Where Are You On The Cash Quadrant Ladder?

Where Are You On The Cash Quadrant Ladder?

When Robert Kiyosaki first published the Cashflow Quadrant in 1996, he didn’t expect that his book would remain the foundation of the modern investment world, more than 20 years after publication. This handy guide to financial freedom provide the keystones of the journey to safe investment. Indeed, nobody is born an investor. Kiyosaki reminds his readers that the cash quadrant is a ladder one has to climb to become a wealthy modern investor. If you’re looking for ways to grow your income safety and through business ownership, here are the tips that the book has been sharing with millions of readers for the past 22 years.

Successful investment

The top ladder, which is often investment step that most beginners have in mind, is the one of financial freedom. The successful investor is someone who is constantly looking out for new opportunities and tools to manage his assets. Needless to say that robo-advisors such as Vanguard or Betterment are a staple of his wealth. Ultimately, it’s important to remember that this is the final achievement in terms of wealth. But you need to climb through the other steps first! Indeed, it is crucial that you find natural ways to grow your income ready for investing and that you develop a sense of financial planning.

Run your business

As nobody is born an investor, most successful players in the investment strategies have in common a past in business ownership. Most investors continue to run a business on top of their wealth management activities. What lessons can you learn through business management that you can repurpose in the investing market? The answer is simple. You learn to identify blooming sectors and to recognise profitable transactions and operations. The ability to read through the lines and understand the strengths and weaknesses of industries and companies is a useful skill you will need in future.

Become your own boss

Before you can successfully call yourself an entrepreneur, you need to approach the professional world from an independent angle. Self-employment and freelancing is a problematic and daunting jump into the unknown with a high rate of failure for those who are not ready to become their own boss. The qualities you develop as a freelancer are key to launch your business. Consequently, the first lesson you need to learn is that time and knowledge are valuable assets that you can’t afford to waste. The second lesson is that you need to be very clear about what you want to achieve so that you can define your path to success.

Maximise your employability

Working is the first step of the Cash Quadrant ladder. Making yourself employable and indispensable to an employer are essential skills you need to learn. You will need to let your CV, résumé and crucial soft skills shine to attract contractors when you become a freelancer. Now is the best time to develop these qualities and build a solid professional network to grow your career. Finally, don’t forget self-promotion on social media, if you want to get noticed!

Just like with any ladder, the steps might be challenging to climb. It’s not a failure to stay on step 1 or step 2, if you have no intention of becoming an investor. However, if you do, you have to develop the skills you need to climb higher.

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