Rich Dad’s CashFlow Quadrant (Review)

Guide to Financial Freedom by Robert T. Kiyosaki.

Book #4 to financial independence. Find out which quadrant you are currently in.

Are you an employee, small business owner, big business owner, or an investor? If you are an employee or small business owner, you are on the left side of Kiyosaki’s CashFlow Quadrant. If you are a big business owner or an investor, you belong on the right side of the CashFlow Quadrant.

Robert Kiyosaki stresses that in order to reach financial freedom, EVERYONE must be willing and able to get to the right side of the CashFlow Quadrant. Rich Dad’s CashFlow Quadrant gives the steps on how to do so.

  1. Why don’t you get a job?
  2. Different quadrants, different people
  3. Why people choose security over freedom
  4. The 3 kinds of business systems
  5. The 5 levels of investors
  6. You cannot see money with your eyes
  7. Becoming who you are
  8. How do I get rich?
  9. Be the bank, not the banker.
  10. Take baby steps

11-18: The Seven Steps To Finding Your Financial Fast Track


Why don’t you get a job?

Robert Kiyosaki starts off by sharing with you his struggle in the his early days & how he and his wife, Kim, conquer homelessness. Growing up, Robert Kiyosaki had two major influences in his life, his rich dad and his poor dad.

His actual father being a highly educated, poor dad, told Robert to work hard in school, get a good job with benefits, etc.. His rich dad, on the other hand, advised Robert to learn how to make money work for you.

So instead of doing what every other average person does, Robert & Kim Kiyosaki struggled with homelessness while attempting to build his business/fortune. Within 4 years, the duo became rich. However, Robert Kiyosaki goes on to explain it’s not until 9 years later they reach financial freedom.

E = Employee ; S = Small Business ; B = Big Business ; I = Investor

Different quadrants, different people.

Robert Kiyosaki explains that most people are stuck in the left quadrant & is the MAJOR REASON most can not gain financial freedom. However, don’t overlook theses quadrants because Kiyosaki states, “You can earn and lose $ in ALL 4 quadrants.”

He goes on to give another view of the quadrants:

E = You have a job ; S = You own a job

B = You own a system & people work for you ; I = Money works for you

The left quadrant will ALWAYS require effort on our part, while the right quadrant, after set-up, will require minimal effort from us.

Why people choose security over freedom

In this chapter, we dive into the very fabric that has shaped society to what it is today.


The Broke Investor can attest to this. Growing up, The Broke Investor had always been told: “Go to school, get a good job, retire with a 401k and Social Security, etc…

What was never mentioned was how to build a solid cash flow stream in order to not depend on a J.O.B.




As said by Jim Rohn, “Wages make you a living. Profits make you a fortune.”

Robert Kiyosaki illustrates the broke motions that we take while pursuing the road to financial freedom. One example is the job hopper. Some go to job to job in search for that “perfect” position. The reality is you already have the perfect position, it’s you.


The 3 kinds of business systems

Robert Kiyosaki explains there are 3 main types of business systems commonly used today:

  1. Traditional C Corporations: Develop your own system
  2. Franchises: Buy an existing system
  3. Network Marketing: Where you buy into & become part of an existing system

*If operated properly, each system will provide a steady steam of income without much physical effort on the part of the owner once it’s up and running.

Robert passes on what his rich dad told him, which every broke investor should hear, “You may lose 2 or 3 companies before you build a successful one that lasts.”

In order to get to the B quadrant, you can:

  1. Find a mentor
  2. Buy a franchise
  3. Get involved in network marketing

Robert Kiyosaki also lays out 2 essentials to become successful:

  1. Learn to overcome fear of rejection and stop worrying about what other people say and think about you.
  2. You must learn to lead people.

The 5 levels of investors

In this chapter, Robert Kiyosaki starts off with the 5 things that happen to people who do not invest, or who invest poorly:

  1. They work hard all their lives.
  2. They worry about $ all their lives.
  3. They depend on others, such as family, a company pension, or the government, to take care of them.
  4. The boundaries of their lives are defined by $.
  5. They will not know what true freedom is.

*You will never know true freedom until you achieve financial freedom.

Kiyosaki goes on to describe the 5 different levels of investors:

Level 1: The Zero-Financial-Intelligience level –> They have nothing to invest

Level 2: The Savers-Are-Losers level –> Savers are the biggest losers

Level 3: The I’m -Too-Busy level –> Turn money over to an “expert”

Level 4: The I’m-a-Professional level –> The Do-It-Yourself investor in S quadrant

Level 5: The Capitalist level –> Business owner from the B quadrant investing in the I quadrant.

You cannot see money with your eyes

“Money is seen with your mind.”

Be aware of what you “can’t” see.

Ex: A piece of real estate is a piece of real estate. However, what goes with it is the deal, financial agreement, the market, the management, the risk factors, the cash flow, the corporate structuring, the tax laws, & a thousand other things that make something a good investment or not.

