Book Review: The Cashflow Quadrant – Why the Rich Get Richer

Robert Kiyosaki is the famous author of the “Rich Dad, Poor Dad”. After the first launch of his book, he became controversial. There are questions whether there is truth on what’s written about the book. The identity of the “rich dad” was never divulged. But despite some loopholes in the book, Robert did a wonderful job in educating people on how money works.

What are the Four Cashflow Quadrant?

You can love or hate Robert Kiyosaki and his writing, but his idea of the four cashflow quadrant makes sense. Cashflow quadrant explains various career path choices. According to the book, the cashflow quadrant is congruent to your income and your financial stability.

  • Employee (E)– refers to your job where you get paid by the hours of your work.
  • Self-Employed (S) – a profession that lets you earn money according to your efforts. Examples of self-employed are doctors and lawyers.
  • Business Owners (B)– big companies or businesses selling products and providing certain services.
  • Investor (I)– they are individuals who use their money to work for them. Warren Buffet is a good example of an investor.

The Relevance of Cashflow Quadrant

The first question to ask yourself is what quadrant do you belong. If you are in the “E” quadrant, your goal is to at least get into other two quadrants. From quadrant E, you can slowly transition to quadrant S, then into B, and eventually to I. Being an employee for the rest of your life will not afford you to go in Amsterdam canal touror afford other leisures of life like Amsterdam Heineken experienceunless you have a high paying job. This quadrant has the most limited cash resource of all the quadrant. So, if you want financial freedom, you have to get into a different quadrant.

Tips on Reading The Book

Robert Kiyosaki’s concept is quite difficult to absorb. But if you’ll connect it to the real world, his concepts make sense. It’s the answer to financial freedom. To get there, you have to be willing to the work or the “grind” involved to move from one quadrant to another. After reading this book, the way you perceive money will change and how you shop online.