Review of Rich Dad's Cashflow Quadrant by Robert Kiyosaki - Guide to Financial Freedom

I read this book in 2007, it is one of my favorite personal financial books of all time. Robert Kiyosaki is one of the most influential people in my life; his books have completely changed my mindset about money and wealth creation. I have bought and read about 20 books by Robert Kiyosaki and his advisers.

The below diagram is his famous Cashflow Quadrant.

E stands for: Employee
S stands for: Self - Employed
B Stands for: Business Owner
I Stands for: Investor

You are belong to one of these quadrants depend on which quadrants that you are generating your income from. You can belong to more than one quadrant at the same time.  For example you can be an employee or self -employed and at the same time you can also be an investor.

A business owner owns a system that work for them. The richest people in the world belong to this quadrant such as Bill Gates, Warren Buffett, Richard Branson, Larry Page and Mark Zuckerberg.


He said the right side is the rich ground, due to tax and use of leverage. 

How to Build a Strong Business? According to Rich Dad, the B-I (Business owner and Investor) Triangle is the key to great wealth. This comprises of the mission, the team, leadership, cash flow communications, systems and legal management and product.



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