Economics is one of the central tenets of Max Living. We aim to help people progress to financial freedom, whatever that means for them, and give them tools and resources that help them exert more control over events in this part of life. If you’re worried about your financial future, chances are you will not be able to give very much attention to the other key areas of Max Living.

In Rich Dad’s Cashflow Quadrant, which is described as Rich Dad, Poor Dad Part II, Robert Kiyosaki helps readers see how they can reach financial freedom. Kiyosaki writes, “If you are ready to begin your journey or are already on your journey to financial freedom, this book is written for you.”

Readers of Kiyosaki should already be familiar with his “ESBI” Quadrant, with four distinct categories of earning—Employee, Self-Employee, Business Owner, Investor. Kiyosaki states that “financial freedom can be found in all four of the quadrants, [but] the skills of a ‘B’ or ‘I’ will help you reach your financial goals more quickly. A successful ‘E’ should also become a successful ‘I’.”

Part one of the book explains the differences between quadrants, and will help you see where you are now. Part two is about personal change—who you have to be rather than what you have to do. Part three provides seven steps that get you on the “right side” of the quadrant—Business Owner and Investor. These include “take control of your cash flow,” “know the difference between risk and risky,” and “seek mentors.” In this last step, Kiyosaki encourages readers to consider who they spend their time with. What quadrant are they in?

Whether you have or haven’t read any of Kiyosaki’s other books, Rich Dad’s Cashflow Quadrant is recommended reading because it helps you evaluate where your money is coming from and how you can move to the “B” and “I” quadrants. Kiyosaki doesn’t provide specific “here’s how you make money” advice. If success is a journey from one point to another, then what Kiyosaki does is give you a compass to help you navigate—in this case, from “E” and “S” to “B” and “I”. I’m confident you’ll find it useful.

A new edition of Rich Dad’s Cashflow Quadrant will be released on May 10. You can purchase it then from Amazon.com or Barnes and Noble, or you can find a used copy from numerous outlets.

“You’ve heard of people calling in sick. You may have even called in sick a few times yourself. But have you ever thought about calling in well?

It’d go like this: You’d get the boss on the line and say, ‘Listen, I’ve been sick ever since I started working here, but today I’m well and I won’t be in anymore.’ Call in well.” -Tom Robbins

Are you ready to call in well?

In the current geopolitical climate, one thing we can’t control is the price of gasoline. With turmoil and conflict in the Middle East dominating the headlines in recent weeks, the price of oil is up significantly. We’re all feeling the pain at the pump. “Cause and effect,” some would say; others would call it “pricing gouging” and flagrant speculation.

While we can’t control the price of gas, we can control our attitude about the situation. We can also control the way we mitigate the effect it has on our wallet:

• Find opportunities to carpool.
• Plan your daily travel, or weekly if you can, and combine trips as much as possible.
• With other parents, plan a schedule of picking up and dropping off kids at school, athletics, etc.
• Make sure your car is running optimally.
• Use public transportation or a bicycle.

These are just a few ideas that will help you minimize the impact of higher fuel. By acting on the things you do control, you don’t have to feel like a victim of fate. And of course, you can more effectively control the money going out of your wallet.

What people want is a shortcut to wealth, but what often happens is that it’s the ethical corners that get cut. And yet, as we’ve been told seemingly for centuries, it’s “slow and steady that wins the race.”

Speaking financially, making regular deposits into a savings or 401(k) account can have the same impact of a six-figure windfall…except you can literally bank on the deposits. Inheriting or otherwise suddenly receiving $300,000 is something most people simply can’t count on. In the absence of any guarantees of future wealth, we can make our own guarantees by working hard now while keeping one eye on the future.

Likewise, your dreams need regular “deposits.” If you’re not working on your dreams, who is? It’s essential that you frequently swing a figurative hammer and keep those dreams alive.

Research has shown that money motivates well for rudimentary tasks but isn’t that effective for more complex work.

What we really crave is self-direction, mastery and the desire to make a contribution.

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How we view problems is an indicator of our wealth and success, or lack thereof.

Author and speaker T. Harv Eker teaches that:

Poor people base their decisions on fear and say things like, “What if it doesn’t work?”;

Middle-class people base their decisions on false hope and say things like, “I hope this works”;

and wealthy people base their decisions on faith and accountability and say things like, “It will work because I’ll make it work.”

Problems are opportunities waiting to be turned into triumphs. Train your mind to find solutions, and take responsibility for implementing those solutions. Think wealthy to become wealthy.

Suggested reading: Secrets of the Millionaire Mind by T. Harv Eker

Many would-be leaders, in their quest to produce value, end up taking on unnecessary tasks that others are responsible for and thus feed irresponsibility in those around them.

Leaders understand their unique role and do it with excellence, and they allow others to also fulfill their individual roles without depriving them of opportunities for growth by doing their job.

Leaders don’t do what others should do and then think that they’re doing them a favor.

Misguided actions that lead toward dependence often masquerade as charity. If your actions toward others does not lead them to increased self-reliance, you can know with a surety that you are hindering, not helping them.

True accountability is based on real love; if we truly love others we will allow them to fulfill their responsibilities without giving them a crutch.

Help others around you to rise to their potential by holding them accountable for their responsibilities.

Recommended Reading: The One Minute Manager Meets the Monkey by Blanchard, Oncken, and Burrows.

Leaders recognize areas of improvement in any endeavor and seek positive avenues and methods for enacting change.

They don’t whine when people don’t listen to their advice; if their message is important enough, they keep working on how they share their message.

In the face of opposition, leaders work on the one thing that they have control over: themselves.

If you feel that people aren’t listening to you on a consistent basis, that should tell you it’s time for you to change.

As Stephen R. Covey says, “Any time you think the problem is out there, that very thought is the problem.”

Suggested reading: The 8th Habit by Stephen R. Covey

Much financial failure is the result of players simply not knowing the nature and the rules of the game.

How could you win a game of Monopoly if you didn’t know the purpose of placing hotels on your properties?

How long would a basketball player last on a football field if he didn’t know what football was?

If you feel like you are losing the game of finances, take a step back and ask yourself if you know what the rules are and what the purpose of the game is.

After you’ve identified the things that you think you know, find out if the rules you’re playing by are principles or strategies.

If your knowledge is based on strategies, the rules will be constantly changing. Principles never change and hold true in every context.

When all else fails, ask for or read the directions from an experienced and successful player.

Where are you on the CASHFLOW Quadrant? Rich Dad, Poor Dad author Robert Kiyosaki explains.

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