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1 Chapter 1 : What Is The â œcashflow Quadrantâ? Robert Kiyosaki's Cash Flow Quadrant. The Cash Flow Quadrant is an important diagram presented and explained by Robert Kiyosaki: "There was an important diagram my rich dad showed me when I was a little boy. December 7, There are two books that I would recommend reading before you start investing. They are both written by Robert Kiyosaki and go hand-in-hand together. This summary review of Cashflow Quadrant will help you to understand passive income and jump start you down the path to quit your job. I learned that the only way to really become wealthy is by having my money work for me rather than the work for my money. The biggest take away that I had from this book was that I needed to move from the left side of the quadrant to the right side of the quadrant as fast as possible if I want to become wealthy. My first attempt at the right side of the quadrant was starting a retail business. For a couple years it was doing well, I had a manager, employees, and I just managed the entire business while they did all the work. When the economy took a downturn in, my business also declined and made it very hard to profit from it. After a few more years I decided to sell the business to someone who was going to be an owner operator which is what the business needed. At the same time I started my business, I decided to invest in rental properties. Because of the rental properties, I was able to make it through the hard times and I am continuing to invest in them today. Now check your to confirm your subscription. There was an error submitting your subscription. First Name Address We use this field to detect spam bots. If you fill this in, you will be marked as a spammer. Unsubscribe at any time. Sense of entitlement is high with the employee and they trade hours for dollars. They also pays the highest tax rate. Sole Proprietor â Is their own boss and not be dependent upon other people for their financial security. These include doctors, lawyers, and anyone who is self-employed. They desire independence and tend to be controlling, not trusting others to do the work as good as they can. Right side of the Cashflow Quadrant: They desire to create a business that can run on its own without them. They focus on creating systems for the business to make money without them. Investor â Looks for ways to make their money, as well as the money of others work for them. They desire to work less so they can spend their time however they want while not being tied down to a job. Escapes high taxes by deferring their taxes to a future date or utilizes the IRS rules to pay the lowest tax rate of all the other groups. If you want to be rich, you should jump to the B and I side of the quadrant ASAP The rich focus the majority of their efforts on the Business and Investor side of the Cashflow Quadrant because that is where the real wealth and money is. The good news is, if you are starting in the Employee category you can move to any of the other quadrants at any given time. It IS entirely possible to move from E to I very quickly. Every dollar you invest is another employee working for who makes more employees who do the same Live wherever they want. Page 1

2 Chapter 2 : How to Apply the Cashflow Quadrant Concept: 7 Steps As Kiyosaki discusses in the book "The Cashflow Quadrant" a table is divided into four areas. E and S quadrants are on the left side, and B and I quadrants on the right side. E and S quadrants are on the left side, and B and I quadrants on the right side. Readers of the original Rich Dad book demanded more from Kiyosaki than high level concepts and, in the Cashflow Quadrant book, he delivered. By spotlighting how much of your money is taken each month in taxes, Kiyosaki gives a proverbial kick in the butt to employees. His assertion that it is dumb to live life as an employee and pay the government close to half of each paycheck is not made in a vacuum. Yes, he takes aim at how unfair the US system of taxation is for employees, but he also provides tangible steps to pocket more income from your earnings. Indeed, he walks readers down the path of how to transition from working every day to earn highly taxed money to not working whatsoever and paying low tax rates. In this Cashflow Quadrant summary, we will walk you through the steps. Employees Pay Highest Tax Rates Robert Kiyosaki fires shots at traditional academic institutions and the education system in general in his books, and with good reason. High school and college classes rarely, if ever, teach students the skills needed to start, manage, and succeed in business. Instead, Kiyosaki argues traditional education teaches kids to become employees. So why not teach individuals how to become tax savvy and pay less to government? In Cashflow Quadrant, Kiyosaki advocates that employees migrate their income streams to lower tax brackets. The first leap is to move from Employee to Self-Employed. If you decide not to show up for work, you may be fired. And if you want to earn more, you need to work more. And even then whether you remain in your job or get fired is not under your control. A better alternative to a job is to become Self-Employed, argues Robert Kiyosaki. So too do owners of laundromats, dry cleaning stores, and these days even Uber Eats drivers. When you become Self-Employed, you can legitimately deduct certain costs. For example, if you are a contractor for Uber, you could deduct various costs that would otherwise need to be paid with after-tax income. Speak with your tax attorney to see which costs may qualify. You might be surprised to learn how much can be written off as expenses before you need to pay the government a dime. Way to save money