Speaker 1: Rich dad, poor dad author, Robert Kiyosaki, explained a very interesting concept he calls the cash flow quadrant. He says there is a thin line between the rich and the poor. Those on the left side of the quadrant work for money because they need security, while those on the right side of the quadrant work for freedom so they don't have to work hard their entire life. Here are eight assets that make people rich and never work again. One, a business. At some point in time, all of us have been awestruck by successful entrepreneurs. We wonder how they manage to amass billions of dollars in one single lifetime. At times, we also get swayed by Hollywood stereotypes. We feel that the ultra-rich are corrupt and inhumane cronies who haven't sweat a drop in their lives. But this thinking is our biggest mental block that keeps us poor our whole lives. Creating a profitable business requires every drop of your sweat and blood. Identifying a business idea and successfully scaling it into a multinational corporation is no child's play. Every self-made ultra-rich entrepreneur in the world, including Elon Musk, Jeff Bezos, and Mark Zuckerberg was made in the same way, through hard work. The difference between rich entrepreneurs and employees is the same as the difference between passive and active income. Entrepreneurs work really hard for the first few years to create a business, while employees work hard throughout their lives. Entrepreneurs create assets that earn them money for the rest of their lives without working anymore, while employees live paycheck to paycheck. Entrepreneurs secure their own lives and their children's lives, while employees die poor without leaving anything behind for the next generations. Two, real estate. While creating a business is one of the best assets for ending up with millions in net worth, it is not the only one. All of us come from different financial circumstances. For many of us, having a safe and secure job with benefits is crucial to stand on our own two feet. With such constraints, leaving job security and starting a business is not always a risk you can take. However, that doesn't mean you have to break your back throughout your life working for someone else. You can still get out of the rat race if you start making the right investing decisions at the right time in your life. When you are young and earning an average salary, buying real estate seems next to impossible. However, that's where OPM comes in. In Robert Kiyosaki's words, OPM stands for other people's money. Simply put, he encourages people to borrow money to buy rental real estate. Such properties create a second income stream for you other than your nine to five job. The rental income pays for mortgage payments and other expenses, still adding some money to your pocket. Also, real estate investment lowers your taxes, which is like free money in your pocket. So why not make use of the tax breaks that come with it? Gradually, as you start acquiring more and more rental properties, you become less and less dependent on your next paycheck. And that's when you truly acquire financial freedom. You don't have to work for money. Your assets work for you. And if you are smart about it, you will start adding multiple passive income streams as you go, creating wealth that you can pass on to the next generations. Three, paper assets. We all know by now that businesses and real estate initially require time and effort before you can reap benefits from them. Most of us don't have that much time to spare after working for 10 to 12 hours a day. In such cases, Robert Kiyosaki shares another route to financial freedom. It requires disciplined spending habits, but it is much easier to start for people with a time and money crunch. Instead of spending your hard-earned money on going to pubs and bars every week, you can invest those in stocks, bonds, mutual funds, and GSECs. Each instrument has its own risk, so you can choose based on your risk-taking capacity. These assets free you from tackling the challenges of managing a business or real estate. And at the same time, they allow you to invest in other people's successful and profitable businesses. The more you save and invest, the faster you can get out of the rat race of nine to five and free up your time to add additional passive income streams to your portfolio. Four, commodities. Do you know why the dollar keeps gaining or losing value? Because paper money is a man-made concept. It's not real. It has value only because the governments back it, and governments can back it because the Fed can print more of it any time it wants. This means the dollar has no value of its own. Today, the U.S. is the world's superpower, so dollar is the most valuable currency. But tomorrow, if some other country beats the U.S. to become the world's superpower, the country's currency will replace the dollar. So saving in just one currency is never the best asset to create intergenerational wealth. No one knows when that piece of paper becomes worthless. To overcome all the shortcomings of paper currency, all ultra-rich individuals invest in what Kiyosaki calls God's money. Commodities such as gold, silver, oil, or even food grains and meat will remain valuable to humankind for the foreseeable future. Commodities as an asset are irreplaceable. At the end of the day, we need food to survive, we need energy to commute and trade, and we need precious metals to store wealth. Paper assets can't do these things for us. With limited quantities and stable demand, commodities are also a great protection against inflation. Therefore, it is always a good idea to diversify your portfolio with some investments in commodities, because they rise in value in tough times when other assets fall. Five, time. We've all heard the phrase, time is money. Do you know why it came into existence? According to economists, time is the most precious resource of humankind. Money comes and goes. Most NFL players become bankrupt the very next day they earn their first million dollars. But time, once gone, never comes back. Your young age is your best asset. It allows you to take more risks because you still have a long life ahead of you to earn back lost money. But once you enter into old age, there is no looking back. Therefore, making the maximum use of your time is essential to retiring rich. A person who starts saving and investing from the age of 20 will amass much more than a person who starts at the age of 30. Even the Oracle of Omaha, Mr. Warren Buffett, advises people to start young. Another way of making the best use of your time is to upgrade your skills. A standard five-day workweek leaves you with two days to invest in yourself. You can either while it away in movies, bars, or hanging out with friends, or you can work on yourself. Start a side hustle, upskill to get a promotion at your job, or even follow a passion. Who knows what life-changing turn any of these could lead your life into. At the end of the day, wealth in any form creates a safety ring around you and your loved ones. The true meaning of being wealthy is no matter how the world economics change, you stay protected. Six, your health. While utilizing your time well is more of a mental endeavor, being physically fit is much needed to accomplish all of your goals and ambitions. Most of us don't care for our bodies at a young age. We eat junk food, unhealthy restaurant food, consume unrecommended levels of alcohol, or even smoke a few cigarettes. We feel that we have worked really hard and that we deserve some slack. Then we go back to our jobs, all happy, ready to earn more money so we can do it all over again. Before we realize it, we end up getting trapped in this cycle. Not only do these unhealthy habits eat into our current earnings, but they also leave us with huge, wealth-eroding medical bills into our old age. Instead, if we invest in our bodies and do regular exercise, we can not only work more and earn more, but we can live a long and healthy life with our family and loved ones. Seven, online assets. Do you know what it costs to start a YouTube channel? Absolutely nothing. It is free. And have you ever learned something cool from a YouTube video? Everyone has. We are all good at something. Some of us cook very well. Some love making others laugh. And some are computer geniuses. So why not use your knowledge and skills to help people struggling with something you are good at? And if your skills are really sought after, you will have enough subscribers in no time and YouTube will pay you. You can even start generating ad revenue. Similar is the case with all online assets, be it online courses, websites, blogs, and even your social media pages. Once your online assets start earning you enough money, you can even create a business out of it, upgrade the content, hire people to work for you, and even join affiliate programs to add to your income streams. If you're interested in making money on YouTube, be sure to check out the free YouTube training in the description. Eight, your network. Have you heard the saying, a happy client is a referring client? This small saying speaks volumes about why developing a personal brand or goodwill is crucial to the success of any business, big or small. While doing good work can get you early success, a few recommendations from your clients can completely shift the paradigm for you. Suppose you start a catering business, every party you cater to enlarges your network because if the guests like your food, they will call you the next time they have a party. Therefore, along with delivering quality, you also need to think of ways to market yourself. You can't wait for success to come your way. You need to let people know you are behind all that good work. If you found this video helpful, make sure to leave a like and subscribe to the channel. Watch more personal finance videos.