danger is not realizing where you are active and the rules, risks, and rewards of that 
quadrant...
- Many "E" people move to the "S" type of business rather than the "B" type of business...
77 wds
- One quadrant is not necessarily better than the other, but each have different strengths 
and weaknesses...
- The ENTREPRENEURIAL Path of an "E" person from the "E" Quadrant moving 
    to the"B" Quadrant:
-
- Because of different core values, people who try to move to another quadrant get stopped 
or stalled in while trying to cross over of to the RIGHT SIDE of the CASHFLOW Quadrant...
64 wds

P. 26
- The ENTREPRENEURIAL Path of an "E" person from the "E" Quadrant moving 
      to the "B" Quadrant, stalled in the "S" Quadrant:
-
- Few people who attempt to move from the "E" or "S" Quadrant to the "B" Quadrant 
make it because the technical and human skills required to make it in one quadrant are 
often different...
- To move from the "E" or "S" Quadrant to the "B" Quadrant successfully requires learning 
the technical and human skills, and the mind-set required to make it in the "B" Quadrant...
86 wds

P. 27
- Four Differences Between "B"-Business Owners and "S" (Self-employed) Owners: 
DIFFERENCE 1. is "B" Business Owners CAN LEAVE their businesses for a year and it 
will BE EVEN MORE PROFITABLE...
DIFFERENCE 1. is if "S" Business Owners LEAVE their businesses for a year, they will 
BE OUT OF BUSINESS...
DIFFERENCE 2. is "S" Business Owners "OWN A JOB"...
76 wds
DIFFERENCE 2. is "B" Business Owners "OWN A SYSTEM", and then hire competent people 
to operate the system...
DIFFERENCE 3. is "S" Business Owners "ARE THE SYSTEM", and cannot leave...
- Example: A software engineer (IT consultant) spends years in school and the field learning 
to become a self-contained, walking, talking, business system... 
DIFFERENCE 3. is "B" Business Owners "RENT OUT THE SYSTEM", and leaves...
DIFFERENCE 4. is if the "S" Business Owner goes on vacation, so does his income...
DIFFERENCE 4. is "B" Business Owners can go on vacation forever because they own the 
system...
77 wds
-------------------------------------------------------------------------------------------------------
Four Differences Between "B"-Business Owners and "S" (Self-employed) Owners: 
-
-------------------------------------------------------------------------------------------------------
- Two Requirements Of Successful "B" Business Ownership:
Requirement 1. Ownership or control of systems...
Requirement 2. Ability to lead people...
-------------------------------------------------------------------------------------------------------
- Two Requirements Of Successful "B" Business Ownership -
-
-------------------------------------------------------------------------------------------------------
- To move from the "E" or "S" Quadrant to the "B" Quadrant successfully, requires 
converting who they are and what they are into a system...
62 wds

P. 28
- Words distinguish an "E" (words) or "S" (words) Quadrant person trying to 
move to the "B" Quadrant...
- Four "E" or "S" Quadrant Statements About Moving To "B" Quadrant:
Statement 1. "We have a much better product than the competition product..."
Statement 2. "Nobody has this product..."
Statement 3. "I'll give you the idea for 25% of the profits..."
Statement 4. "I've been working on this for years (product, song, book, invention)."
67 wds
-------------------------------------------------------------------------------------------------------
- Four "E" or "S" Quadrant Statements About Moving To "B" Quadrant -
-
-------------------------------------------------------------------------------------------------------
- A product is important, but to a business owner, a superior system is first concern...
- To the person on the left side of the CASHFLOW Quadrant, a product is the focus, but 
to a person on the right side of the CASHFLOW Quadrant, a superior system is the focus...

P. 29
- There are unlimited new ideas and people to offer services and products, but only a few 
people who know how to build excellent business systems...
77 wds
- If the person on the left side of the CASHFLOW Quadrant can understand the system 
that delivers a McDonald's hamburger, or a Kentucky Fired Chicken, or a Starbucks cup of 
coffee, then they have a chance of moving to the right side of the Quadrant...
- Bill Gates did not build a great OS, but he bought someone else's product and built a 
global system around it...
65 wds
- Words Found In The Four CASHFLOW Quadrants:
- Quadrant 4. The "I" (Investor) Word Characteristics:
1. "Is my cash flow based on my internal rate of return or net rate of return?..."
2. Investors make money with money...
3. Investors do not have to work because their money is working for them...
4. Regardless of which quadrant people make their money in, to have wealth, they 
    must participate in the "I" Quadrant...
5. In the  money becomes converted to wealth...
6. The "I" Quadrant requires a high level of financial intelligence...
67 wds
------------------------------------------------------------------------------------------------------
- Quadrant 4. The "I" (Investor) Word Characteristics -
- 
P. 30
- THE CASHFLOW QUADRANT Differences Summarized:
-
- The CASHFLOW QUADRANT is a conceptual tool to show differences in how money is 
generated...
- The CASHFLOW QUADRANT is a guide for moving from financial struggle to financial 
security, and on to financial freedom...
- Two Key Concepts Of Great wealth Creation, OPT AND OPM:
1. OPT (Other People's Time)
2. OPM (Other People's Money)
71 wds
-------------------------------------------------------------------------------------------------------
- Two Key Concepts Of Great wealth Creation, OPT AND OPM:
-
------------------------------------------------------------------------------------------------------
- OPT (Other People's Time) Tenets:
Tenet 1. OPT (Other People's Time) and OPM (Other People's Money) are found on 
           the right side of the CASHFLOW QUADRANT...
Tenet 2. On the left side of the CASHFLOW QUADRANT are the OP (Other People), 
           whose time and money are being used...
Tenet 3. One long term benefit of building a business is using of OPT (Other People's 
           Time)...
Tenet 4. One of the drawbacks of being an "S" business is that success simply means 
           more hard work and longer hours...
Tenet 5. Designing a "B" business, success means increasing the system and hiring 
           more people... 
89 wds
Tenet 6. Success means working less, and earning more and enjoying more free time...

P. 31
Tenet 7. What you can at least learn from the CASHFLOW QUADRANT is why some 
           people work less, earn more, pay less in taxes, and feel more financially 
           secure than others...
Tenet 8. A wealthy person generates most of their income from the right side of the 
           CASHFLOW QUADRANT...
------------------------------------------------------------------------------------------------------
- Eight OPT (Other People's Time) Tenets -
-
-----------------------------------------------------------------------------------------------------
- THE CASHFLOW QUADRANT Income Generation Profile of a Wealthy Person:
-
89 wds

P. 32
- THE DIFFERENCE BETWEEN BEING RICH AND BEING WEALTHY -
THE CASHFLOW QUADRANT Income Generation Profile of Other People:
-
- The Other people earn at least 80% of their income in the left side of the Quadrant 
and less than 20% from the right side...
- Becoming wealthy is being able to convert cash flow into more tangible assets that 
throw off additional cash flow...
- Becoming wealthy is being able to grow assets and asset cash flows to the point that 
the cash flows from assets will exceed living expenses...
88 wds

P. 33
- The CASH FLOW PATTERN of a RICH Person:
-
- Actually, the business can also be considered an asset because it generates income 
and is operated without physical input...
29 wds
- The CASH FLOW PATTERN of a WEALTHY Person:
-
- Being wealthy implies that tangible assets such as real estate and stocks are generating 
more passive income than our expenses, creating a condition that defines wealth from rich...
- Having reached the point where income generated from tangible assets is greater than 
expenses, the business can be either kept or sold, either situation, defining a condition of 
wealthy...
65 wds

P. 34
- THE DEFINITION OF WEALTH -
- A DEFINITION OF WEALTH Of Is: 
The number of days you can survive, without physically working and still maintain your 
standard of living...
- For Example: Your daily expenses are $2,000.00 a month. You have $3,000.00 in 
savings. Your wealth is approximately 3 months or 90 days...
- Wealth is measured in time, not dollars...
- Wealth is the condition by which the income generated fro investments is greater than 
monthly expenses...
74 wds
- Financial Intelligence is measured by how much money you keep and how long you can keep 
your money...
----------------------------------------------------------------------------------------------------
- A DEFINITION OF WEALTH Of Is: 
-
----------------------------------------------------------------------------------------------------
- The CASH FLOW PATTERN of a Poor Person Who Makes A Lot Of Money:
-
- The CASH FLOW PATTERN Characteristics of a Poor Person Who Makes A 
     Lot Of Money:
Characteristic 1. This person makes a lot of money from their job.
Characteristic 2. This person takes their earned money and creates long-term debts. 
Characteristic 3. This person purchases things to mimic a higher standard of living.
Characteristic 4. This person is living in a cycle of hard work with high consumption and 
                                   few, real, tangle assets.
Characteristic 5. This person RED LINES their expenses... 
- No matter how much money they make, their money is spent as fast as it is earned...
------------------------------------------------------------------------------------------------
- The CASH FLOW PATTERN Characteristics of a Poor Person Who Makes A 
     Lot Of Money:
-
------------------------------------------------------------------------------------------------
- No matter how much money one makes, it is important to put some money in the "I" 
Quadrant...
- The "I" Quadrant is the "Money Makes Money" Quadrant... 
- The quadrant where your money works so that you do not have to...
70 wds

P. 35
- OTHER FORMS OF INVESTING -
- Traditional education is important because the better your education, the better your 
chances of "earning" money...
- Four years of college can double your earned income potential...
- 40 years is the average time of actively working...
- It makes sense to invest in some kind of college or higher education...
- Loyalty and Hard work are also forms of investing... pledging yourself to a company, or 
the government, via a contract to be rewarded with a lifelong pension...
78 wds
- Loyalty and Hard work are also forms of investing that were mainstays in the Industrial 
Age...
- Loyalty and Hard work strategies may no longer apply in the Information Age...
- Large Families are another form of investment, having children care for parents in their 
old age...
- The Large Families form of investment was the norm in the past, but the cost of health 
care and living expenses for the aged is bankrupting children...
72 wds

P. 36
- MORE FORMS OF INVESTING -
- Government Retirement Schemes such Social Security and Medicare are examples of 
investment mandated by law...
- Government Retirement Schemes such Social Security and Medicare may not meet their 
responsibilities or keep promises to their recipients due to demographic changes...
- Individual investment vehicles for retirement, individual retirement plans are tax 
incentive induced programs for individual investing...
58 wds
- INCOMES RECEIVED FROM INVESTING -
- The "I" Quadrant focuses on investments that generate income on an ongoing basis during 
your working years...
- Receiving income generated in the "I" Quadrant means your money is working for you, 
generating income for you...
- Receiving income generated in the "I" Quadrant means your money, money invested in 
tangle assets, is working for you, generating income for you...
- For Example: Any Income generated from a house you purchase that exceeds your 
property's operating expenses is cash flow to your income statement generated from an 
asset (something that brings you income)...
94 wds
- CASH FLOW PATTERN Of A House Purchase That Behaves Like An Asset:
-
- $200.00 of income in this picture in being generated from the "I" Quadrant...
- The same thing is true for people who receive income from savings or dividends from 
stocks and bonds...
- The qualifier for working in the "I" Quadrant is how much income you generate from the 
quadrant without working in it...
69 wds
- Two Kinds Of Retirement Accounts: 
1. Retirement Accounts: Investing procedures for the years of life AFTER working...
2. Retirement Accounts: Actually, Retirement Accounts are procedures for saving rather 
than investing for the years of life AFTER working...
- People who save money in their retirement accounts are not doing the same thing as people 
who are actively using their money to make more money as income...
-----------------------------------------------------------------------------------------------------
- Two Kinds Of Retirement Accounts: 
-
-----------------------------------------------------------------------------------------------------
- "I" Quadrant: Investment procedures for the years of life DURING working...
69 wds

P. 37
- ADVANTAGES OF INVESTING -
- Many people who earn their money as money advisers in the investment world are, not real 
investors themselves...
- Many people who earn their money as money advisers, such as most stockbrokers, real 
estate agents, financial advisers, bankers and accountants are mostly "E" and "S" people, 
generating income from the left side of the CASH FLOW Quadrant...
- Most of the income that is earned by many people who work as money advisers comes 
from their professional work, not from the assets they own...
87 wds
- Stock traders buy stocks low and hope to sell them high... in reality, these people are 
trading, doing something physically to generate money, much like an "S" quadrant person, 
generating income earned from sales...
- Stock brokers and stock traders can all be called investors... but they are people who 
earn money from commissions, or sell advice by the hour, or give advice for a 
salary, or try to buy low and sell high... 
73 wds
- These people are different from people who earn money from spotting and or creating 
good investments, the purchase of an asset, something that brings money in... 
- To measure an adviser, ask what percentage of the income they generate comes from 
their investments or businesses they own... 
- Most advisers cannot practice what they preach... 
- The primary difference with people who earn their money from the "I" quadrant is that 
they focus on having their money work for them, making money work... 
80 wds
- Another primary difference with people who earn their money from the "I" quadrant is 
that there are many tax advantages that are not available to people 
who have to work for money... 
- Wealthy people can pay less taxes and keep more of their money because they make 
their money in the assets column and not in the income column... 
- Wealthy people make their money as investors and not as workers... 
- People who work for money are taxed at higher rates, taxed before they receive 
their income...
86 wds
----------------------------------------------------------------------------------------------------
- Fourteen ADVANTAGES OF INVESTING Tenets:
-

P. 38
- NEW AGE AND NEW RULES -
- The reason that most people do not do what people in the "I" quadrant do is "RISK"... 
- Many people believe it is not the RETURN ON the investment they worry about, but 
the RETURN OF the investment they worry about... 
- The reaction to "RISK" broadly divides investors into four categorically... 
- The reaction to "RISK" broadly divides investors into four categorically... 
67 wds
- Four Investor RISK Reactions:
RISK Reaction 1. People who avoid all risk, playing it safe by keeping their money in the 
bank...
RISK Reaction 2.  People who leave the job of investing to someone else, to financial 
advisers, mutual fund managers...
RISK Reaction 3.  People who gamble... gamblers...
RISK Reaction 4.  People who invest... investors...
76 wds
------------------------------------------------------------------------------------------------------
- A Picture Of Four Investor RISK Reactions:
-
------------------------------------------------------------------------------------------------------
- The difference between gamblers and investors is the game of chance for gamblers and the 
game of skill for investors... 
- People who turn their money over to someone else to invest are playing the game of investing 
they do not want to learn... 
- The critical risk factor for people who turn their money over to someone else to invest is 
choosing a financial adviser carefully... 
- Investing is about reducing, even eliminating risk and still receiving high yields on your 
money, by knowing the game... 
64 wds
- Two Differences Between A Professional Investor And Someone Who Saves 
     for retirement: 
Difference 1. How soon your money is coming back (speed of your money).
Difference 2. How much income to get for the rest of your life after getting your 
initial investment back (cash flow).
51 wds
------------------------------------------------------------------------------------------------------
-

P. 39
- NEW AGE AND NEW RULES -
- The "I" quadrant may have "RISK", but it has its own skills and mind-set... and can be 
learned if you are willing to invest your most important asset, time, invest the time... 
"If you want to be wealthy, you need to learn how to take risks, learn to be an 
investor... " - Rich Dad. 
60 wds

