Advisor Kiyosaki

 Why I R ecom me  Wh men nd Direct Selling The direct selling industry offers many unique benefit be nefits s to tho t hose se who want wan t more out of life.

by Robert Kiyosaki

Robert Kiyosaki

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 verybody wants to be rich or at le ast nancially secure. However, today more and more people are nding it harder to keep their head above water nancially. And rom my va ntage point, I see a lot o people giving up hope and eeling that winning the lottery or inheriting is the only way they can become nancially independent. There is another way o getting ahead na ncially. First you must learn the dierence between inancial reedom and inancial security. I’ll also share with you how your core values will ultimately determine i starting a business—and in this case a direct selling business—is the ticket to what I call “reedom money.” Warning: Reading Beyond This Point May Challenge Your Values System  What I’m about to say may be ha rd to hear or many with closel y held belies and cultura l values. I don’t mean to make anybody’s values a right-or-wrong issue. I simply hope you will have an open mind to the important lessons and experiences I have learned over the years and how they have aected my lie. And, hopeully, they may give you some idea s to change your lie or the better. My success, both personally and na ncially, came rom two special people in my lie. They were (or those who have not read my rst book,  Rich Dad Poor Dad ) my rich dad, my best riend’s ather, and my poor dad, my real at her.

RobeRt K iyosaKi,  af teR RetiRing  at the  age of 47,  wRot e  R ich  D aD , P ooR D aD ,  whi ch has been on T   he  N   ew  Y  oRk  T   imes best -s elleRs list foR moRe than fouR  yea Rs stRaight  and sold

20 million copies . the success of  R ich  D aD , P ooR  D aD paved the  way  foR the R ich d ad seRies of booKs — cuRRently  10 booKs total. b efoRe  wRi ting  R ich  D aD , P ooR D aD , RobeRt moRe than

Two Fathers—Two Distinct Sets o Cultural Values I grew up in Hawaii and come rom a amily that emigrated rom Japan three generations ago.  All I heard grow ing up was “Go to school a nd get a high-paying gover nment job so the govern ment can ta ke care o you.” And that’s just what my ather did. He was a ver y educated man, a highly paid government ocial. But no matter how much money he made, he was broke at the end o every month and ultimately died broke with little to show or a lie o hard work. He was a very honest and hardworking man whom I loved and respected dearly. He had dierent values than my r ich dad, to whom I went at age 9 to teach me a bout money ater seeing my mom and dad constantly ght over not having enough. So or many yea rs my rich dad guided me nancially. Because o my rich dad’s training, I wa s able to retire at age 47. I I had ollowed my poor dad’s advice—the advice o being a good employee until I was 65 years old—I would still be working today, worried about my job security and my pension plan.

cReated the educational boaRd game

cashFLow ® 101 to

teach

individuals the financial  and investment stRategies his Rich dad spent  yea Rs teaching him .

RobeRt is the co -foundeR of cashflow technologies , i nc .,  as  well  as  a  multimillionaiRe investoR, business owneR, educatoR  and speaKeR.

RobeRt a Rizona  wit h his  wif e, K im . lives in

Financial Security vs. Financial Freedom: A Change in Mind-set One o the many things I took away rom my rich dad was the concept o reedom vs. security. He always told me, “You want nancial reedom. You don’t want nancial security because they are exactly the opposite. You see, the more security you have, the less reedom you have. In other  words, the more you cling to your job or your paycheck or money, the less  ree you are.” I have riends who ma ke a lot o money, but they’re terried o losing their jobs simply because they have so ma ny bills to pay. They’ve chosen the path o security. Whereas, when I went or reedom, I went or a whole dierent mind-set, a dierent attitude and a dierent skill-set. That’s why I learned to build businesses. I never had to worry about having a paycheck or being red. In my  voca bular y, reedom a nd secur ity are two words that have polar opposite mea nings. The thing I love about reedom is the absence o ear. I don’t worry a bout being red because it  wouldn’t a ect my  nancia l sta nding anyway.

Volume 3

Issue 3

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Robert Kiyosaki

Cash Flow Quadrant: What are Your Core Values? How many times have you said to yoursel, “I wish I could quit my job” or “I’m  working hard, but the only people getting rich are the owners o t he company?” These are just some o the statements individuals trapped in what my rich dad called the CASHFLOW Quadrant. It’s also the title o my second book in the Rich Dad series, called  Ric h Dad ’s CASHF LOW Qua dra nt. The book is targeted to those people who are ready to make changes in their lie—a change ar greater than simply going rom  job to job. So what is the CASHFLOW Quadrant? My rich dad said there are our people who make up the world o business.

