Finding Your Financial Fast Track

From “The 7 Steps To Finding Your Financial Fast Track” in part 3 of The Cashflow Quadrant™ by Robert Kiyosaki.

Step 1 – in Robert’s book is “It’s time to mind your own business”. Robert asks the question “Have you been working hard and making everyone else rich?” What a great question. It is what the majority of people do with their life. The book points out that this is because we are conditioned to:
1. Go to school and get good grades in order to get a good job. This is how the majority of us have been brought up.
2. Then we are conditioned to work hard to buy a home of our dreams. We believe that is our most important asset. I have shared in earlier posts how this is not an asset (even though my accountant’s brain would not accept that at first).
3. Perhaps the most scary one is we have been living in a “buy now, pay later” culture in much of the developed world. Even since the recent Global Financial Crisis I keep hearing radio advertisements from some of our local stores selling furniture and white goods “to buy now, no money down and no repayments until 2012!” Figure that!

Following this type of thinking will keep you in the rat race for life.

If you are caught in this cycle it is important to take stock and break it. I have suggested in previous posts to start by playing the board game Cashflow. In The Cashflow Quadrant™ Robert has 3 suggested steps which are:
1. Fill out your personal financial statement. If you have played Cashflow you will understand this. If not please either buy the game or this book and follow Robert’s example. It is taking stock of where you are financially.
2. Set your financial goals. Robert suggests breaking these into 12 month and 5 year goals.

When I was working as a financial planner we did this with our clients at our first meeting. Many people that came to see me did not know where they were financially and had not thought about where they wanted to be.
It is very common so do not think you are alone in this journey. One thing is for sure having your “head in the sand” will not help you.

Like all professions there are good and bad financial planners, good and bad accountants and it is important to get the best advice. I recommend that you educate yourself enough that you know the difference. Read the books, play the games, attend seminars – educate yourself then seek advice.

I will be back with more of the 7 steps in the next days. Please leave your comments below.

2 thoughts on “Finding Your Financial Fast Track

  1. Adam Robinson

    I’ve learned some of the teachings of Robert Kiyosaki and I must say that since then, I see things differently now. I used to think investing in things like cars and houses are a good idea. He made me realize that they are actually expenses. And how true this statement is. I try to focus now on putting my money into something that makes money.

    1. Sue Post author

      Hi Adam

      I was like you I thought houses and cars were assets. I am an accountant and that is what I had been taught. When I first met Robert I argued with him ! 🙂