The main focus of Robert Kiyosaki’s teaching has to do with the accumulation of wealth through investing, a concept known as passive income generation. He defines the ultimate goal of passive wealth as earning a living through the income generated through these investments. He defines assets as being investments that generate income and liabilities as being those things that cost money (houses, cars, and other expenses). His belief is that financial leverage is imperative in the accumulation of wealth.
Kiyosaki defines what he has named The Cashflow Quadrant, which he says defines how all the money in the world is earned. The four designations of relative wealth are each represented by a letter. “E” represents employees, who, of course, are those who work for others. “S” designates a small business owner or self employed person who “owns” her or his own job and is her or his own boss. The “B”, or boss, owns a system that generates income as opposed to having a job. The “I” designation represents investors, who spend money in order to generate greater income.
Born (April, 1947) and raised in Hawaii, Kiyosaki is a fourth generation Japanese American. After graduating from high school, he entered the United States Merchant Marine Academy and graduated in 1969. He joined the Marine Corps and was awarded the Air Medal for his service in Vietnam. He then sold copy machines and introduced the first “surfer” wallets (nylon and velcro). He accumulated some wealth from that venture, though the business eventually failed. Around 1996, he started Cashflow Technologies, Incorporated, which owns and markets the Rich Dad and Cashflow brands.
Cynthia ~Social Cowgirl
www.SocialCowgirl.com