right! Become A Business Owner Alongside the release of his book, Kiyosaki released the Cashflow Quadrant game to help readers play a virtual game of life that transitions from high-tax bracket income streams to much lower tax-bracket earnings. Instead, you get paid by leveraging the collective efforts of your employees. As your company generates revenues and profits, you get paid potentially even without lifting a finger! When the systems and processes are set up, employees generate money on behalf of the business owner, who reaps the rewards. And the icing on the cake is the business owner pays fewer taxes. But business owners are not at the top of the totem pole when it comes to low tax rates nor free of responsibilities. After all, most business owners still need to oversee hiring, salaries, business strategy, and so on. The privilege of earning income without having to show up to work goes to the person in the fourth quadrant: Become Wealthy As An Investor Investors like Warren Buffett got rich not only because they are good a picking stocks but because they understand how the tax code favors investors. Buffett frequently said that he gets taxed less than his secretary. The actual amount he paid in Federal and State taxes was higher but in percentage terms his secretary paid more. His point was that, as an investor, he enjoyed all sorts of favorable tax breaks that employees do not receive. For example, when you work for Amazon as an employee and decide to purchase a new personal computer at home, you need to pay for it with after-tax dollars. As a business owner, you may be able to legitimately write off the purchase as a business expense provided you actually conduct business on the computer. Over time all those deductions add up to some very meaningful savings. Some slow and steady dividend-paying stocks could fit the bill. Or you could purchase publishing rights to music, like Michael Jackson and Paul McCartney did in the past. Or perhaps, like Michael Jordan or Mark Cuban, you could purchase a stake in private companies like they did with SportRadar, which provides sports data to TV networks among other clients. The point is that, as an investor, you can receive a steady stream of income that is taxed at lower rates than the earnings received by employees. In short, the holy grail is to become an investor because you earn passive income even when you are sleeping and pay among Page 2

3 the lowest tax rates. Cashflow Quadrant Book Summary To become rich, Kiyosaki recommends migrating from the Employee category to one of the other three categories: Self-employed, Business Owner, or Investor. Page 3

4 Chapter 3 : Rich Dads Cashflow Quadrant Book Summary The Cashflow Quadrant is the follow-up guide to finding the financial fast track that best works for you. It reveals the strategies necessary for moving beyond just job security to greater financial security by generating wealth from four selective financial quadrants. This work will reveal why some. When it comes to financial education, many of us have learned from a gentleman named Robert Kiyosaki. Now, before I start, I want to make it clear that it is NOT my intention to bash any quadrant over the other, but rather just to enlighten you with the differences you can read my story here. As you read along, you may discover for yourself why some Quadrants are more attractive than the others. For some of you, the teachings of Cashflow Quadrant will be a review, but for some, this will be entirely new. Regardless of your situation, my hope is that by understanding the sources of your income, you will begin your journey towards financial freedom. What Is the Cashflow Quadrant? People in each quadrant have different core values and that is what separates them into different quadrants. E for Employee As an Employee, you have a Job. This is the majority of the population. In this category, you trade your time for money, typically working 30 to 80 hours a week for a salary. For example, you could be a teacher, secretary, engineer, banker, pilot, nurse, doctor, lawyer or CEO of a company. You can always tell who are the Employees by their core values and the words they use. As an Employee, you will pay the most in taxes and you must continue to trade time for money. When you stop work, your salary also stops. A few years ago, I was working in a corporate job. I found satisfaction in my job and I have worked hard for years to climb the corporate ladder. My salary was good 5 figure USD a month ; but I was working 40, 50, 60 hours a week sometimes more with only a limited number of days off in a year. Often times I found that I had little time and energy left by the end of the busy workweek. Real estate agents, insurance agents, doctors, lawyers, consultants and accountants with their own practice, photographers and graphic designers with their own studios and small business owners belong to this category. In this category, you are still trading your time for money. In most cases, you may work even longer hours than the Employees and you have no paid vacations. When you stop working, your income drops or stops. You can always tell who are the Self-Employed by their core values and the words they use. Most big businesses start off as Self-Employed; as they put in a System and a Team, they have a chance to grow to become big businesses. For Big Business owners, they are looking for good Systems, good Network, and the smartest people they know to help run their business. They want to have a team of smart people run the company for them. As a Big Business owner, they have people work hard for them. They pay the least in taxes and their business continue to generate a cash flow for them even when they sleep or vacation. You can always tell who are the Big Business