These investors believe in saving their money and investing it in a savings account.Įven though it is a good idea to save money, it is not a good idea to save as a way of investing.Īll the money this investor saves is eaten away by inflation if left in a regular savings account. They live paycheck to paycheck working a Just Over Broke J.O.B.Įven though they may know, in principal, they should invest their money, they do not have any money to invest.Īccumulating debt, living above their means, and never getting ahead is their lot in life. The investors in this level have nothing to invest. Five Levels of Investors Level 1: The Zero-Financial-Intelligence Level What I am saying is that the rich place a monetary value on each share of the company and sell it to us regular poor people. Actually, you are owning part of the company that makes money so that is worth something. Now, I am not saying that the shares are worth nothing. The poor gives the rich money to have a fractional ownership of the company. Let me write out all the 0's so you can see how much they actually made… When Facebook when public and sold its shares for the first time, the sold the shares at $38.įacebook and its investors made $16 billion on with that offering. Lastly, what was once worth nothing, is now selling for $50 or more per share. Third, the rich sell shares of the company (thousands of shares at a time) to poor people like us to make money for themselves. Second, years later, the company is making money and the rich take those shares and now add a value to each one. Just pieces of papers showing equity in a future company and its profits. These shares that they sell are at a price that they determine.įirst, the day the company was created, those shares were worth nothing. Once the business makes enough money, they go to the stock market to sell shares (ownership) of their company to anyone. The rich invest in companies that make a profit from the business. Cashflow Quadrant Book Summary How the Rich Make Their Money I don’t know if I will ever do a retail business again but I do know that investment rental properties are the best way to go to build wealth. Check out an article I wrote about it here: 6 Ways Rental Properties Make You Moneyīecause of the rental properties, I was able to make it through the hard times and I am continuing to invest in them today. One by one, I kept buying more properties.Īfter just six years, I owned 19 rental properties that made me $9,500 a month in gross rents! I would say that my venture into the I side of the cashflow quadrant has been a success.ĪND the passive income is only one out of 6 ways rental properties makes me money. It makes me $550 a month in passive income and will continue to do so until I sell the place many years down the road. I bought my first rental property in 2007 and still own it to this day. My Venture Into the Investor Section of the Cashflow Quadrant SummaryĪt the same time I started my business, I decided to invest in rental properties. When the economy took a downturn in 2009, my business also declined and made it very hard to profit from it.Īfter a few more years I decided to sell the business to someone who was going to be an owner operator which is what the business needed. The economy was booming, things were great and cash was coming in. I started the business in 2007 and jumped all in. The value that I brought to the business reflected how well the business did. My first attempt at the right side of the quadrant was starting a retail business.įor a couple years it was doing well, I had a manager, employees, and I just managed the entire business while they did all the work.īeing the boss. Watch my entire Rich Dad Cashflow Quadrant Summary Book Review here: Starting In the Business Section of the Cashflow Quadrant Summary I personally knew that if I wanted to become wealthy, moving to the B, I, side of the cashflow quarant was the way to do it. Not just get to that side, but get there as fast as possible.
The biggest take away that I had from this book was that I needed to move from the left side of the quadrant to the right side of the quadrant. The Main Takeaway from Cashflow Quadrant Summary Join the Real Estate Wealth Builders Membership Today!.Conclusion: Everyone Must Choose What They Will Be….The Main Takeaway from Cashflow Quadrant Summary.
0 kommentar(er)