• The E stands or “employee.” • The S stands or “sel-employed” or “small-business owner.” • The B stands or “business owners,” generally dened as having 500 employees or more. • The I stands or “investor.” How Do You Know What Quadran t You Belong To? So how do you know what quadrant you are in? It’s as simple as looking at which quadrant your cash fows rom. For example, i you receive your income rom a job and you receive a regular paycheck rom a company or business you do not own, then  your ca sh l ows out o the “E ” qua drant . My income primarily comes rom my businesses and my investments, so I am in the “I” quadrant. What Are Americans Most Araid O? The Answer May Surprise You USA Today released an interesting art icle that turned many heads. They ran a survey that ound the greatest ear in America today is not the growing threat o terrorism or losing a job. Surprisingly, what people are most araid o is running out o money during retirement. I would say that’s a very real

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concern and a very real ear simply because, as we have seen in the last our years, the stock market hasn’t done that well. It goes up as well as down. I know people today who are in their 80s a nd looking or jobs because their nances were wiped out between 2000 and 2003. I think it’s the ear o the uture, the lack o inancial stability or security that has people concerned.

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You Shall Know Them by Their Words... and Values  Years a go when my rich dad wa s explaining this concept, he told me that dierent quadrants have dierent values. He also said  you can always tell the dierence betwe en these our people simply by the words they use. Here’s a quick look at each quadrant and some o the words that dene them:

Robert Kiyosaki

E Quadrant: “I’m looking or a sae, secure job with benefts.” Even though a person rom the “E” quadrant can be a janitor or the president o the company, they are united by the same set o  core values. A person in the “E” quadrant is concerned with security. And that’s why they seek secure, long-term employment and great benets. S Quadrant: “I you want something done right, do it yoursel.” For those sel-employed people or smallbusiness owners (“S” quadrant), the core  va lue is in de pe nd ence . Th ey wa nt th ei r reedom and do what they want. Those in the “S” quadrant are who I call the John  Wayne o business. You can hear them saying “I’m going to do it on my own.” The way an “S” gets paid is oten by commission or the amount o time they spend on a job. An “S” quadrant businessperson is oten the smartest person on a small team, such as a consultant or doctor. B Quadrant: “I’m looking or the best people to join my team.” People who start rom nothing and build great “B” quadrant businesses are oten people with powerul lie missions. And  while a pers on in the “S” quadra nt want s to be the best in their eld, a “B” quadrant person is looking or other people who are the best in their ield to join his or her team. More than anything, they value having a great and ecient team behind them helping them build and strengthen their business. When it comes to being paid, a true “B” quadrant person can leave his or her business and still get paid. I Quadrant: “What’s my return on my investment?”  Wh at those people in the “I” qua dra nt  value most is nancial reedom. The inve stor loves the idea o their money working instead o them working. Investors invest in many things, such as real estate, business, stocks and bonds, just to name a ew.

In Which Quadrants Will You Have the Most Success? Looking at each o the CASHFLOW  Quadrants, you need to ask yoursel this question, “In which quadrant do I have the most chance o na ncial success?” For mysel, I did not want to be an employee all o my lie, nor did I want to go to school to become a doctor or lawyer (“S” Quadrant). I knew that my best chances were in the “B” and “I” quadrants simply because I  want ed to become a multi millio naire, and I did not want to take orders or work hard all my lie to ea rn those millions o dollars. Today, my businesses provide me the ongoing, passive income to earn the millions o  dollars without having to go “into” work or  working h arder and ha rder. Now it’s your turn to look at the quadrants. The question you may want to ask  yoursel is, “W hich quad rant or quad rant s are best or me?” One o the reasons many people ail to become successul in their lives is because they are araid to change quadrants. Most people only change jobs. There Are Various Ways to Become Rich In reality, there are many ways to become rich, but you have to be very lucky and  wor k ver y hard or a ver y long tim e. For exa mple, i you’re an employee o a Fortune 500 company, you could someday become CEO and earn a nice salary with stock options. I you have exceptional athletic talent, you could make it to the NFL or NBA and strike it rich even i you produce mediocre results. Building a business is the way most o  the rich became very rich. But starting a traditional business these days costs a lot o money—money most average Americans don’t have. And most people lack the operational, selling and leadership skills it takes to succeed in such a venture. So how can the average person who has the commitment level and drive start a business when so many o the doors are closed to them?

