Cashflow Quadrant

Cashflow Quadrant

Cashflow Quadrant by Robert T Kiyosaki teaches how you can become financially independent and wealthy by entering the business quadrant. If you are ready to improve yourself and your way of working to become rich, then this a must-read book that will take away all your money-related woes.

Robert T. Kiyosaki 14 mins read Read in Hindi Personal Finance Network Marketing

Do you also need to work every day to earn money? Do you also want to make more money with little or no work? And are you ready to improve yourself and your way of working to become rich?

If yes, stay tuned; this read will benefit you. Here, we will discuss the book “Cashflow Quadrant” by Robert T Kiyosaki. And also how you can become financially independent and wealthy by entering the business quadrant.

Why don’t you guys get a job now?

Why don’t you guys do the job? This was the question people were asking Robert Sir and his wife when they quit their job as a pilot and salesmen in 1985 to build business and investment assets.

He knew the benefits of the B quadrant and life in it. That’s why he worked hard for a few years and spent his life in only one car but kept learning, doing business, and investing. Finally, after ten years of continuous hard work, he became rich in 1995.

Concept of ESBI:

There are SBI (Employee, Self Employed, Businessman, and Investor). Their economic outcomes are quite different because of their learning and working differences. Where 5% of business people own 95% of the world’s money, on the other hand, 95% of the employees earn only 5% of the funds and work financially throughout their life. Because employees give more importance to job security and say, “I can’t do it; it’s too risky.”

Self-employed give more importance to their independence and speciality as doctors, lawyers, and lone businessmen say, “It is best to do your work yourself. You can do your work in a good way by yourself; how can others do it like this”.

In contrast, the businessman creates a complete system through which he can help more and more people and earn money. He says, “I need a manager to run this office of mine. How can I do this” and investors make money by investing.

They don’t work, but their money works for them, and more earn money. He says, “I am looking for a way to earn maximum cash flow from this property.”

Different people in different cashflow quadrants

This chapter will show some differences between the four quadrants discussed in words.

People in the E quadrant mostly use words like security. He mostly gives importance to job security to earn money and life.

Because of wanting 100% security, he doesn’t even do any new work and gets stuck in job security throughout his life.

The people of the s quadrant don’t talk about safety, they give importance to the self-control of their work, and they reasonably consider it reasonable to be 100% dependent on themselves to earn money.

Like people alone, shopkeepers and business people mostly use words like build system to work with more people and make more money with less effort. Investors primarily invest to earn more cash flow.

Difference between S and B type business: In the S type of business, one person runs and completes the work. Like treating a lone patient through a doctor, a lawyer, a lone shopkeeper, and much more. While a B-type business has an entire team of people running and completing tasks together, leading your team to success in this quadrant requires leadership skills.

Difference between rich and very rich: Rich people in the world have their businesses and earn more money from there, through which they save their monthly expenses, but to become very rich, only one business will not be enough; you have to take care of your business. The money earned from this will have to be invested in more properties so that it becomes more cash flow for you, and you will become more affluent.

Why do people put security above freedom?

This chapter will explain why 95% of people want economic security more than financial freedom.

Why do people want more security? For these reasons, 95% of people want financial security.

Rich Dad's Cashflow Quadrant

To meet bad debt: A poor or middle-class person takes a loan from the bank to buy a house and furniture, and to repay that loan, he has to be stuck in job security as he thinks that if he can get a job if not, how will you be able to repay that loan?

The mind is stuck on income instead of investment. Because of our education system that teaches how to make employees work to earn money, 95% of the people are employed by poor and middle-class families to mentor their children about job security instead of creating wealth from them and making cash flow from them.

So the mind was focused on earning money rather than building wealth and earning cash from them.

Why are such people not able to achieve financial independence? Have you seen any of your relatives or around that?

Some people start their work to work at their desired time and earn money from it, but due to income tax and no team, such people cannot spread their work and are busy working to make money on their own.

How can you achieve financial independence? Of course, to become financially independent, you need to work on the right side of the quadrant and invest most of your time, but how can you do that?

