Who Controls Your Cash Flow?

controlling your cashflow

The difference between the Fast Track and the Rat Race

Last week, we talked about establishing an action plan for controlling your cash flow in the New Year. One of the things I asked you to do was to fill out your financial statement, and to write down your financial goals for the upcoming year and for five years down the road.

Today, I want to talk about why this type of planning is important.

The most important skill

My rich dad said, “People who can’t control their cash flow work for those who can.” Unfortunately, most people don’t know how to manage their cash flow, and consequently, most people struggle working as employees for most of their life.

Many people think that making more money will solve their financial struggles. But this usually isn’t the case. In fact, it, more often than not, causes bigger financial problems. Why? Because they haven’t learned how to manage the money they make. People who make more money often increase their spending and get deeper into debt.

If you want to be financially secure, that will not do. An important part of becoming the CEO of the business of your life is to take control of your cash flow. That is your most important skill.

Keep two sets of books

Most people think that keeping two sets of books is illegal…and it is, in most cases. But if you truly understand the world of finance, there must always be two sets of books—yours and someone else’s.

As CEO of your life, always remember these simple words from my rich dad, “For every liability you have, you are somebody else’s asset.”

The following is an example of two sets of books, yours and your banker’s.

For every liability, such as a mortgage, car loan, school loan, and credit card, you are an employee of the people lending the money. You’re working hard to make someone else rich.

Good debt and bad debt

Rich dad often cautioned me about good debt and bad debt. He said, “Every time you owe someone money, you become an employee of their money.”

While rich dad did borrow money, he did his best not to become the person who paid for his loans. He would explain to Mike and me that good debt was debt someone else paid for you. Bad debt was debt that you paid for with your own sweat and blood. That is why he loved rental properties. He said, “The bank gives you the loan, but your tenant pays for it.”

The Fast Track and the Rat Race

The two books concept can be used to show you the difference between the financial Fast Track and the Rat Race.

There are many types of financial Fast Tracks. The diagram below is one of the most common. It is the track between a creditor and a debtor. If you take the time to study this simple diagram, you’ll see the relationship between those who are financially secure and those who struggle financially.

Which statement is yours?

The path of money flowing between the two sets of books is what is called the financial Fast Track and the financial Rat Race. For one to exist, the other must exist as well. That is why there are always two financial statements. The question is, which statement is yours? Even better, which statement do you want to have?

Rich dad constantly told me, “Making more money will not solve your problems…if cash-flow management is your problem. The people who understand the power of financial numbers have power over those who do not.”

 This Article Is Originally Posted at: http://www.richdad.com Posted on: Tuesday, January 07, 2014 Written by: Robert Kiyosaki 

Note: IF you are serious about controlling your CashFlow we invite you to participate our CashFlow 101 this week. Click HERE for more information.

“The #1 Secret to Protecting Your Future Through Uncertain Economic Times is Financial Education“

Message from Kim and Robert Kiyosaki on Financial Education

Be Rich Cambodia, a project run by PM Leadership and Rich Dad Asia to bring Rich Dad education to Cambodia to contribute to our mission “To lead humanity into success and financial growth.” We have following programs:

  1. The Official CashFlow Club Cambodia “The more you play this Game the RICHER you become”
  2. Be Rich Workshop “How the RICH gets RICHER and how you can too”
  3. Rich Dad Asia Congress “Create wealth and happiness the Rich Dad Way”
  4. Evolution of Wealth “Where and How the RICH invest and how you can too”
  5. Rich Dad Asia Private Circle Cambodia “Where and How Robert Kiyosaki’s Elite Group invest and how you can too”

Watch the video below and listen to Kim and Robert Kiyosaki why you need to get yourself educated on Financial Education?

Now you have watched the video and you understand WHY you need to focus on improve your financial education. If you have not watched the video – Click play and watch it.

Answer to these questions:

  1. Are you happy with your financial situation right now?
  2. Do you know what the differences between the RICH, and the POOR?
  3. Do you know how and where the Rich making their wealth?
  4. Do you know what the Rich THINK, LEARN, and DO?
  5. Do you know where and how Robert Kiyosaki ‘s Elite Team invest in?
  6. Are you interested in improving yourself and get more success financially?

Sitting and wanting success does not bring you any changes. You need to take action. Get yourself educated. Make a plan and apply what you have learned to improve your life financially. Contact us and find our upcoming Rich Dad Asia programs in Cambodia. Contact us now!

How To Win – Great Interview with Robert Kiyosaki

We are the official event organizer for Rich Dad Asia in Cambodia. We have a mission “To elevate the financial well being of the Cambodians.” This simply means that we bring the right education for you and other Cambodian people that help you to see the future better so you can stay ahead on the marketplace.

