Book Review of The Cashflow Quadrant by Robert Kiyosaki

Book Lab review of Rich Dad’s Cashflow Quadrant

The aim of this book is to explain why some people earn more, work less, pay less taxes and are more financially secure. It all depends on what side of The Cashflow Quadrant you are operating from. This book teaches you how to move from one side to the other, the pros and cons of each side and the mindset you need to adopt to thrive in each quadrant.

——⏹ QUADRANTS ⏹——-
E= Employee. Have a Job.
S= Self Employed. Own a Job.
B= Business owner. Owns a system.
I= Investor. Owns investments.
📝 It’s not about the money, but the freedom they provide.
📝 When emotions like fear show up often people choose SECURITY over FREEDOM, and that’s the key difference between the left and right side of the quadrant.
📝 “Your profit is made when you buy, not when you sell”. A deal have to make sound economic sense in bad as well as good times.
📝 Unlike the S, who doesn’t like to delegate work “because no one can do it better”, the B loves to delegate. S:s work the the hardest. Because they do everything themselves: management, the work, the taxes, sales…
📝 Many new entrepreneurs want to move from E to B, but end up as S:s because they fail to delegate. I.e me 🙋‍♂️.
📝 Transitioning from one side to the other can be tough. Friends comments : “why are you doing this? Why don’t you just get a job?”.
A question to ask yourself: “I’m a building a pipeline or am I hauling buckets?“. After reading this I set up a streamlined pipeline for my video editing service.
I was making the mistake that many people do when they transition from employee to business owner, and ended up as a busy self-employed with with my video content service. This book made me start delegating and building a team.
In this book I found exactly what I needed when i needed it. If you’re in the process of moving into right side of the quadrant to become a business owner or investor then this a great book, but it’s not a must read for for everyone. It can be both quite repetitive and unfocused.
⁉️ What part(s) of the Cashflow Quadrant (slide 2) are you operating from?

Find more great reads on my book reviews page and the Great Books List

Published by BookLab by Bjorn

Book reviewer and human lab rat on a mission to put life changing books in the hands of 1 million people. By providing reviews of the best books money can buy on the topics of psychology, philosophy, human nature and human potential, I hope to inspire you to take on the calling to lifelong learning.

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