Thursday, January 5, 2017

Become a writer in 10 steps

Become a writer in 10 steps
So you want to be a writer.
When I was a senior in high school,
my parents and I travelled around to
different colleges, researching the best
ones for my chosen major, Creative
Writing.
Even though this was many years
ago, I remember walking down a flight
of stairs at a university in San
Francisco. We had just left the creative
writing department and I was feeling
both ambitious and intimidated at the
same time. My father, a man who I
had watched spend years writing
novels, plays, and song lyrics, asked
me why I wanted to be a writer.
“You know how hard it is to make
money as a writer?” he said. It felt like
a betrayal.
“I don’ t care about making
money,” I told him. “I just want to
write great books.”
Despite my show of idealism, I
secretly thought this was a silly
conversation. As soon as I wrote my
first book, I knew I would be an instant
success.
Of course, that’s not exactly how it
happened.
Since then I’ve written four books,
hundreds of articles, several short
stories, and a handful of poems.
But I’m still not an instant success.
They haven’t named a literary prize
after me (yet). And I haven’t seen my
name next to George R.R. Martin and
Stephen King on the bestseller’s list.
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And ye t , I’ve accompl ished
something much more important.
I’ve become a writer.
Every day I get to sit down in front
of a keyboard and think up words,
words that reach thousands of people
in a dozen different countries. Every
day I get to create stories out of thin
air and put together sentences that
change the way people see the world.
Every day I get to write meaning into
people’s lives.
No one is born a writer. You must
become a writer. In fact, you never
cease to become, because you never
stop learning how to write. Even now,
I am becoming a writer. And so are you.
In this short book, I’d like to give
you the ten best pieces of wisdom I’ve
learned as a writer. I hope they will
inspire you to begin your journey
toward becoming a writer (or continue
it with renewed focus!).
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Afterward, I’ll share a program that
will help you step into your new
identity as a writer.
Let’s begin, shall we?
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I.
Publish
Really? Tip number one is to
publish?
It’s strange to begin a list of
writing tips with a tip to publish. In
fact, as I read books and articles about
how to become a writer, most of them
don’t even mention it. They usually
say, “Just Write!”
However, writers write things
other people read, and so the act of
publishing is essential to being a
writer.
What is stopping you from
publishing something today?
Seriously. What is stopping you?
Like most people, you probably
think of publishing as the process of
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getting an agent who will attract
Harper Collins or some other New
York publisher to pay you a small
advance and a portion of the royalties
so they can print and sell your book.
However, publishing can also
look like posting your articles on a
blog or emailing your short stories to a
f r iend. I t doesn’t have to be
groundbreaking, and it doesn’t have to
be perfect.
If you want to become a writer,
you need to get used to writing for
others. You need to practice taking
feedback and dealing with rejection.
You also need to start earning some
fans.
You do this by publishing,
publishing small and regularly.
What is stopping you from printing
out one of your writing pieces and
giving it to a friend? Or publishing it
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online as a blog post or even a
Facebook note?
Do you have one friend who
would be interested in reading your
writing today? I’m betting you do. Why
not send them one of your writing
pieces now? (Yes, now.)
Think of it as practice for when
you publish with that big New York
publisher. (It could be a while, so you
may have a lot of time to practice.)
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II. Set deadlines, or
better, get someone
else to set them for you
(and then keep them)
“I love deadlines,” said author
Douglas Adams. “I love the whooshing
noise they make as they go by.”
Deadlines are meant to induce
stress. I know none of us really wants
more stress in our lives (do you?), but
most writers I know struggle with two
things: discipline and focus. A good
deadline helps with both.
A little bit of stress focuses you.
A good deadline can keep your butt in
the chair and your fingers on the keys
much better than “inspiration,” that
fickle muse, ever could.
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How, then, do you set good
deadlines so they don’t whoosh by as
they did for Mr. Adams?
The best deadlines are set by
others, by editors or freelance writing
clients or even your fans.
The most effective deadline I
ever set was to write one article on my
blog every day. I did this while
maintaining a full-time job. What
made this deadline especially effective
w a s t h e p e o p l e h o l d i n g me
accountable were my readers, a small
group at the beginning but eventually
a large, clamoring audience.
When you know people are
waiting for your writing, you become a
much more disciplined writer.
HINT: People are waiting for
your writing. When are you going to
give it to them?
