1. Mistakes Are Opportunities To Get Smarter.
Never let failure stop you, use your brain and creativity, for example, look at Slack, it was a complete failure, they too tried to game, but unfortunately, the game didn’t work, but Slack was becoming a success, because of the dialogue on the side of it.
That’s one of the most important messages I have for entrepreneurs, is that failure should inspire you to get smarter, unfortunately, our school system says if you fail, you’re stupid, but that’s completely wrong.
We learn from them, these mistakes are opportunities to get smarter, be humble, and look at something.
Another example would be the Cash Flow Board game, just like Slack it was a failure, so Robert Kiyosaki had to write Rich Dad Poor Dad (Which is a true story), about his rich dad and his poor dad, suddenly he went on the Oprah show and became famous.
2. Learn How Taxes Make You Richer.
Most young people today want to become entrepreneurs, the problem is you must understand tax.
This is all over the world, and there is very little difference, the people in the E quadrant (Which stands for employee), pay 40% of their money in taxes, to put that into perspective. If they make 1000 dollars, they’re going to spend 400 dollars in taxes.
The people in the S quadrant (Which means self-employed), if they make 1000 Dollars, they’re going to pay 60% in tax.
As you can see, our schools are trying to teach entrepreneurship, but they aren’t teaching about taxes, because they’re focusing on income.
Over on the B quadrant (Which means a large business of more than 500 employees), they pay 20% in tax, so they make 1000 Dollars only 200 Dollars goes to tax.
But these guys in the I quadrant (Which means investor), they can pay as low as zero percent, so the reason financial education isn’t working in our school system, is because they’re teaching financial education.
For E and S, but to become rich, you must focus on the B and the I. And that’s the difference between the Rich Dad Company.
I’d rather be on the B and I, however, it’s a lot harder, but in the long run, it’s more fun and beneficial to be on that side.
On the E and S side, is a lot harder, since you’re paying taxes constantly. So the people on the E and S are saying “Tax the rich!.” But they don’t pay any taxes.
As strange as this may seem, this is ALL legal, and can be done ALL over the world.
In the book Rich Dad Poor Dad, Robert Kiyosaki wrote about Ray Kroc founder of McDonald’s, and he was teaching at the University of Texas the MBA program, and most MBAs are going to come out on the E or S quadrant.
Ray Kroc asked, “What business is McDonald’s in?” And everyone said, “They’re in the business of food.” And Ray said, “No McDonald’s is not in the business of food”.
McDonald’s is in the business of real estate, so what Mcdonald’s does is they take the money from their business which is the B quadrant, and move it into the I quadrant, and the money McDonald’s makes buys the real estate.
And that’s the formula that Robert Kiyosakis rich dad used and passed to him, now it’s nice that you are starting your own small business, or you’re working hard as an employee.
But the real formula that Robert Kiyosaki follows is just like McDonald’s, Robert has an education company that buys real estate which means he makes a lot of money but pays zero taxes… (Legally).
3. Learn How To Sell
The difference is, when Robert Kiyosaki left his high-paying job with Xerox, it was the last job he ever had.
If you look at the cash flow quadrant. Robert was in the E quadrant, but he was making a lot of money at Xerox, however, he went to Xerox for one thing, and it wasn’t for the money, he worked at Xerox because he wanted to learn how to sell.
Because entrepreneurs have to learn how to sell, so Robert Kiyosaki was preparing for the S quadrant, but he was REALLY preparing for the big business quadrant (B), so he took a job at Xerox for 4 years.
He was preparing for the S and B quadrants, so when he talks to young people like some of you reading this blog post.
You’re learning the same thing that Robert Kiyosaki was learning at Xerox, however, you’re learning it through technology, which is more efficient and smarter.
A lesson to young people is, don’t take a job for the money, take a job for what you’re learning.
4. Which Entity Is For You?
In simple terms, you have the good, the bad, and the ugly.
Let’s get started with the bad, which is a sole proprietorship, this is when you do business as an individual in your name.
When you get into business, and don’t form a corporation you’re automatically given a sole proprietor, which by the way gives you zero protection, I suggest you get that sorted out ASAP!
We also have the ugly entities, these are the ones we really don’t want to get involved with and that would be the general partnership, because this is liability times two.
If you shake hands with someone to get into business, you have become their partner, they can obligate the business and you’re personally responsible for what, they obligated the business for.
Here’s an example, there was a lumber company in Phoenix, and there were two people who got together, and they shook hands, and they formed a general partnership.
Suddenly one of the partner’s daughters ran over somebody, and they caught what happened, then the other partner was personally responsible for that kid… Crazy right!?
She doesn’t even belong to him, but that’s the ugly way to do business, and it can happen with a simple handshake.
