Baby Steps

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In order to help us get off our feet Kiyosaki recommends starting with the 7 Baby Steps to get you started on the road to Success from his book Cashflow Quadrant.

1. Fill out a financial statement. Set goals for where you want to be in 12 months, 5 years, etc. Set goals to decrease consumer debt and increase assets.

2. Take control of your cashflow. Set goals for your cashflow and set aside money every paycheck that will go towards assets. PAY YOURSELF FIRST, not last!

3. Learn all about what is/is not risky. Define for yourself what you think risk is. Spend at least 5 hours a week learning so you can decrease the risk involved in your investments. “If you want to take on great wealth, quickly take on great financial problems.”

4. LEARN!! Become a proficient level 4 investor (levels of investors are in his book Cashflow Quadrant). Every week call up or visit realtors, property managers, stock brokers, financial planners, business owners and brokers. Ask them questions, advice, etc. Find your niche in the market. Specialize your skills.

5. Seek MENTORS. Find role models, mentors, and reverse mentors for your field. A reverse mentor is someone who is the opposite of what you want to become. You learn what not to do from their example.

6. Make mistakes. Start small, put a little money down. If you make a mistake, learn from it and move on.

• “Only fools expect everything to go the way they want.”
• “We can never know things beforehand, and we often only learn things when we need to learn them….Try new things and expect disappointment. Many people never start projects simply because they do not have all the answers. You will never have all the answers. Begin anyway.
• “The size of your success is measured by the strength of your desire, the size of your dream, and how you handle disappointment along the way.”

7. Believe in yourself and start today! “Listen to your doubts, fears, and limiting thoughts, and then dig deeper for the deeper truth. Prepare daily to become bigger than your smallness.”