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III. Learn how to tell a
great story.
No matter what kind of writing
you do, you will always tell stories.
If you want to write novels or
memoir or short stories, this is
obvious.
What if you're writing self-help
or reference? You still need to learn to
tell a good story. When firefighters
hear stories about the close calls of
their friends, it activates the same part
of the brain as if they were going
through that experience themselves.
Then, when they experience a similar
situation, they’re better prepared
because of the stories they’ve heard.
Stories are the best teachers.
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What if you’re writing marketing
or sales copy? What is marketing but
telling a story of how a consumer’s life
could be different if they bought your
product?
All writers tell stories. Great
writers tell great stories. Learn to tell
great stories.
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IV.
Read things that make
you feel like someone
finally understands.
Read things that you
don’t fully understand.
I wanted to become a writer
because I read a few books that made
me f e e l l ike someone f inally
understood me.
I became a better writer because
I read books that I didn’t fully
understand and kept reading them
until I did (some I’m still reading).
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V.
Learn everything (but
become an expert on
nothing)
Writers are learners.
When I’m writing an article or a
chapter in a book, I often have ten or
twelve tabs pulled up on my browser
as well as a few books open in front of
me, all of them research and resources
to make my writing better, more
detailed, more lifelike.
Writers bring information to
people who have never heard it. We
can turn a few words on a page into a
whole universe inside our reader’s
imaginations. We can look into the
souls of our characters and share their
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story in a way that our readers fully
understand them.
SECTION 2
We do all of this through
learning, learning about politics and
current events, craftsmanship and
s c ience , about emotions and
spirituality.
Writers should never become
experts. Once you become an expert,
you can no longer learn anything new,
and if you don’t learn anything new
you will become stale and uninspired.
Be a novice in everything and you will
never run out of things to write about.
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VI.
Steal
“Good artists copy, great artists
steal,” Steve Jobs liked to say.
He was “quoting” Picasso, but
this quote has also been attributed to
James Joyce and William Faulkner and
Stravinsky among others.
But the quote actually originated
with T.S. Eliot, the great modernist
poet, who wrote, “Immature poets
imitate; mature poets steal; bad poets
deface what they take, and good poets
make it into something better, or at
least something different.”
1
When Ernest Hemingway was
first beginning as a writer, he would
1 See the Quote Investigator for more details.
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type out whole sections of books by
writers he admired just to get a sense
of the flow and rhythm of their
writing.
When I was working my first job
as a freelance writer for a local
newspaper, I printed out ten of the
best articles I could find from the New
York Times and the Los Angeles Times,
and then carefully read through each
one, taking notes and asking, “Why
did the writer say this here? What is
the purpose of this sentence? How
does this word move the story
forward?”
Whenever I begin a new writing
project, I read something that I admire
to inspire and motivate me.
Cormac McCarthy, author of The
Road and All the Pretty Horses, once
said, “The ugly fact is books are made
out of books.”
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There is nothing new under the
sun. The question, then, is which
books are you going to make yours out
of? And how are you going to turn
them into something better (or at least
something different)?
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VII.
When you see pain/
poverty/evil/injustice/
death, don’t look away
I once read a short story about a
boy who wanted to become a writer
that stuck with me (although, I’m
forgetting the title, so if you know it,
email me!).
The story begins with the news
that a man in their small ranching
community had been killed. To help
with the body, the boy and his father
and uncle leave late at night and walk
through the wilderness.
It would be the boy’s first time
seeing death, and when they came
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upon the body, he was terrified and
looked away.
“You want to be a writer?” his
uncle asked.
The boy nodded.
“Then don’t you look away.
Don’t you ever look away.”
I’ve seen things I have wanted to
look away from. I’ve seen legless boys
pull themselves around on a cart to
beg for coins from passing cars. I’ve
seen hillsides covered with slums,
people living amidst trash and human
waste with just cardboard and tin for
shelter. I’ve seen death.
If you want to be a writer, you
must know death and pain and evil
and injustice, know it as intimately as
you know your soul. A writer’s job is to
bring the bad to life just as well as the
good.
Don’t look away.
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VIII.
