- author: The Rich Dad Channel
Hitchhiking to Montreal to See the Man Who Could See the Future
In 1967, a 20-year-old student from the United States Merchant Marine Academy, Robert Kiyosaki, hitchhiked his way from Kings Point, New York to Montreal, Canada. His purpose was to attend Expo 67, also known as the "World's Fair on the Future". However, he was especially interested in visiting the U.S Pavilion designed by Dr. R. Buckminster Fuller, called the geodesic dome. Dr. Fuller was known for his work as a futurist and Robert found his ideas intriguing, as he believed seeing into the future would allow him to predict the trends in stock markets, bond markets, and real estate markets to make money.
After Robert had the opportunity to study with Dr. Fuller in 1981, he realized that Fuller's interest in predicting the future was not focused on the stock market, but on humanity as a whole. Robert saw the connection to the world's current financial systems and how they could lead to "a collision course with disaster." It was then that the former rock and roll businessman knew he needed to make changes.
Over the years, Robert studied Dr. Fuller's teachings about predicting the future of humanity and applied them to the stock market, his area of interest. He graduated from Kings Point and eventually joined the U.S Marine Corps, becoming a pilot, and then later became an author and financial educator.
Robert published his first book, "Rich Dad Poor Dad" in 1997, which stated that savers would be losers and the rich do not work for money. He created a cash flow quadrant to help people understand the different sides of finance, and that investing passively in mutual funds, as mainstream financial advice suggests, would not lead to financial freedom.
In 2002, Robert published "Rich Dad's Prophecy," predicting a giant crash coming in 2016, as well as a secondary crash before that. Though making predictions can be risky, Robert has been warning about the risks of the current financial system for decades. However, it wasn't until the 2007 real estate market crash that people started to pay attention.
In 2009, Robert published "Conspiracy of the Rich: The 8 New Rules of Money," which looked at how the rich control the world economy through the government, Wall Street, and schools. He argues that following traditional financial advice such as working hard, saving money, getting out of debt, and living below your means would not lead to financial freedom.
Despite the criticism he's faced for his predictions, Robert Kiyosaki continues to educate people about financial literacy and the importance of understanding the world's economy. Through Dr. Fuller's teachings, he has found a deeper meaning beyond making money and has been empowered to make a difference in the world.
The Importance of Financial Education: Moving from E and S Quadrants to B and I Quadrants
Making the shift from the E and S quadrants to the B and I quadrants is a significant decision. These quadrants refer to the different categories of employment or income-earning modes. The E stands for employee, and the S stands for self-employed, whereas the B stands for business, and the I stands for investors. People like Henry Ford, Mark Zuckerberg, Steve Jobs, and Bill Gates fall under the B and I quadrants. To make the best decision requires a lot of thought and education, which is why we encourage people to become financially literate.
Taxes and Their Effect on Income
Understanding taxes is an essential element of being financially literate. Taxes have a significant impact on income, and varying salaries will have different tax percentages. Employees and self-employed individuals pay the highest taxes. Employees, on average, pay 40% of their salary, while self-employed individuals can pay even higher, up to 60% of their income.
The B and I Quadrants Pay Lower Taxes
In contrast, individuals under the B and I quadrants pay lower taxes, with investors being able to get away with paying as little as 0% in taxes. This is why financial literacy is so important. It teaches people to become pro-active and professional investors, allowing them to pay fewer taxes and build long-term wealth.
The Value of Financial Education
The lack of financial education is a significant issue in our education system. People who fall under the E and S quadrants have no idea how those under the B and I quadrants make more money and pay fewer taxes. Financial education should include teaching people to move into the B and I quadrants and become professional investors.
Network Marketing as a Path to the B Quadrant
One of the best ways to move from the E and S quadrants to the B quadrant is through network marketing. Network marketing is an excellent way to discover whether being an entrepreneur is right for you. It involves learning what it takes to be a business owner and how to generate sales. To succeed in network marketing, you have to teach others how to sell and lead others, making it an excellent training program for entrepreneurship.
The Cash Flow Board Game
Robert Kiyosaki and his wife, Kim Kiyosaki, developed the Cash Flow board game to help people understand how to become professional investors versus passive investors. The aim is to teach people how to become financially free. For example, instead of relying on 401Ks or IRAs, it is better to invest in real estate or stocks. The Cash Flow board game is an excellent tool that can help people become financially literate.
Overall, financial literacy is an essential aspect of living in today's world. Understanding taxes, investing in oneself, and moving into the B and I quadrants can make a significant difference in a person's ability to become financially free. By playing the Cash Flow board game, getting involved in network marketing, and learning from seasoned investors, people can start their financial journeys today.