Presentation 2: Financial Education and Risk Taking

Hi Violet Andrew, I hope this message finds you in perfect health.

I took the time to study the topics that came to me, and I must say that like last time it is beneficial
for me to learn behind the scenes of entrepreneurship and money under your guidance.

I. Let's start at the beginning, the first link led me to a YouTube video that highlights the
impact of technology and globalization on jobs, threatening even the most skilled jobs.

I learned that as entrepreneurs, we must be prepared to adapt to changes in the labour market and
find new industries and many markets for products to compensate for job losses due to automation.
In short, adaptability is essential to survive new challenges.

The second link leads me to another equally edifying subject. The topic is the cash flow quadrant.
This video inspired by the ideas of Robert Kiyosaki highlights four categories of people. First,
employees who spend all their time working for other people's systems or for government and
complain that they don't have time for themselves. Then, the people who self-employ. They also
work all the time. These first two categories of people represent 95% of the world's population. The
third category of people is the owners of large companies. The very people who employ the people
in the first two categories and make money. They have the money, time, and hobbies they want.
Finally, there is the last category of people, which includes a small part of the world's population.
Unlike other categories, with investors it is their money that works for them to bring them much
more money. What is unfortunate is that our traditional education system only trains employees and
managers of small businesses. To get out of this grip of the routine of work, you must work not to
have money but to acquire new knowledge in order to grow in spirit and leadership. And take
advantage of globalization to create your own system.

The third link takes me to a topic that deals with the reality of today's world through a short story.
Thus, through the story of the two employees, Pablo, and Bruno, we clearly see the features of
today's young people. While some try to build their pipeline like Pablo by creating their own
profitable business, others like Bruno prefer to redouble their efforts at work by working extra hours
or working in several companies at once hoping to become rich. The right path is obviously Pablo's.

II. The last link led me to the book Rich Dad Poor Dad by Robert Kiyosaki, an American
billionaire who made his fortune investing in real estate.

In his book Robert discusses personal finance and investing. Robert emphasizes the power of
financial education and risk-taking to achieve financial freedom or in other words become rich. To do
this, throughout the book, he confronts the mentality of his poor Dad with that of his rich Dad. In
the book the personality of Robert's poor Dad represents that of most of the 95% of the people of
the earth who belong to the categories of employees and workers in the informal sector. The
mentality of his rich Dad who in the book is the father of his friend Mike represents that of the
owners of large companies and investors. The Book is spread over 10 chapters. To avoid making a
lengthy detailed presentation that would be of little importance to me, I opted instead to note the
main vital lessons of Robert's assertions throughout the book:
  The poor and middle-class work for money. The rich make money work for them. So, they
like to criticize while the rich analyze.
 Money is a form of power and financial gives us power over money.
 The 95% of the world's poor stick to words while the rich act. This is another difference
between rich and poor.
 The rich learn from life while the poor want ready-made courses.
 Robert also argues that harnessing the power of money is the key to the success of the rich.
It is therefore imperative to avoid the trap of fear and desire because if there is something
that allows money to dominate man it is our emotions.
 School has its place in society, but it is the beginning and not the end.
 An asset puts money in your pocket. A liability comes out of it. To demonstrate this, Robert
uses a scheme with four compartments. On the one hand, we have income and expenses
and on the other hand we have assets and liabilities. Through this diagram we notice that
the poor have neither assets nor liabilities. And so, we see that their income is spent on their
vital needs and after that they have nothing left. The middle class, on the other hand, has the
liabilities but these liabilities are causes of expenses causing the drying up of incomes. As for
the rich, they have plenty of income little with liabilities but especially a lot of assets. And
these assets are a source of money. So, assets automatically generate money. It is self-
financing.
 Robert summarizes the three essential skills in business management. They are:
 Management of the cash flow margin.
 Systems management.
 Personnel management.
 To overcome obstacles to achieve financial freedom, Robert provides analysis, overcome
neglect with a little greed, overcome bad habits especially arrogance that hinders learning.
And pay yourself first.
 To begin a business, he advocates first finding a larger-than-life reason in the power of the
mind. You must make daily choices, carefully choose your associates, master a formula, and
learn a new one, choose heroes.
 Personnel management is the most difficult task in the administration of a company.

I will end this summary with a very interesting note. In his book, Robert argues that to make money
many rich people are now afraid of losing everything overnight. Some are therefore more and more
cautious where they put their money. I made the link with 1% CLUB which is there to optimize the
risk of business processes. Which are financed by these same rich people. As a result, 1% CLUB
provides insurance to these investors.

I hope I was explicit.

"The mind is the most powerful active" With these words of Robert Kiyosaki, I wish you a great
day!!!