#Rich dad cashflow quadrant full#

Often people start a small business so they are “in charge” and can control their time.īut it often requires they let the business dictate their time. That’s not freedom, but it is what it is.įinancial freedom is something very different. He hasn’t taken vacation in 10 years because the business will not and cannot operate without him. I have a friend who has his own contracting business. That’s why Kiyosaki states that you own a job (because the job owns you). Perhaps they bought into a franchise or built up their business with themselves as the primary earner.Įither way, the majority of the income generated in this category is from the owner/operator actually working. Many small business owners fall into this category. You may own a small business, but the income stops if you stop working. Some CEO’s make tens of millions of dollars, but they are still trading time for dollars.Īctive income meaning, if you stop working, you stop getting paid. Think of a hired CEO or president of a company. You can still be a high earner in this category. This means your income comes primarily from a job. To get us started, below is an overview of each of the specific cashflow quadrants as explained in Kiyosaki’s book. You can earn income from one, two, three, or all four of the quadrants. The quadrants are simply different methods for earning income. Kiyosaki’s cashflow quadrant is meant to teach you the fundamentals of how money works and how the rich leverage different quadrants to grow wealth. This can be represented in a visual of four different quadrants (above). The premise of the Cashflow Quadrant is that there are four main ways of earning income. Maybe you already read it or maybe you just need a refresher.Įither way, here we go. In this post, I’ll give you a summary and overview of the book. Maybe you don’t have time to read the whole book, but you want to understand some of the basic ideas so you can implement them in your life. It gets less attention than his book Rich Dad, Poor Dad, but I’m not sure why because it’s better.Ĭashflow Quadrant has more substance and changed my thinking on financial freedom more than any other of Kiyosaki’s books and I think it’s the best book in the Rich Dad Series.

#Rich dad cashflow quadrant full#

The Cashflow Quadrant by Robert Kiyosaki is packed full of great ideas.