Become acquainted
with boredom,
comfortable with
writing-induced misery.
Every writing project I’ve ever
worked on has come with weeping and
gnashing of teeth.
When you begin writing, you are
awash with excitement. You have a
vision and you’re confident you can
bring it to life.
It’s the middle that’s always the
hardest. Author Donald Miller said
every story is like paddling a row boat
to an island2. When you first start, the
2 From A Million Miles in a Thousand Years.
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shore recedes quickly and the island
feels so close you could touch it.
But once you get out into open
water, it’s easy to think you’re not
even moving. The shore you just left
seems far away and the island you’re
rowing toward isn’t getting any closer.
You’re not making any progress, and
you start to wonder if you should just
give up.
Most people quit here. No one
has problems starting stories. They
don’t even have a hard time finishing
them. But the middle is a story
graveyard, littered with corpses of
books, blog posts, and articles.
When I was finishing my first
book, I became so frustrated and
hopeless with my writing that I knelt
on the floor, put my face in my hands,
and cried (a very macho, manly cry, of
course). I thought, “I don’t want to do
this anymore. I don’t want to write
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this book. I don’t want to be a writer at
all anymore. I never want to feel this
stupid again.”
But after a little while, I got up,
and I wrote a few more words. The
next day, I wrote a few more. A month
later, the book was finished and sent
off to the editor.
That moment on the floor was
the turning point, the beginning of the
end of writing my first book, and now I
remember that moment every time
writing is at its most frustrating and
hopeless, and I know I’m nearly
finished.
Write through the mess. Write
through poor grammar and awkward
tense changes and switches in point of
view. Keep writing even when you
know as you’ve known nothing else
before that what you’re writing is
worthless. When you’re in the middle,
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good and bad are meaningless. Just
keep writing.
And when you can see the shore,
when you realize, at last, that you’re
nearing the end of the writing process,
remember the feeling. You’ll need that
memory for the next time you find
yourself in the middle.
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IX.
Surround yourself with
people who inspire you
(some of them may be
writers)
We think of great writers as
silent, brooding geniuses, but the
truth is no one becomes a writer on
their own. I t takes a team, a
community, to sustain the passion,
creativity, and sheer willpower to
become a writer.
The truth is, the best writers
have always had a community. Ernest
Hemingway had F. Scott Fitzgerald,
Gertrude Stein, and the expats in
Paris. Jack Kerouac had William
Burroughs and the Beats. J.R.R.
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Tolkien had C.S. Lewis and the
Inklings. Virginia Woolf had Leonard
Woolf and the Bloomsbury Group.
“You are the average of the five
people you spend the most time with,”
said Jim Rohn.
If you aren’t spending time with
creative people who inspire you and
challenge you to do your best writing,
perhaps you need to make a few new
friends.
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X.
Oh, and don’t forget to
write…
Let me close with one last story.
A few years ago, I did something
that changed my life. I started writing.
In fact, I finished one writing piece
every day.
I had, of course, written before. I
had even started a few novels (that
were soon abandoned). I had written
essays for school and a few bad poems
for fun.
However, when I started
finishing one writing piece per day,
something happened to me. I started
to think of myself as a writer.
A real writer.
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This led to getting small jobs as
a writer, freelancing for a local paper,
editing books for friends. It took a
while (and a lot of practice), but
eventually, I was able to quit my job
and support myself and my family
full-time through my writing.
It all started by finishing ONE
writing piece regularly. That small
habit changed my life.
I’m passionate about helping
other writers go from being aspiring
writers to becoming daily writers.
That’s why I want to invite you to a
program that could change yours.
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This is the Becoming
Writer Challenge
What if you could step into your
identity as a writer today?
I want to challenge you to stop
dreaming, stop aspiring, and start
developing the habits that will turn
you into a writer. It’s called the
Becoming Writer Challenge.
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Here’s how it works:
You write ONE, WEEKLY Writing
Piece. It can be anything from a short
story to a blog post to a poem to the
chapter in a book.
You share it with our community
of encouraging and committed fellow
writers to get feedback. You also give
feedback in return, helping you
develop your own eye as a writer and
editor.
You join a writing community that
can turn your passion into a writing
lifestyle. This community will become
what the Inklings were for J.R.R.
Tolkien and C.S. Lewis, what the
expats in Paris were for Hemingway,
what the Bloomsbury group was for
Woolf.

