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Question from the cashflow quadrant - Who pays to take the risk?

For any book discussion

UsmaanJ

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“Besides the left side being risky, people on that side pay to take that risk,” said rich dad.
“What do you mean?” I asked. “Doesn’t everyone pay to take risks?”
“No,” said rich dad. “Not on the right side.”
“Are you trying to say that people on the left side pay to take risks, and people on the right side get paid to take risks?”
“That’s exactly what I mean,” said rich dad, smiling. “That is the biggest difference between the left side and the right side. That is why the left side is riskier than the right.”
“Can you give me an example?” I asked.
“Sure,” said rich dad. “If you buy shares of stock in a company, who takes the financial risk? You, or the company?”
“I guess I do,” I said, still puzzled.
“And if I’m a medical insurance company and I insure your health and take on your health risk, do I pay you?”
“No,” I said. “If they insure my health and they take that risk, I pay for it.”
“That’s right,” said rich dad. “I have yet to find an insurance company that will insure your health or accident risk and pay you for that privilege. But that’s what people on the left side do.”


I understand the concept here, however what about when someone starts a small business and invests their own money? They are taking a risk and also paying for it. So is the rich dad recommending that one starts a business using someone else's money?
 
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jockinbox

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the left side has employed and self employed
the right side has business owner and investor

doing a biz with other peoples money would be ideal, but no one would invest in an unproven system unless its an equity deal
what he means is, when you have a working system, eventually, you will need other peoples money to keep growing

that happens in the form of bank loans, IPOs, etc

doing the bottom right (investing) you can use other peoples money to make money

for example, you find a sweet real estate deal, you find investors, you give up 80% equity and keep 20%

I think there is an article called the 7 levels of investors and the ultimate level is investing other peoples money and keeping a cut
 

GMSI7D

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Rich dad's prophecy is a book about the worst financial disaster ever seen coming in 2016 -2017

and nobody cares here.

that's the problem of confirmation bias

https://en.wikipedia.org/wiki/Confirmation_bias


we want our dream to be true and we chose to ignore reality.

we say " no i am right, i will be rich,i will get that candy " like kids screaming in a candy shop

since we are on the forum of would be millionaire, we chose to ignore the facts that reality is not what we think


we want to be rich, we read legendaries entrepreneurs like MJ DeMarco and we say " why not me ? "


why not us ?

because financials law are against us .




i am not here to make friends or play the perfect courtier. i am here to show facts.





 

InformationH

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Rich dad's prophecy is a book about the worst financial disaster ever seen coming in 2016 -2017...i am here to show facts.
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And your "facts... They're based off one book's prophecy??
 
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