Rich dad explains how your house is really a liability and NOT an asset as others may want you to believe. It may be an asset on the Bank’s balance sheet, but on YOUR balance sheet it’s a liability.

To be honest, The Broke Investor has heard several things rich dad tells Robert Kiyosaki, but this one phrase has really shined a light on things:

The name of the Game of Capitalism is: “Who is indebted to whom?”

If you had to chose which side to be on, would you be on the right side or the left side of the CashFlow Quadrant?


Becoming who you are

Rich dad’s advice, “Keep striving and you’ll become somebody. Quit and you’ll also become somebody, but not the same person.”

Past conditioning is what has molded everyone to what they are today. Rich dad goes on to state that, “Money is a drug.”

If someone is conditioned to earn $ as an E, it is very hard to break that “addiction” in order to start earning $ as a B or an I.

Kiyosaki stresses that internally, someone trying to move from E to B will struggle between who they currently are and who they want to become.

A MAJOR detour from making the switch is forgetting why you set out to become a different you.

Without enough reasons, any broke investor will stay broke. It is up to ourselves to say, “I have had it! I don’t want to be broke anymore!”

How do I get rich?

Be, Do, Have…

In short, figure out what you want to HAVE, list what you have to DO in order to get it and become the person you want to BE.

A great example that Kiyosaki shares is the countless people that want to have a “perfect” body. They go on a diet, go to the gym for 2 hrs straight, etc. Usually, this lasts for a couple of weeks and the same person goes back to eating fries and pizza.

“It’s not the diet that counts. It’s who you have to BE to follow the diet that counts.”

Kiyosaki goes on to explain that the CashFlow Quadrant is not so much about doing, but about being. It is how you think and who you are at the core that will determine which quadrant you land on.

For E, security is the issue. For S, perfectionism is the issue.

In essence, human beings are emotional beings first, and logical beings second. Even if something doesn’t make logical sense to do, our emotions can push us into doing those things. Let’s learn how to control our emotions.

Be the bank, not the banker.

Robert Kiyosaki points out the 3 things that deter E & S:

  1. They panic
  2. Lack technical skills required to be a B & I
  3. They lack a cash machine.

If any broke investor wants to have the same results as the successful, we need to study the habits of the successful.

Rich dad informs Kiyosaki to read books on the great leaders of capitalism:

  • John D. Rockefeller
  • J.P. Morgan
  • Henry Ford

He also mentions to read:

  • The Worldly Philosophers
  • The Wealth of Nations
  • The Creature of Jekyll Island
  • Unlimited Wealth
  • The Sovereign Individual
  • The Great Depression ahead

Rich dad, again, gives another priceless gem, “Build businesses and buy real estate.”

Robert Kiyosaki goes on to show how he was able to obtain 57 acres of land for FREE and an additional 15k in cash. Kiyosaki drives the point that we need to learn how to get paid for what we want.


Are you committed to financial independence? 

If you are, The Broke Investor begs every broke investor to go and get a copy of Rich Dad’s CashFlow Quadrant. As mentioned, reviews are fine to get a glimpse of the goldmine. In order to dig and strike riches, you must bury yourself in the wealth of knowledge that the successful leave behind.

The last section of the book includes the 7 steps to finding your financial fast track in order to become a successful B and I.

As mentioned previously, if you want to get the book for FREE, signup for GiveGetBooks beta.

The Broke Investor hopes everyone enjoyed this review. 🙂

As always, 
Keep growing, keep investing.

4 thoughts on “Rich Dad’s CashFlow Quadrant (Review)

  1. This is the best book review article on Robert’s book CASHFLOW QUADRANT I have ever seen.

    You must be a fan of Robert’s books.

    I am a big fan of Robert’s books and do believe the things he teaches in the CASHFLOW QUADRANT are a real guide to financial freedom.
    I was so inspired by his books I decided to become a Residual Income Teacher myself.

    I believe that everyone should be introduced to residual income and be taught how to build a life time residual income. I have took on that mission as my life mission.

    Great article and thanks for writing it and sharing the messages of Robert Kiyosaki.


    • Hey there Mark, thanks for the feedback. Really glad you enjoyed it. The way CASHFLOW Quadrant illustrates the “moves” needed to take gain financial independence can help anyone capture the vision that is needed to get there.

      Great to hear you’re well on your way to financial freedom as well. Really enjoyed your 5+5+5 training program guide. Online, everyone does have the opportunity to achieve a life time monthly residual income.

      The Broke Investor is in the process of providing an opportunity for others to participate in growing their monthly residual income, as well. Stay tuned, especially if you’re a book reader. 🙂

      Liked by 1 person

      • Right now I am reading more blogs than books, I got a few more Robert Kiyosaki books sitting here I haven’t read yet.

        I don’t really need another opportunity, I’m teaching The Income For Life program online and offline. I don’t ever get involved with anything that involves buying or selling physical products, they just cause more of a hassle in my opinion.

        Anyway, have a great day.

        Liked by 1 person

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