P. 40
- PEOPLE NEED TO BECOME INVESTORS -
- The rules are changing from government-guaranteed security into old age, to individual-
responsibility security into old age... 
- Two Kinds Of Pension And Social Security Plans:
1. Industrial Age Pension Plans - DEFINED BENEFIT Pension Plans.
2. Information Age Pension Plans - DEFINED CONTRIBUTION Pension Plans.
------------------------------------------------------------------------------------------------------
- Two Kinds Of Pension And Social Security Plans:
1. Industrial Age Pension Plans - Defined BENEFIT Pension Plans.
- Industrial Age Pension Plans of government and company pensions and Social Security 
are also called DEFINED BENEFIT Pension Plans... 
- Industrial Age Defined Benefit Pension Plans are GUARANTEED by the government and 
company, as steady income schemes to carry people through after working life...
- Defined Benefit Pension Plans are PAID BY GOVERNMENT, COMPANY, AND 
INDIVIDUAL... 
- The Industrial Age Defined Benefit Pension Plans of government and Social Security 
and company pensions have been phasing out within the last and next 10 to 15 years, or will 
mutate into less favorable solutions for individual security... 
78 wds
- Two Kinds Of Pension And Social Security Plans:
2. Information Age Pension Plans - DEFINED CONTRIBUTION Pension Plans.
- Information Age pension plans of government and company pensions and Social Security 
are called Defined CONTRIBUTION Pension Plans... 
- Information Age Defined Contribution Pension Plans shift responsibility for the future 
of the individual from the government and company, to the individual, PAID BY THE 
INDIVIDUAL... 
- In the Information Age, SECURITY is up to the INDIVIDUAL and the INDIVIDUAL'S 
FINANCIAL LITERACY...
69 wds
- In the Information Age, the individual is now responsible for his retirement life after 
his working life... 
- In the Information Age there will be no more retirement security from government or 
companies...
- In Defined Contribution Pension Plans, the individual only gets what he and his company 
paid in for a retirement plan, money to live on after working life...
-----------------------------------------------------------------------------------------------------
- Two Kinds Of Pension And Social Security Plans:
-
-----------------------------------------------------------------------------------------------------
- Two Problems With Information Age Pension And Social Security Plans:
1. People will out-live their traditional pensions...
- A  will not have enough money in it to last the person's life...
- Most people will run out of money before they die...
74 wds
2. The Information Age New Pension Plan Concept is based on INVESTING. 
- In the Information Age, EVERYONE WILL HAVE TO LEARN HOW TO 
SUCCESSFULLY INVEST and MANAGE RISK with market forces that will destroy 
the values of your plan for money or devalue your pension plan, and make your plan worthless... 
- In the Information Age, the speed of change will obsolete markets and knowledge faster 
than ever before, making paper investing more risky than ever before...
- Investment-Based Pension Plans are risky because market forces will destroy the values 
of a plan or devalue it...
- In the Information Age Defined Contribution Pension System, if you are not a well-
trained investor, your pension will not survive the market forces...
55 wds
-----------------------------------------------------------------------------------------------------
- Two Problems With Information Age Pension And Social Security Plans:
-

P. 41
- CHANGING THE RULES -
- We are in a gigantic paradigm shift: Industrial Age to Information Age...
- The Information Age is an Age of Individual Responsibility and Action in a rapidly 
changing environment...
- Today, everyone needs to go to school, learn to get a good job, and also needs to learn how 
to invest, and investing is not taught in school...
59 wds
- One of the differences between the Industrial Age and the Information Age is the 
way we financially prepare for retirement...
- The breaking of Financial promises and commitments made in the Industrial Age will 
cause a major movement of money "OFFSHORE"... 
- People will move their money as taxes go up... 
- "Offshore" will mean "cyberspace"...
53 wds

P. 42
- RELUCTANT INVESTORS -
- The change from Defined Benefit Pension Plans to Defined Contribution Pension 
Plans forces the public to act like investors with or without their own cognizance...
- We will find out only at retirement whether we were wise investors or careless gamblers, 
when it comes time to retire...
- The large majority of "E" and "S" people are security oriented, seeking secure careers, 
or starting small businesses they can control...
- Today the stock market is the current rage, because people get to feel like investors...
85 wds
- The major reason for the fueling of the stock market is the huge surge of 
non-investor participants trying to become investors...
- A Picture of "E" and "S" People Moving to the "I" Quadrant:
-
- The picture above shows non-investor "E" and "S" people, people from the left side of the 
CASHFLOW Quadrant, trying to move to the right side of the cash flow quadrant for greater 
security...
66 wds
- The picture above shows non-investor "E" and "S" people, trying to become participants in the 
"I" Quadrant, trying to become investors... 
- But, the "I" quadrant is not the quadrant for security...

P. 43
- THE "I" QUADRANT IS FOR RISK -
- "E" and "S" people are moving in large numbers to the "I" quadrant for added security, but 
the "I" Quadrant is not the quadrant for security...
65 wds
- The "I" quadrant is the quadrant for risk...
- The "I" quadrant requires a higher level of financial literacy and a different 
mind-set...
- The "E" and "S" people bring their "E" and "S" mind-sets to a different quadrant, and this 
can be heard from their words...
- Words Of "E" and "S" people "E" and "S" mind-sets:
Word 1. "Diversification": Diversification is an investment strategy for not losing... not 
an investment strategy for winning... a strategy to avoid volatility...
- Successful or rich investors do not diversify, they focus their efforts, volatility is 
less risky...
Word 2. "Blue Chip Stocks": Security-minded investors buy unsafe stock from safe 
companies...
Word 3. "Mutual Funds": People with no knowledge of investing give their money to salary-
based money management for a price "professionals"...
72 wds
-----------------------------------------------------------------------------------------------------
- A Picture Of Words Of "E" And "S" People "E" and "S" Mind-Sets:
-
-----------------------------------------------------------------------------------------------------
- Two Professional Money Manager Characteristics:
Characteristic 1. Prfessional Promises:
- Professional money managers promise to do their best to increase your 
money, for a handling charge based on the amount of money you give to them...
Characteristic 2. No Risk, No Responsibility Policy:
- Professional money managers have no risk to increase your money...
- Professional money managers take a bonus when you make money...
- Professional money managers collect fees when you take losses...
-----------------------------------------------------------------------------------------------------
- A Picture Of Two Professional Managers Characteristics:
-
-----------------------------------------------------------------------------------------------------
- Many Professional managers can be a very risky relationship...
- The safer strategy to take is to work at educating yourself in the "B" and "I" 
Quadrants... 
- Become financially literate enough to make wise decisions with making your 
money work...
64 wds

P. 45
- LEARN TO MANAGE RISK - 
- The safer strategy is to take responsibility for educating yourself to make wise 
decisions about long-term financial security, learning directly, how to become an 
investor...
- The idea of studying to find safe, secure job is an idea from the Industrial Age... 
- We are not in the Industrial Age anymore...
- The Information Age is an age that requires self-sufficiency, maturity and financial 
literacy... 
67 wds

P. 46
- FINANCIAL FREEDOM -
- The underlying theme and goal of our effort to educate is financial freedom... 
- Eight FINANCIAL FREEDOM Characteristics:
1. Financial freedom can be achieved through many paths... 
2. Financial freedom is free... 
3. Financial freedom is free, but not cheap... 
4. Financial freedom is not being risky... 
5. Financial freedom takes neither money nor a good formal education... 
6. Financial freedom has price... 
7. Financial freedom's is measured in dreams, desire, and the ability to overcome 
   disappointments... 
8. Either way, whatever your choices there is a price to be paid... 
81 wds
----------------------------------------------------------------------------------------------------
- A Picture Of Eight FINANCIAL FREEDOM Characteristics:
-
----------------------------------------------------------------------------------------------------
- There is a different price to be paid... 
- Am I willing to pay the price to be paid for my choices? 
- The B QUADRANT QUIZ: Are you a true business owner? 
1. Does my business require my physical presence to be profitable and running 
    better... 
- YES or NO? 
2. Can I leave my business for a year and it will be more profitable and running 
    better than ever when I get back... 
- YES or NO? 
-------------------------------------------------------------------
- If BOTH are a "YES", You are a true business owner...
86 wds
------------------------------------------------------------------------------------------------------
- A Picture Of The B QUADRANT QUIZ - 
-

P. 47
- Chapter Three - WHY PEOPLE CHOOSE SECURITY OVER FREEDOM - 
- SECURITY VS. FREEDOM -
- We seek what we are taught...
- The left side of the quadrant is motivated by security... 
- What we are taught in school and at home is what we become...
------------------------------------------------------------------------------------------------------
- A Picture Of People Moving to the "E" Quadrant After Leaving School:
-

P. 48
- The right side of the quadrant is motivated by freedom
- What we are taught in school and at home is what we become...
61 wds
------------------------------------------------------------------------------------------------------
- A Picture Of People Moving to the "B" Quadrant After Leaving School:
-
------------------------------------------------------------------------------------------------------
- A Picture Of Security VS Freedom In The Cashflow Quadrants:
-

P. 49
- The left side of the quadrant is motivated by security... 
- The left side of the quadrant has a life script that is 3 months away from bankruptcy... 
- "I owe, I owe, it's off to work I go"...

P. 50
- THE SUCCESS TRAP -
- The RIGHT side of the quadrant is motivated by freedom...
- In the Right Side of the Quadrant, the more successful you are, the freer you are...
- The LEFT Side of the Quadrant is motivated by security... 
- The more successful you are in the Left Side of the Quadrant, the harder you work, the 
less time you have...
81 wds
- Working hard in the RIGHT side of the quadrant means spending time and effort 
to learn how to make money make more money... 
- In the RIGHT Side of the Quadrant, getting different results from different effort, 
means that the more successful you are, the less you work, the more time you have...
52 wds
------------------------------------------------------------------------------------------------------
- The MONEY TRAP -
- Working hard, successful on the RIGHT Side of the Quadrant requires a knowledge 
about money called "Financial Intelligence"... 
- Developing "Financial Intelligence" requires spending time and effort to learn how to make 
money make more money... 
- In the RIGHT Side of the Quadrant, getting different results from different effort, 
results in more success, less work, more time...
47 wds
- "Financial Intelligence" is not so much how much money you make, but how much money you 
keep, how hard that money works for you, how many generations you can keep your money...
- Success on the RIGHT Side of the Quadrant requires a knowledge about money called 
"Financial Intelligence"...
- Success on the RIGHT side of the quadrant requires a knowledge about people called 
"Management Intelligence"...
- Success on the RIGHT side of the quadrant requires a knowledge about creating money...
- Success on the RIGHT side of the quadrant requires a knowledge about costs and profit.
called "Accounting Intelligence".
93 wds
---------------------------------------------------------------------------------------------------
- Eight MONEY TRAP Tenets: 
-

P. 51
- "Educated" people are word literate, not financially literate...
- If you cannot read numbers, you have to take the advice of those who can...
- Most advice from those who can advise will make you work harder and put you 
deeper into debt...
- The MONEY TRAP is: 
The MONEY TRAP 1. Generating all of your money in the left side of the quadrant, 
where the more money you make, the harder you have to work, the deeper you go 
into debt, and the higher taxes you have to pay, the more security you crave to 
achieve.
93 wds
The MONEY TRAP 2. Financial illiteracy, not being able to see numbers to see 
the money trap.

P. 52
The MONEY TRAP 3. Generating all of your money in the left side of the quadrant, 
where you increase your two biggest MONEY TRAP expenses.
The MONEY TRAP 4. Taking government sponsored tax breaks on bad debt... 
----------------------------------------------------------------------------------------------------------------------------
- The MONEY TRAP is: 
- 

----------------------------------------------------------------------------------------------------------------------------
- YOUR TWO BIGGEST EXPENSES -
- If you cannot read a financial statement, you cannot see THE MONEY TRAP...
- In the MONEY TRAP, the more money you earn, the more taxes and interest on bad debt
you pay...
Two Biggest Money Trap Expenses:
1. Taxes.
2. Interest on debt.
64 wds
----------------------------------------------------------------------------------------------------------------------------
Two Biggest Money Trap Expenses:
-

P. 53
- Employee "E" Quadrant MONEY TRAP:
-

- Job, Career Hopping: Chasing money to achieve freedom can result in simply chasing 
one job to the next, without any assets development, hopping from job to job, hoping to step 
up, just stepping around, using the time of your life, going around in circles, working hard 
the rest of your life... 
- To get out of the "E" MONEY TRAP is: To start a new attitude and new 
     educational process... 
78 wds

P. 54
- Do your Own Thing "S" Quadrant MONEY TRAP:
-
- The "S" Quadrant Person's Three MONEY SUCCESS TRAPS Are: 
Success Trap 1. Having success can be worse than failing...
Success Trap 2. Working harder for a long time, for as long as you are successful...
Success Trap 3. Having to do or be responsible for all the jobs (management, employees, sales, 
          advertising, bill paying, hiring, firing, fill ins, taxes, etc)...
64 wds
----------------------------------------------------------------------------------------------------
- The "S" Quadrant Person's Three MONEY SUCCESS TRAPS Are: 
- 
----------------------------------------------------------------------------------------------------  
- The "S" Quadrant Person's Six MONEY FAILURE TRAPS Are:
Failure Trap 1. Lack Of Capital and Experience.
- One out of ten "S" business attempts failing in the first 5 years because of lack of experience 
and lack of capital...
Failure Trap 2. Burn Out.
- One out of ten "S" business attempts fail in the next 5 years because of lack of energy, 
many "S"s just burn out...
Failure Trap 3. Running Away from, or Forced Away from employment. 
- One out of ten "S" business attempts fail in the next 5 years because the new owner is only 
running away or forced away from employment to someone else, to employment to themself...
- Running away to self-employment is only another short term solution for money...
84 wds
Failure Trap 4. Systems Illiteracy.
- Systems illiteracy is not being able to create systems (systems for money and systems for 
people) that free you from both the MONEY SUCCESS and FAILURE TRAPS...
Failure Trap 5. Becoming Your Business.
- The fifth FAILING "S" MONEY TRAP IS Doing your own thing...
- By DOING YOUR OWN THING, being your own boss, you become your business, your 
business is YOU...
- The best examples of BECOMING YOUR OWN BUSINESS are Michael Jackson and 
Tiger Woods...
Failure Trap 6. Becoming Busier and Working Harder. 
- Becoming a SUCCESSFUL "S"  means being busier and working harder the more successful 
you become...
53 wds
-------------------------------------------------------------------------------------------------------------------------
- The "S" Quadrant Person's Six MONEY FAILURE TRAPS:
-

P. 55
- WORST ADVICE TO CHILDREN -
- IF YOU WERE BORN AFTER 1940, THE WORST ADVICE TO CHILDREN IS: 
"Go to school, get good grades, and find a safe secure job"...
- Why?
- Two WORST ADVICE REASONS TO CHILDREN To Be ONLY In The E Quadrant:
Reason 1. High Taxes...
Reason 2. High Interest on debt...
------------------------------------------------------------------------------------------------------ 
- There are no tax breaks for people in the "E" quadrant...
- The people in the "E" quadrant are 50/50 partners with the government...
- The government will take up to 50% of an "E" quadrant person's earnings over a lifetime...
53 wds
- On the LEFT SIDE of the QUADRANT an accountant's advice is to take a tax break by 
creating bad debt...
- An "E" person on the LEFT SIDE of the QUADRANT only gets a tax break if they 
borrow money...
- Taking a tax break by creating bad debt makes perfect sense on the LEFT SIDE of the 
QUADRANT... 
- The quadrant decides the sense (and cents - turning cash to trash)... 
69 wds
- Taking a tax break by creating bad debt makes NO sense IF you have the sense of the 
RIGHT SIDE of the QUADRANT... 
- Going for a tax break by creating bad debt is taking a $1.00 to give back $0.50...
64 wds
---------------------------------------------------------------------------------------------------
- Nine REASONS E Quadrant Is Risky:
- 

P. 56
- TAXES -
- Taxes are rules for money set up by the government, with the vote and donations of rich, 
for the poor and middle class... 
- Generating income in the RIGHT SIDE of the QUADRANT means being able to legally 
avoid paying taxes... 
- America was formed in protest to taxation... 
- The American Revolution was a war of independence from oppressive, un-representative 
English taxation... 
- TAX ADVANTAGES -
-
- Today's American Revolution is oppressive, un-representative, mismanaged, 
unaccountable taxation... 
74 wds

P. 57
- TAXES -
- In a global economy, money will go where it is not penalized... 
- Money will go where it is not penalized... 
- SIX INVESTMENT INCOME VS. EARNED INCOME CONCEPTS:
CONCEPT 1. How income Viewed is determined by the quadrant you earn that income in... 
CONCEPT 2. Money is different quadrants, different points of view... 
CONCEPT 3. Money is not equal, some income is much less taxed than other income... 
CONCEPT 4. Money intelligence is formed from the quadrant you earn your money in... 
CONCEPT 5. Start somewhere and start small, but start to earn money on the right side 
in order to form intelligence on the right side... 
CONCEPT 6. Most people focus on income, not investments... 
103 wds
----------------------------------------------------------------------------------------------------
- SIX INVESTMENT INCOME VS. EARNED INCOME CONCEPTS:
-  
P. 58
- Income Quadrants -
- Earning money in the right side of the quadrant means utilizing taxes as an asset, instead 
of the liability it is in the left side of the quadrant... 
- Taxes and debt are the main reasons people never feel financially secure or achieve 
financial freedom... 
- Security and freedom are found on the right side of the quadrant, the side where taxes 
and debt are utilized as assets... 
70 wds

P. 59
- JOB SECURITY, FINANCIAL SECURITY, FINANCIAL FREEDOM -
- Three Money Concepts:
1. JOB SECURITY.
2. FINANCIAL SECURITY.
3. FINANCIAL FREEDOM.
- What are the differences between Job Security, Financial Security, and Financial 
Freedom...? 
-----------------------------------------------------------------------------------------------
-
-----------------------------------------------------------------------------------------------
- Three Money Concepts 1. JOB SECURITY:
1. Job Security is not connected to financial security. 
2. A Job Agreement is only a promise to pay the agreed upon amount of money for 
   work, for agreed work content, and agreed work terms.
-----------------------------------------------------------------------------------------------
-
-----------------------------------------------------------------------------------------------
- Picture of CASHFLOW Pattern (E Quadrant) for JOB SECURITY:
-
65 wds
- E Quadrant People in this CASHFLOW pattern for JOB SECURITY must be good at 
performing their job... 
- E QuadrantPeople in this CASHFLOW pattern for JOB SECURITY must have many 
years of schooling... 
- E Quadrant People in this CASHFLOW pattern for JOB SECURITY must have many 
years of on the job training... 

