In my last article (How Money works? Part-1) I was talking about KIYOSAKI way of how money works. KIYOSAKI categorized peoples based on their income generation. The B & the I quadrant peoples are those where money works for them. We should know why we should make money work for us. Suppose money is working for us then what money can do is:
- Money works 24×7
- Money creates wealth over time
- It reduces your salary dependency
- It gives you financial freedom.
There are several ways to make money work for us. We must understand as below:
MIND YOUR OWN BUSINESS TO MAKE MONEY WORK
Robert Kiyosaki said, “we are programmed to mind everyone else’s business & ignore our own”.
With this phrase, he wants to convey that we peoples are programmed to work for others. In a very small age, we learn to work for money. Nobody taught us about how money work or how to make money work for us. We pushed to enter in a Rat Race.
We do not take care of our financials but take care of other people’s financials. School taught us to get good grades & get a good job. But what happens if we do not mind our own business.
- We become Employee
- We become Debaters
- Become Taxpayers
- And become consumers
CONTROL YOUR CASHFLOW
We are the peoples who work as an employee. And our employer gives salaries to their employees. They have their account section through which, our employer controls their cash flow. And we believe that every year when we get a salary increment it will solve our problems. (Click here to get more information in Salary Increments)
The main reason why most peoples have money problems is that they were never studied the science of cash flow management. Due to a lack of cash flow management, we believe making more money will solve our problems. But we do not know more money will not solve the problem if cash flow management is the problem.
“The ability to convert cash into assets that provides cash flow”.
UNDERSTAND ACTUAL RISK
If we really want to make money works, then we need to understand the actual risk.
Doing business or become an investor is not a risk but the actual risk is we do not have a financial education. (Check Are you financially Educated?)
I and my friend started a partnership business in the year 2015. We run that business for the last 3 years. Due to some unavoidable circumstances, we failed in that business. Now, the main reason we get failed in that business is a lack of proper financial education.
We face many times that we even do not have enough money to run our day to day operations. If we have the proper financial knowledge (or understand the cash flow) may be the situation was different.
“Business and investing are not risky but being under-educated are”.
If I explain in the words of ROBERT KIYOSAKI, he said, financial literacy is not simply looking at the numbers with your eyes, but also where the cash is flowing. The direction of cash flow is everything.
A mentor is a person who tells us what is important to do or what is not. The mentor guides us in the right direction. A mentor could be anybody in your life who guides you in your tuff times when you need the most.
The advice they give is most important than anything else. In a different part of life, we meet different kinds of peoples. Some are bad and some are good.
We should learn from everybody. The good one teaches us what to do and the bad one teaches us what not to do.
What our schools taught us (work for money), we should not follow.
On the other hand, start reading books and get financial knowledge, this is what we should do.
“Working all your life as a slave to money was evil and to be in financial slavery to personal debt was evil”.
If you really want that money to work for us, then you must understand how to make money work for us. To get your financials in fast track, then start by:
- Minding your own business
- Take control of your cash flow.
- Knowing the actual risk in life.
- And must seek your mentor in your life.
“If you start small and learn to solve problems, you will gain immense wealth as you become better and better at solving problems.”
You want to become financially free and wanted to acquire assets you must start learning skills of B and the I quadrants.