Cash Flow Quadrant

Robert Kiyosaki has written a few books. This one is shaped around the idea that people get money from one of four ways.

E be an employee      –       B be a business owner
S be self employed     –       I  be an investor

Of course, people can have be in two at the same time, but they tend to associate strongest with one group. And there are similarities between the two on the right and the two on the left.

He talks about how you can identify which area someone feels comfortable in by what they say… E’s talk about security, S’s talk about freedom, I don’t recall what B’s and I’s talk about. He points out that some employee situations are well suited for the self motivated self employed type (sales) and suggests that when trying to recruit these people, no talk of stable income will entice them. #goodpoint.

Another pleasantly jarring thought is the:

BE

DO

HAVE

idea.

He says many people don’t know how to be rich, but they see what rich people do, copy it, and then they have what rich people have, but it doesn’t last. etc. #interesting.

The remaining portion of the book is filled with diagrams showing how your cash flows depending on how you think about money and a repeated argument to buy investment property.