So let’s know. If you do any work, you should start a business part-time; if you are self-employed, you should make a team to handle your work; if you are a businessman, you should give full money through your income.

Finally, if you are an investor, you should gain more wealth by gaining more investment knowledge.

The way to achieve economic freedom with economic security. It would help if you did this to become financially independent and prosperous with financial security. With your job, please start your own small part-time business, and buy a property with the income from it so that you can earn money from there.

And in this way, buy more and more property; the more property you buy, the less you will start making more money in less effort. And eventually, you will not have to work for money and will become financially independent and wealthy.

3 Types of Business Arrangements

In this chapter, the author teaches us about three business systems we can use to become financially independent and wealthy.

C Type Business: This is a business in which you create a company from any of your ideas. How to start a C Type of Business? You can start this with any of your business ideas through which you can add value to people’s lives; here, the success ratio is 10.1. This means you will have to go through 9 failures to do a successful business; you have to learn from it mentally, and to be successful in this, you should learn the rules of business like different taxes, corporate law, team building, leadership, and the art of interacting with people. And must be good to benefit society.

Franchise: This is the business brand of a company whose partnership you take.

Network Marketing: This is multilevel marketing, in which you can become financially independent by making arrangements through a team of people.

Guidance on a Franchise: You need more money and business to partner with a company such as McDonald’s Domino. Like at least $100000,, and if you want to be successful in a C-type business, this is not for you .

Network marketing advice: You can also create a system in network marketing, but before starting it, you should keep these tips in mind to become more successful. Then, you join a company that is good and gives good results .

  • Join a company in which you believe you can succeed. 
  • The company in which training programs are conducted continuously so that your personal growth and self-confidence continue to grow.
  • Whose team is ready to advise and support you, not just place orders? Because a leader is someone who has achieved the point that you want to make. And he can guide you and not be the one who hasn’t attained just giving you advice.

So you can use any of these three systems to become financially independent and prosperous, but remember that a sound system is needed to become rich.

The 5 Stages of Investors

In this chapter, we will talk about the five stages of investing.

Stage 0: They have nothing to invest; they spend as much as they earn. This category also includes an employee in a high-earning business. Those who spend all their money do not save or invest any.

Stage 1: These people are loan-taker investors who may be successful in S or B quadrant and are influenced by this success; these people start investing in the loan is taken quadrant without any necessary knowledge and experience. Sometimes these people earn money from here but mostly lose it due to a lack of knowledge and experience.

Stage 2: These investors are budget cuts; these people save money to buy something expensive like a TV fridge. Even if they think about any other investment, consider the mutual fund or any similar investment.

Stage 3: These people are savvy investors; they save their money and invest them in mutual fund retirement plans or any such project; they are very educated and have the necessary knowledge about investment, which is a good investment. Fall into the category.

Stage 4: They are long-term investors; they set long-term financial goals, acquire the necessary knowledge, and plan with professionals to achieve them.

Cashflow Quadrant Summary

Stage 5: Some investors own most of the world’s money and are the best players in investment; these people make such investments where other people invest, and these people often make such as starting a company and creating a job IPO issue of a company. By allowing people to invest, these people play the game of investment to enjoy, so it does not matter much if they win or lose.

Money is not seen with the eyes

In this chapter, the author teaches us that money is an idea; hence, it can be seen with the mind, not the eyes. Therefore, if you want to become financially independent and prosperous, you should believe you can and still can be possible.

For this, here we will talk about some topics through which you can see money with your mind. Here, Mukesh Ambani Ji says a perfect thing: if you think you can do it, it means you can.

1. Quickly come to the right side of the quadrant:

Always remember that the wealthiest people in the world come from the right side of the quadrant, whether it is a businessman or an investor, whether it is Ambani, Bill Gates, or even Warren Buffett, so if you want to become rich, then as soon as possible on the right side of the quadrant. Come as early as possible and get where you need to learn business and investing skills.

2. Expand your context and content:

Context means your willpower, and material means the skills needed to become rich. To spread your context, think about how to achieve your financial goals instead of thinking you cannot.

