CASHFLOW Quadrant, by Robert Kiyosaki

ByChad Carson

Rich Dad Cashflow Quadrant

Brief Commentary

The Cashflow Quadrant is a follow-up to Robert Kiyosaki’s famous book Rich Dad, Poor Dad. I find this book  superior to the original because it contains a lot more meaty ideas.  Some of the ideas I first read in this book have nourished and sustained me as an entrepreneur for many years.

I love the simplicity of Kiyosaki’s visual explanations.  The core symbol of the book – the cash flow quadrant – can become a symbol and a map for your entire wealth building journey. It serves as a powerful explanation of the different methods of earning cash flow.

If you want to achieve financial freedom, it’s made clear in this book that you should study and move towards the right side (B-business owner and I-investor) and away from dependence on the left side (E-employee and S-self-employed) of the cash flow quadrant.

I often hear complaints about Kiyosaki’s books that they lack practical tips and tend to be repetitive. But I don’t share that complaint with this book. I found it a high-level, principle-based guide to financial freedom. If you absorb the big ideas, they can serve you well as you continue your education in the more practical aspects of business and investing.

Here is a list of my favorite big ideas from the book. I’ll unpack each one in a separate short article. Some are ready immediately, and others will be written at a later date.

My Favorite Big Ideas From the Book

  1. Cash Flow Quadrants – How You Earn Your Income Matters … (See My Article)
  2. How to Achieve True Financial Security … (See My Article)
  3. How Money Supports Life … (See My Article)
  4. The Power of Business Leverage – OPM and OPT … (See My Article)
  5. Case Study of Rich Dad’s Path to Financial Freedom
  6. Financial Statements – How to Be a Financial Fortune Teller

My Favorite Quotes From the Book

Man is born free; and everywhere he is in chains. One thinks himself the master of others, and still remains a greater slave than they.”

Jean Jacques Rousseau (quoted inside the front cover of the book)

Security is a myth. Learn something new and take on this brave new world. Don’t hide from it.”

Success is a poor teacher … We learn the most about ourselves when we fail … so don’t be afraid of failing. Failing is part of the process of success.”

You can do anything you like, go as fast as you like, make as much money as you like, but you have to pay the price. You can go quickly, but remember there are no shortcuts.”

The hardest part about moving from the left side to the right side is the attachment you have to the way you have been earning money … it’s more than breaking a habit; it’s breaking an addiction.”

The fact is, people who work the hardest do not wind up rich. If you want to be rich, you need to ‘think.’ Think independently rather than go along with the crowd.”

Thinking is the hardest work there is. That is why so few people engage in it.”

Leadership … is the ability to bring out the best in people.”

If you want to be a leader of people, then you need to be a master of words.”

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