Owners by their core values and the words they use. In this Category, you can work hard for a few years and, once your System and Team are in place, you could potentially earn passive income that keeps flowing to you for the rest of your life. When I started my business in Year, I had to put in many hours of hard work and learn some new skills that were not required in my corporate job. I had to get out of my comfort zone and faced my own fears. Fortunately, my hard work paid off. With a Proven System and a Committed Team, my business has now expanded internationally and is now generating a multiple 5 figure USD Residual Passive Income for me every month regardless I am working or not. I now have time to spend with my children, travel the World click here for some of my cool adventures, give back to the society, inspire and touch the lives of tens of thousands â I totally LOVE my new life! Read here on my Tips of how to become a successful entrepreneur and business owner. These are the people who have money work hard for them. With the right financial education, their assets could produce cash flows for them regardless of their presence. As I always say, money is not everything; but without it, there are many constraints in life. Most people trade their time the entire life just to provide for themselves and for their families; andâ end up missing out on the most important things in life itself â time with loved ones, amazing friendships, seeing the world, giving back to the society and things you are meant to do and bigger impacts you are meant to make in this world. The attainment of financial freedom requires a high level of financial intelligence. The most successful Business Owners and Investors are innately curious, Page 4

5 knowledge-thirsty and uncompromising in the pursuit of their goals. They chose to learn through Mentors. They read voraciously, and attend training courses and educational seminars converting this knowledge into action. Be under no illusions though â it can be a bumpy, windy road. It is NOT for you if you want a secure, normal life. However, if you are prepared to make the leap, the prize at the end of this particular journey is Time and Money Freedom and, most importantly, become the person you are destined to be. But if you are diligent and act despite your fear, you will find that there is a whole new world full of fun, freedom, fulfillment and abundance on the other side. Download my ebook to learn more and on how YOU could get started today. Page 5

6 Chapter 4 : The Cash Flow Quadrant Explained By Robert Kiyosaki "I'm often asked why I recommend multi level marketing, especially when I'm not in network marketing business myself. I'm like many people, early on, I had a. Kiyosaki â, an academic and educator, and Marjorie O. Kiyosaki â, a registered nurse. Kiyosaki was followed by his three siblings - sisters Emi and Beth, and his brother John. He attended Hilo High School and graduated in Kiyosaki received congressional nominations from Senator Daniel K. Inouye for the U. Naval Academy and the U. Kiyosaki resigned after six months to join the Marine Corps, [16] serving as a helicopter gunship pilot during the Vietnam War in, where he was awarded an Air Medal. He took a job as a sales associate for Xerox until June The company went bankrupt in In, Kiyosaki sold the education company. In his book, he encouraged parents not to send their children to college and instead to enter the real estate business. In, Kiyosaki again filed for bankruptcy. Many are concentrated in the information technology mobile apps and internet, publishing, retail, education, mining, energy, financial market, and real estate industries. Kiyosaki argues that financial leverage is crucial in becoming rich despite risks, repercussions, and pitfalls that come with utilizing leverage to achieve financial independence. Since, the Kiyosakis have lived in Phoenix, Arizona. In, the Ohio state government Division of Real Estate and Professional Licensing issued an extraordinary statement warning people against some of the illegal methods that were being preached by Kiyosaki in his books and seminars. Upon tracking the success claims of "Rich Dad" seminar organizers, they discovered that these claims were not true. Investments in trailers and trailer parks, which were being propagated as "successful" by seminar teachers, were found to actually be barren pieces of land that no one was using. Kiyosaki was sued by his fellow author Sharon Lechter in for not keeping to the terms of their agreement over their jointly written book. He also admitted that since the Rich Dad seminars were franchisees that functioned independent of him, he had little control over their content. Kiyosaki has been criticized for being anti-education, according to some. Page 6

7 Chapter 5 : Cashflow Quadrant By Robert Kiyosaki Summary Investormint In "Cashflow Quadrant" Kiyosaki teaches the four ways people make money: Employee, Sole Proprietor, Business Owner, and Investor. The biggest take away that I had from this book was that I needed to move from the left side of the quadrant to the right side of the quadrant as fast as possible if I want to become wealthy. Published in, the book is the sequel to Rich Dad Poor Dad. The book starts by introducing the Cashflow Quadrant TM, an illustration of the four primary ways to earn money. Kiyosaki explains the quadrants this way: When an E needs money, they automatically look for a job. An S person, on the other hand, will do something to make money on their own. Thanks to this, their operations remain small. In contrast, a B person will start or buy a system that generates money, and an I will put money into a system that will produce more money without them having to be directly