Dad’s Prophecy, advised that we prepare for an upcoming financial market crash. In 2006, Robert joined forces with Donald Trump to write Why We Want You To Be Rich, a book inspired by their concern for the shrinking middle class in America.
Robert continues to be a passionate advocate for the importance and power of financial education. Today, in the wake of the subprime fiasco, record home foreclosures, and a global economic meltdown that is still raging, his words seem not only prophetic, but enlightened. Many skeptics have become believers.
In preparing the 2011 edition of Rich Dad’s CASHFLOW Quadrant, Robert realized two things: that his message and teachings have withstood the test of time, and that the investment landscape, the world in which investors operate, has changed dramatically. These changes have affected, and will continue to affect, those in the I (Investor) quadrant and have fueled Robert’s decision to update an important section in this book—Chapter Five: The Five Levels of Investors.
Acknowledgments
The phenomenal success of Rich Dad Poor Dad has brought millions of new friends from all over the world.
Their kind words and friendship—and their amazing stories of perseverance, passion, and success in applying the Rich Dad principles to their lives—inspired me to write this book:
Rich Dad’s CASHFLOW
Quadrant Guide to Financial Freedom
So to my friends, old and new, for their enthusiastic support beyond my wildest dreams, I say thank you.
CONTENTS
INTRODUCTION
PART ONE THE CASHFLOW QUADRANT
Chapter One Why Don’t You Get a Job?
Chapter Two Different Quadrants, Different People
Chapter Three Why People Choose Security over Freedom
Chapter Four The Three Kinds of Business Systems
Chapter Five The Five Levels of Investors
Chapter Six You Cannot See Money with Your Eyes
PART TWO BRINGING OUT THE BEST IN YOU
Chapter Seven Becoming Who You Are
Chapter Eight How Do I Get Rich?
Chapter Nine Be the Bank, Not the Banker
PART THREE HOW TO BECOME A SUCCESSFUL B AND I
Chapter Ten Take Baby Steps
THE SEVEN STEPS TO FINDING YOUR FINANCIAL FAST TRACK
Chapter Eleven Step 1: It’s Time to Mind Your Own Business
Chapter Twelve Step 2: Take Control of Your Cash Flow
Chapter Thirteen Step 3: Know the Difference Between Risk and Risky
Chapter Fourteen Step 4: Decide What Kind of Investor You Want to Be
Chapter Fifteen Step 5: Seek Mentors
Chapter Sixteen Step 6: Make Disappointment Your Strength
Chapter Seventeen Step 7: The Power of Faith
Chapter Eighteen In Summary
Preface
WHAT IS YOUR LIFE’S GOAL?
“What do you want to be when you grow up?” That is a question most of us have been asked.
I had many interests as a kid, and it was easy to choose. If it sounded exciting and glamorous, I wanted to do it. I wanted to be a marine biologist, an astronaut, a Marine, a ship’s officer, a pilot, and a professional football player.
I was fortunate enough to achieve three of those goals: a Marine Corps officer, a ship’s officer, and a pilot.
I knew I did not want to become a teacher, a writer, or an accountant. I did not want to be a teacher because I did not like school. I did not want to be a writer because I failed English twice. And I dropped out of my MBA program because I could not stand accounting.
Ironically, now that I have grown up, I have become everything I never wanted to become. Although I disliked school, today I own an education company. I personally teach around the world because I love teaching. Although I failed English twice because I could not write, today I am best known as an author. My book, Rich Dad Poor Dad, was on the New York Times best-sellers list for over seven years and is one of the top three best-selling books in the United States. The only books ahead of it are The Joy of Sex and The Road Less Traveled. Adding one more irony, Rich Dad Poor Dad and my CASHFLOW® board game are a book and a game about accounting, another subject I struggled with.
So what does this have to do with the question: “What is your goal in life?”
The answer is found in the simple, yet profound, statement by a Vietnamese monk, Thich Naht Hahn: “The path is the goal.” In other words, finding your path in life is your goal in life. Your path is not your profession, how much money you make, your title, or your successes and failures.
Finding your path means finding out what you were put here on this earth to do. What is your life’s purpose? Why were you given this gift called life? And what is the gift you give back to life?
Looking back, I know going to school was not about finding my life’s path. I spent four years in military school, studying and training to be a ship’s officer. If I had made a career sailing for Standard Oil on their oil tankers, I would never have found my life’s path. If I had stayed in the Marines or had gone to fly for the airlines, I would never have found my life’s path.
Had I continued on as a ship’s officer or become an airline pilot, I would never have become an international best-selling author, been a guest on the Oprah show, written a book with Donald Trump, or started an international education company that teaches entrepreneurship and investing throughout the world.
