Coach Carson

  • About
    • About Coach
    • Start Here
    • Contact
    • Charitable Mission of Coach Carson
  • Learn
    • Archive
    • Getting Started
    • Rentals & Landlording
    • Financial Independence & Early Retirement
    • Do More Deals
    • Investor Profiles
    • Entrepreneurship & Business
    • Personal Productivity & Growth
    • Travel & Life
  • Listen
  • Courses
  • Top Tools
    • Cash Back Reward Cards
  • Free Toolkit

CASHFLOW Quadrant, by Robert Kiyosaki

By Chad Carson 5 Comments Filed Under: Book Summaries

55 shares

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.”


If You Liked This Book, You Might Also Like:

  • Rich Dad, Poor Dad by Robert Kiyosaki ( Print | Ebook | Audiobook)
  • Your Money or Your Life by Joe Dominguez and Viki Robin (Coach’s Notes | Print | Ebook | Audiobook)
  • The Millionaire Next Door  by Thomas J. Stanley and William D. Danko  ( Print | Ebook | Audiobook)
  • Think and Grow Rich by Napoleon Hill (Print | Ebook | Audiobook)

 

Get My Free Real Estate Investing Toolkit!

Enter your email address and click "Get Toolkit"

Success! Now check your email to confirm your subscription.

Rental Property Analysis

A course by Coach Carson that teaches you how to run the numbers so that you can confidently analyze and buy profitable rental properties. It also includes Coach’s rental analysis spreadsheet.
Get the Course

There was an error submitting your subscription. Please try again.

NO Spam. Unsubscribe anytime with 1 click. Powered by ConvertKit

You might also like

55 shares

Tagged With: business, money, Robert Kiyosaki, The Cashflow Quadrant

Get a Quote for an Investment Property Mortgage

What mortgage product would you like a quote for?

Step 1: Investor Profile
Step 2: Property
Step 3: Your Info

How many existing rental properties do you own?

What is your job status currently?

Total value of existing real estate portfolio

What is your credit score?

Are you currently working with a realtor?

NEXT

What’s the price range of the property / properties you’re hoping to finance?

How soon do you hope to secure an investor mortgage approval?

How would you want to own the property?

What type of real estate investing loan are you considering?

How many banks would you like quotes from?

Have you experienced any bankruptcies / short sales?

NEXT

Full Name

Email

Phone Number

What state is your property located in?

What city / metro area is your property located in?

Citizenship status

Communication preference

Would you like to share any additional information / comments?

GET MY QUOTES
Sending request...
Request sent. We’ll reach out by email with next steps

Comments

  1. Elephant Eater says

    May 31, 2016 at 7:14 am

    Agree that this is a very good book for those looking to understand the wealth building process. It definitely challenged assumptions I had and made me approach wealth building much differently. The biggest impact for me was understanding the massive tax advantages available to those on the right side of the quadrant compared to the left.

    I also agree that once you’re on the left side of the quadrant (where I’ve made my living) it is a bit of an addiction and the feeling of security of a paycheck makes it difficult to go to the right side. Understanding this caused us to set hard deadlines to leave jobs to start our transition from primarily employees who invest to investors who may dabble in part-time employment or business ownership.

    Reply
    • Chad Carson says

      May 31, 2016 at 2:59 pm

      Thanks for pointing out the tax advantages of the right side. That was a big part of the book, and I did not mention it. It’s not guaranteed to last forever, but for now income on the right side has a much lower tax impact (capital gains or sheltered rental income, for example). Plus there are handy deferral tools in real estate investment like an installment sale and a 1031 tax free exchange.

      The psychology of a paycheck is a big one. The uncertainty of entrepreneurial income can be unsettling. I like your approach of setting deadlines. It forces you to make a change that you know you need to do.

      Reply
  2. Route To Retire says

    May 31, 2016 at 10:13 am

    I really like all the Kiyosaki books, but I would have to say the “Cashflow Quadrant” is probably one of my favorites just because it really opened my eyes up more than most of the others.

    I agree that we hear criticism about his books not being specific, but that’s not the point of them. The books are meant to be idea-generators and get you to know there is more to life than working a 9-5 every day and legitimate ways to make that happen.

    — Jim

    Reply
    • Chad Carson says

      May 31, 2016 at 3:02 pm

      Agree, Jim. Some books are manuals, others are paradigm shifters. The first few books by Kiyosaki do the latter very well. I’d venture to say Kiyosaki has woken more people up from the rat race grind than any other educator or writer out there. From that perspective, he’s done a huge service to us all.

      Reply
  3. Brian - Rental Mindset says

    June 2, 2016 at 2:41 pm

    I read Rich Dad back in high school and think it had a pretty profound effect on me. I didn’t know it at the time though!

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Search box

Products I Like

May contain affiliate links (Disclosure)

 

Use personal or business spending to earn cash back or travel rewards. Here are my favorite deals.


 

Free software to track your net worth & portfolio in real time. Fun & intuitive to use.

Get My Book


ABOUT COACH

Chad Coach Carson
About Me


How Can I Help You?


GET STARTED

RETIRE EARLY

DO MORE DEALS

TOOLS OF TRADE

HOUSE HACKING

LANDLORDING

FINANCING

BE YOUR BEST

Let’s Get Social!

  • Facebook
  • Instagram
  • LinkedIn
  • Pinterest
  • Twitter
  • YouTube

Top Posts

  • The Best Real Estate Investing Strategy
  • How to Pick the Ideal Location For Investment Properties – a Comprehensive Guide
  • How to Run the Numbers For Rental Properties – Back-of-the-Envelope Analysis
  • The 35 Best Niches For Real Estate Investing (& How to Choose Yours)
  • Enroll in Free 7-Day Course – How to Get Started (or Restarted) With Real Estate Investing
  • The Baby Steps to Your First Rental, Flip, or Wholesale Property (6 Case Studies)

Top Resources

I have 85 recommended tools for you to become better as a real estate investor. My first priority is helping you, my reader, to learn and improve. These tools and resources helped me and I'm hopeful they will help you too.

Check out these tools and resources here: 85+ Recommended Tools & Resources For Real Estate Investors

Affiliate Disclosure

I recommend books, tools, and other resources from time to time using links within my articles. In some cases these links are affiliate links. This means that if you click through and purchase, my company will receive a commission on the sale. These commissions help pay the bills around here (and avoid the need for spammy ads). But keep in mind that I only recommend a product or service if I’ve used it and personally believe in it. And I’ll recommend something that’s good whether it has an affiliate link or not. My first priority is helping you, my reader, to learn and improve.

  • About
  • Learn
  • Listen
  • Courses
  • Top Tools
  • Free Toolkit

Contact ·Copyright © 2023 · Disclaimer & Privacy·