Most of us have heard of what is commonly referred to as the 80-20 rule. The principle states that, for many events, about 80 percent of the effects come from 20 percent of the causes. It is also known as the Pareto principle, the rule of the vital few. It is named after an Italian economist, Vilfredo Pareto, who noticed that 80 percent of the land in Italy was owned by 20 percent of the people – vital few. In business, a good rule of thumb is that 80 percent of your business comes from 20 percent of your customers – so take good care of them. Robert Kiyosaki, author of Rich Dad Poor Dad, believed that 90 percent of all money is earned by 10 percent of the people. He called it the 90-10 rule of money. For example, if you look at the game of tennis, I would say that 10 percent of the players earn 90 percent of the money. In the Philippines, approximately 90 percent of the wealth is owned by 10 percent of the people. Question: What is the name of the game of the 10 percent earning 90 percent of the money?
Answer: Cash Flow
To better understand the game of cash flow, the following are examples of how cash flow game is played in real life.Many students, who graduate, enter the job market, find a good job, and watch their cash flow to the government via income taxes. The more they earn, the higher the percentage they pay in taxes. To save money, they eat at Jollibee’s, and cash flow to Jollibee’s. They deposit their paycheck in their bank, and cash flows to the bank in the form of fees each time they use an ATM to get their money. They buy a car, and cash flows to the car company, finance company, gas industry, auto insurance, and, of course, to the government for an auto license. They buy a house, and cash flows out of their pockets to pay for the mortgage, insurance, cable TV, water, electricity, and government for property taxes. Every month cash flows to the stock market to invest in mutual funds for retirement plans, and cash flows from mutual funds to fund managers in the form of commissions and fees. Later in life, when people are old and feeble, cash flows to hospitals for medical expenses and nursing home. And when they die, cash flows to pay taxes on what they left behind, if ever there’s any. For most people, their entire lives are spent trying to keep up with their outgoing cash flow. The reason 90 percent of people struggle financially is because cash is always flowing out to someone or something else – flowing to the 10 percent who know the name of the game. The harder the 90 percent work and the more money they earn, the more cash flows out to the 10 percent. This is the story of most Filipinos. Most work very hard. Some even went back to school for higher degrees and specialized training. Some made more money and saved some of it, but most never got control of their outgoing cash flow. When some lost their job and was forced to stop working, no cash flowed in – yet they still had to honor their outgoing cash flow obligations. Clearly, some are in real financial trouble. Question: What can I do?
Answer: Learn how to play the game of cash flow.Question: How?
Answer: Educate yourself financially.Create Abundance 2020 Business Community provides an avenue wherein one can increase his or her knowledge of cash flow through our gatherings and events, specifically our Cashflow Gatherings and Free Wealth Courses. If you want to be part of the 10 percent of people who earn 90 percent of the money, attend our events and JOIN US. Why? Because we do it best.
DISCLAIMER: We are not part of Rich Dad Asia but we are recognized as Cashflow Club of RichDad.com. Our Cashflow gathering is not a Commercial and Public Event because we are only offering this to our personal and virtual network and we are not making any money from it. It is an exclusive community gathering of the members and future members of ca2020.net Credits to The Conspiracy of the Rich by Robert Kiyosaki.
Answer: Cash Flow
To better understand the game of cash flow, the following are examples of how cash flow game is played in real life.Many students, who graduate, enter the job market, find a good job, and watch their cash flow to the government via income taxes. The more they earn, the higher the percentage they pay in taxes. To save money, they eat at Jollibee’s, and cash flow to Jollibee’s. They deposit their paycheck in their bank, and cash flows to the bank in the form of fees each time they use an ATM to get their money. They buy a car, and cash flows to the car company, finance company, gas industry, auto insurance, and, of course, to the government for an auto license. They buy a house, and cash flows out of their pockets to pay for the mortgage, insurance, cable TV, water, electricity, and government for property taxes. Every month cash flows to the stock market to invest in mutual funds for retirement plans, and cash flows from mutual funds to fund managers in the form of commissions and fees. Later in life, when people are old and feeble, cash flows to hospitals for medical expenses and nursing home. And when they die, cash flows to pay taxes on what they left behind, if ever there’s any. For most people, their entire lives are spent trying to keep up with their outgoing cash flow. The reason 90 percent of people struggle financially is because cash is always flowing out to someone or something else – flowing to the 10 percent who know the name of the game. The harder the 90 percent work and the more money they earn, the more cash flows out to the 10 percent. This is the story of most Filipinos. Most work very hard. Some even went back to school for higher degrees and specialized training. Some made more money and saved some of it, but most never got control of their outgoing cash flow. When some lost their job and was forced to stop working, no cash flowed in – yet they still had to honor their outgoing cash flow obligations. Clearly, some are in real financial trouble. Question: What can I do?
Answer: Learn how to play the game of cash flow.Question: How?
Answer: Educate yourself financially.Create Abundance 2020 Business Community provides an avenue wherein one can increase his or her knowledge of cash flow through our gatherings and events, specifically our Cashflow Gatherings and Free Wealth Courses. If you want to be part of the 10 percent of people who earn 90 percent of the money, attend our events and JOIN US. Why? Because we do it best.
DISCLAIMER: We are not part of Rich Dad Asia but we are recognized as Cashflow Club of RichDad.com. Our Cashflow gathering is not a Commercial and Public Event because we are only offering this to our personal and virtual network and we are not making any money from it. It is an exclusive community gathering of the members and future members of ca2020.net Credits to The Conspiracy of the Rich by Robert Kiyosaki.
Posted via email from Create Abundance 2020 Business Community
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