Want to know the 7 Steps to Finding Your Financial Fast Track?
From The Cashflow Quadrant by Robert Kiyosaki, and his board game Cashflow, the Financial Fast Track is destination and journey you go on after you get out of the rat race.
To get on the Financial Fast Track, your passive income has to be greater than your expenses, so that you don’t have to work your job for a living anymore.
On the Financial Fast Track, you focus on investments, business acquisitions and growth, community projects, meeting powerful and influential people and going on amazing vacations.
So, let’s get started and see what The Cashflow Quadrant says about finding your financial fast track!
Step 1: It’s Time To Mind Your Own Business
The first step is to know that you are a business, and to operate your finances like a business.
Robert Kiyosaki stresses the importance of realizing that your assets are your business, because they produce income for you. (Example: rental property, dividend yielding stocks, a business you own but don’t run)
When you are working for someone else, you are not minding your business, you are minding your boss’s business.
When you are spending money on your mortgage, you are minding your banker’s business (your mortgage is actually a liability).
When you are buying things, you are minding the vendor’s business.
So step #1 is to start minding your own business, keeping track of and growing your assets.
Robert Kiyosaki recommends doing a financial statement by filling out the game card in his board game Cashflow with your real life numbers.
FormSwift has a good financial statement tool to help you create your financial statement. CLICK HERE and do your financial statement for this month!
You will need it for Step 2 =)
Step 2: Take Control of Your Cash Flow
Step 2 builds on step 1, and now you get to work with your own financial numbers and take control of your cash flow.
1) Review your financial statements.
2) Determine whether you receive your income from a) employment b) self employment c) business d) investments
3) Determine where you would like to receive most of your income from in 5 years (from a) employment b) self employment c) business d) investments?)
4) Pay yourself first – set out a certain percentage of your pay and deposit into an investment savings account, where it is only used for investing
5) Focus on reducing your personal debt
Step 3: Know The Difference Between Risk and Risky
Robert Kiyosaki stresses here that it is risky to rely on a job your whole life for your income.
It is a lack of financial literacy that is risky.
Smart investors take risks, but they research first and know what the risk is.
Instead of just saying things like investing is risky, he advises to really examine what is risky with the following questions:
1) Define risk in your own words.
a) Is relying on a paycheck each month risky to you?
b) Is having debt to pay each month risky to you?
c) Is owning an asset that generates cash flow into your pocket each month risky to you?
d) Is spending time to learn about financial education risky to you?
e) Is spending time learning about different types of investments risky to you?
2) Commit to 5 hours of your time each week to do one or more of the following:
a) Read the business page of your newspaper and the Wall Street Journal.
b) Listen to the financial news on television or radio.
c) Listen to educational cassettes on investing and financial education.
d) Read financial magazines and newsletters.
e) Play CASHFLOW.
Step 4: Decide What Kind of Investor You Want To Be
Robert Kiyosaki says that there are 3 types of investors A, B and C.
Type A Investor: Solves Problems
Type B Investor: Looks for Solutions
Type C Investor: “I know nothing”
He recommends you be all 3.
So in most areas you will be a Type C investor. His example is that he doesn’t know what mutual funds to buy or what stocks to pick.
In 1 area, you will become a Type A Investor, and become an expert. People will come to you with their money to invest with you.
In some areas, where you have friends who are experts, you can invest your money into their deals and you will be a Type B investor.
Do not diversify your investments, specialize in 1 field and become an expert.
Step 5: Seek Mentors
Robert Kiyosaki stresses the importance of finding coaches and mentors to train you in the skills that you want.
Professionals have coaches, amateurs do not.
If you want to get on the Financial Fast Track, you need a mentor or coach who has gotten to where you want to go.
If you can’t find a mentor at work, then go out to Trade Shows, Seminars, and business meetings until you do.
Step 6: Make Disappointment Your Strength
There are 4 suggestions Robert Kiyosaki has to make disappointment your strenghth.
1. Expect to be disappointed
When you do something new, like start a business or become an investor, it’s highly probably that you will make a lot of mistakes as you learn. To be emotionally prepared to keep going, expect these disappointments and you’ll make it through in the end.
2. Have a mentor standing by
When you go into a tough negotiation or are doing a new deal, have your mentors numbers on hand so you can call them for advice or help.
3. Be Kind To Yourself
When you make mistakes, be kind to yourself.
You are brave and you are courageous for going for your dreams.
Give yourself words of encouragement, you can do this!
4. Tell the Truth
When things go wrong, admit it.
Take the consequences, learn from your mistakes and move on.
Per Robert Kiyosaki’s Rich Dad – “The size of your success is measured by the strength of your desire; the size of your dream; and how you handle disappointment along the way.”
Step 7: The Power of Faith
Listen to the words that you say to yourself.
They are a window into your soul.
Robert Kiyosaki uses this sentence that people will say instead of taking action “I can’t stop working and start my own business. I have a mortgage and a family to think about.”
He says what you might be saying is “I’m tired. I don’t want to do anything more.”
“I don’t really want to learn anything more.”
But these are personal lies, because if this person dug deeper, they really mean “The truth is I love learning new things. I would love to learn new things and be excited about life again. Maybe whole new worlds would open to me.”
Dig deep down and find the real truth within your soul.
Believe in yourself and start finding your financial fast track today!
Robert Kiyosaki has great advice and action steps to get on the Financial Fast Track.
To learn through play, go and play his board game Cashflow. On advice from a financially free friend, I played that game every week for over a year back in 2011 – 2013.
It trained me to look for assets that will generate passive income, and now I have multiple passive income generating assets in my Financial statement.
I went from over $35,000 in credit card and consumer loan debt in 2011 to becoming debt free in April of 2016.
I quit my job at a local bank here in Hawaii in December of 2016 and now I lead Finance Freedom Masterminds, where members create passive income and work towards financial freedom.
If you want to work with a supportive network of people all working towards financial freedom then CLICK HERE, enter your name and e-mail, and watch the free video to get started!