P. 60
- People in this CASHFLOW pattern for JOB SECURITY feel financially insecure because 
they only have training for their job or professional security... 
70 wds
- People in the "E" or "S" CASHFLOW pattern can prepare for FINANCIAL SECURITY by 
educating themselves in the "B" and "I" quadrants... 
- By educating themselves in the "B" and "I" quadrants people in the "E" or "S" CASHFLOW 
pattern can confidence and feel more control and security even with less money... 
- By educating themselves in the "B" and "I" quadrants, knowledge becomes power for "E" or 
"S" people if they can seize a chance when they see it, and then they will have money... 
84 wds
- If "E" or "S" people have knowledge in two quadrants, one one the right as well as one on 
the left, they will be able to stand on both legs to stand firmer when an economic wind 
blows... 
- Three Money Concepts:
- 2. FINANCIAL SECURITY:
- The Picture of CASHFLOW Pattern for FINANCIAL SECURITY :
-

P. 61
- Picture Of Cash Flow Pattern For Financial Security:
-
- This another cash flow pattern for financial security for an employee... 
- Just as we study to learn a job, or study to be a job, we can learn to invest 
professionally... 
94 wds
- This cash flow pattern signifies that people are confident in their education and 
performance as both an investor and an employee...
- Cash Flow Pattern Of Financial Security For "S" Person: 
-
- Just as we study to be a job, we can also learn how to invest professionally... 
- The average American millionaire is self-employed, lives frugally, and invests for the 
long term... 
62 wds

P. 62
- Cash Flow Pattern Of Financial Wealth For "S" Person: 
-
- Financial Security for an "S" person means having a presence in both sides of the 
quadrant... 

P. 63
- Money generated from a job or a business does not bring Financial Security because in 
times of great economic change there are great economic transfers, money flies away 
towards more money... 
- People with a lot of money as well as people with less money need to invest in their 
financial education... 
- Getting a financial education, developing financial literacy, means being prepared for 
changes in both sides of the quadrant... 
101 wds

P. 64
- Three Money Concepts:
-  3. FINANCIAL FREEDOM?:
- Picture Of CASHFLOW Pattern For FINANCIAL SECURITY:
-
- This is the cash flow pattern of the ultra rich... 
- Even "B" people have greater stability operating in the right side of the quadrant as long as they 
are active in two quadrants... 
- In times of change, financially intelligent people see opportunities, other people see losses... 
- Change means wealth is being transferred... 
67 wds
P. 65
- BOSSES CAN'T MAKE YOU RICH -
- In times of change, bosses sell their companies, buy other companies, employees get 
restructured or fired... 
- Most workers will be no better financially off when they get fired than when they started 
working for the company... 
- Most employees collect paychecks and pay bills... 
- The Boss's job is only to make sure you get paid... 
- Your job starts the moment you get your paycheck... 
- Without money-management skills, money will leave you, no amount of money can save you... 
84 wds
- Budget your time and money wisely, learn about the right side of the quadrant... 
- "The only difference between a rich person and a poor is what they do in their 
spare time"... - Rich Dad.
- What you do after work and in your spare time will determine your financial future... 
- If you work hard only on the left side of the quadrant, you will work hard forever... 
- If you work hard on the right side of the quadrant, too, you will have a chance at financial freedom... 
86 wds

P. 66
- The I Quadrant - The LIFE PATH Rich Dad RECOMMENDED:
-
- If you have plenty of money and lots of free time, go directly to the "I" Quadrant... 
- Two Reasons For Approaching Wealth Through The "B" Quadrant: 
Reason 1. Experience and Education.
Reason 2. Cash Flow.
--------------------------------------------------------------------
- Two Reasons For Approaching Wealth Through The "B" Quadrant: 
- Reason 1. Experience and Education:
- If you become a successful "B", chances of being a successful "I" are proportional... 
- Good "I's" invest in good "Bs"... 
76 wds
- Being educated in business gives you an eye for other good business opportunities and 
good "Bs"... 
- It is too risky to invest in an "E" or "S" who does not know the difference between a 
system and a product... 
- It is too risky to invest in an "E" or "S" who does not have the leadership skills... 

P. 67
- Two Reasons For Approaching Wealth Through The "B" Quadrant: 
- Reason 2. Cash Flow:
- If your business is up and running, you will have the free time and the cash flow to get 
through the ups and downs of the "I" Quadrant... 
90 wds
- Many "Es" or "Ss" are financially red line and cannot survive the ups and downs of the 
market, or any kind of financial loss... 
- Investment is capital and knowledge intensive... and takes many tries to get right... 
- Investors know that success is a poor teacher and that learning comes from mistakes... 
- Mistakes cost money... 
- Without capital and knowledge, investing is financial suicide... 
- Developing the skill of becoming a good "B" also provides you an education and cash flow 
for becoming a good investor... 
- Once you gain the education to become a successful investor, you will know why it does 
not always take money to make money... 
106 wds
----------------------------------------------------------------------------------------------------
- Two Reasons For Approaching Wealth Through The "B" Quadrant: 
-

P. 69
- Three KINDS OF BUSINESS SYSTEMS -
- The goal of the "B" Quadrant is to own a system and have people work for you... 
- You can develop a business system yourself or look for a system to buy... 
- Three MAIN TYPES OF BUSINESS SYSTEMS:
Business System 1. Traditional C-Type corporations.
Business System 2. Franchises.
Business System 3. Network Marketing.
-----------------------------------------------------------------------------------------------------
- Three MAIN TYPES OF BUSINESS SYSTEMS:
- Business System 1. Traditional C-Type corporations.
- You buy or develop your own business system... 
- Three MAIN TYPES OF BUSINESS SYSTEMS:
- Business System 2. Franchises.
- You buy into an someone else's business system... 
66 wds
- Three MAIN TYPES OF BUSINESS SYSTEMS:
- Business System 3. Network Marketing.
- You buy into and become part of an existing business system... 
- Once a business system is up and running, there is an income stream without much physical 
effort from the owner...
---------------------------------------------------------------------------------------------------
- Three MAIN TYPES OF BUSINESS SYSTEMS:
-

P. 70
- REQUIRED FOR PRESENCE IN THE "B" QUADRANT:
-
- The "B" Quadrant is the quadrant that requires a knowledge of both systems and 
people... 
- Activity in the "B" Quadrant includes the possibility that you may lose one to three 
companies before you get things right and build a company that lasts... 
85 wds

P. 71
- THE HARD PART -
- Success is a poor teacher... 
- Rich Dad : We learn the most about ourselves when we fail... so don't be afraid of failing...
- Failing is part of the process of success... 
- The magic you have to achieve in building a company from scratch is Two Parts: 
Part 1. Systems Magic.
Part 2. People Magic.

P. 72
- LEARN HOW TO BECOME A "B" QUADRANT PERSON -
- Franchises are for people who do not want to build or do not know how to build their 
own business system... 
85 wds
- An "E" learning to become a "B" learns by on-the-job training... 
- Most on-the-job training does not teach the behind the scenes aspects to becoming a 
"B"... 
- Most on-the-job training only teaches the job, only on a need to know basis... 
- Most corporate management programs only teach how to be a manager, management 
training, not management... 
- Most "S" people on the way to becoming a "B" get stuck in the "S" quadrant because 
they do not develop a strong enough system... they end up being the system... 
- Successful "Bs" develop systems that will run without their involvement... 
96 wds
- THREE WAYS TO GET TO THE "B" LEVEL QUICKLY:
Way 1. Find a mentor :
Way 2. Franchises :
Way 3. Network Marketing:
------------------------------------------------------------------------------------------------------
- THREE WAYS TO GET TO THE "B" LEVEL QUICKLY:
Way 1. Find a mentor:
- A mentor is someone who has already done what you want to do... 
- Do not rely on an adviser... advisers talk the talk, but don't walk the walk... 
- Most advisers are in the "S" quadrant... the world is full of "Professional S's" 
advising how to become "B's" and "I's"...
62 wds

P. 73
- Advice: Always be aware of the quadrant the advice is coming from... 
- "B" people are leaders (motivators) of people, NOT managers... 
- Managers often see people as inferior or subordinates... 
- Leaders must direct people who are much smarter than themselves... 
- For business systems, read E-MYTH, Michael Gerber... 
- Traditional way to learn about business systems is the MBA program, 2 years and 
$50,000.00 later, at some prestigious school, you studied about business and numbers... 
74 wds
- Even with a mentor and years of experience, creating your own system requires a lot 
of labor, trial and error, up-front legal costs, and paperwork... all while you are trying 
to develop your people... 
- THREE WAYS TO GET TO THE "B" LEVEL QUICKLY:
Way 2. Franchises:
- Franchises are another way to study systems hands on... 
- A good franchise is a tried and proven operating system... a $250,000.00 entry price 
is high... 
61 wds
- One advantage of a franchise is that you buy a system and can concentrate on staff 
development rather than both people and systems development... 
- If you buy a good franchise, don't be a good "S" and do your own thing... be a good "E"... 

P. 74
- SYSTEMS ATTRACT MONEY -
- Most problems with franchises originate from franchisees trying to change the 
system... 
61 wds
- If you want to do your own thing, first master systems and people... 
- Most people raising money for their business, don't know the difference between a 
product and a system... 
- For a business to survive and thrive, 100 percent ... 
- For a business to survive and thrive, the owner must know the difference between a 
product and a system... 
- Money follows professional systems and people who know how run them... 
69 wds

P. 75
- THREE WAYS TO GET TO THE "B" LEVEL QUICKLY:
Way 3. Network Marketing:
- For an entry (Membership) fee, a person (Distributor) buys into an existing system 
(a distributorship), works to build a business... 
- Paperwork, order processing, distribution, accounting, and follow-up are all 
computerized and automated, managed by network marketing software systems... 
- Distributors (partners in success) focus their efforts on business building while sharing 
an automated business opportunity... 
59 wds

P. 76
- Network marketing offers the opportunity of building up passive income while the 
Distributors (partners in success) learn to become professional investors... 
- Network marketing offers the opportunity of using a little money ($200.00), to 
invest 5 years of sweat equity, that would normally take 10 - 15 years to acquire... 
50 wds
P. 77
- Network marketing offers the opportunity of purchasing a low entry fee personal 
franchise ($200.00) for the purpose of developing enough passive income to begin 
investing... 
- Network marketing offers the opportunity of an education at best...
--------------------------------------------------------------------------------------------------
- THREE WAYS TO GET TO THE "B" LEVEL QUICKLY:
-
--------------------------------------------------------------------------------------------------
- TWO THINGS Network marketing offers two important things to learn that 
    are necessary for a successful "B": 
1. Overcoming fear of rejection...
- People will try to hold you back or discourage you... 
2. Learning to lead people...
- The ability to get along with and inspire people is a priceless skill to acquire... a 
skill that can be learned...
90 wds
--------------------------------------------------------------------------------------------------
- TWO THINGS Network marketing offers two important things to learn that 
    are necessary for a successful "B": 
-

P. 78
- 5 Criteria for Excellent Network Marketing Organizations: 
Criteria 1. Proven Organizations.
- Must have a successful track record record, a distribution system and compensation 
plan that has been successful for years... 
Criteria 2. A Business Opportunity You Would Share With Others.
- Must be an organization you can succeed with, believe in, and share confidently with 
others...
Criteria 3. Ongoing, Long-term Training and Education Programs.
- Must offer programs that develop better people, develop self-confidence...
- Self-confidence is a must-have for activity in the right side of the quadrant...
84 wds
Criteria 4. A Strong Mentor Program.
- Must be able to learn from leaders, not advisers...
- Must learn from leaders, people already on the other side of the quadrant, who want 
your success...
Criteria 5. The Right Stuff People.
- Must have people you respect and enjoy being with...
- You look at the product only after an organization meets the 5 Criteria for 
Excellent Network Marketing Organizations...
63 wds
--------------------------------------------------------------------------------------------------
- 5 Criteria for Excellent Network Marketing Organizations: 
-
--------------------------------------------------------------------------------------------------
- If you are interested in developing a a successful "B", a system lifelong education, 
and the people are critical...
- The sales pitch about the product and ease is about a product organization, and 
becoming a salesman...
- The Excellent Network Marketing Organization is for the purpose of molding 
you into the successful business leader and helping you create a long-term passive 
income business...
62 wds
P. 79
- Freedom and security are found from the knowledge and ability you acquire from 
creating something, not so much as from what you have...
- Having learned how to create a successful system is a skill that can be repeated 
over and over...
- The reason so many people get stuck in or stay in the left side of the cash flow 
quadrant is the risks of creating their own system are too great...
73 wds
- The risks of becoming a successful business owner are being reduced through 
technology...
- Franchises and Network Marketing have greatly reduced the risks of becoming a 
successful business owner...
- Franchises and Network Marketing have taken away the hard part of developing your 
own system...
- With a system already in place in Franchises and Network Marketing, developing your 
people becomes the key to becoming a successful business owner...
65 wds

P. 81
- THE WORLD OF INVESTING - 7 LEVELS OF INVESTORS - 
- "Never be a person who buys stock, be the person who creates the stock that brokers 
sell and others buy... -Rich Dad.
- The John Burley classification of investors identifies investors into 6 categories, plus one 
Kiyosaki category...
47 wds