3. Know the difference between good and bad debt:

Rich people become more decadent because of their rich terminology, and poor and poor because of poor language; the rich know about good and bad debt.

Buying a car by taking a loan is a bad loan, while starting a business with the same loan is a good loan, or purchasing a property is a good loan.

Good debt can give you good returns, like taking debt for investing in the business or for building assets, which can give more returns in future. And bad debts are for fulfilling desires, like buying a car or an expensive smartphone.

Uncover Your Inner Excellence:

The author discusses how you can bring out the power within you. In this section, we are going to talk about three topics:

  1. How can you become a right-side quadrant person?
  2. How can you become rich?
  3. What is the advantage of becoming a borrower instead of becoming a borrower?

Be who you are

Readers Books Club

In this chapter, the author teaches us that we, too, can become financially independent and prosperous in a successful way by following our passion; for this, we should take care of some things.

Could you not make it a habit to work for money? You work to follow your passion, benefit society, and make their lives valuable.

1. You changed how you work:

Whatever your passion, if you want to become financially independent and prosperous, you need to work in the B and I quadrants, so as soon as possible, convert your work into B or I quadrant.

2. Keep your buildings alive forever:

Always remember the dreams of following your passion, bringing change in your understanding, making people’s lives valuable, becoming financially independent and prosperous, and working hard to achieve them because when your focus is on your goal, then on the way. The difficulties will seem small, and the opposite is true.

3. The right side is more secure:

Why right side is more secure because, on this site, you need to make your system through people and money; when the system works, then you will earn more money without work or hard work, and even if a person quits their job then you will be replaced by another person By hiring you will be able to run your system.

Cashflow Quadrant

In the end, the author explains that in today’s era, we can become successful as fast as we want, but we have to follow all the essential things and not take shortcuts because there is no secret to success. It comes from hard work.

How To Be Rich

In this chapter, we will talk about how you can become wealthy and financially independent.

1. Do what rich people do:

If you also want to be prosperous, then do what rich people do so that you can achieve what they have done today.

2. Buy and build more assets:

Build maximum business arrangements, buy shares of a good company, or buy property so that you can earn money from them every month.

How to be successful B and I:

In this section, the author teaches us how we can become a successful businessmen and investor, and for that, we need these things:

  1. Starting from small steps and going to prominent destinations.
  2. Start your own business.
  3. Handling your money.
  4. Finding a guide in your life.

Begin With Small Steps

In this chapter, we will talk about how poor households become wealthy on their own and how you can do like them.

Those people follow these things:

  1. Setting long-term goals and planning
  2. They believe in being satisfied late rather than being satisfied immediately
  3. Those people believe in compounding except for instant results

Those people dream long and plan small steps to achieve big goals and do small activities. If you want to become rich, you should tell your rules similar to poor and your work thinking behavior, etc.

The rich should follow the rules; it means thinking like being rich and focusing on earning more and more money to overcome economic problems.

Start Concentrating on Your Business

In this chapter, the author takes us to the reality that we pay attention to someone when we work, earn or spend; he says that if a person does a job and makes money, he takes care of his boss.

Because of their work, their owners are becoming very rich. While increasing the money, they pity the government and the businessman by paying taxes to the government or buying any goods through a business person. If you do your business, then you take care of yourself. Can you?

You should do these two things to take care of yourself:

Your first step- first of all, you learn to read and make financial statements and make your financial statements so that you can see your active and passive money and expenses; this is the most important habit of wealthy people.

Make your financial goal- The second step is to make your financial goal; set your goal that what you want after five years from today, how much wealth you are going to make, after five years from today, how much money you will start earning monthly, how many businesses will you make? How much loan have you paid off?

Control Your Money

The author says that the financial problem ends with good money, not more money, so you should come to earn more money from your assets and for this, first of all, you consider yourself as the CEO of your life and entertain yourself and life accordingly.

Second is that you remember that your life is also someone’s property, so make more wealth to earn more money.

Here are the steps you should take to control your money:

  1. Create and maintain your financial statement
  2. Find out if you still earn money from any part of which quadrant (ESBI).
  3. And after five years from today, from what part of your income will most of your income come?
  4. Focus on minimizing your loan and maximizing your money.

