Aug 04 2009
Kiyosaki and his “Cashflow Quadrant”
Two of the books that have impacted my thinking the most in the last few years have been Robert Kiyosaki’s “Rich Dad, Poor Dad” 
and “Cashflow Quadrant“, a useful reference point in talking about money matters, particularly in identifying which quadrant one receives one’s cash(flow) from, and will refer to it again in this blog.
He broke up the different categories of wealth production into four categories beginning with the letters E, S, B and I respectively.
- “E” stands for Employee;
- “S” stands for Self-employed or Small business owners, and these are on the left side of his “quadrant”.
- “B” stands for Business owners with larger companies of more than 200-300 staff
- . “I” are the Investors. B’s and I’s were on the right side of his quadrant, identified as the quadrant of the rich. He further stated that “E’s” and “S’s” are “people who by nature are security oriented”. The “B’s” and “I’s live in “the quadrant of risk”.
But he went on to point out that the ones who are willing to take the risks often enjoy the most FREEDOM and the ones who shy away from risk and opt for SECURITY usually end up losing financial freedom; and that the people who plump for security usually pay the most taxes and in actuality take the most risks e.g they put their money in mutual funds -which I know from my Financial Adviser days are definitely risky investment vehicles- and they get their advice from financial advisers who, as he says, often know little or nothing about investing themselves.
When I got my first job in the financial advisory field I was not given any in-depth training on business or investment-only on a few financial products that the company I was employed with were offering. So I could readily agree with a lot I read in Kiyosaki’s books from my perspective as an Employee and , more recently, as an “S” or Self-employed small businessman. “Click here for the book Cashflow Quadrant” and for the seminal book “Rich Dad, Poor Dad”, click here”
Have a great day!
John Reason,
Briton currently living in New Zealand.
Salesman, teacher, article writer, Internet Marketer.
© 2009-2010
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