Why high salary won't make you rich?
How to overcome the fear of failure?
How to build the right strategy financial success?

"Cash Flow Quadrant". Robert Kiyosaki. Important ideas in 7 minutes

The Cash Flow Quadrant allows you to see where a person gets their money from.

There are four groups of people:

R - Working
C – Self-employed
B – Businessmen
I – Investors

If the income of the first two categories of people depends on their labor, then the rich life of the second is ensured by the profit from their business and investments.

Advice from poor dad: “Go to school, study hard and get good job" - certainly leads to groups R and S.

Advice from rich dad: “Study, get an education, build a business and become a successful investor” - the right way to B and I.

Seven simple steps will allow you to go this route as quickly as possible.

Step 1. It's time to start your own business.

“We are taught to care about other people’s business and neglect our own”

By making daily efforts at work, taking out a loan from the bank, even just shopping at the store, we provide financial prosperity to other people at the expense of ourselves.

And being in the role of an employee, we make our boss richer, not ourselves.

If you want financial prosperity, you need to invest in your business. To do this, you need to do a few simple things.

First, start preparing financial statements, listing all your income and expenses.

Second, set one-year and five-year financial goals. Goals should be ambitious, but at the same time achievable. For example, an excellent goal for the year would be to get rid of all debt and increase the cash flow from your assets by a certain amount per month.

Magnification is also great passive income, that is, the income you receive without working.

Step 2: Take control of your cash flow.

“People who can't control their cash flow work for people who can.”

A high salary does not guarantee a rich life. By increasing their income, most also increase their expenses. Debts increase, and you have to work even harder.

But every expense we make turns into someone else's income. Taking out a loan is a good way to let the bank make money.

You can achieve success by transforming own expenses in income. There are a few simple rules for this.

First, “Pay yourself first.”

Whenever you receive any income, try to save a certain percentage in a bank account. Save until you are absolutely sure that the accumulated amount will become a profitable investment.

Secondly, try to pay off any debts and not create new ones. If you take out a loan, make sure others pay for it.

For example, you can only take out a mortgage on real estate that is easy to rent out.

Step 3. Risk risk discord.

“Being in business and investing is not as risky as being uneducated.”

Most people consider investing a risk. But people are afraid to invest not because it is risky, but because of a lack of financial literacy.

Don't believe me?

Answer a simple question. Which is the greater risk: relying only on salary or spending time on training? different types investing?

Of course, living on one salary is dangerous.
Gaining knowledge is easy.

Read financial news, study thematic sites and videos. Sign up for a special seminar and improve your financial literacy.

Step 4. Decide what type of investor you want to be.

“Start small and learn to solve problems”

Investors are divided into three types:

Type B investors are looking for an "expert" to tell them what to do. In this case, the chances of becoming rich are the same as winning the lottery.
Type B investors are looking for answers and turn to many advisors at once. In this case, listen only to those who actually make money from what they talk about, and run away from those who only make money from their advice.
Type A investors look for problems. These are usually investors with finances and skills. They buy something problematic, solve it, and make a profit of 25% to infinity.

To become an investor, you don't need to have a lot of money. You need to start moving down this path as quickly as possible and invest in yourself.

Change your thinking and learn how to do business: meet with several brokers, investors, entrepreneurs.

Take courses and seminars. Attend conferences and trade shows.

Take action!

Step 5: Seek mentors.

“A mentor is someone who tells you what is important and what is not”

It can be difficult to make sense of the abundance of information. For this you need a good mentor.
If you want to achieve a goal, talk to a person who has already achieved it. “Look for role models. Learn from them." After all, if we want to get somewhere and are in an unfamiliar place, it’s easier to ask people who will tell us.

But, on the other hand: “Look for examples that should not be imitated. Learn from their example too.”

Step 6: Make disappointment your strength.

“In every disappointment lies a priceless pearl of wisdom.”

Disappointments in life are extremely common, but it is an important part of the learning process: “Only fools expect things to go the way they want.”

You can overcome fear by learning to tell yourself the truth and be forgiving. Don't try to blame circumstances for failure.

So that the pain from a mistake is not great, always start small: don’t bet on a car or an apartment, try to invest a little money in something familiar and watch.

Step 7. The power of faith.

“Only you determine what thoughts about yourself you should believe.”

Believing yourself is difficult. We are used to relying on other people's opinions about us. Often what prevents us from becoming richer is lack of confidence in our own abilities. “There are very beautiful people who consider themselves ugly, and there are those who are very loved by others, but they do not love themselves.”

You need to feel ready to live with opinions about yourself and critical assessments. Be honest with yourself.
This will allow you to develop the necessary qualities and boldly face your fears and doubts.