Contact us today for more information: 023 63 64 966 or email us 

How Bellum Tan became Rich Dad Asia

Rich Dad Asia

Have you ever wondered how Bellum Tan became Rich Dad Asia™? Here is his fascinating story:

Bellum Tan started up as a turnkey contractor in marine and offshore engineering. He had always been entrepreneurial since he was nine. When he was young, he stayed in a kampong, or small village. His family owned about four acres of land and planted many fruit trees, such as rambutan, jackfruit, mango, etc. Often after school, together with his cousins, Bellum would pluck the fruits from the tree, put them in a basket, and roam around the kampong to sell them.

After college, Bellum gave himself five years to work for others as an Employee (E) to learn the trade. While working for others, he was very helpful and volunteered his service to other departments, as he wanted to learn the business as much as he could. Soon, he started his first company, a part-time business. Then success begat success and he became a successful contractor. He was already rich by the time he attended his first seminar with Robert Kiyosaki in 1992.

Life-Changing question

At that seminar, Robert asked the audience one question that Bellum said changed his life: What is the true job of an entrepreneur?

Bellum realized that working hard is not enough. He had built a business by working 18 hours a day. He practically had no time for anything else. And when there’s a problem, he had to go and fix it himself. Like a typical entrepreneur, Bellum did everything himself because no one else can do it better than he could. As he said, it seemed that instead of his employees working for him, he was actually working for his employees. He was, in essence, Self-Employed (S).

In that seminar, Bellum learned that a true business owner should be able to leave his business for several months and come back and still find it running well. The secret to business is systems. Developing systems for all aspects of running the business is the main job of an entrepreneur. This way, he can hire and train employees who can run his business by following those systems.

Becoming a B and I

Today, Bellum’s companies are being operated by his staff. Now, he has more time to run other businesses. In fact, his peers are always surprised he has all the time in the world to have long lunches with them while they hurry off to go back to their office. By understanding and applying Rich Dad principles, Bellum became a true Business Owner (B). With over 30 years experience in operating a group of companies, Bellum has successfully applied Rich Dad to attain financial, time, and location freedom.

Since meeting Robert in 1992, Bellum has since then practiced everything he learned by actively investing in real estate in the early ’90s and has gone into investing with Robert and his team in providing seed funding for a few companies that have successfully gone public, including mining companies. Now, Bellum is classified as a Level-5 Investor as defined in Robert’s book “CASHFLOW® Quadrant”, making him a true Investor (I).

He has honed his investment skills through businesses, real estate, and venture capital funding. So Bellum has successfully moved from the E (Employed) and S (Self-Employed) quadrants to the B (Business Owner) and I (Investor) quadrants.

Ambassador in Asia

In 2002, Robert surprised Bellum by inviting him to become his Rich Dad Ambassador in Asia. Robert initiated that Bellum and his wife Doreen should start RichDad Training (S.E.A) Pte Ltd. Of course Bellum agreed. To him, being the first to be acknowledged by Robert out of the hundreds of thousands of people he has met in Asia to pass on the philosophy of Rich Dad was a great honor. Bellum saw that there was a real need for people in the region to be better educated financially. Cashflow Technologies and Robert appointed and authorized Bellum to conduct CASHFLOW® seminars and workshops in Asia teaching the Rich Dad concept.

Soon, Bellum became so adept at running Robert’s famous  CASHFLOW® 101 board game and seminar that he even created  ”The Singapore Strategy”. He shared this strategy with the Rich Dad organization in Phoenix, Arizona, where he surprised everyone during the “Strategic Conference Seminar” with the millions of dollars created as a result.

CASHFLOW® 101 was created for people starting off from the left of the CASHFLOW® Quadrant: the “E” and “S” side (Employee and Self-Employed). However, Robert Kiyosaki classified Bellum Tan’s strategy as coming from “B” and “I” side of the Quadrant (Business and Investor). In doing so, Bellum brought participants of CASHFLOW® 101 to a higher level, and taught them how to invest from the right side of the quadrant, the side of the rich.

How You Can Get Involved? 

PM Leadership is proud to organize Be Rich Workshop in collaboration with Rich Dad Asia. MISSION and VISION of this event – is to lead average people to other opportunities whilst holding down a day time JOB. How you can overcome the common obstacles to achieve your goal. Also a peep into exactly how the RICH and WEALTHY do it. VISION of a better and RICHER society for an up and coming society like Cambodia. Learn the strategy of the NEW RICH. OLD RICH believe in working hard . New RICH believe in applying the new knowledge and leverage on people , opportunities and money to achieve their WEALTH.
We have shifted from Agriculture to Industries to Information Age. Now we are in the AGE of KNOWLEDGE but KNOWLEDGE without ACTION is USELESS.

This workshop will teach how an AVERAGE people can overcome Obstacles and Limitations to plan for their Financial Future through BUSINESS-STOCK MARKET- REAL ESTATE-COMMODITY.

We invite you to be our guest in the Be Rich Workshop on 18th January 2014 at Sunway Hotel, Phnom Penh.

Register Now 99

Note: This price includes buffet lunch, training materials, and a secret bonus.

For more information please call 023 6364 966 or e-mail: info@pm-leadership.net

This article is partially adapted from http://richdadmanila.com