|Rich Dad's Cashflow Quadrant: Rich Dad's Guide to Financial Freedom
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The Cashflow Quadrant is the follow-up guide to finding the financial fast track that best works for you. It reveals the strategies necessary for moving beyond just job security to greater financial security by generating wealth from four selective financial quadrants.
- cashflow a must
This is a fantasic read for anyone in the business and real estate world. I highly recommend this book to anyone who is serious about being an entreprenuer and building businesses. ...more info
- Fantastic book... but not a how-to book
"Cashflow Quadrant" by Robert Kiyosaki is the second book in his "Rich Dad" Series. This book picks up where "Rich Dad Poor Dad" left off and continues on to describe the "Cashflow Quadrant", or a categorization of where income can flow from. This model includes 4 quadrants which are: the E (Employee) quadrant, the S (Self-Employed) quadrant, the B (Business) quadrant, and the I (Investor) quadrant.
Essentially, Robert states that in order to become wealthy, the quickest way to do this is in the B and I quadrants. The whole first part of the book is dedicated to this by explaining the different advantages of the B-I quadrant over the E-S quadrants. The main reason is that the rich use their money to buy assets (such as paper assets, businesses, and real estate) while the poor buy liabilities.
The second part is about becoming who you want to be. This basically states that fear is what stops most of us from becoming who we want to become. Thus Robert tries to show that the E-S quadrants are in fact much riskier than the B-I quadrants and then gives a bit of information about over coming fear which is limited to learning more, controlling your internal voice, and getting a mentor.
The final part goes into how to move to the B-I quadrants. Robert is far more focused on getting the reader to change their thinking rather than changing their action first, which makes this book a little annoying at first. However continue on doing what Robert suggests and the advice really does pay off in the end.
I really liked that Robert referred to multiple other books through, and included a recommended reading list at the end of his book. While this definitely not a "how-to", this book is essential for anyone looking to become wealthy. 5 out of 5 stars....more info
- Financial freedom
This book leads you to look at finacial information from a completely different viewpoint. It made so much sense, I'm changing my financial picture in a very positive and forceful way. I expect, within 3 to 6 months I'll be doubling my income. Of course, I'm already in business and have had business training so my learning curve maybe a bit shorter than for others, but I believe there is merit in this book for people who don't know too much. I would caution readers to read Rich Dad/Poor Dad first. Reread parts that are a bit tough. This series is definitly worth the cost in cash to buy the books and time to read them and reflect on what they are saying....more info
- Incredible Book: Eye opener !
This is one of the books I read initially when I started reading motivational, personal finance and people skill books. This book was an absolute eye opener. The way this book talks about the thought processes of Employees, Self Employed, Business Owners and Investors, it makes the process so simple and obvious that makes the book a must read for those looking to get out of rat race and don't know how. This book puts the seed of entrepreneurship in mind, and that is just incredible!
This is a book that can change your focus - I use the lesson taught here in almost every business decision I make hence forth. I'm a first generation entrepreneur and this easily captures and explains our thought process - perfect for communicating to your spouse on how you envision building your career and/or business.
I recommend this book for everyone.
- Much repetition
First 3 chapters of the book were very good. The remaining hit me as re-hash. Maybe just where I am at, but I quickly lost interest....more info
- A Powerful EDUCATION
I will confess - I've been a Robert Kiyosaki fan for many years.
I should have posted my impressions of The Cash Flow Quadrant here a few years ago.
Of all Kiyosaki's great books, this one is my personal favourite. I've devoured it.
In The Cash Flow Quadrant, he coaches us like a mentor. He speakes the truth about the 4 sources of income like no other resource I know of, personally - and this is critical education that ALL of us need to have and clearly understand.
In many cases, I've given this little Gem as a 'gift' to some special people in my life, including family.
As a Financial Advisor, Business Consultant and Coach, I make absolutely sure that my clients and business associates "study" this book - especially SELF-EMPLOYED professionals, as they make up most of my client base. Kiyosaki "teaches" the hard realities in his book about those of us on the LEFT side of the Quadrant.
The 4 QUADRANTS - The Cash Flow Quadrant explains the 4 different ways (quadrants) we create income. Kiyosaki puts forth the concept of people moving from the LEFT side of the Quadrant ("E" Employee + "S" Self-employed status) -- where people earn LINEAR income, and are simply "trading time for money" [hours for dollars], trapped with a limited income potential => over to the RIGHT side of the Quadrant (to "B" Business Ownership + "I" Investment Portfolio status] -- where people can generate on-going RESIDUAL income - where the financial potential is completely unlimited -- there's no ceiling. RK says - "the richest people in the world look for, and build NETWORKS -- everyone else 'looks for WORK'.
