Cashflow Quadrant: Rich Dad’s Guide to Financial Freedom (Book Review)
This book was given to me by my Team MonaVie mentor, being of technical mind and dead broke I tore right in searching for the secrets of the rich. What I found was amazing and informative, some of which I have suspected all along. Those of you who don’t know Robert T. Kiyosaki, he is an independently wealthy author, business owner and investor and has brought to us the knowledge of the money game to teach us how to gain financial freedom. Cashflow Quadrant is part two of Rich Dad, Poor Dad another of Robert’s books.
What is the Cashflow Quadrant? You ask. It is a visual representation of the four ways we all earn income or cash flow. Inside you will learn what each is and how each works. Robert also describes the difference between the two sides and how to move from one side to other. Later he goes on to teach about investing and business ownership. The Cash Flow Quadrant has provided me with a new found understanding of the world of finance, some of which I will share here.
Cash Flow Quadrant:
E= Employee (any one who works for a company and trades time for money, in the form of a paycheck)
S= Self Employed (any one who owns a business that will not run without them there)
B= Business Owner (some who owns a business system that generates income on its own)
I= Investor ( some one who invests money for profitable return)
Wealth is measured in time. How long can you support your standard of living without physically working. Example if you can live on $1000 a month and have $3000 in savings you are 3 months wealthy. Of course the goal is to become indefinitely wealthy or free from working. Work smart not harder. Make your money work for you. These concepts most of us already understand. However Robert explains why we do not practice them and presents how we must change our money habits in order to set them in motion. Many of us have been sucked into the “no money down easy monthly payment” debt machine, this is not the path to wealth it is a path to a life of hard work.
Investing is make the money you do have work for you. Many of us invest some how already, but how we do it and when can always use improvement. Thereare many types of investors ranging from safe and secure to risk takers and gamblers find out which one you are and decide which you want to be. Learn the steps needed to be the investor you desire and take action. Choose from an array of investment styles and find the one that is right for you. Stock, bond, mutual funds are a few ways to invest but there is also real estate and business ownership. It is also possible to to use other peoples money to start a grow a successful business system.
There is more to a successful business then just a good product or service. Actually there are a lot of big companies with average or even bad products, that succeed because the system for distribution, development and marketing makes up for the products faults. Without a strong system your business will most likely fail or you will fall into the self employed category where the company cannot run without your presence. The system can also refer to those you have chosen to trust for managing the company. McDonalds is a great example of a business system. We can all agree that thier products are a bit to be desired, but they are one of the biggest fast food franchises in the world. Why? The system of providing convenience and familiarity. No matter which McDonalds you go to you will find the same menu, same packaging, same method of cooking and same delivery method. This system is what make or breaks a business.
Well, those are a few insights you may find among the words of Robert T. Kiyosaki’s Cashflow Quadrant.
Find this and related books in the links below (which support this hub).
- Rent Books - Choose From Audio Books On CD To Paperback Book Rentals - Like a Netflix For Books
Choose audio books on cd and paperback book rentals at Booksfree.com, where we are committed to offer the best selection of books and audio books on cd. Choose to rent books through our online book rental service, as well as audio books on mp3 and cd