That’s why Kiyosaki states that you own a job (because the job owns you). Perhaps they bought into a franchise or built up their business with themselves as the primary earner.Įither way, the majority of the income generated in this category is from the owner/operator actually working. Many small business owners fall into this category. You may own a small business, but the income stops if you stop working.
Some CEO’s make tens of millions of dollars, but they are still trading time for dollars.Īctive income meaning, if you stop working, you stop getting paid. Think of a hired CEO or president of a company. You can still be a high earner in this category. This means your income comes primarily from a job. To get us started, below is an overview of each of the specific cashflow quadrants as explained in Kiyosaki’s book. You can earn income from one, two, three, or all four of the quadrants. The quadrants are simply different methods for earning income. Kiyosaki’s cashflow quadrant is meant to teach you the fundamentals of how money works and how the rich leverage different quadrants to grow wealth. This can be represented in a visual of four different quadrants (above). The premise of the Cashflow Quadrant is that there are four main ways of earning income. Maybe you already read it or maybe you just need a refresher.Įither way, here we go. In this post, I’ll give you a summary and overview of the book. Maybe you don’t have time to read the whole book, but you want to understand some of the basic ideas so you can implement them in your life. It gets less attention than his book Rich Dad, Poor Dad, but I’m not sure why because it’s better.Ĭashflow Quadrant has more substance and changed my thinking on financial freedom more than any other of Kiyosaki’s books and I think it’s the best book in the Rich Dad Series.
RICH DAD POOR DAD CASHFLOW QUADRANT FULL
Only fools expect everything to go the way they want.The Cashflow Quadrant by Robert Kiyosaki is packed full of great ideas. It must be learned by taking action, making mistakes, and then correcting them. Remember that anything important can’t really be learned in the classroom. When the fear of losing money and failing becomes too painful inside, a fear we both have, he chooses to seek security and I choose to seek freedom. To me, one of the primary reasons E’s and S’s have difficulty moving to the B and I side is because they are too afraid of making mistakes. Winning and losing are just part of the game. To be successful as an investor or a business owner, you have to be emotionally neutral to winning and losing. Harv Eker – Money Coach, Author – Secrets of the Millionaire Mind Dealing with Uncertainty & Failure Wealth Principle: There’s nothing wrong with getting a steady paycheck, unless it interferes with your ability to earn what you’re worth. Robert Kiyosaki – Author – Rich Dad, Poor Dad / Cash Flow Quadrant / Guide to Investing The Problem with the Employee & Self-Employed Quadrants You will never know true freedom until you achieve financial freedom. Robert Kiyosaki – Author – Rich Dad, Poor Dad / Cash Flow Quadrant / Guide to Investing Financial Freedom Investors want money velocity – they want to put in their money, multiply it and get it back quickly. Investors have their money work hard for them. Employees & Self-employed both work for their money.īusiness owners have other people work for their money. They may not be that smart themselves, but they know how to surround themselves with smart people.