I recently learned that this book is certainly the second book (I read it for the second book) in the “Rich Dad Poor Dad Series,” where the Japanese translation was published 16 years ago from now (2017), and was published in 2013, and I read it on this Golden Week.
As the author Robert stated in his foreword, there have been tax reforms in the US since he wrote the book, and it was necessary to make it in line with that. I live in Japan, so I need to get expert advice for him to carry out what he wrote in this book. He also emphasized that point, and when taking action when moving from the quadrant you currently belong to, “you should find a good mentor and get advice.” In the book, it is carefully explained what kind of person a good teacher is and what kind of “advice” should be.
When I first read the original story, I had two small children and had mortgages and car loans. Around that time, I had the opportunity to study bookkeeping and accounting a little bit, so I was able to understand a little bit how wonderful he was written in a book, but I couldn't get used to the environment where I could put it into practice, and that feeling.
After that, 16 years later, my child grew up, I managed to pay my loans, and I finally began to think about the future. I was in that situation, and when I reread this book, I was able to read it from a different point of view from the previous one.
There are 7 years left until the retirement age (60 years old) that I was taught when I became a new employee, and I wanted to prepare for being able to move to the right side quadrant as Mr. Robert called it.
Below are the points I was concerned about.
・Things I noticed while preparing the revised edition, 1) that the messages and teachings I tried to convey have withstood the flow of time, 2) the situation surrounding investment (the world where investors are active) has changed drastically, and I have rewritten chapter 5, which addresses the five levels of investors (p8)
・Finding your own path means finding the reason you were born on this earth. (p10)
・In order to grow into a perfect human being, education about all of these things is necessary, and cash flow clubs support these changes (including financial changes in addition) (p13, 23)
・Cash flow quadrants are a simple method for classifying people based on “where they get their money” (p26)
・One of the techniques necessary to achieve great success as a B (business owner) is to be able to use words well, in other words, the ability to determine what kind of words to use for what kind of people (p53)
・B type people have a “system” and are hiring excellent human resources to operate that system, while S type people themselves are in a system, so they cannot leave it; in order to succeed as a B type, 1) they have the system, have authority to control the system, and 2) they have the ability to stand above others and take leadership (p60)
・The number one reason I took the time to establish a B-type business is that I was aware of the long-term benefits that can be obtained from using other people's time, so one negative point of succeeding as S is that the more successful you are, the more jobs you have (p64)
・Wealth can be measured by the number of days you can maintain the standard of living you want without having trouble living even if you don't physically work (p66)
・In the case of a person who buys a house for investment and rents it, if the rent is higher than the maintenance cost of that house, that person earns income from the “I Cloud.” (p70)
・In America, the Elisa Act (Employee Retirement Income Security Act) was passed in 1974, and companies stopped financial compensation for employees after retirement, and began to pay defined contribution type pensions instead. (p75)
・What is essential in financial intelligence is not how much money you make, but how much money you can keep yourself, and whether you can make it work effectively (p87)
・The reason people are struggling with money in the world is that as income increases, two expenses (tax/interest on debts) increase (p89)
・The reason why most businesses started by individuals fail within 5 years is due to lack of experience and capital, and the fact that a business that has survived for 5 years cannot survive the next 5 years is not a lack of funds, but a lack of energy. Because you won't be able to endure long hours of hard work (p93)
・In the B quadrant, others work for you; in the I quadrant, money works for you (p104)
・After finishing work, your future will be determined by the salary you earned and what you do with the time you have left over. (p106)
・A good mentor is not a person who has already accomplished what you want to do and has achieved success, or an advisor (just teaching you what to do, not necessarily doing it yourself) (p115)
・Leaders must move people who are smarter than themselves; managers look at their subordinates lower than themselves (p115)
・After 1971, the US dollar lost 95% of its value compared to gold, and it won't take 40 years to lose the remaining 5%. It was 35 dollars an ounce in 1971, but 40 years later it was 1,400 dollars. This means that the dollar has drastically lost its purchasing power (p135)
・Professional investors invest their own money in assets, get their money back without selling those assets, and move that money to buy even more assets. This is the reason why “depositors” who keep their money in one place are the biggest losers (p137)
・The key to success at level 4 is an attitude of continuing to learn for the rest of your life, having great teachers, coaches, and like-minded friends, taking the helm of your own life, and knowing that mistakes are opportunities for learning and growth (p148)
・The answer to whether a home that has been paid off a mortgage is an asset or not remains a debt, and one of the reasons lies in repair costs and maintenance costs. Houses and cars are the same. The point is whether or not to generate positive cash flow (p167)
・Most lives are determined by opinions rather than facts; if you want to change your life, you must first change your opinion. Facts can only be seen after that is done (p184)
・The most important thing when moving to the right side of the quadrant is how you change and what kind of person you become during that process. Can you break the feeling of clinging to the way you made money (p191, 192)
・E works for the system; S works as the system itself; B creates, owns, and manages the system; I invests money in the system (p193)
・BE (become) → DO (do) → HAVE (have), goal is the “to have” part of these three words. In order to achieve a goal, you cannot achieve it even if you ignore “become (how do you think = what words do you use)” and only get carried away with “doing,” and what is important for losing weight is not the diet itself, but what kind of person you must become in order to continue the diet (p213, 215)
・To make your marriage better, you don't need to change your partner; you should change yourself first. Don't change your partner, change your way of thinking about them (p214)
・The United States implemented tax reform in 1986, and people who used losses arising from profitable real estate for tax savings were suddenly thrown into a state where they were unable to save taxes even though their losses did not change. As a result, real estate prices crashed all over America, and then the stock market crashed drastically (p236)
・Characteristics of people who have become rich, 1) have long-term prospects and plans, 2) think it is essential to be rewarded later, 3) use the power of compound interest to one's advantage (p274)
・It's wonderful to have big long-term dreams and hopes, but realizing them is a process consisting of a number of small steps (p275)
・A good debt is a debt that someone else will repay on your behalf, and a bad debt is a debt you have to repay with crystals of your own sweat and blood (p292)
