8 Assets That Make People Rich and Never Work Again
In his book Rich Dad Poor Dad, Robert Kiyosaki explains a powerful concept called the Cashflow Quadrant.
He says there’s a thin line between the rich and the poor:
- Those on the left side of the quadrant work for money because they need security.
- Those on the right side of the quadrant work for freedom, so they don’t have to work hard their entire lives.
Here are eight assets that can make people rich and allow them to stop working for money.
1. A Business
At some point in time, all of us have been awestruck by successful entrepreneurs. We wonder how they manage to amass billions of dollars in one single lifetime.
Often, we even get swayed by Hollywood stereotypes and feel that the ultra rich are corrupt or that they “haven’t sweat a drop in their lives.” But this thinking is a mental block that keeps us poor.
- Creating a profitable business requires every drop of sweat and blood.
- Identifying a business idea and scaling it into a multinational corporation is no child’s play.
- Every self-made ultra rich entrepreneur, Elon Musk, Jeff Bezos, Mark Zuckerberg, made it through hard work.
The difference between entrepreneurs and employees is the same as passive income vs. active income.
- Entrepreneurs work extremely hard for the first few years to create a business.
- Employees work hard their entire lives.
- Entrepreneurs build assets that earn money for life.
- Employees live paycheck to paycheck.
Entrepreneurs secure not only their own lives, but also their children’s, while many employees die poor, leaving nothing behind.
2. Real Estate
Starting a business isn’t the only way to build wealth.
For many of us, a safe and secure job with benefits is crucial. Leaving job security and starting a business isn’t always possible.
But you can still escape the rat race if you start making the right investing decisions.
- Real estate can create a second income stream alongside your job.
- Rental income covers mortgage payments and expenses while still adding money to your pocket.
- Real estate also lowers your taxes, which is like free money in your pocket.
As Robert Kiyosaki explains, you can use OPM (Other People’s Money) borrowing to buy rental properties.
Gradually, as you acquire more rental properties, you become less dependent on your paycheck. That’s when you reach financial freedom.
3. Paper Assets
Businesses and real estate require time and effort before benefits appear. For people with limited time and money, paper assets are another option.
Instead of spending your salary at bars and pubs every week, you can invest in:
- Stocks
- Bonds
- Mutual Funds
- Government Securities (G-Secs)
Each has its own level of risk, but they allow you to:
- Invest in other people’s successful businesses.
- Avoid the challenges of directly managing real estate or a company.
The more you save and invest, the faster you can escape the 9 to 5 and create additional income streams.
4. Commodities
Why does the dollar gain or lose value?
Because paper money is man made. It only has value because governments back it, and governments can print more anytime.
This means the dollar (or any currency) has no value of its own.
That’s why Kiyosaki calls commodities “God’s money.”
Examples:
- Gold
- Silver
- Oil
- Food grains and meat
These are irreplaceable because humanity always needs them. They also act as protection against inflation.
That’s why the ultra-rich diversify their portfolios with commodities.
5. Time
We’ve all heard the phrase: “Time is money.”
Economists argue that time is actually the most precious resource of humankind.
- Money comes and goes.
- Time, once gone, never comes back.
Your young age is your best asset. It lets you take more risks since you have a long life ahead to recover.
- Start investing early, a person who starts at 20 builds far more than someone starting at 30.
- Upgrade your skills in your free time, weekends can be spent on a side hustle, learning, or following a passion.
As Warren Buffett advises: start young.
Wealth, in any form, creates a safety ring around you and your loved ones.
6. Your Health
While time is a mental resource, health is your physical foundation.
Many of us neglect our bodies when young, eating junk food, smoking, drinking excessively. We justify it as “deserved relaxation.”
But these habits:
- Eat into current earnings.
- Lead to huge medical bills later.
Instead, if you invest in your health through exercise and better habits:
- You’ll work more, earn more, and live longer.
- You’ll enjoy your wealth with your family, not medical bills.
7. Online Assets
Do you know how much it costs to start a YouTube channel? Nothing. It’s free.
And yet, many creators earn a full time living through:
- YouTube
- Online courses
- Blogs
- Websites
- Social media pages
Everyone has skills. Some cook well, some entertain, some are tech experts. Sharing what you know can turn into income and even a business.
Once your online asset grows, you can:
- Upgrade your content.
- Hire a team.
- Join affiliate programs.
Online assets can be one of the fastest-growing sources of passive income today.
8. Your Network
There’s a saying: “A happy client is a referring client.”
This highlights the power of networking and personal brand.
For example:
- If you run a catering business, every event expands your network.
- Guests who enjoy your food are potential future clients.
That’s why along with quality work, you must also market yourself. Success doesn’t always come knocking you have to put yourself out there.
In Conclusion
The sky is the limit when it comes to how you behave and act with money.
If you made the effort to read this far, you’ve already taken a step forward. Building wealth isn’t about sudden luck, it’s about building assets that work for you, so you don’t have to work forever.