P. 82
- THE 7 LEVELS OF INVESTORS: 
Level 0 : Those With Nothing To Invest 
Level 1 : Borrowers
Level 2 : Savers
Level 3-A : The "I can't be bothered." Group...
Level 3-B : The "Cynic" Group...
Level 3-C : The "Gamblers" Group...
Level 4 : Long-Term Investors "Long Term Plans" Group... 
Level 5 : Sophisticated Investors "Can Afford To" Group
Level 6 : Capitalists : 1 out of 100
----------------------------------------------------------------------------------------------------
- THE 7 LEVELS OF INVESTORS: 
-
-----------------------------------------------------------------------------------------------------------
- THE 7 LEVELS OF INVESTORS: 
Level 0 : Those With Nothing To Invest: 
- Level 0 People are people with no money to invest... 
- Level 0 People spend everything they make, or spend more than they make... 
- Level 0 People are rich people who spend as much or more than they make fit in this 
category... 
00. Level 0 People are at least 50% of the adult population... 
59 wds
-----------------------------------------------------------------------------------------------------------
- THE 7 LEVELS OF INVESTORS: Level 0: Those With Nothing To Invest - 
-

P. 83
- THE 7 LEVELS OF INVESTORS: 
Level 1 : Borrowers
01. Level 1 People solve financial problems by borrowing, or spend money by borrowing... 
02. Level 1 People often invest by borrowing... 
03. Level 1 People practice avoidance from core problems, or are unaware of core 
problems... 
04. Level 1 People ignore or are unaware of money and spending habits...
55 wds
05. Level 1 People may have assets, but anything they own usually has debt attached 
to it...
06. Level 1 People often buy expensive toys or doodads they list as assets...
07. Level 1 People live to shop, shop for a living...
08. Level 1 People always need to reward themselves first, pay themselves last...
09. Level 1 People spend the money they have or borrow it to spend more... the ideal 
consumers - the ideal business targets...
77 wds
10. Level 1 People never have enough money, think more money will solve their money 
problems...
11. Level 1 People fail to see that money is not their problem, that money habits are 
their core problem...
12. Level 1 People have 3 MONEY HABITS that are out of control: borrowing, spending, 
shopping...
13. Level 1 People often look rich...
- Businesses often disappear, but debts don't...
---------------------------------------------------------------------------------------------------
- THE 7 LEVELS OF INVESTORS: Level 1 : Borrowers
-
64 wds

P. 84
- THE 7 LEVELS OF INVESTORS: 
Level 2 : Savers
01. Level 2 People put aside, save, a "small" amounts of money on a regular basis... 
02. Level 2 People save to consume rather than invest... 
03. Level 2 People believe in paying in cash... 
04. Level 2 People value security most... 
05. Level 2 People often waste their most precious asset, time, trying to save pennies... 
06. Level 2 People need to spend their time learning how to invest... 
07. Level 2 People are the exact opposite of Level 1 Investors... 
87 wds
- It is recommended to have at least six months to a year's worth of living expenses in 
a savings account... 
08. Level 2 People lose in inflation by saving... 
09. Level 2 People are safer in deflation by saving... 
10. Level 2 People are safer to save if they do not study or know about investing... 
11. Level 2 People are the bank's favorite, risk-free customers because banks can 
lend up to $20.00 on every $1.00 saved in a savings account, charging up to 19% per loan... 
87 wds
---------------------------------------------------------------------------------------------------
- THE 7 LEVELS OF INVESTORS: Level 2 : Savers
-

P. 86
- THE 7 LEVELS OF INVESTORS: 
Level 3 : "Smart Investors" : Level 3-A, Level 3-B, Level 3-C. 
01. Level 3 People are divided into 3 types : Level 3-A, Level 3-B, Level 3-C... 
02. Level 3 People participate in company plans, pension plans, mutual funds, stocks, 
bonds, limited partnerships... 
03. Level 3 People are mostly middle class and solidly educated... 
04. Level 3 People have little financial literacy, have no training in investing.. 
05. Level 3 People do not read financial reports, company annual reports, or a company 
prospectus... 
83 wds
----------------------------------------------------------------------------------------------------
- THE 7 LEVELS OF INVESTORS: 
Level 3 : "Smart Investors": Level 3-A, Level 3-B, Level 3-C.
-
----------------------------------------------------------------------------------------------------
- THE 7 LEVELS OF INVESTORS: 
Level 3-A : The "I can't be bothered." Group...
01. Level 3-A People have convinced themselves they don't understand money and never 
will...
02. Level 3-A People let money sit, do little for their retirement plan, unquestioningly 
leave it up to others...
03. Level 3-A People block their financial futures out of their minds...
04. Level 3-A People look at their investments after they retire...
68 wds
----------------------------------------------------------------------------------------------------
- THE 7 LEVELS OF INVESTORS: 
Level 3 : "Smart Investors" : Level 3-A. 
-

P. 87
- THE 7 LEVELS OF INVESTORS: 
Level 3-B : The "Cynic" Group...
- Level 3-B People know why investments will not work...
- Level 3-B People sound intelligent, speak with authority, are successful in their 
fields cowards in investing...
01. Level 3-B People are overly cautious and follow the market like sheep...
02. Level 3-B People are a combination of fear and arrogance - cynicism turned to 
arrogance...
03. Level 3-B People wait for social proof that their actions are correct...
73 wds
04. Level 3-B People are called "pigs" by professional traders because they run to 
their own slaughter, buying high and selling low...
05. Level 3-B People infect the people around them with their deep fear, disguised 
as intelligence...
06. Level 3-B People are "Monday Morning Quarterbacks"...
- Cynism (cynic = dogma in Greek) is arrogance and sarcastic contempt for merit and 
success...
- Both cynics and con-men are financially dangerous...
67 wds
----------------------------------------------------------------------------------------------------
- THE 7 LEVELS OF INVESTORS: Level 3 : "Smart Investors" : Level 3-B. 
-

P. 88
- THE 7 LEVELS OF INVESTORS: 
Level 3-C : The "Gamblers" Group...
01. Level 3-C People are also called "pigs" by professional traders because they run 
to their own slaughter not being cautious enough...
02. Level 3-C People look at an investment like a set of dice...
03. Level 3-C People have no set trading rules or principles...
04. Level 3-C People use sophisticated techniques like margins, calls, puts, options...
05. Level 3-C People participate in the investment world without knowing who the players 
are and who makes the rules...
84 wds
06. Level 3-C People lose 90% of the time, never discussing their losses but living for 
the killing they made 6 years ago...
07. Level 3-C People play for the one big deal ...
08. Level 3-C People are lazy and out of control as their core problems...
----------------------------------------------------------------------------------------------------
- THE 7 LEVELS OF INVESTORS: Level 3 : "Smart Investors: Level 3-C. 
-

P. 89
- THE 7 LEVELS OF INVESTORS: 
Level 4 : Long-Term Investors "Long Term Plans" Group... 
01. Level 4 People are strongly aware of the need to invest...
02. Level 4 People are actively involved in their own investment decisions...
81 wds
03. Level 4 People have clearly laid out investment plans that will allow them to reach 
their financial objectives...
04. Level 4 People invest in their own education before purchasing an investment...
05. Level 4 People take advantage of periodic investing...
06. Level 4 People invest in a tax-advantaged way...
07. Level 4 People seek out advice from competent financial planners...
61 wds
08. Level 4 People can sit down and map out a plan...
09. Level 4 People are in control of their spending habits...
10. Level 4 People minimize their debt and liabilities...
11. Level 4 People live within and increase their means...
12. Level 4 People calculate how much invested at how many months will bring what 
realistic return to reach their goals...
63 wds
13. Level 4 People calculate at which age they can stop working...
14. Level 4 People calculate how much they need per month...
15. Level 4 People don't use sophisticated investments, stay simple...
16. Level 4 People do solid stock and mutual (Vanguard Index 500 Fund) fund investments...
17. Level 4 People know how to buy closed end mutual funds...
18. Level 4 People insurance vehicles as protection, not as investments...
71 wds
19. Level 4 People do solid stock and fund investments...
- Get into the game small and learn by doing...
- Money has a way of increasing intelligence quickly...
- Small deals and investments can lead to bigger ones... but start...
20. Level 4 is where most of the millionaires in America come from...
21. Level 4 People use time as an advantage, through well-balance financial habits that 
make them rich and successful over the long term...
22. Level 4 People start before 45 years of age...
84 wds
----------------------------------------------------------------------------------------------------
- THE 7 LEVELS OF INVESTORS: Level 4 : Long-Term Investors. 
-

P. 90
- THE 7 LEVELS OF INVESTORS: 
Level 5 : Sophisticated Investors "Can Afford To" Group
01. Level 5 People can "afford" invest more aggressively...
02. Level 5 People have good money habits, a solid money foundation, investment savvy...
03. Level 5 People are not new to the investment game...
04. Level 5 People are focused rather than diversified...
05. Level 5 People have a long and consistent winning track record...
06. Level 5 People have enough losses to give them the wisdom to win consistently...
80 wds
07. Level 5 People buy investments "wholesale" rather than "retail"...
08. Level 5 People put their own deals together for their own use...
09. Level 5 People get together with Level 6 friends to participate in their deals...
10. Level 5 People are well-educated in the world of investing and actively seeking 
new information...
11. Level 5 People risk less than 20% of their total capital in speculative ventures...
69 wds
12. Level 5 People start small in any new endeavor to learn how to...
13. Level 5 People are classified as sophisticated because they create their own 
deals, have extra money, have a team of hand-picked professional advisers, and a track 
record...
14. Level 5 People can assemble their own investments by bringing different components 
together...
15. Level 5 People catch their opportunities in bad markets and economics times...
16. Level 5 People get into markets when others get out and they know when to get out...
86 wds
17. Level 5 People are clear on their own rules and principles of investing...
18. Level 5 People abhor gambling, taking risks greater than the average person, 
proportional to their level of financial intelligence...
19. Level 5 People have a plan and specific goals...
20. Level 5 People study on a daily basis...
21. Level 5 People actively participate in the management of their investments...
22. Level 5 People understand money and how to have money work for them...
79 wds
23. Level 5 People focus mainly on increasing assets, rather than investing for the 
extra money...
24. Level 5 People reinvest their gains to build a bigger asset base, which throws off 
even higher cash or high returns, with minimal tax exposure yields...
25. Level 5 People often teach their children and pass on the family fortune to 
generations in the form of corporations, trusts, partnerships...
26. Level 5 People own nothing but control everything through corporations...
77 wds
27. Level 5 People control the legal entities that own their assets...
28. Level 5 People have a personal board of directors to help them manage their 
assets...
29. Level 5 People have an informal team of bankers, accountants, attorneys and 
brokers to help them manage their assets...
30. Level 5 People generally create investments only for their own portfolio, using their 
own money...
31. Level 5 People pay a small fortune to protect their wealth, using stewards...
78 wds
----------------------------------------------------------------------------------------------------
- THE 7 LEVELS OF INVESTORS: Level 5: Sophisticated Investors -
-

P. 93
- THE 7 LEVELS OF INVESTORS: 
Level 6 : Capitalists : 1 out of 100
01. Level 6 People create businesses and investments simultaneously...
02. Level 6 People make their money, build their portfolios, by synergistically 
orchestrating other people's money, other people's time, other people's talents...
03. Level 6 People provide the money that provides the jobs, the businesses, and the 
goods that make a country prosper...
04. Level 6 People create investments for themselves and others by using other people's 
talents and finances...
78 wds
05. Level 6 People create investments and sell them to the market...
06. Level 6 People know how to use other people's money to make money, they do not need 
their own money to make money...
07. Level 6 People create investments that other people buy...
08. Level 6 People know how to manage risk and make money without money...
09. Level 6 People know that money is an idea, that money is created in their head...
10. Level 6 People are also stewards of their wealth...
11. Level 6 People contribute their wealth, give it back to society...
99 wds
---------------------------------------------------------------------------------------------------
- THE 7 LEVELS OF INVESTORS: Level 6 : Capitalists : 1 out of 100
-

P. 95
- Success (wealth creating) requires strengthening your strengths and addressing your 
flaws...
- The skills that must be developed at Level 4 will set you for 5 and 6... skipping 4 
will result in you being a Level 3...
- One of life's greatest joys is to be happy where you are...

P. 97
- MONEY CANNOT BE SEEN WITH YOUR EYES -
- The lessons learned from one investment, or one investment mistake, can make millions 
years ahead...
75 wds

P. 98
- MONEY IS SEEN WITH YOUR MIND -
- It is not what you see with your eyes that counts, but what you cannot see with your 
eyes that is important...
- You must see money with your mind: 
- The deal, the financial agreement, the market, the management, the risk factors, the cash 
flow, the entity (corporate structure), the tax laws, and other things that make an 
investment good or not...
69 wds
- Nine Factors Of A Rental Property Investing: 
1. Interest rates, Return on Investment figures.
2. How the investment fits into your long-term strategies.
3. Vacancy factors. 
4. Cap rates, association history assessments.
5. Management (yours and a professional's) costs.
6. Percentage rate for repairs.
7. Market trends, area trends.
8. Consequences of not be able to rent.
9. How long you can float the property without rent, etc.
---------------------------------------------------------------------------------------------------
- Nine Factors Of A Rental Property Investing -
-
---------------------------------------------------------------------------------------------------
- Anything important cannot really be learned in a classroom, but must be learned 
by taking action, making mistakes, correcting mistakes, gaining wisdom...
79 wds
- Most people invest 95% with their eyes and only 5% with their minds... 
- 9 out of 10 investors do not make money...
- Many people are in a hurry to get rich and become dreamers, hustlers, gamblers and 
crooks on the way...
- In business many people say, "You can't do that."... 
- What they really mean is they can't do it, or they don't want you to...
- Most people struggle financially because they take advice from people who are also 
mentally blind to money; advisers, rather than mentors... the blind leading the blind...
- If you want money to take care of you, you must first know how to take care of it...
- If money is not first in your head, it will not stick to your hands...
- If money does not stick to yours hands, money and people with money will stay away 
from you...
78 wds
-------------------------------------------------------------------------------------------------
- Five TRAINING YOUR BRAIN TO SEE MONEY TIPS
- 
P. 101

- TRAIN YOUR BRAIN TO SEE MONEY -
- TWO STEPS TO SEE MONEY WITH YOUR MIND:
- STEP 1. TRAIN YOUR BRAIN to see money
- ACQUIRE FINANCIAL LITERACY...
- STEP 2. RECOGNIZE RISK from RISKY, 
- Training your brain to see money is to LEARN HOW TO RECOGNIZE RISK.
-------------------------------------------------------------------------------------------------
- TWO STEPS TO SEE MONEY WITH YOUR MIND -
-
-------------------------------------------------------------------------------------------------
- TWO STEPS TO SEE WITH YOUR MIND:
- STEP 1: TRAIN YOUR BRAIN to see money, ACQUIRE FINANCIAL LITERACY...
- Financial Literacy is the ability to understand the words and number systems of 
capitalism...
- The CASHFLOW Quadrant is a tool for seeing money with your mind...
- Each quadrant represents a foreign language, a foreign country, because although 
money exists in all four quadrants, it behaves and exists differently in each...
79 wds
- Each quadrant uses different rules and different words and different numbers...
- Financial Literacy (Kinyuu Kiso Chishiki) is the basis for Financial Intelligence 
(Jitsuyouteki Kinsen Shikou NouRyoku)... 
- Financial Intelligence (ability to make money work, keep money, pass money on to 
family) begins with knowing the words and numbers of Financial literacy (ability to 
understand and use money)...
- Financial Intelligence is the ability to make money with money begins with 
understanding the words and the numbers...
- If money is not in your head, it will not stick to your hands...
84 wds
--------------------------------------------------------------------------------------------------
- TWO STEPS TO SEE WITH YOUR MIND: 
STEP 1: TRAIN YOUR BRAIN to see money - ACQUIRE FINANCIAL LITERACY -
-