Bottom line. Main idea.

On the path to wealth, do not forget simple truths.

It is not enough to increase your income, because it also leads to an increase in expenses.
You shouldn't accumulate debts.
There is no need to stand still.
There is no need to come up with anything complicated.
You need to start the path to your own business or investment as quickly as possible.

“Your boss only cares about giving you work. You must make yourself rich."

There are many theories that describe the nature financial flows and how individuals can influence the redistribution of funds from the global source of wealth in their favor. One of these theories is distinguished by maximum simplicity of perception and clarity of concepts - this is the work Roberta Kiyosaki , describing the model "Cash Flow Quadrant" .

The theory quite clearly formulates what place each person occupies in redistribution financial flows , and also explains how you need to direct your actions in order to find yourself in the most favorable conditions, not as an instrument for generating the flow of money, but as the one who generates this flow.

So, theory financial independence Kiyosaki is based on a basic model, graphically expressed as a square divided into four segments. Each of the segments reflects current situation person in the world of finance in accordance with certain characteristics.

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Four sides of the money quadrant

First segment (top left square)- this is the place of the “Employee”, that is, a person who works for hire and who is forced to exchange his own time for money, doing work for his employer. The position of an employee has its positive and negative sides.

So, an employee receives a stable salary and knows that next month he will receive a certain amount of money, which will be enough for him to meet certain needs. Additionally, some "employees" are those who have a career or are employees highly qualified, they get very good money.

On the other hand, the position of an “employee” also has a negative side - all the benefits available to the hired worker disappear as soon as he stops doing his job (for various reasons). That is, I stopped exchanging time and effort for money.

Second segment (lower left square)– this is the place of “Free Artists”; this category of people includes small entrepreneurs, people of creative professions or professionals in any industry. The main feature is that such people are able not only to do their job well, but also to independently organize their employment and independently sell their own efforts.

In other words, the exchange of time for money occurs without the mediation of the employer. “Freelance artists” have to work less time for more compensation, that is, financial flows distributed to their greater advantage.

Third segment (upper right square)– the place of “Businessmen”, the main characteristic of people classified in this category is the ability to organize a business process and create jobs for those who will do work for money. Businessmen usually receive more money than representatives of the two categories described, and can also devote less time to work. Thus, for "Businessmen" cash flows distributed more efficiently.

Fourth segment (lower right square) occupied by "Investors", distribution cash flows for this category of people has one main feature– Investors don’t just spend the funds they have and personal time resources, they invest every minute or penny so that they make a profit. These could be bankers, financiers who provide businessmen with loans for doing business, or traders who work with various financial instruments, including binary options.

The balance between security and freedom

Kiyosaki Cash Flow Quadrant is divided not only into four segments, but also into two halves. One half (left) gravitates towards security, the other towards freedom, these are opposite fundamentals. While employees and entrepreneurs (the left half of the money quadrant) are relatively safe, being insured by a monthly salary or a guaranteed small income, businessmen and investors do not have such insurance.

Representatives of the right half cash flow quadrant can only count on efficient turnover of invested funds. But the lower degree of security is compensated by the freedom to choose points of application of effort and, ultimately, by a greater income than is implied by the “safe” existence of representatives of the right half money quadrant .

In other words, than more freedom a person has, the further he moves away from the meager income of a secure existence and the more efficiently the world's financial flows in his favor. And the more insured a person is, the more tied he is to his occupation, the less time and opportunity he has to increase his income.

Principles of conduct

Having reached a certain financial state, investors can afford to do what they love, devoting a couple of hours a day to planning their own investments. Thus, working with binary options for four hours a day can bring five times more income than the activity of a businessman who works seven hours a day and twenty times more wages, which is received by an “employee” who works 8–10 hours a day.

How does the behavior of people who belong to different backgrounds differ? Segments of Robert Kiyosaki's Money Quadrant ? After all, it is the difference between the perception of current situations and the actions taken that determines a person’s belonging to one of the segments. By changing his own attitude towards situations, a person is quite capable of changing his position and place in the distribution financial flows.

Employee's place

So, the employee does his usual job day after day, receiving a modest income and slowly moving forward. career ladder. At the same time, representatives of this category are chronically short of money - they are forced to pay loans and provide for the ever-increasing needs of their family, having only a limited amount of funds. The more he earns, the more he is forced to spend.

In order to break out of this circle, the employee must make attempts to independently organize his work. To do this, you need two things - to become a truly sought-after specialist in your field and to learn how to independently offer your work. Thus, a representative of the “Employee” segment can move to another quality level distribution cash flows and become a “Freelance Artist”.

