![]() Obviously, based on this definition the right side is way more attractive.Īnother major point of note here is the differences in the looks of an individual's income statement and balance sheet. My simplest way to think of it is that the left side is where you trade time for money, and the right side affords you the ability to trade money for more money. In order to have true financial freedom, one must move from the left side of the quadrant to the right. My personal hope is to move to the "B" and "I" quadrants where I can have my money work for me and not work for money. I also have aspects of my life that are in the "S" quadrant in that I write for Steemit and coach volleyball. I am currently in the "E" quadrant as I receive most of my money from my employer. ![]() The first part of the book is primarily explaining the different quadrants and the people who occupy those quadrants. Kiyosaki's point is that you should want to move to the right side of the figure if you truly want to be rich. Most people start on the left side of the quadrant and a vast majority of them stay there for their entire lives. And finally, "I" is for investment in which your money works for you. "B" is for business, where you build a system to employ others. "S" stands for self-employed, where you work for yourself. The "E" is for employee, in which you are work for someone else. The basic premise of Cashflow Quadrant comes from an actual symbol of a quadrant with various letters in it.Įach letter corresponds to a different way in which money and wealth is earned. I'm getting ahead of myself here though, so I am going to go back a few steps. Not that a primary residence is necessarily a bad investment, but just the way that one should go about thinking about real estate and investments in general. As few of you know, I am a mortgage broker currently and own my own home, but this book flipped the idea of owning a home on its head for me. I decided to pick up Cashflow Quadrant because I have really been getting into investing in real estate and learning a lot more about that sector. ![]() While I also own that book, I actually decided to read this one first based on a recommendation from a guest on the BiggerPockets podcast who attributed much of his financial success in real estate to both Cashflow Quadrant and Rich Dad, Poor Dad. Many people are familiar with the personal finance best seller Rich Dad, Poor Dad by Robert Kiyosaki. Follow if you are interested in receiving updates on these books as I post my reviews. I'm hoping that this will allow me to comprehend and retain more of what I read as well as give my readers a helpful summary by synthesizing what I believe to be the most relevant takeaways from each book. I have decided to put this idea to the test and will be reviewing the books that I read individually upon completion of each book. I've read that one of the best ways to truly comprehend the most valuable lessons of a book is to write down what you've learned that was most relevant following the completion of the book.
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