P. 102
- TWO STEPS TO SEE WITH YOUR MIND:
- STEP 2. Recognize RISK from RISKY, Training your brain to see money is to 
LEARN HOW TO RECOGNIZE RISK.
- Investing is not risky, being uneducated is being risky...
- Keep an open mind, listen to all kinds of people, and ultimately rely on your own 
financial intelligence to make decisions...
- Financial advice is risky and most financial advice is handed down to you at home... 
not because of what is said, but because of what is done by parents at home...
84 wds
- People learn more by example than by words...
- Your advisers are only as smart as you are...
- If you are that smart your advisers can only help a little...
- If you are financially well-educated, competent advisers can complement your 
ability, your financial intelligence double and triple it ...
- If you are financially naive, a good (reputable) adviser can legally only offer you 
safe, and secure financial strategies...
- Unsophisticated investors can only be introduced to low risk, low yield investments...
- Diversification is the key word for unsophisticated investors...
- Few advisers take the time to teach you...
94 wds
- An adviser's time is money and that is a bad business model for the investor customer...
- Take it upon yourself to become financially educated and manage your money well, 
then a competent adviser can inform you about investments and strategies that only a 
few ever see...
- People who are not financially literate must take opinions and advice from people 
they think they can trust...
- If you are not financially literate, then you need to trust someone you hope is 
financially literate...
- Risky is investing or managing your money based on someone else's recommendations 
more than your own...
94 wds
-------------------------------------------------------------------------------------------------
- TWO STEPS TO SEE WITH YOUR MIND: STEP 2. 
- Recognize RISK from RISKY - LEARN HOW TO RECOGNIZE & MANAGE RISK:
-

P. 103
- THEY ARE NOT LYING - 
       THEY'RE JUST NOT TELLING YOU THE TRUTH, THE WHOLE TRUTH -
- When someone says your house is an asset, you have to look at whom you are talking to...
- When a banker says your house is an asset, it means simply, someone else's asset, the 
banker's, not yours...
- If you read financial statements, it is easy to see that a house is probably the banker's 
asset...
- Definition of and asset:
- An asset is something that puts money into my pocket...
85 wds
- Definition of and liability:
- A liability takes money out of my pocket and puts my money into someone else's 
pocket...
- People in the left side of the Cashflow Quadrant don't really think about assets and 
liabilities because left side accounting does not allow for much tax protection...
--------------------------------------------------------------------------------------------------
- Two Definitions That Determine Your Financial Future And Financial Success: 
-

P. 104
- REALLY REAL ESTATE? -
- People in the right side of the Cashflow Quadrant need to know the different between 
assets and liabilities...
69 wds
- People on the right side of the Cashflow Quadrant need to have Financial Literacy
and Financial Intelligence... 
- People on the right side of the Cashflow Quadrant need to see the big picture of money 
in order to stay in the right side of the Cashflow Quadrant...
- Financially Literate people know that a mortgage does not show up as an asset 
in their own balance sheets...
- Financially Literate people know that a mortgage shows up as an asset on a bank's 
balance sheets...
73 wds
- A Picture Of Two Different Financial Statements Of Your House:
-
- This picture shows two different balance sheets, two different cash flows... yours 
and the bank's...
- "B" and "I" Quadrant accounting shows a different picture (Blue-Green Cashflow Lines) 
than "E" and "S" Quadrant (basic) accounting (Red Cashflow Lines)...
- In "E" and "S" Quadrant (basic) accounting, the "value" of your home is shown as an 
asset and the mortgage on your home as a liability...
63 wds
- It is important to note that unlike a liability, which may only grow larger, the 
"value" of your home is only an opinion, which fluctuates up or down, in an unstable 
market...
- The mortgage on a home as a liability that is not affected by the market...
- For someone in the "B" and "I" Quadrant, a home is not an asset because it does not 
generate cash flow...
68 wds

P. 105
- WHAT IF YOU PAY OFF YOUR MORTGAGE? -
- To be able to see money, you have to see it with your mind, not your eyes...
- Reasons Why Your House is a Liability even without a mortgage :
Reason 1 : Maintenance, operational and general upkeep expenses...
Reason 2 : Home expenses are paid for mostly with after-tax dollars...
Reason 3 : Even after loans have been repaid, you do not really own it because 
             it is taxable...
74 wds
----------------------------------------------------------------------------------------------------
- Reasons Why Your House is a Liability even without a mortgage :
-
----------------------------------------------------------------------------------------------------
- People in the "B" and "I" Quadrant only includes property in the asset column if it 
generates income through positive cash flow...

P. 106
- The Power of Words -
- To be able to see money, you have to see it with your mind, not your eyes...
- In order to see money with your mind, you have to know the real definitions of words 
and the system of number, the meaning of numbers...
- "Mortgage" means "an agreement till death"...
- "Finance" means "penalty"...
80 wds
- "Real" means "royal", "real estate" means "king's land", because all land was taxed by 
the king (government)...
- A "Derivative" means something "derived" from something else, such as lemonade 
being "derived" from a lemon...
- Mortgages and real estate taxes are age-old derivatives of real estate ownership, 
"derived" from land...
- A bank does not call a mortgage a derivative instead, the bank says "their" (your) 
mortgage is "secured" by your land ...
69 wds
- The concepts mortgage, real estate, taxes are as old as the Middle Ages, and early 
banks were created by kings to handle the business that kings derived off the land the 
kings owned...
- Today, land is still called "real estate" because no matter how much you pay for it, 
it never really belongs to you... 
- Real estate is taxed by the government...
- Interest on loans is always more over time than the advertised rate (8% = 160% over 
a 30 year loan)...
80 wds
- If you can not see the numbers, you will really never know...
- Anatomy of a bank loan for a house purchase:
1. House price $100,000.00 for the ,
2. Down payment of $20.000.00,
3. Loan price 8% interest, 
4. Borrow $80,000.00, over
5. Repayment term 30 years, 
6. Repayment figures (on the $80,000.00 loan) for 5 year payback : $35,220.00 to 
bank, $31.276.00 for interest alone, and only $3,944.00 paid to debt reduction. 
71 wds
7. Repayment figures (on the $80,000.00 loan) for 30 year payback : $211,323.00 
to bank, $131.323.00 for interest alone, on $80,000.00 paid for debt. 
8. $131.323.00 on $80,000.00 paid for debt is 160% in interest for a repayment 
term of 30 years... 
9. A house purchased for $100,000.00 on an 8% loan for $80,000.00, for 30 years 
term will really cost $211.323, not including sales taxes, property taxes, loan 
insurance, property insurance, maintenance and repairs on house... 
76 wds
--------------------------------------------------------------------------------------------------
- Anatomy of a bank loan for a house purchase:
- 
P. 107
- DEBT INDUSTRY AVERAGES -
- In the banking industry, a seven-year average is the expected life expectancy of a 
mortgage ...
- Banks expect the average person to borrow or refinance every seven years...
- Banks expect to get $80,000.00 back every 7 seven years, plus $43,291.00 on 
interest...
- The cycle of a loan, government tax breaks for loans and government taxes creates 
an environment that legitimizes being in debt...
67 wds
- Debt is a source of revenue for the government by encouraging spending and 
increasing tax revenues...
- When a bank , accountant, attorney, schoolteacher claims your house is an asset, 
they are not saying whose asset it is...

P. 108
- ARE YOUR SAVINGS ASSETS? -
- Your savings really are your assets...
- Picture of a Savings Balance Sheet for The Saver:
-
- This a picture of your savings account serving as an asset for you because it is 
earning interest for you, paid from the bank...
81 wds
- Picture of a Savings Balance Sheet for the Bank:
-
- This a picture of your savings account serving as a liability for the bank because it 
is paying interest to you, paid from your savings account, and they have to pay to 
safeguard your money also...

P. 109
- TAX PENALTY FOR SAVINGS ASSETS? -
 - You get a tax break for going into debt and you get penalized (taxed on interest 
income) if you save...
72 wds
- One reason for the tax break for going into debt and getting penalized (taxed on 
interest income) if you save is the government acting in behalf of the banking 
industry...
- By government law, the banks can lend up to $20.00 on every one dollar of your 
savings...
- For every one dollar in a savings account, earning less than 2% interest for you, a 
bank can lend up to $20.00 and charge more than 9% on a loan made on your money...
81 wds
- While you may earn up to 5% on one dollar in your savings account, a bank can earn 
more than 20% on the $10.00 of debt on your $1.00 from a loan made on your money...
- The banks do not need a lot of savings accounts to make their profits...
50 wds

P. 110
- A Picture of Your Financial Statement After You Make a loan:
-
- This a picture of your loan, serving as an asset for the bank because you are paying 
interest to the bank, paid from your income (salary)...
- A Picture of the Bank's Financial Statement After You Make a loan:
-
- This a picture of your loan serving as an asset for the bank because the bank is 
getting interest payments from you, paid from your income...
77 wds

P. 111
- The system of money, the Money Game, and the rules are decided by politicians and 
business, through campaign contributions and and powerful business lobbies...
- The system of money, the Money Game, and the rules are a world that few people ever 
see...
- The name of the game of capitalism, of money is "Who is indebted to whom?"...
59 wds
- "The more people you have indebted to you, the wealthier you become, that 
is the game." - Rich Dad
- If you have too much debt, the world takes everything you have... your time, your life, 
your home, your confidence, and your dignity if you go that far...
- Learn the game, know the game, master it, and then decide what you want to do...
62 wds

P. 112
- MONEY IS DEBT -
- Even our currency is an instrument of debt rather than equity... Money is now an IOU 
guaranteed to be paid by the taxpayers of the country of that currency...
- The taxpayers of the country of a currency work to pay for this IOU called money... 
- The key element of money is "confidence"...
- Most money today is known as "fiat" money, money that cannot be converted to 
something tangible... like gold or silver...
77 wds
- "Fiat" means dictatorial order or decree by a person or group having complete authority...
- Most of the global economy today is based on debt and confidence, with the world 
holding things together on debt and confidence...
- "Fine" is also an acronym for Feeling Insecure Neurotic and Emotional...
- For many people money is not a game, it's survival... 
- Be warned: Learn to play or you will be played...
67 wds

P. 113
- GETTING PAID FOR TAKING ON DEBT -
- The name of the game of capitalism, of money is "Who is indebted to whom?"...
- "Who is indebted to whom?" is why it is pure nonsense to believe losing money to get 
a tax break is investing...
- Someone is simply telling you to get into debt, take all the risks, and pay for it...
62 wds
- People on the right side of the Cashflow Quadrant get paid for taking on debt and risk...
- Making money is "common sense", not rocket science...
- Typical Financial Industry " Common" Sense: 
1. A banker will tell you to take on debt, and tell you the government will give you 
a tax break for something that does not make economic sense...
2. A real estate agent then tells you to buy the house because he can find you a tenant 
who will pay you less than you are paying, just because he thinks the price of the property 
will go up...
95 wds
------------------------------------------------------------------------------------------------
- Typical Financial Industry " Common" Sense:
-
------------------------------------------------------------------------------------------------
- "Your profit is made when you buy, not when you sell..." -Rich Dad.
- A deal, debt and risk have to make sense whether the economy is getting good or bad...
- The game of money is to see others becoming indebted to you and to be careful whom 
you become indebted to...
- "If you take on debt, be sure you get paid for it..." -Rich Dad.
65 wds

P. 114
- FINANCIAL SURVIVAL IS BASED ON FACTS NOT OPINIONS... -
- People on the right side of the Cashflow Quadrant must distinguish facts from opinions 
when it comes to money...
- People on the right side of the Cashflow Quadrant must know numbers, must know facts 
that numbers tell, in order to survive...
- People on the right side of the Cashflow Quadrant must know when something is a fact 
and when something is an opinion...
- Too many people struggle financially because they spend their lives using opinions rather 
than facts when making financial decisions...
91 wds

P. 115
- Too many people take hard earned money and change it into a lifetime of financial 
liabilities...
- The actual financial numbers of the transaction tell you the facts...
- In reality only you are the asset or the liability, only you can make something an asset 
or a liability...
- "Be careful when you take on debt, if you take on debt personally, make sure it is 
small." - Rich Dad.
- If it is large, make sure someone else is paying for it...
81 wds
- The game of money is played on all of us, from business to business, country to 
country...
- For most people money is not a game, money is survival, and most people get 
    played, because they do not understand the game...

P. 117
- Most people's lives are determined by opinions, rather than facts...
- To be successful in life one is not better than the other, you have to know the difference...
70 wds
- Financial trouble occurs when opinions are used as facts...
- Due diligence Means: Finding out what are facts and what are opinions...
- Two negative types of due diligence:
1. Not enough due diligence (Opinions are used as facts).
2. Too much due diligence (Analysis paralysis).
------------------------------------------------------------------------------------------------
- Two negative types of due diligence:
-

P. 118
- The stock market bubble of the 90's: 
- Highly paid employees or self-employed people (Financial Industry) with big pay checks, 
paying excessive amounts in taxes, greatly in debt, with only paper assets in their 
portfolio begin handing out investment advice as people handing out opinions dressed as 
facts...
92 wds
- A Picture of Why People Struggle Financially:
-
- Too many people have no real assets, (things that put money in their pockets) are 
indebted to everyone else, forced to cling to job security...
- The average American is said to be 3 paychecks away from bankruptcy...
44 wds
- A Picture of Someone Else's (Bank, Card Company, Loan Company, Insurance 
    Company, Governments) Balance Sheet:
-
- Most people go to school and learn to be players in the game of money without 
understanding the game of money...

P. 120
- The game of money is "Who is indebted to whom?"...
- Money is really an idea that is more clearly seen with your mind than your eyes...
- Learning the game of money and how it is played is an important part of the journey 
to becoming financially free...
85 wds

P. 121
- BE - DO - HAVE -
- "It's about who you are..." - Rich Dad. 
- "Keep striving and you become somebody." - Rich Dad. 
- "Quit and you become somebody, but not the same person..." - Rich Dad.
- The being a player of the game of money is to make the physical and mental transition 
from job security to financial security...
- The real issues are the changes we have to go through internally and who we become 
in the process...
70 wds

P. 123
- MONEY IS A DRUG -
- The first transition to go through in changing yourself is your perception of money...
- Making the transition from an attachment to money to an understanding of money...
- The statement that money is a drug means that people behave according to money, 
they are happy when they have it and upset or moody when they do not, a behavior 
pattern that mimics addiction to something, money addiction...
- Getting used to receiving money creates an unhealthy attachment to it, clouding your 
judgment...
86 wds
- If you become used to receiving money as an employee, then you tend to get 
accustomed, dependent to that way of acquiring money...
- If again, you become used to generating money as by being self-employed, then you 
tend to get accustomed, dependent to that way of acquiring money, difficult to break 
the strong attachment to earning money in that way...
60 wds

P. 124
- We get locked into the ways we generate money...
- There are 4 ways to generate money:
1. Working for money: Earning money as an employee...
2. Working for money: Earning money as an self-employee...
3. Generating money: Making money earn money, as a business owner...
4. Generating money: Making money earn money, as a investor...
--------------------------------------------------------------------------------------------------
- There are 4 ways to generate money:
-

--------------------------------------------------------------------------------------------------
- Stepping across from the LEFT SIDE of the CASHFLOW Quadrant to the RIGHT SIDE
means MAKING A COMITTMENT to learning how to make money work, making the 
transition to knowing how to generate money through money...
79 wds
- The important conceptual stance is not to work for money, learn to create your own 
systems of acquiring money...
- The world of money is one large system with certain definite patterns...
- 4 Money Generating Patterns in the System of Money:
Pattern 1. An "E" (employee) Works for a business system, works for an owner...
Pattern 2. An "S" (self-employed) Is a business system, works for a customer...
Pattern 3. A "B" (business owner) Creates, owns and/or controls a business system...
Pattern 4. An "I" (investor) Invests, money into a business system for a Return On
                                         Investment Money (ROI)...
74 wds
--------------------------------------------------------------------------------------------------
- 4 Money Generating Patterns in the System of Money:
-

P. 125
- Our perception of money is reflected by the way, the pattern in our body, mind and 
values of how we naturally gravitate to the subject of money...
- When a person feels the natural need for money, people will react and and act in one 
of four perceptional patterns... 
- Four Perception Of Money Patterns: 
Pattern 1. An "E" perception person will automatically look for a job...
Pattern 2. An "S" perception person will often do something alone...
Pattern 3. An "B" perception person will create or buy a system that produces money...
Pattern 4. An "I" perception person will look for an opportunity to invest in an asset 
             that produces money...
88 wds
--------------------------------------------------------------------------------------------------
- Four Perception Of Money Patterns: 
-
--------------------------------------------------------------------------------------------------
- It is hard to change your perception of money because today, money is essential for 
life...
- In the Agrarian Age, money was not important because land provided food, shelter, 
warmth and water...
- The Industrial Age is marked by life in cities and rural communities where money 
signifies life itself, even water costs money today...
- Moving from the left side of the quadrant to the right is like a fish moving from 
water to land...
- The battle inside us is what makes it so hard to make transitions in out lives...
- Passion and need changes perceptions... focus on passion and commitment to change...
102 wds

P. 126
- Owning The System... -
- Robert Alagna is a teacher who owns a system he created...
- Olympica is all about creating a new system, a new style of education...
- There is a saying, "You can always quit... so why quit now?"...
- The process of change is about creating a life plan... about exploring and developing 
passion turning it into a plan of purposes and purposes-oriented action for your life...
67 wds

P. 127
- "You cannot teach a person anything; you can only help him find it within 
    himself." - Galileo.
- "I never let schooling interfere with my education." - Mark Twain.