Get what you need to
become a writer
… the deadlines you need to focus
… the resources to learn the craft
… the accountability to stay disciplined
… the chance to share your writing in a
safe, encouraging place.
This community turns aspiring
writers into daily writers.
Are you ready to become a writer?
We’d love to have you join us
when we open the community.
Please, check your email soon for
more details about our launch date.

Saturday, December 31, 2016

Colleges and Universities in 2020

Colleges and Universities in 2020

Talent, discovered in kindergarten and developed in the school years bears fruit in universities in 2020. Universities gives a lot more practical education, internships to students than just theory. During their studies, students get help and start their own business.

Consultation on IVAcademy.ru | Colleges and Universities in 2020

Monday, December 19, 2016

5 Secrets to Jump Start Your Cash Flow

5 Secrets to Jump Start Your Cash Flow
Whether you have been investing for years or are just starting your journey out of the Rat
Race, every investor needs direction and motivation. Understood and followed for years
by the rich, there are key secrets that will help every investor from the active day trader to
the budding entrepreneur to the seasoned real estate investor get better, gain leverage,
and invest wisely.
As you read Rich Dad Coaching’s “5 Secrets to Jump Start Your Cash Flow” seek to un-
derstand how each one applies in your investing pursuits and do not be quick to dismiss
one as beneath you or too advanced. The most important aspect of each principle is that
you are accountable to actually putting them into practice. These secrets are tried and
true. Learn to apply them and you will accomplish more than you would have otherwise.
With that being said, let us begin.
Secret #1 – Know Your Game Plan and Outcome.
There  is  a  difference  between  those  who  know  “how”  to  invest  and  those  who  know
“why”  to  invest.  And  by  “why,”  we  do  not  mean  some  esoteric  higher-purpose—even
though a greater goal is important. No, we mean, “why did you invest $50,000 in option
A instead of option B?”
There  are  two  kinds  of  investors.  You  can  be  an  educated  investor  or  a  successful
investor. An educated investor is someone who either through study or street smarts
knows “how” to do deals. Whether it is from diligence in educational pursuits, executing
numerous deals, or a combination of both, the educated investor understands the ins
and outs of a deal. We all need to be educated, but the educated investor stops with
the know-how.
Successful investors understand “why” to do a deal.
Successful  investors  are  also  educated  and  continually  seek  out  education.  The  dif-
ference is the successful investor not only knows how to “do the deal,” but how each
investment contributes a critical piece to their overall investment plan and strategy.
Without a plan in place, you are relegating yourself to a career of simply being an inves-
tor who knows what to do. You will move from deal to deal building a long and varied
portfolio, but never go anywhere. Imagine going to the grocery store without a list or a
menu. You would go up and down the aisles fi nding bargain prices and “great deals” on
item after item; but because you lacked a list or plan, you would leave the store with only
some tubes of toothpaste, a couple cases of soda pop, and an assortment of buy-one-
get-one-free snacks. While you may have saved 70% on your grocery bill, you have left
without anything for dinner tonight.
If you do not know why you are making a deal or investment, then it does not matter how
great it is or how fl awlessly you execute it. Education is important; but if you are aimlessly
pursuing opportunities without thought for the bigger picture, you can easily fi nd yourself
holding a portfolio that does not allow you to realize your dream.

