January 1, 2016

Book Review - Cash Flow Quadrant : Guide to Financial Freedom By Robert Kiyosaki

This book is a highly recommended reading in the area of personal finance. It's a great book that goes deeper into the way the world economy operates and how people can be classified in the 4 quadrants - E, S, B and I.

The four quadrants are based on how the cash flows through them and have been labelled as E, S, B and I where,
E  = employee
S  = small business or self-employed
B  = big business
I  = investor

Unfortunately and sadly, many people don't even realize this during their entire life. This book attempts to teach the wonderful concept of ESBI. A good understanding of this concept can surely lead the way to financial freedom.

Here are some excellent paragraphs from the book that also summarize the purpose and some of the key lessons for its readers.

"This CASHFLOW Quadrant book is important because it is about finding your path in life. As you know, most people are programmed early in life to “Go to school and get a job.” School is about finding a job in the E or S quadrant. It is not about finding your life’s path."

"Are you financially free? If your life has come to a financial fork in  the road, Rich Dad’s CASHFLOW Quadrant was written for you. If you want to take control of what you do today in order to change your financial destiny, this book will help you chart your course."

"This book is written for people who are ready to change quadrants, especially for individuals who are currently in the E and S categories and are contemplating moving to the B or I category. This book is for people who are ready to move beyond job security and begin to achieve financial security. It’s not an easy life path, but the prize at the end of the road, financial freedom, is worth the journey."


"The driving force, however, that wouldn’t allow me to stay on the left side of the Quadrant was what happened to my highly educated but poor dad at the peak of his career." 

"To be successful, you need to learn to overcome your fear of  being rejected and to stop worrying about what other people say and think about you. So many times I’ve met people who hold themselves back simply because of what their friends might  say if they did something different."

"One of the things I told myself over and over was, What you think of me is none of my business. What is most important is what I think about myself."

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