P. 129
- Build a money producing system around your heart, around your passion...
- You can be anything you want in any of the quadrants, even a teacher...
58 wds

P. 131
- Risky Being On the Left Side... -
- Passion builds businesses, not fear...
- Most people are conditioned from childhood to take action with fear as the primary 
motivator, rather than passion...
- Being only in the left side of the quadrant is risky because personal performance and 
participation is the major factor in succeeding in generating money...
56 wds
- Your health and welfare are at risk in the left side of the quadrant because your 
living standard depends on someone else's system's agenda...
- If people on the left side of the quadrant get sick, their income is directly impacted...
- Security is a myth... your own financial education is your best security...
52 wds

P. 132
- More Secure Being On the Right Side... -
- Building a secure system on the right side that produces more and more money with 
less and less work allows you to expand your means, make more money by expanding 
your system...
- High-level investors are not concerned about the direction of the market because 
their financial knowledge will allow them to make money either way...
- Professional investors risk little of their own money to make the highest returns...
77 wds
- The left side is risky because you must take someone's else's opinion...
- People on the left side really do not need to be good with financial numbers...
- On the right side of the quadrant, numbers become the eyes... numbers allow people 
on the right side to see what most people cannot see...
- The ability to read numbers, financial systems and business systems gives you the 
financial vision that others do not have...
72 wds
- Having this financial vision lowers your risk...
- People on the left side of the quadrant think in words... People on right side of the 
quadrant must think in numbers... not words...
- Trying to be an investor while thinking in mostly words is risky...
- To build a small business, you do not need to master numbers...
- To build a world business, knowing numbers becomes everything...
64 wds

P. 133
- One Side Gets Paid To Take Risk And The Other Pays To Take Risk -
- The world of opinions is ruled by words... 
- The world of facts is ruled by numbers...
- You must know your numbers, know your facts...
- In addition to the left side of the quadrant being risky (less informed), people on the 
left side pay to take risk...
- People on the left side pay to take risks and people on the right side of the quadrant 
get paid to take risks...
76 wds
- Example of risk on the left side - Buying A Company's Stock: 
If you buy shares of a company's stocks, who pays for the risk?
- The purpose of creating and offering shares of stock from a company is to share the 
company's business risk with others in exchange for possible wealth sharing...
- Better understanding the two sides of the quadrant allows you to see the differences 
more clearly...
- Most people assume that everyone pays to take risks, assume that everything is risky, 
and they pay for it...
82 wds
---------------------------------------------------------------------------------------------------
- Example of risk on the left side:
-

P. 134
- Seeking security to avoid risk is the riskiest thing you can do...
- You must develop your own financial vision and not rely on other people's opinions 
simply because they have professional titles...
- You must be able to see for yourself what is a financial opinion and a financial fact...
- Without financial literacy and accuracy, you cannot invest wisely with little of your 
own money, earning high returns...
69 wds
- Numbers reduce risk...
- You can go as fast as you like, do anything you like, make as much money as you want, 
but you have to be willing to pay the price... and there are NO shortcuts...
- This book, Rich Dad's CASHFLOW QUADRANT, by Robert Kiyosaki, is not about answers 
or techniques...
- This book, Rich Dad's CASHFLOW QUADRANT, by Robert Kiyosaki, is about changing and 
expanding your perceptions about financial challenges and objectives... 
73 wds

P. 135
- It is smarter, less risky, to have more than one point of view, more than one perception 
for looking at finances, business and life...

P. 137
- HOW DO I BECOME FINANCIALLY FREE? -
- The formula for wealth in real estate is buy as many income-producing properties as 
possible, with as little of your own money as possible, and trade up to the larger 
income-producing properties, paying for your lifestyle from the cash flow produced 
from your income-producing properties...
79 wds
- The formula for wealth in owning a business is build or buy as many income-producing 
businesses as possible, with as little of your own money as possible, and franchise them, 
paying for your lifestyle from the cash flow produced from your income-producing 
businesses...
- The principles of great wealth remain simple, common sense, and low tech in spite of 
the high-tech world we live in...
- When it comes to money, common sense is uncommon...
75 wds

P. 138
- It Makes No Sense:
1. It makes no sense to give people a tax break to lose money, and spend their lives 
in debt...
2. It makes no sense to call your home an asset when it really is a liability that 
drains cash from you every day...
3. It makes no sense to have a national government that spends more than it collects
in taxes...
4. It makes no sense to send a child to school to study in the hope of getting a job, 
but not teach that child anything about money...
92 wds
-------------------------------------------------------------------------------------------------
- It Makes No Sense -
-
-------------------------------------------------------------------------------------------------
- DO WHAT RICH PEOPLE DO -
- Doing what rich people do is easy...
- One of the reasons there are so many wealthy people who did not do well in school is 
because the "TO DO" part of becoming wealthy is simple (not as in easy)...
- You do not have to go to school to become wealthy...
- An ounce of perception is worth a ton of gold...
65 wds
- A classic book to read : Think and Grow Rich, by Napolean Hill...
- The statistics do not support the opinion that you can become financially free by 
simply working hard or getting a job...
- Cashflow Quadrant is about thinking, what it takes to think, what you have to be in order to 
do...
- If you want to become wealthy you need to think...
- Think independently rather than go along with the crowd...
71 wds
- One great asset of the financially free is that they do not think like everyone else...
- Thinking like everyone else does means winding up with the same thing everyone one 
else has...
- Most people have a lifetime of hard work, unfair taxes and a lifetime of debt...
- To move from the left side of the quadrant to the right side is not what you have to 
do that has to change first, it's how you think that needs to change first...
81 wds
- It's what you have to 'be' in order to 'do' what needs to be done...
- You either 'be' a person who thinks generating money is harder than earning money, 
or 'become' a person who thinks generating money is easier than earning money...
- You either 'be' a person who thinks owning a system is harder than being money, or 
'become' a person who thinks generating money by owning a system is easier than 
being a system to earn money...
78 wds
----------------------------------------------------------------------------------------------------------------------
- 3 More Mores On "BEING" -
- 
P. 139
- What goals for being are you setting?...
- An Order For Change: BE - DO - HAVE...
- BE is the necessary mental condition you need to think in order to DO what you 
need to HAVE what you want ...
- Being the right person comes first...
- DO is a physical reaction to knowing what you want to HAVE...
- HAVE is a word for goals...
64 wds
--------------------------------------------------------------------------------------------------
- An Order For Change: BE - DO - HAVE...
-

P. 140
- When it comes to financial freedom, many people want to DO what the rich do, HAVE 
what the rich have... 
- Working harder for money to get richer and spending more money to look like you are 
rich is only DOing what the rich do...
- HAVing what the rich have will simply make you more tired than the rich...
60 wds
- Take your years to work hard to acquire assets, have what you want from the cash 
from the assets you worked hard to acquire...
- Too many people try only DOing what the rich do, HAVing what the rich have, without 
being first what doing and having takes...

P. 141
- Becoming financially free is not as much about doing, but more about "being"...
- It is not so much what the "B" or "I" does that makes the difference, doing changes 
all the time... 
82 wds
- It is how the "B" or "I" thinks, who they are at their core "being"...
- It does not cost much money to change your perception, your thinking, your "being"... 
it can be done for free...
- It is hard for people to change how they think after years of conditioning...
- BE -> DO -> HAVE: 
Achieving financial freedom is primarily about strengthening your thoughts (being), 
so that you can take action (doing), that will enable you to become financially free 
(having)...
78 wds
--------------------------------------------------------------------------------------------------
- 6 Mores On BE - DO - HAVE:
-
--------------------------------------------------------------------------------------------------
- BE - DO - HAVE:
-
--------------------------------------------------------------------------------------------------
- Two Glaring Generalizations:
1. An "E" perception person : Security is often more important than money...
- They may take great risks in other areas of their lives, but with money, they value 
security more...

P. 142
2. An "S" perception person: Perfectionism is more important than money...
- "S" perception people have the "Do it yourself" mentality...
- "S" perception people have to make sure things are done the "right way"...
68 wds
- For most "S" perception people , the real issue is "control" means an increase or 
decrease of revenue...
- For an "S" perception person mistakes are costly, other people's mistakes cost 
them revenue as well...
- An "S" perception person's perfectionism makes them perfect professionals, 
excellent for tasks (doctors, accountants, teachers, software quality engineers, 
repairmen, etc.)...
- Perfectionism and quality are the "S" perception person's major strengths 
and also major weaknesses...
67 wds
------------------------------------------------------------------------------------------------------------------------
- Two Glaring Generalizations:
-
------------------------------------------------------------------------------------------------------------------------
- Fear will make a person on the left side of the CASHFLOW Quadrant think: 
1. "I will BE smart and will play it safe." 
2. "I AM smart because I don't take risks..."
- Fear will make a person on the right side of the CASHFLOW Quadrant think:
1. "I will PLAY it smart." 
2. "I will LEARN to MANAGE risk..."
- The difference between us as individuals is how we handle our emotions...
- We all possess the same emotion, fear, same emotion, different thought... 
- We all possess a different sense of being... different doing... a different sense of having... 
- Be - Do - Have...
82 wds
--------------------------------------------------------------------------------------------------------------------------
- FEAR And People On The Left And Right Side of the CASHFLOW Quadrant: 
- 
P. 143
- Emotional IQ is more powerful than Academic IQ...
- People who learn to take risks and learn to recover from mistakes do better than 
people who learn to avoid risks, learn to avoid mistakes, and never prepare emotionally to 
take risks...
- Most teachers come from an environment that punishes people for mistakes, making 
them afraid to make mistakes as well...
61 wds
- To be financially free, we need to become emotionally prepared to make risks, learn 
how to make mistakes and manage risk...
- Becoming financially free is not possible if we are terrified of losing money, terrified 
of doing things differently...
- Financial IQ is 90% Emotional IQ and only 10% technical information about finance or 
money...
- The power of the emotional brain is 24 :1 to the rational brain... emotions are 24 times 
stronger than the rational mind...
76 wds
- Some bad examples of emotional power over rational power are addictions and phobias...
- The problem with core emotional thoughts is that they sound logical...
- Emotions make us human beings and recognizing that we have emotions and how we 
respond to those emotions is the first step to controlling our emotions to work for us, 
not us working for our emotions...
60 wds

P. 144
- Learning how to make our emotions work for us determines the level of our Emotional 
IQ...
- The word "feel" is a hint to us that expresses thinking from emotion...
- Operating in the left or right side of the CASHFLOW Quadrant is also an expression of 
maturity...
----------------------------------------------------------------------------------------------------------------------
- Emotional IQ VS. Academic IQ...
-

P. 145
- Many people who operate solely in the left side of the quadrant generally do 
not become adults in their financial life...
- We all need to grow up and function as adults financially...
- Being an adult means doing what you have to do, even though you may not feel like doing it...
100 wds

P. 146
- The Conversation inside you -
- The dialogue you have with yourself is an important process for changing and becoming 
better...
- It is important to be constantly vigilant about the thoughts in your mind, your internal 
dialogue...
- Always remember that what sounds logical in one quadrant is nonsense in 
    another quadrant...
-------------------------------------------------------------------------------------------------------------------------
- Two Points On The Conversation Inside Yourself: 
-
------------------------------------------------------------------------------------------------------------------------- 
- Differences: Core emotional values cause different points of view...
- Some Differences Between "B"s and "E"s:
Difference 1. Differences In Emotional Values And Interests.
- Communication problems between "B" people and "E" people are mostly caused by 
diferences in emotional values and interests.
82 wds

P. 147
Difference 2. More Work Versus Less Money.
- There will always be a struggle because "B" people want more work for less money, 
and "E" people want more money for less work.
- "B" people want more loyalty and harder work and "E" people want less work, more 
pay.
------------------------------------------------------------------------------------------------------------------------- 
- Some Differences Between "B"s and "E"s:
-
------------------------------------------------------------------------------------------------------------------------- 
- Some Differences Between "B"s and "I"s:
Difference 1. Communication problems.
- Communication problems between "B"s and "I"s is mostly caused by the differences 
in emotional values and interests...
Difference 2. "B"s want more money to operate with, "I"s want more return for their 
money...
73 wds
------------------------------------------------------------------------------------------------------------------------- 
- Some Differences Between "B"s and "I"s:
-
------------------------------------------------------------------------------------------------------------------------- 
- Some Differences Between "B"s and "S"s:
Difference 1. - Communication problems. 
- Communication problems between "B"s and "S"s is mostly caused by the differences 
in emotional values and interests...
- "S"s earn hourly wages and "B"s make millions...
- "S"s do all the work and "B"s make all the money...
Difference 2. "B"s could buy the "S" person for the cost of his service...
------------------------------------------------------------------------------------------------------------------------- 
- Some Differences Between "B"s and "S"s:
-
------------------------------------------------------------------------------------------------------------------------- 
- Some Differences Between "E"s and "I"s:
Difference 1. Communication problems between "E"s and "I"s is mostly caused by the 
differences in emotional values and interests...
- An "I" gets services from an "E" and no gratitude...
Difference 2. Tax rules.
- An "E" gets a highly taxed salary and "I" gets a tax free asset...
93 wds
--------------------------------------------------------------------------------------------------- 
- Some Differences Between "E"s and "I"s:
-

P. 148
- Primary Relationships and Cash Flow Quadrants -
- Different quadrant people have different needs and interests and values...
- Married couples need to clarify the quadrant they earn their money in and their core 
values...
- Three Differences Between the Rich and the Educated - 
Difference 1. Communication problems.
- Communication problems between the rich and the educated is mostly caused by the 
differences in emotional values and interests...
Difference 2. Sense of Fairness.
- Formally educated people are frustrated that less formally educated people make 
the money...
73 wds

P. 149
- Un-lettered people can rise to achieve great wealth, beyond that of most 
scholastically educated people...
Difference 3. More Free Time And Money.
- Less formally educated wealthy people have what highly educated employed people 
do not, more money and more free time...
--------------------------------------------------------------------------------------------------- 
- Three Differences Between the Rich and the Educated:
-
--------------------------------------------------------------------------------------------------- 
- More Than a Mental Change -
- Five Different Requirements For Operating In The B and I Quadrants:
Requirement 1. Adding Knowledge.
- Operating in the "B" and "I" Quadrants requires more than academic and technical 
knowledge...
Requirement 2. Making Changes.
- Operating in the "B" and "I" Quadrants requires a change in core thinking, feelings, 
beliefs, and attitude...
70 wds
Requirement 3. Thinking Differently.
- The financially free are different from the rest in their "being" (thinking), not so 
much the "having" or "doing"...
- What a person thinks and says becomes real...
Requirement 4. Changinging your Internal Dialogue.
-The internal dialogue one has with oneself determines one's actions...
- Until a person learns to overcome emotional driven thoughts, their words will become 
real...
Requirement 5. Changing your words.
- Words are the most powerful tools available to humans...
- One can change with the support of new friends, new ideas, and time...
--------------------------------------------------------------------------------------------------- 
- Five Different Requirements For Operating In The B And I Quadrants:
-
P. 150
74 wds
- To be successful as a business owner and an investor, you have to be neutral to 
winning and losing... 
- Winning and losing must be part of the game...
- Failure is a part of the process of success...