3 Step Guide to Financial Freedom By Robert Kiyosaki Rich Dad’s

3 Step Guide to Financial Freedom By Robert Kiyosaki Rich Dad’s

Introduction
I often write about real-life investments. I do this because I want you to understand
how I use my financial education.
I write to encourage you to learn, study, practice, and possibly see the world differently.
Today, there is a lot of money in the world. There are trillions of dollars looking for a
home because governments of the world are printing trillions in counterfeit money,
aka fiat currency. Governments do not want the world to go into a depression, so they
print more funny money. This is why the price of gold and silver go up and why savers
are losers.
The problem is that this phony money is in the hands of only a few people. So, the
rich get richer, the poor and middle class grow poorer, the economy worsens, and the
problem grows bigger.
According to the U.S. Census Bureau, poverty in America increased to nearly 15
percent of the population in September 2010. This means over 4 million people moved
from the middle class into poverty. This is dangerous. This is not healthy.
With that said, there are three important parts to your financial education:
1. Learning the real difference between an asset and a liability. We will discuss
this below.
2. Learning which mindset you are in and knowing which one you need to be in.
This is why I have included the CASHFLOW® Quadrent section of this book.
Pay special attention at how the various quadrants define an asset. It is very
different. One will grow your success, the other will keep you in the rat race
forever.
3. Putting the first two parts into action and creating your own success. We’ll
cover the first two parts of financial education here in this eBook. When you
are ready to take action I highly recommend you start playing CASHFLOW®
the board game and CASHFLOW® the webgame (free at www.richdad.com)
to start practicing how you can free yourself from the rat race.
I am writing this eBook because it does not help heal the world if I do not share what I
know. That would be greedy. I write because I believe we need real financial education
before the world economy can truly recover. Ultimately, I write because I believe it is
better to teach you to fish than to give you a fish.
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The most important thing is
you need to know
One of the things I learned from my rich dad when I was nine years old was what
determined if something was an asset or a liability—and it is not what your banker or
your real estate broker calls it. What determines if something is an asset or a liability is
a very important word—probably the most important word in business and investing.
The word is cash flow. In other words, if the cash is flowing into your pocket, then the
item is an asset.
I have a lot of rental properties. Every month, cash flows into my pocket from that real
estate. However, with my personal residence, cash flows out of my pocket. My rich
dad would say, “My rental properties are assets, but my personal residence is a liability
because the cash is flowing out.” One of the reasons people struggle financially is
because they don’t understand the difference between assets and liabilities. Now, I’m
not saying, “Don’t buy a house, and don’t buy a big house.” I’m not saying, “Live cheaply
and frugally,” because I don’t believe in that. If you want to be successful financially,
the most important thing is you need to know the difference between an asset and a
liability. That requires financial literacy.
With this eBook, I will show you how to reduce some of your investment risk by
increasing your financial literacy.
Although I had a rich dad who taught me many things, I still came from a relatively
poor family. I’m not one of these rich kids whose daddy gave him a lot of money or a
big trust fund or a company to inherit. That’s not my story. In fact, back in 1985, my
wife, Kim, and I were homeless because one of my businesses had failed.
I don’t say that to be dramatic. It’s just to explain that I had to come off the streets. I
had to bounce back from a tremendous setback to achieve what I have today. All my
rich dad gave me was guidance on how to go from where I was to where I am today.
That’s what I want to share with you. I want to share the insight, wisdom, and my rich
dad’s teachings on how to become a wealthy person. I want to teach you how to fish
rather than give you a fish.
Now, what you’ll read may disrupt some of your thoughts and maybe some of your
core beliefs, but I want to reassure you that my rich dad knew what separated winners
from losers. The reason many people are not successful is because of fear. They say,
“I don’t want to invest because it’s risky,” or “I don’t want to start my own business
because it’s risky,” or “What happens if I lose money?” or “What happens if I fail?”
Rich Dad’s 3 Step Guide to Financial Freedom
4
These words reflect the core value of security. The fear of failing, the need for a steady
paycheck, and a fear of change influence their core fears.
My wife and partner, Kim often speaks about this. She says, “I first started investing in
1989. Fearful and unsure of what I was doing, I stumbled around neighborhoods near
our home and finally found a cute 2-bedroom, 1-bath house that seemed to be a good
rental prospect. I nervously put in an offer, and with a little back-and-forth negotiation,
my offer was accepted. Now more fear kicked in. I was more focused on what I might
lose versus what I would get. I looked for every excuse possible for why I shouldn’t
buy that house. I somehow quieted my fear long enough to go ahead and buy the
property, taking very deep breaths along the way.”
The people who are going to be successful must first face their fear. I am not sure
you ever conquer your fears, but you can face them and overcome them as you find
success. Successful people, or “winners” as rich dad called them, take control of their
lives. They know that their mistakes are their opportunities to learn and to grow. The
fear of investing does not frighten them. It challenges them.
The CASHFLOW®
 Quadrant
Why do some people get rich and others don’t? I think that question can be answered
from the diagram below known as the CASHFLOW® Quadrant.
My rich dad said there are four different
types of people in business. The “E,” the “S,”
the “B,” and the “I”. “E” stands for employee.