Free artist's place

The free artist is in a better position than the "Employee", but this position continues to be advantageous only if the representative of this Segment of Kiyosaki Cash Flow Quadrant will work every day. In case of stopping for any reason cash flow that fed him will cease.

Despite his more advantageous position than the "employee", the artist rarely manages to accumulate sufficient funds to allow him to stop working. To make a redistribution cash flows more profitable for themselves, the “Free Artist” needs to move to the next level and become a representative of the “Businessman” segment. To do this, you need to learn how to organize the work of other people and sell the efforts of others in the same way as he learned to sell his services in his time.

Businessman's place

What are the differences in businessman behavior? Representatives of this money quadrant segment are working towards organizing their own business, and this no longer applies to organizing and selling their own efforts, as is the case with “ freelance artist», we're talking about about a business model that will generate income with minimal participation. The businessman is already in the other half of the quadrant, the place of his segment is in the half that gravitates towards freedom. He doesn't have to go to work every day or waste time unproductively trying to keep his small business afloat.

A businessman creates jobs where “employees” and “freelance artists” actually work, and also enters into contracts, rents space, and purchases equipment. After the business has already been established, the businessman takes only indirect participation in the process; the main efforts are aimed at strategic development and consolidation of the business.

Representatives of the “Businessman” category have a much higher income; we can say that they have already gained financial independence , however, all their time is occupied by organizational issues, but, with successful development business, some representatives of this segment may leave their jobs closer to old age. Distribution financial flows for this segment extremely favorable, but the next segment, “Investors,” occupy a more advantageous position.

Investor's place

An investor is not just a person who has significant funds and invests them in various enterprises, having a percentage, he differs from representatives of others quadrant segments by Robert Kiyosaki the fact that he does not invest his own efforts, unless one considers the work of the intellect, and also does not sell his time.

The investor prefers to work with investments, he determines what type of business brings the greatest profit and participates in the development of the business with his own funds. He should not worry about finding partners, counterparties to transactions, he does not worry about the supply of raw materials or equipment breakdowns. The investor gives his money to the businessman, who makes sure that the funds work most efficiently.

Therefore, the investor has a significant amount of free time, which he can devote to those aspects of his life that are most important to him. The issue of wealth does not bother him, since he receives a sufficient percentage of his investments. There are a number of investors who prefer a more “clean” type of business; they do not work with business representatives at all, operating only with monetary obligations - securities, or concluding contracts on the foreign exchange market, working with binary options. Distribution of Myrrhaceae cash flows for the investor it happens as efficiently as possible.

Principles for growing wealth

It is worth noting that the presented procedure for improving well-being and achieving financial independence for representatives of various segments Kiyosaki's money quadrant doesn't have to happen linearly. So, for example, an “employee” does not have to first become a “free artist”, and only then a “businessman”. The order, in fact, can be arbitrary; no one is stopping an “employee” from immediately mastering the science of organizing jobs for other people and becoming a “businessman” or getting an idea of how money works and becoming an “investor.”

The procedure presented in this article is determined by one important component - the availability of capital. In its absence, not everyone will be able to organize a business, much less work with investments. The smooth growth of wealth, the transition from one segment to the next allows you to accumulate experience, and with it a sufficient amount of money.

The Investor's Path

However, it all depends on the level of self-esteem own abilities, and there are real-life examples of human well-being improving at astonishing rates. One way to speed up the described process, which may take most of life is working with binary options.

This is one of the methods of investment activity, and this method is attractive because it does not require significant investments on the way to financial independence . Binary options are a type of contract in financial markets, which is based on the value of real assets - currencies, shares, stock indices, commodity items traded on the exchange.

The amount of money when working regularly with binary options can increase at a decent speed, thanks to the method of progressive investment, that is, not only the available funds are invested in subsequent transactions, but also the profit received as a result of previous operations.

Thus, the investor can quickly collect a significant amount on hand, allowing him to make large-scale investments, the income from which will provide all the needs with a limited number of transactions. Investment activity can be started with a small amount, and as experience is gained, it is possible to enter into contracts for larger amounts, since money is accumulated in parallel.

Using the proposed method to become an investor and gain financial independence can a representative of any 5 / 1

Cash Flow Quadrant

Robert Toru Kiyosaki

Rich dad

The book is written for people who are ready to make profound professional and financial changes in their lives in order to step out of the industrial era into the information era.

For wide range readers.

Robert Kiyosaki

Cash Flow Quadrant

Translation from English was carried out by O. G. Belosheev according to the publication: RICH DAD’S Cashflow quadrant (Guide to Financial Freedom) by Robert T. Kiyosaki, 2011.