P. 151
- Learn to create words of personal encouragement, and strength...
- Risk leads to mistakes and mistakes lead to wisdom and knowledge gained from 
experience...
62 wds
-------------------------------------------------------------------------------------------------------
- Two Points About WINNING And LOSING:
-
-------------------------------------------------------------------------------------------------------
- The Journey from Quadrant to Quadrant -
- The journey from one quadrant to another is a journey from one set of beliefs, 
one set of technical skills to another...
- Moving from one side of the CASH FLOW Quadrant to the other is going from one mind 
set - job security, to another mind set - financial freedom...
- "You can always quit, so why quit now?"...
62 wds

P. 152
- The problem of knowing when to quit can be solved by finding a mentor, someone who 
has been there and done it successfully, to tell you when to quit...
- Be careful about taking advice from people who only get paid to lecture and write 
only books...
- Many people struggle financially is because of the fear of losing, not lack of hard 
work or education...
66 wds
- Losers cut their winners and ride their losers...
- Winners cut their losers and ride their winners...
- The key to being a great investor is to be neutral to winning and losing...
- Emotionally driven thoughts like fear and greed are kept in control...

P. 153
- Five Things people Do Who Are Afraid To Lose In Their Lives:
1. People stay in marriages where there is no love...
2. People stay in dead-end jobs...
74 wds
3. People hang on to things they will never use...
4. People stay in towns where they have no future...
5. People stay friends with people who hold them back...
- Most people suffer financially because their emotions are in control of their thoughts...
-----------------------------------------------------------------------------------------------------
- Five Things people Do Who Are Afraid To Lose In Their Lives:
-
-----------------------------------------------------------------------------------------------------
- The "be" in human BE-ings signifies the emotions we all have...
- The difference in each of us is determined by how we control and use our emotions to 
"DO" and "HAVE" in our lives...
- When it comes to money, most people are conditioned to be be afraid...
93 wds
- Seven Typical Fear Reactions To Money:
Reaction 1. Seek Security, instead of freedom...
Reaction 2. Avoid risk instead of, learning to manage risk...
Reaction 3. Play it safe, instead of, play it smart...
Reaction 4. I can't afford afford it, instead of, How can I afford?...
Reaction 5. It's too expensive. instead of What is it worth in the long term?...
Reaction 6. Diversify instead of focus...
Reaction 7. What will Others (my friends) think? instead of What do I think?...
84 wds
-----------------------------------------------------------------------------------------------------
- Seven Typical Fear Reactions To Money:
-

P. 154
- Successful "B's" understand business systems and people but do not necessarily 
understand systems of money and money making money systems...
- Successful "B's" understand the psychology behind purely risking money and the 
systems of money making money...
- EMOTIONAL NOT TECHNICAL -
- If people are not able to control their emotional thoughts, moving from the Left Side 
of Quadrant to the Right Side of the Quadrant is very risky...
- People on the Left Side of Quadrant think "Play it safe" is a logical thought...
74 wds
- "Play it safe" is an emotional thought...
- Emotional thoughts keep people in their places...
- To be successful on the Right Side of the Quadrant is to "BE" a person who loves the 
game...
- Many people on the Right Side of the Quadrant went broke before they became rich... 
- It's part of the game...
- To make the crossing over to the right side, you need a long-term support group and a 
mentor on the other side to guide you...
- The most important thing about moving from the Left Side of Quadrant to the 
Right Side of the Quadrant is the process of becoming, not doing...
104 wds

P. 155
- BEING THE BANK -
- The BE - DO - HAVE formula stresses "BE" because without a proper mind-set and 
attitude, people never get where they want to be...
- The US tax reform Act of 1986 took away most major loopholes from 
American people in the Left Side of Quadrant...
- The US tax reform Act of 1986 created a huge redistribution of wealth by 
    changing the rules...

P. 156
- The US tax reform Act of 1986 created a huge opportunity, a fire sale on assets, for 
people on the right...
- Money seen with your mind, not your eyes, and people see what they are 
trained to see...

P. 157
- When the rules are changed it is mostly the people on the Left Side of Quadrant 
who lose...
59 wds
- Three Reactions Of People To CHANGE In The Left Side of Quadrant:
Change 1. Panic.
- The lack of financial intelligence causes people to think emotionally blind to chances 
from changes...
Change 2. Lack of Technical Skills. 
- People lack the necessary technical skills needed in 
"B" and "I" activity. People don't learn how to manage risk...
Change 3. No Cash. 
- Most people are highly leveraged without enough cash on hand to play the money game. 
- People don't play it smart...
79 wds
--------------------------------------------------------------------------------------------------------
- Three Reactions Of People To CHANGE In The Left Side of Quadrant:
- 
P. 158
- THE BEST OF TIMES THE WORST OF TIMES -
- It is not what happens in one's life that matters, but it is the meaning one 
    puts on what happens that matters...
- People forget and history repeats itself, the economics change but history 
    repeats itself...

P. 159
- More Differences Found In The Right And Left Sides Of The Quadrant:
Difference 1. Money flows from the Left Side of Quadrant to the Right Side of 
                 the Quadrant...
Difference 2. People in the Left Side of Quadrant forget history and over-extend 
                 themselves creating chances for people on the RIGHT SIDE of the 
                 QUADRANT...
80 wds
Difference 3. It is important to understand that there are two sides of people, 
                 two sides of rules, two sides of comprehension and ability, are all 
                 playing the same game of money...
Difference 4. Each quadrant is playing with a different mind-set different point 
                 of view, with different rules...
Difference 5. The people on the Left Side of Quadrant cannot see what the people 
                 on the Right Side of the Quadrant are doing...
Difference 6. The people on the Right Side of the Quadrant can easily see and know 
                  what the people on the Left Side of Quadrant are doing...
92 wds
---------------------------------------------------------------------------------------------------
- More Differences Found In The Right And Left Sides Of The Quadrant: 
-
P. 160
- When history repeats itself, great transfers of wealth take place...
- The game of money is "Who is indebted to whom?"...
- When great transfers of wealth take place, real estate, stocks and businesses
   are all at bargain prices...

P. 162
- Five Advantages Of Focusing On Real Estate:
Advantage 1. Pricing. 
- When real estates prices are low, the mortgage payments are far lower than the fair 
market rent for most properties...
- This kind of property makes economic sense because there is low risk...
Advantage 2. Financing. 
- Banks secure loans against property...
- Use a strategy of buying many properties while a market is depressed, to combine low 
down payments with financing through banks...
- You can purchase a lot of income property with a little down...
Advantges 3. Taxes. 
- In real estate, you can use a 1031 purchase procedure to roll over profits into the next 
real estate transaction...
- You can depreciate property for even greater tax advantages... 
- A tax benefit must make the investment more attractive...
80 wds
Advantage 4. Cash Flow. 
- Rents from property pay back mortgages, and allow you to "time" the market...
- Rent income must be far greater than the cost of carrying a loan, in order to carry 
debt...
Advantage 5. An Opportunity to become the bank. 
- You can create money by offering a loan on the property you want to sell...
- Real estate allows you to become the bank...
63 wds
---------------------------------------------------------------------------------------------------------
- Five Advantages Of Focusing On Real Estate:
- 
P. 163
- BEING THE BANKER -
- Rich create money and often play the role of banker...
- Six Example Steps Of Becoming A Real Estate Banker:
Step 1. Find a property that you can purchase at a price lower than its value...
Step 2. Pay cash or assume a loan on the property becoming its new owner...
Step 3. Advertise the house for sale at a price higher than the price you paid, 
          or at its appraised price...
75 wds
Step 4. Advertise, "House for sale. Owner desperate. No bank qualifying. 
          Low down payment, easy monthly payments"...
Step 5. Sell the property on a "wrap", or a "lease purchase contract"...
Step 6. Sell the property for an IOU....
---------------------------------------------------------------------------------------------------------
- Six Example Steps Of Becoming A Real Estate Banker:
-
----------------------------------------------------------------------------------------------------
- A Picture of a Property Transaction sold on an Lease Purchase Property 
        Transaction IOU:
-
- This transaction is properly registered with title and escrow offices...
- If the buyer defaults, on the payments, you foreclose the property and sell it to 
someone else...
79 wds
- You receive the interest agreed on the loan you have offered for the purchase of the 
property, in addition to the price of the property, two payments or cash flows monthly...
- A Picture of a Lease Purchase Property Transaction IOU Cash Flow 
        Transaction:
-
- The interest payments you receive are like saving without saving...

P. 165
- 5 Conditions of this Lease Purchase Property Transaction:
Condition 1. Interest rate. 
- You determine the interest rate for this property transaction to be set at 10%...
77 wds
Conditon 2. Create an asset.
- You act like a bank, create an asset by offering a loan, and charge interest on it...
Condition 3. Tax benefit. 
- Interest income generated on the loan you offer is tax free...
Condition 4. No More Property Expenses. 
- All property expenses now belong to the New Buyer. 
- Property taxes, property insurance, loan insurance, maintenance and management fees are 
now the buyer's responsibility...
Condition 5. Unlimited Creative Potential. 
- Your role of being the bank puts you on the Right Side of the Quadrant, where many 
creative things can be done because the rules are different on the right side...
93 wds
---------------------------------------------------------------------------------------------------------
- 5 Conditions of this Lease Purchase Property Transaction:
-
P. 166
- 2 Functions of a Corporation:
Function 1. Asset Protection. 
- If you have money, you become a target... 
- Having money, it is wise not to own anything personally, but hold assets in trusts and 
corporations to protect them...
Function 2. Income Protection. 
- By passing income streams through your own business entity, you can use or shelter much 
of that income...
---------------------------------------------------------------------------------------------------------
- Two Functions of a Corporation:
-
P. 167
- Two Types Of Income Flow Structures: 
Structure 1. The EXPENSE order of EARNING INCOME as an INDIVIDUAL.
- EARN (from a salary) -> Pay TAXES (on salary income) -> SPEND What is left 
over.
Structure 2. The EXPENSE order of EARNING INCOME as a CORPORATE ENTITY.
- EARN (from a customer) -> SPEND Income (customer money) -> Pay TAXES if 
anything is left over.
- If you have a corporate entity, you make the rules on your earned income 
    BY MAKING EXPENSES FIRST, in conformity to the rules of the tax code for 
    corporate entities...
75 wds
- The rules of the tax code for corporate entities are more favorable than the rules for 
individuals...
- Do your homework, study the rules, follow the rules, work the rules...
- If all your income is generated as an employee, from a company you do not control, 
you have little or no income or asset protection...
---------------------------------------------------------------------------------------------------------
Two Types Of Income Flow Structures: 
-
P. 168
- To be financially free, the secret is to operate in more than one quadrant...

P. 169
- If you take on debt and risk, then you should be paid for it...
86 wds

P. 170
- An ISO is taking a company public through an Initial Stock Offering, or offering 
a loan to thousands of people in the form of a share... 
- Selling equity through shares to many people...
- Regardless of whether the investment is in real estate, a business, stocks or bonds, 
there is an underlying "comprehensive business sense" that is essential to being 
a sound investor...
- When moving over to the right side, start small, take your own pace...
76 wds
- The only difference between a $100,000.00 and a $1,000,000.00 is a zero... 
- The underlying process is the same...
- Once you gain experience and a good reputation, it takes less and less money to 
create bigger and bigger investments...
- Experience is more valuable than money...
- If you know how to make money with money, people and money will flock to you...
60 wds

P. 171
- ON BEING FINANCIALLY FREE -
- To be financially free simply means being able to think differently...
- Being financially free means to be able to think differently, to have the courage to do 
things differently...
- The hardest part of becoming financially free is getting past the many 
    people who will say, "You can't do that."...
- To be financially free you must seek out people who say, "Yes, I know 
    how to do that. I'd be happy to teach you."...
75 wds
- To be successful on the right side of the quadrant, you need to see 5% 
    with your eyes and 95% with your mind...
- Great transfers of wealth often occur when laws and market forces change, and it is 
important to be have those changes work for you...

P. 173
- The Age we live in is the Information Age...
- The Industrial Age and the social contracts of the Industrial Age are crumbling, 
changing into the Information Age conditions...
76 wds
- The Industrial Age social contract meant large welfare benefits and government tax 
public protection safety nets...
- The Information Age means that high speed change makes long term promises 
obsolete as companies disappear faster and new conditions appear more rapidly...
- With the Information Age, social rules are changing, more people need to know how 
to take care of themselves financially... 
- And not be dependent upon the government or a company for life support...
72 wds

P. 174
- GREAT CHANGE AND OPPORTUNITY -
- The Information Age means life long study, life long self-education...
- The idea "go to school so you can find a secure job." is Industrial Age advice, a 
different time warp...
- We live in a free society, not a fair society...
- The paradox is that the more fair we try to make things, the less free we also 
become...
- It is better to be in a free environment than fair environment...
76 wds
- There are people who work harder and smarter and want more than other people...
- If we are free to pursue our level of needs and ambitions the society as a whole 
will prosper...

