Want To Get Rich? Invest In Real Estate!

Those who aspire toward riches should know that, in order to achieve their goals, they will need to abandon much of the conventional wisdom passed on to them by parents, teachers, and others. You may, however, already be on the right track- that is, if you were lucky enough to have a role model who knew what it really takes to become rich.

In the words of Robert Kiyosaki of "Rich Dad, Poor Dad" fame, "It doesn't take money to make money. I often hear people say it takes money to make money. I disagree. We had no money when we started and we were also in debt. It also doesn't take a formal education."

Kiyosaki proceeded to cite the case of Bill Gates: the Microsoft mogul never actually graduated from college, but did that keep him from making his fortune? No way! Diplomas are nice, but they don't reliably add up to more money.

Robert Kiyosaki claims that to become wealthy, you simply need to be a quick learner, with enthusiasm about reaching your goals. The other part of the puzzle is to know where you're at right now in relation to money, and how you will have to change your attitude about money to prosper in the future. This is where Kiyosaki's Cash Flow Quadrant comes in.

Kiyosaki's "Rich Dad," actually his childhood best friend's father, is the one who introduced him to the Cash Flow Quadrant, a handy diagram that visually illustrates the ways in which individuals with different personalities relate to money. It consists of a square split into four quadrants, labeled 'E' (Employee), 'S' (Self-employed), 'B' (Business), and 'I' (Investor). If your aim is to become rich, you're going to have to set your sights on the 'B' and 'I' quadrants of the diagram.

When Kiyosaki says you need to be willing to learn quickly, he doesn't mean go back to school to improve your job skills. He means you should learn about investing, preferably investing in real estate. The rich dad on whom he based his books was a real estate investor. You can get rich investing in real estate because everything else depends on it. At the beginning of his book Cash Flow Quadrant, he pointed out how so many of Hawaii's businesses were sitting atop real estate that his rich dad owned.

But don't worry- learning about real estate doesn't mean that you have to learn every minute detail that goes into the buying and selling of property; in reality, there are plenty of people willing to take on the technical aspects of investing for you. You just need to think like a businessperson in choosing the individuals with whom you surround yourself.

That is a far cry from thinking like a Self-employed person. According to Kiyosaki, a self-employed person is someone who owns a job, not a business. You don't own a true business, he said, unless you can leave it for a year and return to find it still making money for you. Businesspeople, he said, know better than to try to do everything themselves. In order to save time and money, they hire people to do the things they can't do or don't have time to do. That's why hiring a qualified real estate professional to guide you in your decisions can be a good investment in and of itself.

At the end of the day, you only really need to have a certain level of knowledge regarding the ins and outs of real estate, and the experts you hire can guide you the rest of the way. If you take one thing from reading this article, let it be this: if you aspire to be rich, it's time for you to make the move to the 'I' quarter of the Cash Flow Quadrant.

Author and Realtor Alexandria P. Anderson helps clients to find and purchase Richfield Minnesota real estate as well as Richfield MN homes and houses in the Twin Cities.

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