4 cashflow quadrant professional#

Hearing the audio book is pushing me to take the next action to try to move myself from the E to the I and/or B quadrants. While some of the data is out of date due to 'The laws being changed as soon as this is recorded', to quote Dave Ramsey, all in all the ideas I believe to be sound. If you’re already a business owner or real estate investor, this book also delivers tools for even greater success. There are four types of people who make up the world of business: employees, self-employed, business owners, and investors but it’s only the business owners and the investors who can create great wealth by accelerating their cash flow through assets.Ī Wall Street Journal Bestseller, Rich Dad’s Cashflow Quadrant is perfect for employees or self-employed individuals interested in finding new ways to generate cash flow. In The Cashflow Quadrant, the sequel to Robert Kiyosaki’s smash hit, Rich Dad Poor Dad, you learn how the role you play in the world of money affects your ability to become financially free.

4 cashflow quadrant professional#

In the world of money there are two mindsets, those that see scarcity and need security, and those who see abundance and thrive on financial adventure – the mindset of the employee or self-employed, and the mindset of the business owner or professional investor. Your first steps might include learning more from Kiyosaki and RichDad, or contacting me and my team of Wealth Advisors to assist you in implementing the proper financial strategies that meet the “Four Wealth Objectives”.Are you tired of living paycheck to paycheck? If you’re reading this and have decided that you would like to begin moving from the Employee and Self Employed/Specialist side of the Quadrant over to the Business and Investor side, we encourage you to begin taking the necessary steps to begin. The good news is that you can become wealthy within all four areas of the quadrant. In fact, Warren Buffett says that he pays a lower tax percentage rate than any of the other areas because he is a Business Owner and Investor. The Business and Investor side of the quadrant has the most favorable tax treatment of the four quadrants. This is maybe the most difficult to fully attain, however it provides the greatest sense of financial freedom. I = Investor: This person invests in assets that generate cashflow, as well as increases in value. This generally allows a greater sense of flexibility and freedom. The game illustrated to him principle techniques like getting 4 Green houses and 1 Red hotel, thus teaching him to become an entrepreneur or investor.ī = Business: This entrepreneurial person hires Employees that work to generate a cashflow and increase the value of the business. It was Kiyosaki’s rich dad that began teaching him using the game of Monopoly. However, they typically have more influence over their income. This person, much like an employee, has to be present to get paid.

S = Self Employed or Specialist: This may be a doctor, lawyer, technician etc. Yet we are all taught to go to school and get a good education so that we can get a good “job.” The employee model has pressures associated with it, as well as the worst tax treatment of any of the four types. As we describe each, I encourage you to identify which area generates your primary income?Į = Employees: Those who work for others and are told what income they are paid.

There are certainly many social and lifestyle differences, but throughout the world each group has very different economic implications including tax treatment. So let’s discuss how each type of person differs. This concept was developed into the Cash Flow Quadrant.

Robert Kiyosaki was taught early in life that there are four different types of people in the world.