P. 175
- Four Characteristics Of The "B-I" Side of the Cash Flow Quadrant:
Characteristic 1. The Right Side of the Cash Flow Quadrant is not concerned with 
                     fairness and security, but with freedom and a love of the game...
Characteristic 2. The game on the Right Side of the Quadrant is not meant to be 
                     fair...
82 wds
Characteristic 3. The Right Side of the Cash Flow Quadrant has more ways to 
                     protect money and wealth than the Left Side of the Cash Flow 
                     Quadrant...
Characteristic 4. The Right Side of the Cash Flow Quadrant operates as a corporate 
                     body, not a human body...
--------------------------------------------------------------------------------------------------------
- Four Characteristics Of The "B-I" Side of the Cash Flow Quadrant:
-
--------------------------------------------------------------------------------------------------------
- Three Characteristics Of Corporate Bodies:
Characteristic 1. A corporate body can travel freely, without a passport, and often 
                     work freely as well...
Characteristic 2. A corporate body can move through cyberspace, moving money 
                     electronically...
Characteristic 3. A corporate body can be like money, digital, invisible, an idea...
78 wds
--------------------------------------------------------------------------------------------------------
- Three Characteristics Of Corporate Bodies:
-
--------------------------------------------------------------------------------------------------------
- Money , being an idea and invisible, can now hide outside the human eyesight...
- In the near future, people will park their money in cyberspace rather than any 
country space, free from taxes and country laws...
- Corporations became popular in the days of Columbus in order to protect the 
wealthy sponsors of New World exploration...
- Corporations came to be out of the need to have legal protection and to limit risk 
of money involved...
73 wds

P. 176
- TWO CHOICES -
- People who own corporations are employees of their own corporations, exist as 
officers of their corporations...
- In theory, people who own corporations own nothing as private citizens...
- The fundamental difference in the law is the way the financially free study and use 
the law, using it to their own advantage...
- Two FINANCIAL Choices:
1. Choice of freedom.
2. Choice of security. 
- Two Sides Of The Cash Flow Quadrant:
Side 1. The Left Side - E and S Quadrants.
Side2 . The Right Side - B and I Quadrants.
77 wds
--------------------------------------------------------------------------------------------------------
- Two Choices And Two Sides Of The Cash Flow Quadrant:
-
--------------------------------------------------------------------------------------------------------
- If you choose security, there is a huge price to pay in security with excessive taxes 
and punishing interest payments...
- If you choose freedom, then you need to learn the whole game and then 
    play the game...
- Most important is that you should make the choice consciously...
- You should have an understanding where you are and having an idea of where you 
want to be...
- You should have an understanding of the mental process and mind-set of operating 
on the Right Side of the Cash Flow Quadrant...
87 wds

P. 177
- Something To Think About -
- Tax laws in America are hardest for people operating on the Left Side of the Cash 
Flow Quadrant for the "E's" and "S's", but harder still for "S's" in the form of double 
taxation...
- The Tax Reform Act of 1986 forces self-employed, "S"s, to pay tax on income 
    passed through S corporations, instead of C corporations, paying at the highest 
    individual rate possible...
- C corporations offer better tax deductions...
- S corporations have a calendar year end, forcing all income to be taxed at its highest 
rate...
92 wds
- Self-employed pay a "self-employment" tax, a tax double to what they would 
    be paying as regular employees...
- This "self-employment" tax is calculated based on income before the individual can 
deduct any itemized deductions or personal exemptions...
 A self-employed person may have no taxable income and yet still owe 
   self-employment taxes...
- Corporations do not pay self-employment tax...
- The Tax Reform Act of 1986 forced "E's" and "S's" out of real estate and
    into paper assets such as stocks and mutual funds...
80 wds

P. 178
- After the Tax Reform Act of 1986, "B's" and "I's" can still use their success 
formula, earn more, work less, pay less taxes, and enjoy greater assets protection by 
building businesses and investing in real estate...
- "B's" and "I's" can still make a lot of money via C corporations and shelter 
    their income through real estate...
58 wds
- While millions of Americans are paying more taxes and pouring more of their hard 
earned salaries into portfolio investing, the rich are quietly selling shares of their 
C corporations, using their corporate income to invest in even more real estate assets...
- A share of stock in a C corporation allows the buyer to share in the risk of owning 
the company...
61 wds
- A share of stock in a C corporation does not allow the buyer the advantages of owning 
that company or the chance of investing in real estate offers for that company...
- Rich Dad recommended building businesses in C corporations and then buying real estate 
because tax laws reward people who operate that way...
- Build businesses, buy real estate...
58 wds

P. 179
- In the Information Age, our mind is our most important asset...
- "In times of change, 
Learners inherit the earth, 
While the learned, 
Find themselves beautifully equipped to deal with a world that no 
longer exists..." - Eric Hoffer.
64 wds
-------------------------------------------------------------------------------------------------
- "In times of change: 
-
-------------------------------------------------------------------------------------------------
- FOUR POINTS TO REMEMBER About MONEY:
Remember 1. SEEK OUT THE BEST PROFESSIONAL AND FINANCIAL ADVICE 
                YOU CAN GET... 
- EVERYONE'S FINANCIAL SITUATION IS DIFFERENT, BUT...
- Different Corporate entities work for different purposes...
Remember 2. THERE ARE DIFFERENT ADVISORS FOR THE POOR, MIDDLE 
                 CLASS, AND WEALTHY... 
- Different advisors for people on the left and right sides of the Quadrant. 
57 wds
- Advice is different from a mentor who actually does it...
Remember 3. NEVER DO BUSINES OR INVESTING FOR TAX REASONS... 
- A tax break is an extra bonus for doing things the way the government wants...
- It should be a bonus NOT a reason...
Remember 4. PEOPLE ON THE RIGHT SIDE OF THE CASHFLOW QUADRANT 
                OPERATE SIMILARLY THROUGHOUT THE WORLD... 
- Laws may be different from country to country, but principles of wealth, assets 
and liabilities remain constant...
74 wds
-------------------------------------------------------------------------------------------------
- FOUR POINTS TO REMEMBER About MONEY:
- 
P. 183
- BECOMING A SUCCESSFUL "B" AND "I" -
- Becoming a successful "B and "I" is a life-long journey that begins with baby 
steps...
- Long Term Financial Success Is Measured By:
1) The number of steps you take. 
2) The direction you're moving in. 
3) The number of years it takes.
- When it comes to money, do not attempt to do too much with too little...
65 wds
-------------------------------------------------------------------------------------------------
- Three Measurements Long Term Financial Success Is Measured By:
-

P. 184
- How Do You Eat an Elephant? One bite at a time...
- Six Points About Eating an Elephant (Taking On Big Challenges):
Point 1. Becoming financially free is like eating an elephant... 
Point 2. One of the most important points about true learning is that it takes mental, 
          emotional, physical training, hands on action...
Point 3. Many schools teach "Don't make mistakes."...
Point 4. Action of some kind always beats inaction...
Point 5. Under control, mistakes are always learning aids...
Point 6. "Analysis paralysis" is the disease of bad attitude...
72 wds
-------------------------------------------------------------------------------------------------
- Six Points About Eating an Elephant (Taking On Big Challenges):
-

P. 185
- Many well-educated people suffer from Analysis Paralysis...
- Three Characteristics of People Who Succeed: 
1. People Who Succeed maintained a Long Term Vision and Plan...
- Thinking and planning for the long term, holding on to a dream or a vision...
2. People Who Succeed believe in Delayed Gratification...
- Be willing to make short term sacrifices to gain long term success...
3. People Who Succeed use the Power Of Compounding in their favor...
79 wds
-------------------------------------------------------------------------------------------------
- Three Characteristics of People Who Succeed: 
-
-------------------------------------------------------------------------------------------------
- Five Principles Of Compounding: 
Principle 1. The principle of compounding is found both in money and learning...
Principle 2. The principle of compounding in money means that money multiplies itself 
              on money...
Principle 3. The principle of compounding in learning means that each step you take in 
              learning something gives you leverage and magnified accumulation over time...
Principle 4. The accumulation of knowledge, wisdom and experience you gain becomes 
              leverage magnified...
Principle 5. The Abuse of the power of compounding results in long-term debt...
69 wds
-------------------------------------------------------------------------------------------------
- Five Principles Of Compounding: 
-

P. 186
- Writing down your goals increases your chances of success...
- Set and dream big dreams and goals and then deliberately set out to underachieve a 
little bit everyday...
- Underachieving allows something very far away and unachievable to become reality 
in small but consistent steps...
- Underachieving means setting easily achievable goals as steps to grow into a larger 
scheme...
- Learn through play and relation by structuring activities in a way to learn something...
72 wds

P. 187
- 4 Key Points to crossing over to the Right Side of the Cashflow Quadrant:
1. Dream big...
2. Think Long Term...
3. Underachieve on a daily basis...
4. Take baby steps...
------------------------------------------------------------------------------------------------------
52 wds
- You Have to Change Your Rules -
- If you want to become financially free, you have to create the rules...
- Financial Statements are like X-rays...
- Financial Statements let you see what the regular eye cannot...
- Your financial ideas must match the era you are going to live in, the future, not the 
past...
- Your financial ideas must work for the future...
- The Information Age requires different financial rules, different personal rules...
70 wds

P. 188
- A Picture of a Simple Personal Financial Statement:
-

P. 189
- People with no income from assets must work hard for a paycheck to pay bills...
- People with no assets income have no tomorrows...
- A Picture of a Most People's Personal Financial Statement :
-
- Most people's two biggest monthly expenses are taxes and debt service for long-term 
liabilities...
- The government and the bank get paid before most people do...
- People who cannot get control of their cash flow have no financial future and are 
financially struggling...
- A person who only functions in the "E" Quadrant has little protection from taxes and 
debt...
102 wds
P. 190
- There are three basic Cash Flow Patterns:
Pattern 1. Cash Flow Pattern Of the Poor.
Pattern 2. Cash Flow Pattern Of the Middle Class.
Pattern 3. Cash Flow Pattern Of the Financially Free.
-----------------------------------------------------------------------------------------------------
- Picture of a Cash Flow Pattern No. 1, Of the Poor: 
-
- Paycheck to taxes and expenses to left overs...

P. 191
- Picture of a Cash Flow Pattern No. 2, Of the Middle Class:
-
- This cash flow pattern is considered financially normal in American society...
- The higher the salary the more expensive the houses and cars and lifestyles of 
these people...
- The more financially literate people become, the more they see that financially 
normal is really financial trouble...
86 wds
- This cash flow pattern was workable for the Industrial Age... 
- This cash flow pattern is not workable for the Information Age...
- A little Financially literacy is like a financial wake-up call about a your 
personal financial health...

P. 192
- Picture of a Cash Flow Pattern No. 3, Of the Financially Free:
-
- The Thinking Pattern of the Financially Free reflects the Cash Flow Pattern 
picture above...
- The Financially Free avoid being addicted to high-paying jobs...
74 wds
- The Financially Free think in patterns of assets, and income in the form of capital 
gains, dividends, rental income, residual income from businesses and royalties...
- To be financially secure and financial freedom in the Information Age, we need to 
develop Financial and Emotional Intelligence...
- In a world of less and less job security, we need to develop Financial and Emotional 
Intelligence...
- The financial statement of the financially free is also called the "Information Age 
Financial Statement"...
76 wds
- This "Information Age Financial Statement" reflects income that was 
generated strictly from information, not hard work...
- The concept of hard work in the Information Age is different for hard work in the 
Industrial Age...

P. 193
- THE ANSWER? -
- Re-educating yourself to think like a financially free person is the first step to 
learning how to eat an elephant...
- The statement "Don't work harder, work smarter" actually means applying yourself 
in the "B" and "I" Quadrants...
- In the Information Age, Financial and Emotional Intelligence will be more and more 
important...
89 wds
- Financial Freedom requires financial intelligence, systems intelligence, and 
emotional intelligence...
- Schools need to provide education in these 3 intelligences : financial intelligence, 
systems intelligence, and emotional intelligence...
- These 3 intelligences are hard to learn because we are trained to work hard and 
spend...
- First start small and educate yourself, rather than first run out and purchase a 
mutual fund or real estate...
- Improving Financial Intelligence is done by training your mental, physical and 
emotional capacities to thinking like a financially free person...
81 wds

P. 194
- Cash Flow not Money... -
- Learning to invest and build an asset column is the core concept of cash flow...

P. 199 - 242
- The SEVEN Steps to Being on the Financial Fast Track (Financially Free):
1. Step 1. Minding Your Own Business.
2. Step 2. Controlling Your Cash Flow.
3. Step 3. Knowing The Difference Between Risk And Risky.
4. Step 4. Deciding What Kind Of Investor To Be.
5. Step 5. Seeking Mentors.
6. Step 6. Making Disappointments Your Strength.
7. Step 7. Using The Power Of Faith.
90 wds

P. 199 - 237
- The SEVEN Steps to Being on the Financial Fast Track (Financially Free):
Step 1 : MINDING YOUR OWN BUSINESS...
- Early in life, most people are programmed to mind other people's businesses and 
make other people rich...
- Advice For People Who Make Other People Rich:
1. Go to school to get good grades to find a safe, secure job with good pay and super 
benefits...
2. Work hard to buy the dream house, because your house is your most important 
investment...
3. Create a large mortgage in order to get a tax deduction on your interest payments...
4. Buy now and pay later, use a low down with easy monthly payments, come in and save 
money...
106 wds
- People who follow advice that makes other people rich often become:
1. Employees, making their bosses and owners rich.
2. Debtors, making banks and money lenders rich.
3. Taxpayers, making the government rich.
4. Consumers, making many other businesses rich.

P. 200
- A Picture of an Income Statement and a Balance Sheet of Minding Different 
    Businesses :
-
- Most of us have been programmed early in our lives by family and school to mind 
everyone else's busies first, and ignore our own business...
81 wds

P. 201
- Many people's financial statements reflect their everyone's else's business...
- Three Steps To Taking Action:
1) Taking Your First Step.
2 ) Setting Financial Goals.
3) Controlling Your Cash Flow.
------------------------------------------------------------------------------------------------------
- Three Steps To Taking Action:
1) Taking Your First Step :
- Fill out your own personal financial statement...
- The first step to financial freedom is knowing where you are in order to get where 
you want to go...
- The first step to financial freedom is taking control of your life and spending more 
time minding your own business...
65 wds
- Three Steps To Taking Action:
2 ) Setting Financial Goals :
- Set two long-term financial goals for where you want to be in 5 years, and 10 years...
- Set one short-term financial goal for where you want to be in 12 months...
- Set realistic, easy goals...
A ) In 12 months I want to :
1. reduce debts and expenses by $                      ...
2. increase or create cash flows from earned income, passive income, and/or portfolio 
income by $                      ...
68 wds
B) My 5-year and 10 year financial goals are to :
1. increase my cash flows from earned income, passive income, and/or portfolio 
income by $                      ...
2. Have these investment vehicles in my asset column (i.e. real estate, stocks, 
businesses, etc)
 1.                                                ...
 2.                                                 ...
 3.                                                 ...
C ) My 5-year and 10 year income statement and balance sheet five years 
from today :
- Once you know where you are today and have set your goals you need to get control of 
your cash flow to achieve those goals...
84 wds

P. 203
- Three Steps To Taking Action:
3) Controlling Your Cash Flow:
- Most money problems are from never having learned the science of cash flow 
management...
- Simply making more money will not solve money problems and also cause bigger 
money problems...
- People who cannot manage their cash flow work harder, believing that more money 
will solve their problems...
- Most important Step -
- Minding your own business means becoming the CEO of your own life...
- Taking control of your cash flow is the most important skill of the CEO of your life...
84 wds
- People who cannot manage their cash flow will not become richer with more money, 
but go deeper into debt with every pay raise, and pay more taxes...

P. 204
- Who is Smarter - You Or The Bank -
- Most people do not prepare financial statements...
- If you can complete a financial statement and set financial goals, you are already 
ahead of most people...
- By being the CEO of your life, you can be smarter than the bank...
75 wds
- If you learn to see money with your mind instead of only your eyes, you will see two 
sets of books in the world of finances...
- If you can see two sets of books, you will be as smart if not smarter than the bank...
- A Picture Of "Two Sets Of Books" - Yours And Your Bank's:
-
- For every liability you have, you are somebody else's asset... two sets of accounting 
books exist...
77 wds
- You are the CEO of your own life, knowingly or unknowingly, and for every liability 
you have, you are someone else's asset...
- Every liability you have makes you an employee for someone else lending you money...
- Every liability you have makes you work hard to make someone else richer...

P. 205
- Debt Structures Make People Rich And Poor -
- A 30 year loan is a 30 year employee agreement without a salary...
- When you do borrow money, make sure someone else pays for it...
- Good debt is debt someone else pays for...
86 wds
- Bad debt is debt you pay for...
- A rental property is a transaction where the bank gives you a loan and your tenant 
pays for it...
- Two sets of accounting books exist for income and expenses as well...
- For every expense there must also be an income and these cash flows do not appear 
on the same set of financial statements...
- Picture of two sets of income and expense statements: 
-
- Most people have bills to pay every month... they pay everyone else first and pay 
themselves last... 
87 wds
- The golden rule of finance is "Pay yourself first."
- Cash flow management and financial literacy basics are a first priority to 
achieving financial freedom...
- "People who cannot control their cash flow work for those who can..." - Rich Dad.
38 wds

P. 206
- The Financial Fast Track and the Rat Race -
- The accounting concept of "two sets of books" can be called the sets accounting books of 
the Financial Fast Track and the Rat Race...
- There are many types of Financial Fast Tracks...
- The Financial Fast Track most common is the track between the creditor 
    (landlord) and the debtor (borrower/renter)...
60 wds
Picture Of Two Sets Of Income And Expense Statements: 
-
- This is a picture of a Financial Fast Track