The Cashflow Quadrant Review
This book was recommended to me by Misha Wilson and, to be honest, I was a bit skeptical. It was the title that put me off reading it but decided to give it a try after hearing other people say how it had affected them.
With hindsight, I should have read the prequel ‘ Rich Dad, Poor Dad’ by Robert Kiyosaki before The Cashflow Quadrant but as I enjoyed the book I shall probably go back and read it now.
Before I begin my review I think it helpful to state that I’m by no means an authority on investments or business financial statements etc. It just doesn’t interest me so I went into this book with the mindset I would understand what it was all about.
The Cashflow quadrant teaches about the freedom to build a passive income from assets and having the time to enjoy the proceeds with your family and friends.
Robert explains where and why people are financially and, importantly, how to move on to the next level if they so wish.
The four quadrants discussed in this book are,
1. Employee (E)
2. Self-Employed (S)
3. Business Owner (B)
4. Investor (I)
Each part of the quadrant is explained in easy terms so you can see which particular quadrant you find yourself. He then goes on describing the tactics needed to progress to other quadrants to change from ‘working for money’ to ‘money working for you’. A concept I found intriguing.
The book made me think about how I approach finance, money and a passive income as well as giving me the tools to alter the way I ‘think‘ about them. – A change of mindset.
Robert Kiyosaki’s method is to teach about the perspective on money rather than giving a step by step guide on how to become rich. He champions the need to change your way of thinking rather than become a ‘sheep’ and follow the crowd into a ‘job’.
One of the lessons I learnt was the difference between ‘taking a risk’ and being ‘risky’. I thought these were very similar concepts but, no. It all boils down to knowledge. You are being ‘risky’ if you don’t educate yourself in the financial issues needed to grow into the Business Owner (B) or Investor (I) quadrant.
All in all, I found this an extremely useful book and a great read and recommend it to anyone who is looking to create a passive income and is willing to work hard to achieve the freedom that comes with it.
It is easy to read and understand and gives you all the tools and mindsets you need to succeed.