It’s called innocent formation, you shake hands with someone to get into business, and now you’re personally responsible.
Not only for your own mistakes, but your partner’s mistakes too, so take my warning and never do business as a general partnership.
Ok enough scaring, let’s get into the good entities, thankfully the government gives us good ways to do business that can protect you, these would be LLCs, LPs, and corporations.
These are the good ones, LLC stands for limited liability company, LP stands for a limited partnership, and then we have corporations that have different taxation.
For example, if you have a C. Corp, which is double taxed, we have the S. Corp which is a flow-through tax, (There’s only one tax). However, I recommend working with a CPA to reveal what is best for you.
5. Learn To Take Risks.
In school, they compensate for risk by telling you to memorize the right answer, so in other words, these young people leave school thinking, if I know the right answers then there’s no risk, and it drives old guys like Robert Kiyosaki crazy.
Because everybody’s talking about millennials but what’s wrong with them? Millennials are the most highly educated generation in history, we have the entire internet at our disposal.
The biggest complaint Robert Kiyosaki has about this generation is how millennials know all the answers but don’t do anything.
And the reason they can’t do anything is that they’re thinking it might hurt somebody’s feelings, or they might make a mistake and look stupid, and sadly this keeps them trapped in a little box.
That’s one of the reasons I think Robert Kiyosaki’s YouTube channel “Millennial Money: Lessons with Robert Kiyosaki” and “The Rich Dad Channel” are crucial.
Because, if you’re going to come into Robert Kiyosaki’s world, you have to understand what is risky and what is not risky.
In his world, if you play it safe that makes you stupid, because, if you don’t take risks, you don’t get smarter, so you may know the answer, but you don’t do anything.
One of the best things Robert Kiyosaki had as he went to military school, was that he had great flight teachers, who could actually fly.
WOW! What an amazing idea! A flight instructor that can actually fly, but when he was in high school most of the teachers were cowards.
They wanted job security and preached about never making mistakes just memorize the right answer and you’ll be safe.
And that’s why most school teachers aren’t rich, and sadly they teach that to our generation and most of them are teaching us things that they don’t do daily.
For example, we have business teachers, that have never even started a business before. It’s kind of frightening when you think about it. We are all relying on a school system that teaches us, the way to get through college is by practicing all the right answers, then taking an exam. When in real life, that’s the last thing that would ever happen, life doesn’t work that way.
Robert Kiyosaki talks about his book Fake: Fake Money, Fake Teachers, Fake Assets. (Available On Amazon Click The Link Here Or The Image Below To Grab Yours Today).
The reason it’s fake, money fake, teachers and fake assets, is because it all has to be fake.
You must have fake teachers, to understand fake money, and they have to have fake assets, to buy those stocks, bonds, and mutual funds which Robert Kiyosaki calls “Fake assets”.
But without fake teachers and fake money, you can’t do it, that’s why Robert Kiyosaki loves working on the Rich Dad Program, because if you’re going to be successful you have to take some risk for it to work.
6. Have A Spiritual Why
Robert Kiyosaki says he works for a spiritual reason, and not for the money, as his teacher Dr. R. Buckminster Fuller said.
“I don’t work for me; I work for everyone.”
– Dr. R. Buckminster
That was one of the biggest lessons Robert Kiyosaki got from the military, was spirituality, since the military is a very spiritual process.
That’s why you see most soldiers, get on well with their team, but even if they don’t, they set their differences aside, and look at the bigger picture.
Because, when Robert Kiyosaki went into combat which is a horrible experience of good and bad people, Robert Kiyosaki and his team would climb into their aircraft with a crew and become one.
He said, as horrible as it was to go to war, it was still a great feeling to have a full team, that acted as one huge force, because we might not come back, but it was the highest feeling of all… A spiritual feeling.
And it’s not just millennials. ALL human beings have a hunger for this feeling.
In conclusion
Today, more than ever before, there are millions of people sitting around daydreaming about what life will be like after people can return to normalcy, for many, that includes quitting their job and becoming an entrepreneur.
While this is a noble dream, for many it is just a dream that will never become a reality.
One reason why most people fail at becoming an entrepreneur is that our educational system trains people to be employees, not entrepreneurs, the world of an employee is very different from the world of an entrepreneur.
The good news is anyone can be an entrepreneur, from millennials to baby boomers, if they’re willing to put in the work.
Read the book Fake: Fake Money, Fake Teachers, Fake Assets. To discover the lies that society has given you, that are secretly strangling your success.
Once you grab your hands on this book, you can FINALLY! Reveal how you can follow the exact blueprint every successful entrepreneur uses, to jump-start their journey to making their dream of becoming an entrepreneur a reality.
Click HERE or the image below, to become a successful, wealthy, and happy entrepreneur!
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