• traditional education was crushing my spirit, trying to motivate me with the emotion of fear: the fear of making mistakes, the fear of failing, and the fear of not getting a job. Most addictions are attempts to find happiness in people’s souls.
• from these interviews I learned to listen, not so much for words, but for core values—values that my rich dad said came from their souls.
• The word “secure” is a word often used in response to the emotion of fear. Self-employed people are often hard-core perfectionists.
• S owns a job; a B owns a system and then hires competent people to operate the system. Or put another way, in many cases, the S is the system. That is why they can’t leave.
• most rich people receive 70 percent of their income from investments, or the I quadrant, and less than 30 percent from wages, or the E quadrant.
• the passive income from all of our assets was greater than our expenses. At that point, we were wealthy.
• traditional education. This was a form of investment popular in the industrial Age that is now almost obsolete in the Information Age.
• primary distinction of people who earn their money from the I quadrant is that they focus on having their money make money. So why aren’t more people investors? The reason is the same reason many people don’t start their own businesses. It can be summed up in one word: risk. For a gambler, investing is a game of chance. For an investor, investing is a game of skill.
• As we move from defined-benefit pension plans (or what I call Industrial-Age retirement plans) to defined-contribution pension plans (or Information-Age pension plans), the result is that you, as an individual, must now be financially responsible for yourself. Amazingly, few people have noticed the change and understand its ramifications.
• Warren Buffett is saying that portfolio concentration, or focusing on a few investments rather than diversifying, is a better strategy.
• conditioned from our earliest days to think about job security, rather than financial security or financial freedom. 90 percent of the population is working on the left side is because that’s the side they learned about at school.
• your home is not an asset, but a liability.
• Today in America, being an employee means you are a 50/50 partner with the government. That means the government ultimately will take 50 percent or more of an employee’s earnings, and much of that before the employee even sees the paycheck.
• Debt and taxes are the main reasons most people never feel financially secure or achieve financial freedom. The path to security or freedom is found on the right side of the CASHFLOW Quadrant.
• B quadrant, people are working for you, and in the I quadrant, your money is working for you. economic changes, because change means wealth is being transferred.
• Investing is the key to financial freedom. Sadly, in America, once the richest country in the world, over 50 percent of the U.S. population is at the bottom level of the I quadrant. Simply said, they have nothing to invest.
• If you want to be a successful capitalist, you must know how to raise capital and how to use debt to make money.
• Most people struggle to live paycheck to paycheck, and yet $1.4 trillion flies around the world every day looking for someone who wants it. It’s looking for someone who knows how to take care of it, nurture it, and grow it.
• money is an emotional subject. And because it is an emotional subject, most people cannot think logically about money. If you don’t think money is emotional, just watch the stock market. Financial intelligence is closely linked to emotional intelligence. In my opinion, most people suffer financially because their emotions are in control of their thoughts.