BUSINESS 'SYSTEM' - Kiyosaki says - "... if you want long term financial success and complete control over your life, you need to "have a business system" - one that runs itself,and makes money even when you're not there". He is talking here about creating a long term 'income-producing asset' that develops a passive income. He goes on to say... "the problem is, most people don't have the education or money to purchase a business. They're trained throughout childhood to 'climb the corporate ladder', not to 'own' it. He calls Network Marketing 'the perfect "B" Quadrant entity'. Kiyosaki is one of its strongest advocates on Network Marketing as a business model, and has written a best-seller book about it, entitled, 'The Business School for People who Like Helping People', available at most good book stores.
But What About 'SELF EMPLOYMENT'? - Yes, as attractive as Self Employment may be (and it can be) - it is still "trading HOURS for DOLLARS" - "TIME for MONEY". You do the work - you get paid. There is usually little or NO ((passive)) residual income - let alone 'multiple' streams of diversified income. Self Employment may "seem" to be like owning your own business (or profession) - but more often, it's like "owning a JOB".
The Self Employed must continue to BE there [working] to create their incomes. Many have what they believe are magnificant and satisfying chosen careers - and that's wonderful. BUT when they get sick - or are in an accident - or get shut down - or go on vacation - or are sleeping - their income basically STOPS. Many make very large incomes, but many also have expensive lifestyles, max out their credit cards, owe high taxes, face heavy workloads.
In my Consulting practice, I too, am a Self Employed professional (LEFT side of the Quadrant) - trading TIME for MONEY - it's LINEAR income.
There is usually little or NO ((passive)) income - let alone 'multiple' income streams. And this is exactly why SO many solo business professionals encounter high stress and burnout (fee-based - dentists, physicians, chiropractors, attorneys, surgeons, corp executives, professional coaches, trades people, financial planners, consultants, small business owners, etc, etc).
The Self Employed must continue to BE there [working] to create their incomes. Many of us have what we believe to be magnificant and satisfying chosen careers - and that's wonderful. BUT when we get sick - or are in an accident - or get shut down - or go on vacation - or are sleeping - our income basically S-T-O-P-S.
Many make very large incomes, but they may also have expensive lifestyles, max out their credit cards, owe high taxes, face heavy workloads, etc.
Kiyosaki lays it all out - he gives us the "good - the bad - the ugly". It's a compelling read.
I give this a full "5-STAR" rating, without question.
Peter Arnold, CLU, CFC / Founder
Business Achievers Academy / Canada
- Still the best personal finance book - ever
I have shelves of finance books going back 20 years and this is the only one that I recommend; and the only one I return to for a little reinforcement. The concept of the different quadrants is a giant eye-opener, along with the psychology to advance from one of them to another.
Do the quadrants matter? You tell me, "the left side of the quadrant pays to take a risk but the right side of the quadrant receives money to take a risk." Wouldn't you like to know how to move from one side to the other now? There are many gems in this book about investors, taxes, managing money, and psychology. Some of the major ideas are from Keith Cunningham and John Burley, but they are very useful.
A criticism of mine when I first read the book years ago, was getting the next level of detailed information to move forward. But for a general public introduction, it would be ridiculous and go out of date soon.
I've read six other Kiyosaki/co-authored books, and they offer average benefit for their area, but this one is still a giant winner to me. And if you think I'm an easy mark for these books, take a look at my other reviews. ...more info
On page 109 of this book, the author goes into a mini-rant, wondering aloud why mortgage interest is deductible, and interest on savings is not. He hashes things up totally by "suspecting" that banks don't want your deposits because they have to be carried as "liabilities" on the bank's account-books. He then has a sub-head declaring that "Banks Don't Need Your Savings" --- and then goes directly to his key idea about banks, which is that they can make loans up to 10x the amount of money deposited with them.
Excuse me, but saying that banks don't want depositors is like saying that McDonald's doesn't want to sell hamburgers. Ray Kroc may confide that he's "really" in the real-estate business, but if his hamburger business drops off to zero, he's in trouble. (The late Ray Kroc, of course). If banks don't have any deposits, they go broke. Saying that banks don't want deposits is like saying that the Earth is flat.
And this is coming from a guy who insists, over and over again, on people learning to understand finance and accounting. He's basically saying that a run on a bank is Great News For A Bank, since they will see all those liabilities vanish in a day or two.
Sure. Banks don't want your money, McDonald's doesn't want to sell hamburgers, and authors don't want you to buy their books. (Oh, and Amazon doesn't want you to buy books, either!) The mysteries of Capitalism!