involved. Acknowledgement of the pros of the book For over a decade, Robert change the way millions of people around the world think about wealth creation and financial freedom. Besides, I think the network marketing industry should be thankful to him. Kiyosaki is definitely good at creating a compelling narrative, and this book is no exception. You should have no problem reading and following along with the points he makes, as well as the diagrams he shares. Particularly in the last set of seven chapters, Kiyosaki lays out a number of simple, easy to follow steps that make it possible to become wealthy using his methods. Particularly compared to Rich Dad, Poor Dad, having real, workable advice is a good step in the right direction. Again, compared to his first book, Cashflow Quadrant does much more to acknowledge alternate view points on wealth and money. Kiyosaki notes that people in all four quadrants can become rich, for example, and also points out that most of the millionaires in the US would be considered level 4 investors on his scale. Emphasis on passive income. My Attempt to apply the Cashflow Quadrant I was first introduced to a huge diagram and an explanation of the Cashflow Quadrant by a guy on stage at a Networking event some time ago, and it totally blew my mind because it was a brand new and exciting concept to me. Robert recommend network marketing as one of the three ways to get in the business quadrant. Because I wanted to be wealthy by owing a big business, I ended up joining a network marketing company. I followed my upline advice in running the business. At the same time I was still going to my small business office and trying one or two internet jobs at home. After one year, I realize I was not making any progress. I was always spending money to improve my business but was not making any financial progress. So one day I started wondering. Why do some people work their business throughout their life time leaving no legacy behind while others leave a legacy for their unborn generation? Why do some people retire early from business to enjoy their labour while others work themselves to death? Why do some people quit their job to establish a big business while others fail? To satisfy my curiosity, I decided I will review people who had succeeded in building big business and learn from what they do right. At last, I reviewed at least one thousand successful business people around the world across different industry, background and social status. It took me six months of painstaking research to come to an important discovery. I applied the idea of this theory to my business and life. In just few months my finances improve as well as my businesses. Before I knew it, I launched my first passive income business. My network marketing business has also taken a fortune turn. Besides, my life has taken a better shape for it. I have narrow it down to the seven most important. The Business Quadrants Wealthflow Theory I discovered open my eye to the flaw in some of these thinking and concept. One of the key takeaway from the book is to move from an employee quadrant to the right quadrant. But of course, there are many people who are employees and are leaving large. I do agree that it is important to move to the right side of the quadrant, however, earning active income as an employee should be a means to achieve that. That is what I realize and that is what the Business Quadrants golden rule of wealth is based on. Robert suggested in his book that self-employed earn active income and as such need to move to the right side of the cashflow quadrant. I stand to disagree on this. The internet has opened up a lot of opportunity for people to work from home and earn passive income without hiring workers. Many first generation self-employed millionaires have emerged in the past decade. Many of them have been able to build passive income and move on to create more asset. In fact many of them are now experiencing financial freedom. There is no denying the Page 7

8 importance of education. Even though most schools do not teach how to be wealthy, the exposure one gain from education can prepare one for success in life. Those who take this path only need guidance to turn their strength into wealth opportunity. This thought is well expressed in the Business Quadrants Wealthflow Theory. Some of his comments are unfounded and bias such as attributing traits of fear or perfectionism onto those who are self-employed or work for someone else. Even, some big business owners who are perfectionist demand perfection from their workers. Many employees who are excellent at what they do are not afraid to lose their job as they know that they will not be short of options. Meanwhile many big business owners and investors are always afraid of what may become of their business or investment in the face of disaster and economic recession. Kiyosaki discuss network marketing as one of the three ways of moving to the business quarter. He portrays network marketing as a one-way income source that is, it produces passive income. Many who belief his concept join network marketing with the hope of making it to the top and earning passive income. Personally, I was a victim when I first join network marketing. However, network marketing feature in all quarters of the Business Quadrants Wealthflow Theory. It can also be worked from home or an office. Investment as Passive Income. Kiyosaki listed investment in the fourth quarter of his cashflow quadrant. His book suggest that investment produce passive income but that is not always the case. Investment discussed in his book fall under portfolio income. Portfolio income is considered passive income by some analysts, in which case dividends and interest would be considered passive. The type of