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Summary of Rich Dad's Cashflow Quadrant 

4.7 . 5374 reviews

Short summary

Do you want to gain financial freedom? Do you want to learn how money works? Do you want to take control of your financial future? If your answer to any of these questions is yes, Rich Dad’s Cashflow Quadrant by Robert Kiyosaki is the right book for you. In this second book of his best-selling Rich Dad Series, Robert Kiyosaki shares some powerful insights into how some people work less, earn more, pay less in taxes, and learn to attain financial freedom. The Cashflow Quadrant is a vital guide for those who are ready to leave the realm of job security and enter the world of financial freedom. It’s for those who want to transform their lives and take control of their financial future. In this summary, you will learn the strategies necessary to attain financial security by generating wealth from four selective financial quadrants.

Table of content

  • Summary of Rich Dad's Cashflow Quadrant
  • About the author
  • What is Rich Dad's Cashflow Quadrant about?
  • Who should read Rich Dad's Cashflow Quadrant
  • Topics in Rich Dad's Cashflow Quadrant
first key point

Your position on the cashflow quadrant depends on where your money comes from

Listen the first key point
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Generally, people can be grouped into four distinct classes based on where their money comes from. And the most efficient tool for this classification is “The Cashflow Quadrant,” which is a table divided into four areas. E and S quadrants are on the left side, and B and I quadrants on the right side.
• E for employee
• S for small business or self-employed
• B for big business
• I for investor

Based on where our cash comes from, each of us resides in at least one of these four quadrants. Many of us are employees who depend solely on paychecks, while others are self-employed. Employees and self-employed people occupy the left section of the cashflow quadrant. The quadrant’s right section is for people who make their money from their businesses or their investments.
The cashflow quadrant is an effective way to group people according to their sources of income.
Each section of the cashflow quadrant is unique, and the individuals within each one share common characteristics. This is mainly because different methods of income generation require different frames of mind, different technical skills, and different educational paths. Different people are attracted to different quadrants. Yes, money is all the same. However, the way it is earned is vastly different.

While achieving financial freedom is possible in all four of the quadrants, the skills of a B or I will help you attain your financial goals faster. Successful E’s need to become successful I’s to ensure their financial security during retirement. We will discuss this deeper later in the summary.

Which quadrant do you generate the greater part of your income from?
The first step to financial freedom is understanding how the cashflow quadrant works.
Once you know what the quadrant is all about, you will realize your current position on it and be able to visualize where you want to be.
To be successful in the Information Age, a person needs information from all four quadrants. ~ Robert Kiyosaki
The quadrants’ primary purpose is to show you where you are today and help you create a plan for where you want to be in the future as you choose your own route to financial freedom. In the coming chapter, we will take a closer look at each of the four quadrants and the unique characteristics of the people who reside in them.
second key point

The four quadrants and the different types of people that occupy them

Essentially, it’s the internal differences of our core values, strengths, weaknesses, and interests that influence which quadrant we choose to make our living from. Here are some of the generalities that separate people in one quadrant from those in another:
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third key point

There is a huge difference between being rich and being wealthy

fourth key point

Own a business system and leverage others to work the system for you

fifth key point

The main paths to becoming a successful business owner

sixth key point

Strengthen your thoughts so that you can take the actions that will lead you to financial freedom

seventh key point

To take control of your cashflow and turn your money into assets

eighth key point

Conclusion

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What is Rich Dad's Cashflow Quadrant about?

Who should read Rich Dad's Cashflow Quadrant

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