Read this book with Extreme Caution....more info
- This is a Great Start and Great Education!
This book is great for understanding the difference between being a
employee and a business owner. It also make you realize that you may think
you have a business or you may think that you are a investor, but might
not really be. This book has inspired me and many of my friends. This book
is not only great for the information but its really good because you can
talk about it with your friends. (Since his book are really popular) It's
a real good read. Just realize that it's not HOW TO information.
Author of The Ultimate Lead Generation Plan
and Secrets of the Internet Millionaire Mind...more info
- Eye Opener
This has so much information. I had my eyes opened to things that I had never seen before in my mind. And it all makes so much sense. It makes you wonder why it is not common teachings to everyone....more info
- eyes wide open
This would be the number one motivating tapes i have ever heard. very thought provoking and opened my eyes ....more info
- Excelling Book
Wake up people! Do you really believe your personal financial situation gives you a lot of freedom right now? I have an MBA in Finance and I have a Bachelor in Science, so I am highly educated, right? I have been a successful employee my entire life - and I even have several investments: real estate, commodities, 401(k), stocks, etc. I thought all is good! After reading Robert's book, I felt I am a perfect example of the poor middle class person: highly educated but (relatively) poor with no security and a lot of dependence. From my education and from my work experience, I should have had all the tools, skills and knowledge to grow my assets my whole life long without major sacrifices. Instead, I was growing my liabilities. I found out, I am a lousy investor. I am 40 years old and my assets are in a shockingly bad shape. My real estate investment creates a negative cash flow every month (I have to pay for it), my stocks are not really going up in value and my commodities are just laying there creating no interest. Nobody has really explained to me how to master my private finances. I have a great credit score, a nice house, a wonderful family and almost no credit card debt. My neighbors must think I am rich. Now, Robert's definitions of Cash Flow Quadrants, Investor Levels and Investor Types have given me a tangible hint where I really am with financially: I am in the Cash Flow Quadrant E (Employee in a rat race), Investor Level between 1 and 2 which means "I spend all I have", "I have nothing to invest" and "I am an amateur borrower". I am an Investor Type C or B which translates to "I know nothing" to "What do you recommend I invest in?". So, Robert's books inspired me to change something in my life to eventually grow my assets and finally have more freedom, spend more time with my kids, my whole family and to spend time working on improving my house and yard, instead of working for an employer like in a rat race. This book might not be for everybody. In my mind there are three types of people: the educated middle class people who understand Robert's concepts, take action and change their life. Then there are people who might understand or might not understand but won't take action anyway and stay "poor" and "dependent". The last category consists of people who have done it right and are "rich" and "free" and they might find Robert's ideas amusing or trivial. Robert would measure "free" people by looking at their passive income: people with 100% passive income from B (business) and I (investor) are free people. People with 100% E income (E = Employee = income from your own sweat and blood) are not free and they live like in a rat race. All Robert is suggesting in his books is that everything between these two extremes is better than 100% income from E. He is just trying to show you ways to get financially smarter and how to really increase you passive income. That's all! I would say: take it or leave it!...more info
- READ BEFORE BUYING -- Good relevant info
Good cash flow principles on how to use current assets to making income. Lacking a bit on how to acquire income-making assets, but you can combine this book with others like Investing Without Losing (ISBN: 0978834607 NOT on amazn, on other stores) to make a comprehensive book....more info
- Great book
Hi, Every one I do not what to say, I just finished the book and it is a great book, it change the way I think about my financial future....more info
- A fantastic, well-balanced primer to new financial concepts
This book is a great primer to the concept of generating cashflow from your assets, as opposed to simply earning income and growing more and more in debt. It seems to be such a simple concept, yet it's not something that is generally taught in schools, or passed down from a lot of parents in America. Most of us are always told to get a steady job with secure benefits, which is fine for most and certainly admirable, but this book is really eye opening towards the idea of financial freedom for those who wish to take charge of their lives and pursue a path that is different from the norm.
That said, this book is not a manual or even a road map for landing on the right-hand side of the cashflow quadrant (as a large business owner or investor). It is more of an introductory guide to what it means to be financially free. It goes into detail about how to classify your current state of financial affairs, how to make goals to get to where you want to be, and how to get your feet off the ground towards that end.
I must say, sometimes this author strikes me as a little odd. For example, in one section of this book, he asks you to make a list of the six people you spend the most amount of time with and their current financial status. He states that when he started out on his path to great wealth, he listed his wife and five close friends. Now that he has achieved great wealth, only one name from that original list- his wife- is someone he is still close to (though the others remain "dear friends"). He then goes on to talk about one friend of his that made millions of dollars, but went bankrupt. The only reason, he says, that he still spends time with that person is so that he has a "reverse role model."