Volume 3

A Direct Selling Business: The Perect Business? There is another way the average person can enjoy the beneits o inancial success  without the hassles associated with a traditional business: start your own direct selling business. Even though I do not participate in direct selling, there are many reasons why I think direct selling is the perect business or those who are willing to work or it. Direct Selling Values are “Rich Dad” Values  As I wrote in my book The Business School:  For People Who Like Helping Other Peopl e, I  was drawn to this industry because most o the companies are actually teaching the values o  my rich dad, not my poor dad. However, I was  very close-minded to the industry or several  years. My attitude changed one day when a good riend o mine was looking to get into the industry. My riend had already amassed a large ortune, so I asked him, “Why are you, o all people, joining a direct selling business?” He went on to tell me that he wanted to help people and wanted to teach. This intrigued me, and I decided to do some investigating. I went to several meetings o dierent companies and ound that they were teaching the same principles, the same mind-sets, the same business skills with the same attitude my rich dad taught me. In many ways direct selling, to me, is a revolutionary way to achieve wealth. And it is the only industry that comes close to the  values that my rich dad taught me at an early age. Here are just some o many values that make up what the direct selling industry is all about. Opportunity or All: No Prior Qualifcations Needed or Success The industry doesn’t care what college you  went to, how much money you make today,  what race or sex you are or how good looking  you are. It is truly one o the only businesses  where everyday people can attain their dreams o nancial reedom.

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The Best Way to Get Ahead Is to Become a Business Owner Direct selling teaches values not ound in traditional business schools—values such as the way to teach yoursel and others how becoming business owners gives you the best chance o achieving  yo ur in a nc ia l go als . Bu t mo re im po rtantly, it puts you in charge o your own destiny. A Strong Foundation o Financial Education and Training  A big r ea son I sup por t the dir ec t sel lin g industry is many companies in the industry are really business schools or the people, rather than business schools that take smart kids and train them to become employees o the rich. The direct selling industry teaches real-lie training  you ca n use —not the th eor etical bu sin es s stu you learn in s chool. Building a Network o Salespeople; Duplicating One’s Eorts The key to succeeding in business is learni ng how to sell something, not once but many times. Direct selling companies teach the undamental skills o how to successully duplicate your eorts by training you to teach other like-minded people to become inancially ree. A Support System to Ensure Your Success I you stumble, are having a hard time getting started and are not having the level o success you envisioned, don’t  wo rr y, yo u wo n’t ge t ir ed . Di re ct se ll ing companies understand quite ully that their success depends on your success. Most direct selling companies care primarily how much you are willing to learn, to change and to grow. They encourage you to have the guts to stick it out through thick and thin while you learn to become a business owner.

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Passive Income or Lie— “Freedom Money” I saved the best or last. The beauty o  direct selling is the passive income or, as I call it, “reedom money” you can earn that can someday allow you to nally quit your  job and dev ote 100 perc ent o your eort toward your business. Passive income is money coming in without you working or it. And just like those business owners in the “B” quadrant who can earn money without having to go to work, the same goes or the income earned rom your direct selling business. So in essence, by owning your own direct selling business, you can join the “B” quadrant o business magnates like Bill Gates rom Microsot, who also has highly successul people working under him to produce income or him, whether he comes into work or not. Is Direct Selling Right or You? It Comes Back To YOU  As I stated earlier, today there are many  ways or a person to get rich. And just a s my rich dad said, the best way to become rich is to nd the way that works best or you. I you are a person who loves helping other people, I believe direct selling is a great t. But it also depends on whether you want reedom or security. Do you want the job security and the benets it gives you? Or do you want to attain the reedom that owning your own business gives you? Whatever you decide, understand it is going to take a lot o work and a commitment on your part to see it through. The core values I’ve outlined here are some o the most important things or you to consider in deciding whether you will be a part o the direct selling industry. My rich dad taught me that core values are ar more important than money. And the method you choose will be the method that closely matches the core values deep inside you. So I ask again, “Is direct selling the perect business or you?” It depends on YOU!

Volume3 Issue3