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Chapter Five Success takes an investment in time, dedication, and sacrifice. This is true education. It is a process. For most successful people, there is no such thing as an “overnight success.” My rich dad constantly said, “Success requires sacrifice.” He also said, “Most people are not rich because they want money without sacrifice.” The reason so few people make it over to the B and I side of the CASHFLOW Quadrant is because life is easier on the E-S side, at least it may seem that way in the beginning. For most people on the E-S side, life will get harder in the new economy, especially as they grow older. And long-term success also requires strong legal, ethical and moral character, as Tiger is finding out the hard (and expensive) way.

Infinite Returns Infinite returns are the result of obeying Law of Compensation #3. When Kim started out in 1989 with her 2-bedroom/1-bath house, she worked really hard just to make $25 a month in net cash flow. Twenty years later, she works less and makes much more money­— often infinite returns, which means money for nothing. Even in this economic crisis, her wealth is accelerating, making more money with much less effort, because infinite returns are the result of the 3rd law of compensation.

Smarter and Better Friends One more aspect of Law of Compensation #3 is smarter and better friends. When financial intelligence increases, you also start to meet smarter people. When you meet smarter people, you are invited into investments that are called “insider” investments. These are investments that never make it to market. The investments are so good that the investment does not need to be advertised or sold. Someone makes a phone call, and the investment is off the market. The resort and golf-course investment that Kim and I have was an insider investment. The moment the property went into foreclosure, the banker called just four people and the property was gone. 184

Profile for Jamiel Cotman

Unfair advantage ebook  

by Rich Dad, Robert Kiyosaki

Unfair advantage ebook  

by Rich Dad, Robert Kiyosaki

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