Weekly Book Review: “Rich Dad’s Cashflow Quadrant”
By Mark Brown
Economics is one of the central tenets of Max Living. We aim to help people progress to financial freedom, whatever that means for them, and give them tools and resources that help them exert more control over events in this part of life. If you’re worried about your financial future, chances are you will not be able to give very much attention to the other key areas of Max Living.
In Rich Dad’s Cashflow Quadrant, which is described as Rich Dad, Poor Dad Part II, Robert Kiyosaki helps readers see how they can reach financial freedom. Kiyosaki writes, “If you are ready to begin your journey or are already on your journey to financial freedom, this book is written for you.”
Readers of Kiyosaki should already be familiar with his “ESBI” Quadrant, with four distinct categories of earning—Employee, Self-Employee, Business Owner, Investor. Kiyosaki states that “financial freedom can be found in all four of the quadrants, [but] the skills of a ‘B’ or ‘I’ will help you reach your financial goals more quickly. A successful ‘E’ should also become a successful ‘I’.”
Part one of the book explains the differences between quadrants, and will help you see where you are now. Part two is about personal change—who you have to be rather than what you have to do. Part three provides seven steps that get you on the “right side” of the quadrant—Business Owner and Investor. These include “take control of your cash flow,” “know the difference between risk and risky,” and “seek mentors.” In this last step, Kiyosaki encourages readers to consider who they spend their time with. What quadrant are they in?
Whether you have or haven’t read any of Kiyosaki’s other books, Rich Dad’s Cashflow Quadrant is recommended reading because it helps you evaluate where your money is coming from and how you can move to the “B” and “I” quadrants. Kiyosaki doesn’t provide specific “here’s how you make money” advice. If success is a journey from one point to another, then what Kiyosaki does is give you a compass to help you navigate—in this case, from “E” and “S” to “B” and “I”. I’m confident you’ll find it useful.