So you have maybe heard the expression Cashflow Quadrant? Well here is an explanation. If you want to become financially successful and enjoy doing what you really want in life. Then you need to move away from the top-left and instead position yourself to the right-bottom as much as possible. Have a look at the illustration below.

This is book number two in this trilogy of Rich Dad books. Kiyosaki’s bio: Mr. Kiyosaki is a 4th generation Japanese American who had been born in Hilo, Hawaii in 1947. He graduated from this US Merchant Marine Academy and served as a helicopter aviator in the Vietnam war. Robert is an investor, an instructor, and founder of the Rich Dad firm whose stated mission is to, Elevate the fiscal wellbeing of humankind. Key point: you might not find money with your eyes, you may simply see it with your mind. The way to strengthen your banking account is to strengthen your mind.

The Rich Dad book

On the very first page of the book, you’ll Find the next, My rich dad used to say you can never have true freedom without fiscal freedom. He’d go on to say, Freedom can be free, but it’s got a price. This book is dedicated to those individuals willing to pay the price. The Cashflow Quadrant is a diagram comprising the four different types of individuals who constitute the world of business. This diagram is absolutely brilliant. Kiyosaki says that the individuals in each quadrant possess another set values that attract them to that quadrant. He proceeds to say that you might always tell the state of mind, and values, someone has by the words they use.

Here is a copy of The Cashflow Quadrant. These are people which are mainly intrigued insecurity. Someone from this quadrant may Be heard saying the following, I’m searching for a safe, secure job with great benefits. S stands for self-employed, small company, or specialist These individuals frequently say, If you’d like something done right, you gotta DIY. This is where you’ll find the world’s hardcore perfectionists. The right side of this quadrant: B stands for large company These are the individuals that are primarily motivated by freedom. They say things such as I am searching for a great system and great individuals to work for me.

Where to position yourself

They’re ones that employ the E’s and S’s. I stand for investor This is this quadrant where true wealth is created. These individuals invest in the B’s of the area. These individuals say I do not work hard for cash, my cash works hard for me. Robert’s Rich Dad would warn him to beware of money’s addictive power. People do not simply work at their job because of desire or habit. The reason so several people can change quadrants is that switching is similar to breaking that addiction. The effects of the withdrawals are simply too powerful.

Here are a number Of significant dates which Kiyosaki points out. These events have drastically influenced the way money works in America. The first was in 1971. This meant that the amount of our cash supply was no longer anchored to a quantity of gold.

Cashflow Quadrant
Cashflow Quadrant