Money is knowledge
In his book The Conspiracy Of The Rich, The Eight New Rules Of Money, Robert T. Kiyosaki lists them as follows:
- Money is knowledge.
- Learn how to use (good) debt.
- Learn how to control cash flow.
- Prepare for bad times and you will only know good times.
- The need of speed.
- learn the language of money.
- Life is a teamsport, choose your team carefully.
- Since money is becoming worthless and less learn how to print your own.
Why is he so keen on sharing this knowledge with us? Kiyosaki through his study is convinced that rich people play the money game by a different set of rules then others do and I agree with him. So if you want to be rich, meaning experiencing a rich life in every sense of the way, it is nice for a moment to stand still and think about what he has to say.
So money is knowledge. What does he mean by this?
What he says is that to make money today you don't need money, you need knowledge. Knowledge about how money works which sadly, is what we are lacking in the information age. Our school systems have been designed and controlled by the rich to train people to become good employees - even going so far as to dumb students down, so they won't think for themselves.
When we play his game - the cash flow game - we can see that rich people play by a different set of rules then poor and middle class people. Rich people have learned to invest their money to create regular cash flow, rather then depend on capital gain. They go on investing and creating cash flow until they are able to pay their costs from the cash flow coming from their investments rather than from physically working.
And then they are financially free.
They let their money work for them. They train themselves to be successful in this game. It is not that they don't like capital gain, it's just that this isn't their top priority.
One of the advantages of regular cash flow coming from investments is that it makes us immune to volatility, so whether the market goes up or down we don't care anymore.
Robert Oosthout
http://www.oosthoutadvocatuur.nl/public/
Robert Oosthout studied law and business administration at Leiden University, Delft Technical University and Erasmus University Rotterdam. He worked as a banker with a Deutsche Bank, in ICT with Pink Elephant Engineering, as an attorney at law and as a corporate lawyer with Mazars and Compass Group PLC.