One of the reason I believe most people are successful is due to the materials they read, the webinars they attend. The conventions, and associating with like-minded people. As you know my journey to financial freedom is taking speed. I am sure yours is also.
On my journey I came across this wonderful book by Robert Kiyosaki. The famed author of Rich Dad Poor Dad. Which I owe many thanks to in changing my mindset and life on how to really view money at least how to earn and spend it. In Rich Dad Poor Dad I learn what a real asset is vs a liability. His expounding on that really removed the blinders for me.
But this post is about his other book, CashFlow Quadrant. if you are starting out on your journey to financial freedom or financial literacy I suggest you pick this book up. I will include an excerpt of his book. This is another great powerful story that will give you a more understanding of how the right mindset (approach) can help you be more successful with your finances and opportunities.
“Once upon a time there was this quaint little village. It was a great place to live except for one problem. The village had no water unless it rained. To solve this problem once and for all the village elders decided to put out to bid the contract to have water delivered to the village on a daily basis. Two people volunteered to take on the task and the elders awarded the contract to both of them. They felt that a little competition would keep prices low and insure a back up supply of water.
The first of the two people who won the contract, Ed, immediately ran out, bought two galvanized steel buckets and began running back and forth along the trail to the lake which was a mile away. He immediately began making money as he labored morning to dusk hauling water from the lake with his two buckets. He would empty them into the large concrete holding tank the village had built. each morning he had to get up before the rest of the village awoke to make sure there was enough water for the village when it wanted it. It was hard work, but he was very happy to be making money and for having one of the two exclusive contracts for this business.
the second winning contractor, Bill disappeared for a while. He was not seen for months, which made Ed very happy since he had no competition. Ed was making all the money.
Instead of buying two buckets to compete with Ed, Bill had written a business plan, created a corporation, found four investors, employed a president to do the work, and returned six months later with a construction crew. Within a year his team had built a large volume stainless steel pipeline which connected the village to the lake.
At the grand opening celebration, Bill announced that his water was cleaner than Ed’s water. Bill knew that there had been complaints about dirt in Ed’s water. Bill also announced that he could supply the village with water 24 hours a day, 7 days a week. Ed could only deliver water on the weekdays…he did not work on weekends. Then Bill announced that he would charge 75% less than Ed did for this higher quality and more reliable source of water. The village cheered and ran immediately for the faucet at the end of Bill’s pipeline.
In order to compete, Ed immediately lowered his rates by 75%, bought two more buckets, added covers to his buckets and began hauling four buckets each trip. In order to provide better service, he hired his two sons to give him a hand for the night shift and on weekends. When his boys went off to college, he said to them, ‘Hurry back because someday this business will belong to you.’
for some reason, after college, his two sons never returned. Eventually Ed had employees and union problems. the union was demanding higher wages, better benefits, and wanted its members to only haul one bucket at a time.
Bill, on the other hand, realized that if this village needed water then other villages must need water too. He rewrote his business plan and went off to sell his high-speed, high volume, low-cost, and clean water delivery system to villages throughout the world. He only makes a penny per bucket of water delivered, but he delivers billions of buckets of water everyday. Regardless if he works or not, billions of people consume billions of buckets of water, and all that money pours into his bank account. Bill had developed a pipeline to deliver money to himself as well as water to the villages.
Bill lived happily ever after and Ed worked hard for the rest of his life and had financial problems forever after.The end.”
What an amazing story. He also adds who CashFlow Quadrant is written for, “It is for people who are tired of hauling buckets and are ready to build pipelines for cash flow into their pockets…not out of their pockets.”
I like this book because of the mindset. When I first read Rich Dad Poor Dad it revolutionized my thinking. Seriously it was like the light bulb came on. I am forever grateful for that book. It was back in 2014. Due to this new mindset I was able to build a pipeline of income like he talked about in CashFlow Quadrant. I built my first pipeline through K-money Mastery program. An Amazon kindle book publishing program that is a set it and forget it passive income maker.
I really believe you can benefit from Kiyosaki methodology.
As always continue to educate yourself in the words of Jim Rohn, “Formal education will make you a living, but self-education will make you a fortune.”
May your life be blessed and enriched God bless.