08-20-2006, 11:44 PM
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Savings Advisor
Join Date: Aug 2006
Location: Central CT
Age: 31
Posts: 761
Rep Power: 7  |
The Cash Flow Quadrant
I recently cought an airing of Robert Kiyosaki's Rich dad/Poor Dad on public television. After doing some research on him online, I'm not convinced by many of his teachings. However, there is one that stood out.
The Cash Flow Quadrant. The Cash Flow Quadrant is nothing more than a simple graphical representation divided into four sections which denote ways to make money.  E: Employee – Working for someone else S: Self-employed or Small business owner – Where a person owns their own job and is their own boss. B: Business owner – Where a person owns a “system” of making money, rather than a job to make them money. I: Investor – Spending money in order to receive a larger payout in return. In his oration, Robert talks about how the folks on the left, the employees and self-employed, will NEVER obtain true wealth. (Now, there is a strong difference between being rich and being wealthy. I will cover that in a later post). Basically what it comes down to, is that if you are physically working for your money day in and day out, you will never be wealthy. In order to obtain wealth, one needs to focus on what is called "Passive Income" (See Also: Types of Income ). If you want to truely be financialy secure, the way to do so is by being a "B" or an "I". For discussion:
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