That was the only questionable section of this book, and aside from that, it is a quick read that is well worth your time and consideration. ...more info
- Continuing the Lesson
It just makes sense to read this after Rich Dad, Poor Dad. I have to admit it started slow and I'm glad I stayed with it. I found the continuing discussion of real wealth to be very insightful, challenging many of my previous beliefs about money and assets. Another point that really hit home:" What others think of me is none of my business, what is most important is what I think about myself". Another important reminder: "Profit is made when you buy, not when you sell." There is still time for me to make some changes in my financial dealings. More importantly, I will pass this to my college-age daughter and make sure she reads it. I urge you to do the same with your children or grandchildren....more info
- Ignore this book at your own financial peril...
What a superb piece of work - and I would have rated it a 5 if there were more information on why we humans do the stupid things we do.
I have always maintained that Freedom means little without Financial Freedom. Mr. Kiyosaki makes a convincing case for this, and what's more - gives you tips on how to get started on this journey.
For me the first experiences of these concepts came during the early 1970s; and again during 1990s when a 75 year old woman came to our store asking for work. I asked her - why she was looking for work at her age? Her reply - "I lost my husband recently - we spent a lot on his treatments, and now I dont have enough to pay the rent. Social security does not pay enough." I wondered how many people face a similar predicament in the US...that was the day - I decided to take charge of the situation myself - rather than let others drive my future.
This book is a must read for all those who seek to be financially independent, and are willing to honestly face themselves - which is often not easily done. Why? Because we human beings have a certain amount of ego - that gets in the way. But for those who can swallow the ego - and are willing to listen, persevere, and do the things Mr. Kiyosaki suggests - there can be rich rewards.
Enjoy...and be on the road to financial independence...and remember - Rich is not a dirty word!!...more info
- Basic Look At Investing, Empty Advice
The main problem with the "Rich Dad" series of books is that they are very unrealistic for the everday, middle income person/family. While the original Rich Dad book had some good advice, most people wouldn't have the financial means or ability (possibly due to having people to support) to do the things that Robert Kiyosaki advises.
With "Cashflow Quadrant", the author outlines in a simple, easy to follow manner the different people that are in the financial world (E/B/S/I) and while it's good knowledge for the everyday person, the thing that this book (and it seems none of his books) fails to provide is a recommendation/solution HOW to achieve the financial freedom that he advocates over and over again.
Yes I understand that the rich make their own choices, have the most freedom, while the poor live to support the rich, but the only thing I really get from these Rich Dad books is that I should come up with my own empty self help series to get rich myself.
I don't doubt that Kiyosaki and people like him (eg. Tony Robbins) motivate some individuals, but I think the majority don't get a lot from these books. I would rather have a book or guidance on the exact steps to achieve financial freedom, but that's the thing... there IS no sure-fire way to do it or everyone would be financially free. Kiyosaki's books just reinforce the caste system that exists in the United States (and the world). The rich get richer and they get that way through a combination of old money, luck, and skill.
These books are entertaining, but they will NOT provide a sure-fire path to financial freedom. Read for pleasure, not for answers and you will be a happier buyer.
- Makes me think
This book changed my way of thinking about money and how we let it control our lives instead of controlling money ourselves. I also liked how he discussed the different personality types that are associated with the differnt quadarants....more info
- Takes "Rich Dad Poor Dad" a step further
Easy and interesting reading based on the author's primary priciple that you have to own a business to achieve financial success. You don't really need to read "Rich Dad Poor Dad" first as there is a good deal of rehash here. Aimed at the novice....more info
- Best book on Financial Freedom Ever Written
This book and Rich Dad Poor Dad changed my life. The way I think about money and how to make it was strongly influenced by this book. I was always told to go to school and get a good job. But no where in my educational career ( I have two Masters Degrees) did I ever learn about being my own boss. Or learning how to make my money work for me instead of me working for my money. You can't get a better book to teach you the fundamentals on changing your mindset about money, how to make it and how to make it work for you. ...more info
- a simple concept too drawn out
I liked his first book but this one was not as good. Kiyosaki is the only guy I know who can take one simple concept and turn it into a whole book. He uses too many diagrams to explain simple ideas which in turn take up the bulk of the book. He's a story teller and a salesman, not an analytical numbers guy. He's very short on specifics but loves to push his CASHFLOW boardgame and other products. He takes simple investment terms, twists them around, re-gurgitates it, and puts his own spin on it. His books are mainly motivational tools. That's it. Get up and do it! But I won't give you good advice on how. ...more info