When You Think Real Estate, You Think Rich
There’s got to be a difference between the type of person who strike it rich and the average Joe, but what is it, really? This question is an important one, and it should be given the thought it deserves. There are plenty of easy, oversimplified responses, including, “Their family is rich,” “They won the lottery,” or “They have great careers.” But these factors can’t always be controlled by the individual experiencing them– is wealth really dictated by the luck of the draw?
The truth is that not all of these lucky people can be truly considered to be rich. It is the belief of “Rich Dad” author Robert Kiyosaki that the true measure or wealth isn’t really the amount of money you take in, but how much you manage to keep.
Kiyosaki’s father, the so-called “Poor Dad,” is a great example of a well educated man blessed with a great career who was nonetheless poor, because he couldn’t seem to keep any of the money he was earning.
Fortunately for you, the circumstances of your life, such as the family into which you are born or the salary you receive at your job, are not what will determine whether or not you become rich. Being wealthy depends on internal factors, not external circumstances.
That’s right, folks– becoming rich has more to do with how you think than who you are and what you’ve got.
Kiyosaki’s “Rich Dad” used a graph entitled the Cash Flow Quadrant to explain this principle, separating people into four groups. ‘E’s and ‘S’s, or employees and those who are self-employed, occupy one half of the graph. ‘B’s and ‘I’s, or businesspeople and investors were on the other. Robert Kiyosaki claimed that, in addition to representing the source of a person’s cash flow, these categories served as a window into how different type of people think about money.
Furthermore, Kiyosaki explains, individuals don’t land in one quadrant or another by a roll of the dice.
According to Kiyosaki, the people who fit into these four categories are fundamentally different in their thoughts and emotions, and these essential differences drive individuals to behave differently towards their money.
What’s more, Kiyosaki says, it is that emotional difference that determines to which quadrant a person is drawn. And, he says, you can always tell which quadrant a person is coming from simply by listening to what they say. If you hear a person talking primarily about their benefits and job security, then that person is coming from Kiyosaki’s E or employee quadrant. He also goes on to say that it is perfectly all right to live your life in the E quadrant if security is indeed the most important thing to you. But, he adds, the E quadrant is the most difficult quadrant from which to become rich.
This may seem a little bit daunting at first, but in reality you should feel encouraged– since being rich really isn’t the result of blind luck, that means that all you have to do to become rich is change the way in which you think of money.
Real estate is a great place to start for prospective investors; it’s what made “Rich Dad” rich in the first place! In order to become a real estate investor and start building your fortune, all you have to do is make a decision to stop working for a paycheck, and put your paycheck to work for you.
Filed under: Business