“S” stands for self-employed or small
business. “B” stands for big business or
business owner and “I” stands for investor.
The answer to why some people make
more money than others can be found in
the CASHFLOW® Quadrant. Before I explain
more specifically why some people get rich
and others do not, let’s get into the different
people found in the quadrant.
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On the left side of the CASHFLOW® Quadrant is the “E” and the “S,” which stands
for employee and self-employed or small business owner. On the right side of the
quadrant is the “B” and the “I,” which stands for business owner or big business and “I”
for investor.
In other words, if your cash flow comes from
a job, then you’re an employee. If your income
comes primarily from your investments, for
example, Kim and I are in the “I” Quadrant simply
because most of our income comes from
investments. That’s how I know where I am,
it’s where the cash flow comes from. If you’re
self-employed and you can’t stop working, then
you’re an “S.” A “B” Quadrant business owner is
somebody who has a business but can leave it
at-will and the income still continues to come in.
What determines which quadrant you’re in is, very
simply, where does your cash flow come from?
That’s why it is called the CASHFLOW® Quadrant.
If you’re on the left side, you’re on the “E” and
the “S.” Most of your income comes from a job.
This is the cash flow pattern of a poor person.
The money comes in and goes out the expense
column. Money in and money out. The cash flow
pattern of a middle class person also comes from
a job. Money comes in, but because they have
better credit history, they have lots of liabilities.
The reason you know something is a liability is
because a liability will also show up on the expense side of the financial statement.
Money comes in, then the liabilities trigger a monthly payment, and the money flows
out the expense column again.
What makes the rich “rich” is they have cash flow that doesn’t come from a job. It
actually comes from the asset column. For example, Kim and I own businesses, real
estate and stocks. The reason we don’t have to work is because cash flows out of our
asset column into our income column and that income from our assets pays off our
expenses. That’s why we’re financially free today.
The Rich Dad Company’s mission statement is to raise the financial well-being of
humanity. Another way of saying this is, to help people move from the ‘E’ and the ‘S’
Quadrants to the ‘B’ and the ‘I’.
Rich Dad’s 3 Step Guide to Financial Freedom
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Moving to the Right Side
of the Quadrant
My rich dad said, “If you’re going to be a business owner, you have to be able to
understand the four people found in the world of business. He said, “You can tell
an employee by simply listening to their words. An employee will always say, ‘I’m
looking for a safe, secure job.’ The moment you hear that; you know the quadrant they
come from or their core values or their belief system. It is what we call ‘the employee
mindset.’ The highest value for the E quadrant is security.” What rich dad was saying
was what drives employees is fear or uncertainty. They don’t like that so they seek
security as a response.
For the S quadrant, which is the self-employed or small business owner, rich dad said,
“You can always tell that person because their words are different. Their words go,
‘I’m going to charge you $100 per hour,’ or ‘My commission is 6%,’ or ‘I’ll get to it next
week. I don’t have time this week, because I’m all tied up.’” The value of an S or a small
business owner is independence. They don’t trust other people. Their theme song is
“Nobody Does It Better” or Frank Sinatra’s, “I Did It My Way.”
You can often tell an S quadrant person because in their minds they’re legends. “I’m
the best.” For example, I go to a chiropractor. In his mind, he’s the best chiropractor
in the world. I ask about the chiropractor across the street, and he says, “No, you
shouldn’t go to him, because I’m the best in the world.” Oftentimes, the S also stands
for highly specialized. It also stands for very smart, because in the S quadrant you’ll
find the smartest people from school. That’s where you find the doctors, accountants,
attorneys, and engineers. It also stands for solo. They like to do things on their own so
they’re a completely different breed of individual.
In my opinion, the S quadrant is the riskiest quadrant because they really don’t have
a safety net under them. For example, a friend of mine is a consultant. He lives in
the mountains of Colorado. He was driving home one night in his Land Rover. Then,
all of a sudden he slid off the road. He was in the hospital for 6 months. That meant
because he couldn’t work his family had no income coming in to them. To make
matters worse, my friend owned a lot of liabilities.
Another drawback of operating from the S quadrant is that the government taxes
the S quadrant much heavier than the B quadrant, so the S quadrant not only has
employees to deal with they have to deal with themselves. They have to deal with the
government, too. Plus, their income is often predicated upon their production. Now,
for some, S can also stand for the most satisfying. People say, “I really love my work. I
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love being a consultant” or “I love being a doctor.” However, S also stands for the less
secure.
My rich dad always said, “You need to mind your own business.” Sometimes the
problem with being on the E and the S side is you spend the vast amount of your
working hours minding somebody else’s business. Your boss’ job is not to make you
rich. That’s your job. The rich will always give people money for an asset, but the E
and the S think that money itself is the asset. The B quadrant investor knows that the
business is the asset, not the money, so they’ll always pay somebody. For instance,
I’ll always pay my employees and my specialists to build my asset. The asset is more
important than the money. So, the E and the S side oftentimes places more value on
money than assets.
My rich dad said, “If you’re going to be a business owner, you have to really understand
these types of people.” A business owner is looking for something different. A
business owner is looking for a system. In other words, McDonald’s is a brilliant
