DescriptionRich Dad's Cashflow Quadrant: Rich Dad's Guide to Financial Freedom by Robert Kiyosaki is written as a form of continuation of the author's Rich Dad, Poor Dad book, providing more financial insights and knowledge from personal experiences of Kiyosaki himself, still aimed at educating readers and empowering them to having their money work for them and not the other way around.
In the first few chapters of Cash Flow Quadrant, Kiyosaki discusses the 4 parts, and who inhabits them. In the 4 quadrants are the letters, "E" for the Employee quadrant, "S" for the Self-Employed quadrant, "B" for the Business Owner quadrant, and "I" for the Investor quadrant. The society's majority represents the E and S quadrants, those employed with one or two jobs, and those who have their own businesses, but works hands on with the business. What is common in these 2 quadrants is that they are their work. Their carry their own buckets of water. If they stop working, so will the money. Most of the people in these 2 quadrants are not particularly wealthy. Employees usually survive on a per paycheck basis, unless they are able to save. However, in terms of creating wealth that you can actually retire on, common employees usually would need to work 20 plus years before they can amass substantial wealth. Self-employed individuals may make more money than employees, but at times, they too appear as if they are employees of their own business. Most small business owners do all around work, thus they too are strapped on a full workload. This is true on businesses on their start-up years. Most small businesses also are not worth a lot when sold.
What Robert Kiyosaki is imparting on his audience is that to create real and substantial wealth, the kind that will not require you to work your years away, you need to gain financial knowledge, manage your finances better, and move to the B and I quadrants.
Business owners on this quadrant are not your typical small-scale business owners, but are those whose had years of experience and have established their brand, making it worth a stable amount. Owners of franchises, for instance belong on this quadrant. When you get to own an established brand, it is like having a business that can run on its own. You need not to do a whole lot, for a long time, before your business starts earning you wealth. Or take those on the real estate business, theirs is what you can call passive income; they earn without really doing anything.
The part of the quadrant is the investors. In this book, Kiyosaki explains that there are 7 kinds or levels of being an investor.
The later part of the book features empowering chapters and seven steps to finding your financial fast track, whereas readers are encouraged to follow their instincts and have faith that you can gain success and wealth if you work hard and smart enough.
Just like Rich Dad, Poor Dad, Robert Kiyosaki's Cashflow Quadrant offers advice and insights that comes personally from the author all aiming to liberate and empower any reader, through being financially wise.