Business School for People Who Like Helping People Chapter 2

In Chapter 2, Kiyosaki writes about the three types of education required if we want to be financially successful in life:

scholastic, professional and financial education.

1. Scholastic Education

How to read, write and do math. The foundation for everything.

2. Professional Education

How to work for money. Professional education produces doctors, lawyers, plumbers, mechanics, etc.

3. Financial Education

Learning to have money work for you, rather than you working for money. Financial education is not taught in school, that's why most people struggle with money.

Knowing how to manage and invest money is a very important life skill that we never learned. Robert asks, "Instead of living below our means, how about we learn to expand our means?"

Kiyosaki believes that starting your own business is a better investment strategy than buying, holding and diversifying your stocks over the long term. Once you become rich through your own business, then you can begin investing in other assets. He believes your business will give you the cash flow you need to invest in other asset classes.

Most of us work hard for the wrong kind of income.

Income from labor is the most taxed income.

Meaning, we work hard for someone else's benefit.

This book also lists 10 ways you can become rich. And from these, Kiyosaki only approves of two. These, he says, are the same methods he used himself to earn his wealth. Robert also walks us through the risks inherent in each method. He talks about the pitfalls to look out for before diving headfirst into any of the money-making methods mentioned in this chapter.

The point of genius most people miss, even those who build mildly profitable businesses, is the network effect. Most business people build just a single business and call it a day, while those grand masters who build world class businesses focus on the network, not the individual store or franchise.

This is the difference between a small business owner and a big business owner - the size of their network.

Kiyosaki then introduces us to the concept of network marketing,

a business system he believes democratizes wealth creation.

He states that the only way to become rich in a network marketing business is to help others get rich as you also get rich.

In the next few chapters, he will walk us through some of the core values he believes make network marketing a plausible business

from which to amass great wealth.