system for producing hamburgers. There are a lot of small business owners who
have hamburger shops, but they don’t have a system for producing the hamburger.
Investors rarely invest in an employee or a small business. The reason doctors’
practices oftentimes don’t fetch the high prices like an Internet company will fetch is
because a doctor’s practice is often only purchasable by another doctor. The market is
very limited.
The difference between the E and S and the B is a word called “leverage.” The S
business owner cannot afford to leave or stop working. My rich dad said, “You know
you’re a B quadrant business owner if you can leave your business for a year or more
and come back and find the business more profitable and running better without you.”
That is one of the big keys between a B business owner and an S business owner.
The S business owner, if they stop working, very often their income stops also. So,
as my rich dad said, “If you’re an E quadrant employee, you have a job. An S quadrant
business owner owns a job. That’s the difference.”
What a B quadrant or a big business person has is that they own a system. Today,
people think that in order to create a big business, they have to play in the world of
high tech. To that, I say, remember that Starbucks created a business system around
a cup of coffee and they became a billion-dollar company. So it’s not necessarily high
tech or the industry, it’s how you look at building the business. Are you building a
system?
This is the hard part for most people. Investors and venture capitalists generally only
invest in B quadrant businesses. The reason a lot of times E’s and S’s are not good
investors is because they really do not understand the B quadrant. Microsoft is a B
business. Joe’s Computer Repair Shop is an S quadrant business. An investor would
rarely invest in a computer consultant, but they’ll invest all day long in Microsoft. A
Rich Dad’s 3 Step Guide to Financial Freedom
8
person who is putting money into a mutual fund is not really an investor. Although
it’s a form of investment, they’re really savers. In the I quadrant, an investor will say,
“What’s my return on investment?” also known as ROI.
The point I’m making here is that between the E, the S, the B, and the I, if a person
really wants to become rich, they need to fully assess their core competencies. In
other words, if you’re an employee making $50,000 a year, the chances are harder for
you to become rich because from the E quadrant, the taxes are the highest. Whereas
in the B quadrant, if you work really hard, you can expand or leverage out your time
with other people.
The people in the E and the S quadrant, the reason they have a harder time is because
for them time is money. In other words, a dentist can only work on so many people per
day. An employee only has so many hours in a day. The key word there is ‘leverage.’
How much leverage, or how much bang for your buck, or time, can you get? The E and
the S are limited, and ironically, the tax laws are written against the E and the S. The
best quadrant to get rich in is the B quadrant. They have the most leverage and the
most favorable tax laws.
What About Taxes?
Often people call me up and say, “Well, I formed my corporation so I can avoid taxes.”
To which I respond, “That’s illegal.” My point is this: If you do something strictly to
avoid taxes, that’s called tax evasion. Many people get in trouble because they’re
trying to avoid taxes. Becoming rich isn’t about avoiding taxes, it is knowing how to
use tax laws in your favor. You see, tax laws are written to benefit people who want
to be rich, not for people who want to avoid taxes. If you form a corporation strictly to
avoid taxes, that would be illegal. Many people operate in grey areas when it comes
to taxes. Rather than trying to avoid something dishonestly, you should have the best
legal advice possible. I don’t want anybody getting in trouble.
The reason why people on the right side of the quadrant pay less in taxes goes back
again to my favorite subject, which is financial literacy. If you can read a financial
statement, you’ll see why the people on the left pay more taxes than people on the
right. It is seen in a very simple thing called the income statement and balance sheet
for the employee. For employees, their first line item expense is taxes. For the B
quadrant person, taxes are their last line item. In other words, employees pay taxes
first, business owners pay taxes last. A business owner will try spending everything
they possibly can and then pay their taxes on what’s left. For example, business
9
owners may start with $1,000 and spend $800 in expenses. They’ll only pay taxes on
$200. If an employee makes the same $1,000, they’re taxed on the $1,000.
The tax laws are written in favor of those who want to be rich, because the
government needs capitalists. They give me tax breaks because I build houses for
people and I start businesses, which create jobs. The tax laws are written in favor
of capitalism and against those who play it secure. Tax laws, tax breaks, and tax
loopholes are written for the rich and against everybody else. If you can understand
that, you can make a big change in your life.
Security vs. Freedom
My rich dad said, “When you say you want freedom, what you mean is you don’t
want to be attached to anything. That’s not to say there isn’t any fear, but that you
operate with a mindset of not needing anybody or anything to take care of you.” A
big difference between the left and right sides of the CASHFLOW Quadrant is that
employees and the self-employed need security. For the B and I side, the business
owner and the investor’s side, their need is for freedom. Personally, I’ve always chosen
freedom.
In explaining the CASHFLOW Quadrant to me, my rich dad said, “If you’re happy
being an employee or self-employed and it fulfills everything you want, then stay
there.” As our economy moves further away from the Industrial Age and more into
the Information Age, many people wonder why their efforts to become rich are not
working for them. The difference could be in their core values.
In other words, if your core value is security, like an employee, it might be very difficult
to shift over to the B or the I side. If your core value as an S, or self-employed, is
independence, trusting other people could be a very difficult process. The reason I
wrote The CASHFLOW® Quadrant was for people to examine themselves, examine
