Kiyosaki Robert T - Rich Dads Advisors: Cashflow Quadrant

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RICH DAD'S CASHFLOW QUADRANT. Copyright 1998, 1999 by Robert T. Kiyosaki and Sharon L. Lechter. All rights reserved. No part of this book may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval systems, without permission in writing from the publisher, except by a reviewer who may quote brief passages in a review.

CASHFLOW is the trademark of CASHFLOW Technologies, Inc.

are trademarks of CASHFLOW Technologies, Inc.

Published in association with CASHFLOW Technologies, Inc.

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New York, NY 10017

ISBN: 978-0-7595-2144-5

A trade paperback edition of this book was published in 2000 by Warner Books.

First eBook Edition: January 2001

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Man is born free;
and everywhere he is in chains.
One thinks himself the master of others,
and still remains a greater slave than they.

Jean Jacques Rousseau

My rich dad used to say, You can never
have true freedom without financial freedom.
He would go on to say, Freedom may be free,
but it has a price. This book is dedicated to
those people willing to pay the price.

To Our Friends,

The phenomenal success of Rich Dad Poor Dad has brought us thousands of new friends all over the world. Their kind words and friendship inspired us to write The CASHFLOW Quadrant which, in reality, is a continuation of Rich Dad Poor Dad.

So to our friends, old and new, for their enthusiastic support beyond our wildest dreams, we say thank you.

Which Quadrant
Are You In? Is It The
Right One For You?

Are you financially free? The CASHFLOW Quadrant was written for you if your life has come to a financial fork in the road. If you want to take control of what you do today in order to change your financial destiny it will help you chart your course. This is the CASHFLOW Quadrant:

The letters in each quadrant represent:

Each of us resides in at least one of the four quadrants of the CASHFLOW Quadrant. Where we are is determined by where our cash comes from. Many of us rely on paychecks and are therefore employees, while others are self-employed. Employees and self-employed individuals reside on the left side of the CASHFLOW Quadrant. The right side of the CASHFLOW Quadrant is for individuals who receive their cash from businesses they own or investments they own.

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. It will help you define where you are in the Quadrant today and help you chart a course for where you want to be in the future as you choose your own path to financial freedom. While financial freedom can be found in all four of the quadrants, 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.

This book is in many ways Part II of my book, Rich Dad Poor Dad. For those of you who may not have read Rich Dad Poor Dad, it was about the different lessons my two dads taught me about the subject of money and life choices. One was my real dad and the other my best friends dad. One was highly educated and the other a high school drop out. One was poor and the other rich.

Whenever I was asked the question, What do you want to be when you grow up?

My highly educated but poor dad always recommended,

Go to school, get good grades, and then find a safe secure job.

He was recommending a lifes path that looked like this.

SCHOOL

Poor dad was recommending that I choose to become either a high paid E, employee, or a high paid S, self employed professional, such as a medical doctor, lawyer, or accountant. My poor dad was very concerned about a steady paycheck, benefits, and job security. That is why he was a high paid government official; the head of education for the State of Hawaii.

My rich, but uneducated dad, on the other hand, offered very different advice. He recommended,

Go to school, graduate, build businesses and become a successful investor.

He was recommending a lifes path that looked like this.

SCHOOL

This book is about the mental, emotional, and educational process I went through in following my rich dads advice.

This book is written for people who are ready to change quadrants. This book is especially for individuals who are currently in the E and S categories and are contemplating becoming Bs or Is. It for people who are ready to move beyond job security and begin to achieve financial security. It is not an easy lifes path but the prize at the end of the journey worth the journey. It is the journey to financial freedom.

Rich dad told me a simple story when I was 12 years old that has guided me to great wealth and financial freedom. It was rich dads way of explaining the difference between the left side of the CASHFLOW Quadrant, the E and S quadrants, from the right side or the B and I quadrants. It goes:

Once upon a time there was this quaint little village. It was a great place to live except for one problem. The village had no water unless it rained. To solve this problem once and for all, the village elders decided to put out to bid the contract to have water delivered to the village on a daily basis. Two people volunteered to take on the task and the elders awarded the contract to both of them. They felt that a little competition would keep prices low and insure a back up supply of water.

The first of the two people who won the contract, Ed, immediately ran out, bought two galvanized steel buckets and began running back and forth along the trail to the lake which was a mile away. He immediately began making money as he labored morning to dusk hauling water from the lake with his two buckets. He would empty them into the large concrete holding tank the village had built. Each morning he had to get up before the rest of the village awoke to make sure there was enough water for the village when it wanted it. It was hard work, but he was very happy to be making money and for having one of the two exclusive contracts for this business.