earnings people usually associate with this are gains on stocks, interest, retirement pay, lottery winnings, and capital gains. According to Robert, to acquire financial freedom, you must move from the employee and self-employ quadrant through the business quadrant and finally to the investment quadrant. He argue that unless a person is in the investment quadrant, the person cannot acquire financial freedom. I also disagree with him on this. Many self-employed millionaires today are financially independent despite not earning portfolio income. The internet has opened up a lot of opportunities for people to build passive income business without having to invest their money in portfolio income. Final Thoughts The Cashflow Quadrant teaches the steps one must take to become financially free. Some people complain there is not enough hard information in his books on how to move from an employee to a business-minded person. The key, he repeatedly says, is education, which can cost little but bring you millions. If you can forgive minor annoyances including typographical errors and plugs for network marketing, this is a fascinating book, a valuable financial education that may inspire you to think more about which quadrant you wish to exist in. For over ten years, I tried to follow his ideas but never had the chance to move to the big business or investment quadrant. It was the frustration that led me to search for my own path. I realized that since Robert shared his ideas, a lot have changed. My quest for the right path led me to study closely over successful business people. You can read more about the theory by visiting introduction to the Business Quadrants Wealthflow Theory. Do you have any questions or feedback you would like to discuss on the Cashflow Quadrant or the Business Quadrants Wealthflow Theory? Please leave me your comments below as I would love to read and reply to your thoughts. Page 8

9 Chapter 6 : 7 Reasons Why Robert Kiyosaki Cashflow Quadrant Is Wrong - Jetro Olowole rich dad poor dad dad poor cashflow quadrant cashflow financial freedom robert kiyosaki real estate great book business owner must read rat race read this book financially free owner and investor highly recommend passive income flow quadrant right side employee or self-employed. It was a diagram known as the Cash Flow Quadrant. And the Quadrant is made of four different people who make of the business world. So my rich dad said, "In the business world there are Es and E stands for employees. And the employees, you can always tell who they are by their core values. An employee with the president, the generator of the company, will always say the same words. Generally one person act, they operate by themselves. And my rich dad said, "the B stood for big business, or like Bill Gates. For Bs define big business as employees or more. And their words are different. They want smart people run the company for them. And the I stands for the investor. These are people who have money work hard for them. These people in the B Quadrant have people work hard for them. So, early on in my life it was my poor dad who always said to me, "You know Robert, go to school, get a high paying job He wanted a job security, promotions, steady pay check and all these. And so it was my rich dad who said to me, "You know, Robert, if you really want to be rich, learn to build businesses. Something you own, and something you pass on from generation to generation to your kids. Whereas my poor dad said, "work hard So my rich dad suggested I learn how to be a business owner and learn how to be an investor. On the left side of the Cash Flow Quadrant, these people work for security, they work for money also. So the beauty of building a business and learning how to invest is very simply that this is passive income. You work hard for a few years and possibly for the rest of your life that passive income keeps flowing to you. So, why would you save something that loses money every year? And what does this mean for you or for somebody on the retirement plans, if the value of the dollar goes down and your cost of living keeps going up after you retire? To my rich dad that was bad advice and made no sense. Robert Kiyosaki explains why: And I found some things that are extremely beneficial, especially for those people who look for changes from E and S to B and I in the Cash Flow Quadrant. Communications and sales skills are essential for somebody in the B Quadrant. And network marketing companies, not all of them but some of them, have excellent training program that will teach you how to sell, how to communicate, how to build businesses Many people would not go to the B Quadrant because they are afraid of rejection. Multi level marketing teaches you how to handle your own fears, fear of rejection, and build that self-confidence. Chapter 7 : Robert Kiyosaki Books List Free Download PDF [Hindi] The CASHFLOW Quadrant is about the four different types of people who make up the world of business, who they are and what makes individuals in each quadrant unique. Chapter 8 : Rich Dad's Cashflow Quadrant: Rich Dad's Guide to Financial Freedom by Robert T. Kiyosaki Robert Kiyosaki, world-renowned personal finance guru and author of the top-selling "Rich Dad, Poor Dad" books is giving away one of his ebooks, the Cashflow Quadrant, for free. The Cashflow Quadrant book has been my personal guide as regards goal setting and personal finance management since the first time I heard of the concept years ago. Chapter 9 : Free Download: 'Cashflow Quadrant' ebook - blog.quintoapp.com Robert Kiyosaki is the best selling author of "Rich Dad Poor Dad", the # 1 Personal Finance book in the World, and he has created the 'Cashflow Quadrant' to easily breakdown the 4 types of incomes. Page 9