Thursday, October 9, 2008

When You Think Real Estate, You Think Rich

There's got to be a difference between the type of person who strike it rich and the average Joe, but what is it, really? This question is an important one, and it should be given the thought it deserves. There are plenty of easy, oversimplified responses, including, "Their family is rich," "They won the lottery," or "They have great careers." But these factors can't always be controlled by the individual experiencing them-- is wealth really dictated by the luck of the draw?The truth is that not all of these lucky people can be truly considered to be rich. It is the belief of "Rich Dad" author Robert Kiyosaki that the true measure or wealth isn't really the amount of money you take in, but how much you manage to keep.For instance, his father, the highly educated man to whom he refers in his books as his "poor dad," always had a good salary. Yet, Kiyosaki said, at the end of every quarter, he was practically penniless. Luckily for you, wealth doesn't spring from the family into which you were born, or even from the job you work. These red herrings distract from the real determiner or wealth, which is simply one's attitude towards money and the world.The real key to becoming right, is the way in which you think about money. It's as simple as that.The man Kiyosaki dubbed his "rich dad" broke people down into four types and set them on a graph he called the Cash Flow Quadrant. On one side of the quadrant are the E's and S's, or the Employees and the Self-employed. On the other side are the B's and I's, or the Businesspeople and the Investors. According to Kiyosaki, each of those quadrants represents which sector a person's money comes from. It also represents the way that person thinks. The quadrant into which an individual falls isn't determined simply by the luck of the draw; on the contrary, a person's perspective on money and the world, and their resultant decisions are the key.In to book "Cash Flow Quadrant," Kiyosaki states that the people inhabiting the four corners of the graph are, in fact, totally different people. Their different intellectual and emotional mindsets are the main determining factor of how each group deals with money.What's more, Kiyosaki says, it is that emotional difference that determines to which quadrant a person is drawn. And, he says, you can always tell which quadrant a person is coming from simply by listening to what they say. If you hear a person talking primarily about their benefits and job security, then that person is coming from Kiyosaki's E or employee quadrant. He also goes on to say that it is perfectly all right to live your life in the E quadrant if security is indeed the most important thing to you. But, he adds, the E quadrant is the most difficult quadrant from which to become rich. It sounds a little scary at first, but this is actually good news for you. It's good news because it means that, if you want to get rich, all you have to do is start thinking more like the people who live in the I, or investors, quadrant. If you want to be rich, you should invest, and buying properties is a great place to start. Investing in real estate, in fact, was the very path Robert Kiyosaki's "Rich Dad" took to become rich. So, start thinking rich-- quit working for your money, and start letting the money you earn work for you, building your wealth.About the Author:Author: Alexandria P. Anderson is a MN real estate agent that specializes helping people to find and purchase Minnesota Land, as well as Minnesota property for her realty clients.

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