their core values, and decide whether or not making those core value changes are
worth making.
Rich Dad’s 3 Step Guide to Financial Freedom
10
Different Quadrants Think
Differently About Assets
I started this eBook saying that most important thing is you need to know the
difference between an asset and a liability. I defined an asset as anything that puts
money in your pocket and a liability is anything that takes money out of your pocket.
That is the definition of the rich. The way those in the ‘B’ and ‘I’ side of the quadrant
define asset and liability.
How do the ‘E’ and ‘S’ side define an asset? Generally, an ‘E’ and ‘S’ consider an asset
to be anything that has a value associated with it. They consider their house an asset.
They think of their car as an asset as well as money itself.
Basically, an ‘E’ and ‘S’ define an asset the same way a bank does. This definition has
two problems:
1. It encourages buying ‘toys’ and expensive items that are justified as being
assets.
2. It costs money both in the purchase phase, but in the maintence phase,
insurance phase and more.
The assets an ‘E’ and ‘S’ tends to collect actually make them poorer. They take money
out of one’s pocket. They accomplish the exact opposite of what assets of the
successful do. Assets for the ‘B’ and ‘I’ put money in their pockets.
So when I wrote The CASHFLOW® Quadrant to help people to examine themselves
and their values, I really wanted them to understand the different ways the different
quadrants view assets. Once that distinction is made, one can see why he/she is not
making financial progress in the ‘E’ and the ‘S’ quadrants. They keep buying assets
that make them poorer. The more money they make at their job, the more false assets
they buy and the poorer they actually become.
Now, aren’t some of your core values worth revisiting?
11
Having It All
The path to financial freedom has never been easier. Today, we have people becoming
billionaires in less than 18 months and it’s due to the world we live in today. Anyone
desiring to become rich today first needs to have the core values and the financial
literacy to make the shift over. For me, I would say it was pretty difficult because I had
Industrial Age ideas. Making the shift was a hard process because I thought like an
old person. Today it’s never been easier if you’ll just change your thinking.
If security and comfort are your values, the transition may be difficult but it can be
done. It starts with education. For instance, on the B and the I side, I learned different
things, things that are not taught in school. One of the reasons I think the Rich Dad
message has been successful is that we’ve brought to the masses of people—in a
very simple way—the information and the education required to be a business owner
and investor.
For example, the reason most small businesses fail is because the average small
business owner was never taught how to read a financial statement, much less
understand the laws. That’s why so many of them fail. In the markets, as far as
investors go, 8 out of 10 investors don’t make money. Now, it doesn’t mean they lose
money; it means they just sort of break-even. I’ve had friends who make money one
day and, just like in Las Vegas, they give it back the next. They break even. The reason
for that is they haven’t been taught basic financial literacy, tax law, and corporate law.
POOR MIDDLE CLASS RICH
Rich Dad’s 3 Step Guide to Financial Freedom
12
It is no longer appropriate just to be an E, S, B, or I. I think it is more important that
we, as individuals, seek knowledge, wisdom, and skills in all four quadrants, especially
when the world is changing so quickly. Below you will see three diagrams of an
income statement and a balance sheet. These represent the cash flow patterns of the
poor, the middle class, and the rich. By studying the different cash flow patterns of
the rich, the poor, and middle class, you may begin to understand what causes some
people to be rich and others to wonder why they are unable to get ahead financially.
A lot of times people say, “Well, I’d rather be rich than happy,” or “I’d rather be happy
than rich.” That idea comes from a point of view of scarcity. In other words, they think
they have to choose between being one or the other. You CAN have both. I think Yogi
Berra said it best. He said, “When you come to a fork in the road, take it.” The whole
reason behind me creating the Rich Dad Company is to have people expand their
thinking. Why not be rich AND happy?
13
Summary
You have just learned about the first two parts of gaining your own financial
education:
1. Learning the real difference between an asset and a liability. And…
2. Learning which mindset you are currently trapped in and knowing which
mindset you need to have.
Don’t forget to continue your financial education with step three:
3. Putting the first two parts into action and creating your own success. When
you are ready to take action I highly recommend you start playing
CASHFLOW® the board game and CASHFLOW the webgame (free at www.
richdad.com)to start practicing how you can free yourself from the rat race.
As I stated earlier, this eBook only helps heal the world if we share what we know. We
need real financial education before the world economy can truly recover. Ultimately, I
write because I believe it is better to teach you to fish than to give you a fish. My wish
is for you to not only start fishing, but to pick up the cause and teach others to fish as
well.
Limited Time Offer: Take Control of your Financial Future and Increase Your Cash
Flow by Working with a Certified Rich Dad Coach.
ACT NOW and Receive 6 Months of Coaching Absolutely Free -with any new program!
Discover the power of working one-on-one with your own certified Rich Dad Coach to
help you invest smarter, build and protect your wealth, and create the cash flow you
need to live the life you desire. Remember, Robert’s Rich Dad was his first coach and
helped him become successful by teaching him how to make his money work for him
— who’s helping you? Get your free introduction to Rich Dad Coaching and learn how a
Rich Dad Coach can help you do the same. Click Here or Call 1-800-240-0434 and ask
for extension 6947 to receive your FREE introduction to Rich Dad Coaching and to get
6 months of FREE Coaching with any new program.

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