Take Risk and Learn the Difference Between Work

Investing is not risky, but financial knowledge is risky, so recognize the risk and increase your economic knowledge to handle it.

Learn to handle money:

As we mentioned, money is significant, someone’s life is an asset to someone else, and someone’s help can become a liability to someone else. This is an asset if the rent money is more and you have some extra cash in your pocket. If the expenditure is more than the earnings, it can be a liability. Then, learn to handle the money like this and understand that you are not someone. You can also make a disadvantage an asset.

Understand what Risk means to you:

What does Risk Mean For You? Do you consider it risky to rely on your job-earned money or repay the loan monthly? Do you think the Risk of a property owner paying you monthly? To get financial knowledge?

Do this to know your Risk:

  1. Acquire economic knowledge for 5 hours in 1 week.
  2. Keep watching the financial news and keep all the information about them.
  3.  Go to investment seminars at least two times in 1 year.

Decide What Kind of Investor You Want to Be?

In this chapter, we will talk about three types of investors.

Type A investors focus more on solutions

Type B investors focus more on the problem, focus more on the problem

Type C investors don’t say anything. They say I don’t know

What do all three investors do to be successful?

Type C investors leave the problem and do not even try to learn anything, so they cannot succeed and lose all their money. To be successful, such people get a government job or marry a rich boy or girl.

Type B investors ask questions like, where should I invest in mutual funds, property, or anywhere else? They do some work to be successful.

Type A investors find a problem, solve it, and build a business, and they control their money very well.

Find a Guide

Guides know what is necessary to reach the destination and what is not, so a guide is needed to learn and learn at every step.

Find a mentor who has done something for himself:

Find a mentor who has met your financial goals and is earning how much money you want to achieve and get advice from them as Robert sir took to his rich dad.

Make five good-minded friends:

You become like the five people you spend most of your time with if you hang out with five rich people.

And now, decide if you want to be on the right side of the quadrant, make friends who are on the side, or work hard to get there so that you can learn from each other and help each other.

Take your guide with you:

Just like you keep the emergency number, always keep the contact number of your financial guidance with you so that you can talk to them if you have any financial problems.

The Power of Faith

Confidence is an excellent feeling to achieve anything.

And in the same way, faith also helps us to make rich, but the only condition is that we should know how to start it and earn more money.

Beginning of faith:

Just as we believe in God, you should also believe in yourself. First, you should consider that you can become an excellent businessman and investor and earn maximum money no matter what the world is like. Then, think about whether you can do it or not. It does not mean that one thing is most important; it is only your belief in yourself to make it successful.

Say positive things to yourself:

While talking to ourselves, we should use positive energy and a rich world such always good results come, and to run positively, you have to talk to yourself positively.


So, friends, this is the knowledge to become a successful businessman and investor and become rich. The following points are the important topics from all the issues mentioned in this book:

  1. Poor and middle-class people are self-employed employees, whereas rich people are businessmen or investors.
  2. E and S tell our book knowledge.
  3. S and E people plan to become wealthy at 55 to 60, while B and E people work to become financially independent as soon as possible.

So in this way, we have told a lot of topics and comments about becoming financially correct and rich in this book. I hope you understand and have taught it; to become economically independent and prosperous, adopt them in your life.

Cashflow Quadrant Book Review

One of the key takeaways from “Cashflow Quadrant” is the importance of developing passive income streams and leveraging assets to achieve financial independence. Kiyosaki emphasizes the need to shift from the traditional mindset of working for money to having money work for you, ultimately allowing you to escape the rat race and enjoy a more fulfilling life.

The book is filled with practical advice, real-life examples, and actionable steps that readers can apply to their own financial journey. Kiyosaki’s writing style is clear, concise, and engaging, making complex financial concepts accessible to a wide audience.

“Cashflow Quadrant” is an essential read for anyone looking to take control of their financial future and build lasting wealth. It offers valuable insights and guidance on the path to financial freedom, making it a must-read for those seeking to improve their financial literacy and create a more secure and prosperous life.

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