2nd Lesson from Rich Dad’s CASHFLOW Quadrant

Summary: https://www.youtube.com/watch?v=mw3zE84YNRM Some thoughts on cashflow movement from Robert Kiyosaki's classic, Rich Dad's CASHFLOW Quadrant. Transcription 2nd Lesson from Rich Dad's CASHFLOW Quadrant. I am Brian Pombo, welcome back to Brian J. Pombo Live. One of my favorite books by Robert Kiyosaki is, The CASHFLOW Quadrant, I talked about yesterday. You go back and rewatch that one, I talked about the first lesson, I learned about cash flow from, CASHFLOW Quadrant. And this is the second lesson, this is a series of three. I also talked about how I came in contact with this book, which was pretty interesting. This lesson, extremely simple, just like yesterday's one, is very, very, very simple. But in it, there is…it's magic, because it's one of those things that isn't taught. It isn't discussed, it isn't covered. My parents didn't teach me this, although they taught me part of it. It's all about a balance sheet. I don't know if you've ever seen this before. But this is very interesting, this is a balance sheet. Talks about it right in this book, it goes through much more details. So you can go check out the book to find out more details. But this is so interesting. It's one of those things that if you're a business owner, if you're an executive, you probably already understand this stuff. And this is far beyond you. But if you want to understand how to explain to someone else, this is a great way of doing it. So you could take one piece of paper and on one side, you split in half, and you got income and expenses, and you take another piece of paper and you split it down the other way. You've got assets and liabilities. income is what you're making on a regular basis, it's what's coming in, right? Expenses is what's going out on a regular basis. It says today, so once this is, you know monthly or daily or whatever is that your expenses, what is going out on a regular basis. assets, assets are things that are putting money in without you doing anything that it's bringing money to you, putting money in. Liabilities is taking money out, it's making sure there's more expenses versus income. Two very different thing that is simple, simple, simple. But here's, here's where the visual side of it really comes in handy. And he talks about that this is the most common thing that people get taught. This is what they how they live their life, they go out, they get a job, they get the income coming in, they get the expenses going out. There you go, that wouldn't be that bad. If that were the only way that people did it. You know, it would be very simple. They wouldn't understand assets or liabilities. But here's the real problem is that most people, they get a job, and they purchase liabilities. So they'll go out and purchase a house or a car or whatever, something that pulls money out on a regular basis, and increases their expenses. So their expenses grow. Because they bought a liability instead of buying an asset. Most people are never taught how to buy assets, how to buy things that put money in your pocket. The thing is they tell you to go out and buy a house is one of the things that Robert Kiyosaki talks about all the time, they tell you to go out and buy a house and that's an asset. In most cases, a house isn't an asset, because it's taking money out of your pocket for the next 30 years or what have you. So here's here's the,

2nd Lesson from Rich Dad’s CASHFLOW Quadrant

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