Choosing Freedom Over Security
Why the Standard Financial Advice Doesn’t Lead to Financial Freedom
Both my rich dad and my poor dad recommended that I go to college and get a degree; it was after receiving the degree that their advice took different paths.
After graduation, my rich dad advised me to continue my education by getting jobs that were based on learning. “You should work to learn, not to earn,” he said. He wanted me to get the valuable business and investing skills I needed to be a successful entrepreneur and investor, working on the B (Business) and I (Investor) side of the CASHFLOW Quadrant.
My highly-educated dad, my poor dad, constantly advised: “Go to school, get good grades, and then get a safe, secure job.”
He was recommending a life path focused on the left side of the CASHFLOW Quadrant—the E (Employee) and the S (Self-employed). My highly-educated dad was concerned with job security, not with financial freedom.
Why People Seek Job Security
The primary reason many people seek job security is because that’s what they are taught to seek, both at school and at home.
As adults, millions of people still continue to follow that advice. Many of us are conditioned from our earliest days to think about job security, rather than financial security or financial freedom. And because most of us learn little to nothing about money at home or at school, it’s only natural that we cling ever more tightly to the idea of job security instead of reaching for financial freedom.
If you look at the CASHFLOW Quadrant, you’ll notice that the left side is motivated by security. The right side is motivated by freedom.
Why Job Security Leads to Debt
The main reason that 90 percent of the population is working on the left side is because that’s the side they learned about at school. After leaving school, they often end up with lots of expenses and may fall into debt. This means they must cling ever tighter to a job, or to professional security, just to pay the bills.
I often meet young people who receive their college diploma along with the bill for their college loans. Several of them told me that they’re depressed when they see that they are in debt thousands and thousands of dollars for their college education. If their parents paid the bill, then the parents are financially strapped for years.
Most Americans today will be in debt for the rest of their lives.
The Search for Freedom
I know that many people search for freedom and happiness. The problem is that most people haven’t been trained to work from the right side of the Quadrant—the B (Business owner) and the I (Investor) side.
They have been trained instead to search for job security. Because of this training and their increasing debt, most people limit their search for financial freedom to the left side of the CASHFLOW Quadrant. Unfortunately, financial security and financial freedom are seldom found in the E or the S quadrant; true security and freedom are only found on the right side.
Searching for Financial Freedom
Many people spend their lives in search of security or freedom, but wind up instead going from job to job. It’s a long and vicious cycle of discontent. In my opinion, you should make a serious effort not to find a new job if you’re unhappy, but to begin moving to the B or I quadrants, and fast.
A new attitude and a new educational process must begin.
A New Pattern for Financial Freedom
Instead of just putting money into a retirement account and hoping for the best, people should feel confident about their education in whichever quadrant they choose.
Just as we study to learn a job, I suggest you study to learn to diversify and operate in more than one quadrant. The average rich person earns 70 percent from the right side and less than 30 percent from the left side of the CASHFLOW Quadrant. I’ve found that no matter how much money people make, they will feel more secure if they operate in more than one quadrant.
A Choice of Paths
The patterns I’ve discussed are different financial paths people can choose. Unfortunately, most people choose the path of job security. When the economy starts wobbling, they cling ever more desperately to job security and wind up spending their lives pursuing it.
At a minimum, I recommend becoming educated in financial security, which is feeling confident about your job and feeling confident about your ability to invest in good and bad times. Ideally, however, focus your education on financial freedom—read and study, take classes, attend seminars, and find a good coach—and take control of your financial destiny.