My rich dad used to say, “You can never be truly free without financial freedom.”

And he also said: “But freedom also has its price.”

This book is dedicated to those who are willing to pay this price.

Editor's note

Times are changing

Since the first edition of Rich Dad Poor Dad was published in 1997, there have been many changes in the economy, and investing in particular. Fourteen years ago, Robert Kiyosaki's words “your home is not your asset” challenged conventional wisdom. His views on monetary relations and investing have caused a wave of skepticism, criticism and indignation.

In 2002, Robert's book, Rich Dad's Prophecy, warned us to prepare for an imminent financial market crash. In 2006, deep concern about the deteriorating plight of America's middle class led Robert Kiyosaki to co-author with Donald Trump the book Why We Want You to Be Rich.

Robert is known around the world as a passionate advocate for financial education. Today, as we face the fallout from the collapse of the subprime mortgage system, record levels of foreclosures, and a global economic crisis that still rages, Kiyosaki's prophetic statements appear to be coming true. Many skeptics turn into believers.

When Robert was preparing his book “The Cash Flow Quadrant” for a new edition in 2011, he realized two important things: his ideas and concepts have stood the test of time, and the investment environment and conditions for investors have changed significantly. These changes, which have and will continue to have a major impact on people in the I quadrant (investors), prompted Robert to update and revise an important section of this book, the chapter “The Five Levels of Investors.”

Acknowledgments

Thanks to the phenomenal success of Rich Dad Poor Dad, we have made thousands of new friends all over the world. Their kind words and friendship—as well as amazing stories that exemplify the persistence, passion, and success of applying rich dad's principles to your life—inspired us to write The Cashflow Quadrant: Rich Dad's Guide to Achieving Financial Freedom. We therefore thank our friends, both old and new, for their enthusiastic support, which has exceeded all our expectations.

Preface

What is your life's purpose?

“What do you want to be when you grow up?” - This question has been asked to most of us at one time or another.

As a child, I had many hobbies, so it was easy to choose. If something seemed interesting and prestigious, I wanted to do it. I dreamed of becoming a marine biologist, astronaut, marine, sailor merchant fleet, a pilot and professional American football player.

I managed to achieve three goals from this list - to become a marine officer, a sailor and a pilot.

I knew for sure that I didn’t want to be a teacher, a writer, or an accountant. Pedagogical work did not attract me because I did not like school. I also had no desire to become a writer, because I failed the exam twice English language. I didn’t spend two years getting an MBA for the simple reason that I hated accounting, which was a required subject in the program.

Now, ironically, I'm doing all the things I never wanted to do. Even though I didn't like school, I own an education company and train people in different countries peace because I like it. Although my inability to write English was the cause of two exam failures in my time, today I am best known as an author. My book, Rich Dad Poor Dad, spent more than seven years on the New York Times bestseller list and is the third best-selling book in the United States. Only “The Joy of Sex” and “The Road Less Traveled” stand above it. On top of that, the book "Rich Dad Poor Dad" and the series of board games I created, "Cash Flow", are dedicated to this very thing. accounting, which I could not tolerate for so long.

But how does all this relate to the question “What is your purpose in life?”

The answer is contained in a simple but extremely profound thought by the Vietnamese Zen Buddhist master Thich Nhat Hanh: “The path is the goal in itself.” In other words, your purpose in life is to find your path in life. However, the concept of a path cannot be identified with your profession, title, amount of money received, successes and failures.

Finding your path means finding out what you were put on this earth to do. What is the purpose of your life? Why have you received this great gift called life? And what gift are you giving to life in return?

Looking back, I realize that the education I received did nothing to help me find my path in life. For four years I studied at the naval school to become a merchant navy officer. If I had chosen a career at Standard Oil and served on oil tankers until retirement, I would not have found my path. If I had stayed in the Marine Corps or transferred to civilian aviation, I would not have found my way either.

If I had stayed in the Navy or Air Force, I would never have become a world-famous best-selling author, been invited to appear on Oprah Winfrey's television program, co-authored a book with Donald Trump, or created an international educational company that trains entrepreneurs and entrepreneurs. investors around the world.

How to find your way

The book "Cash Flow Quadrant" occupies important place among all the books I have written, because it helps people find their way in life. As you know, most people at the very beginning of life receive a standard instruction: “Go to school and get a good job.” But the education system teaches us to find jobs in the E or S quadrants. It does not teach us how to find our way in life.

There are people who from an early age know exactly what they will do in the future. They grow up confident that they will become doctors, lawyers, musicians, golfers or actors. We've all heard of child prodigies - children with exceptional abilities. However, it should be noted that these gifts are manifested mainly in professional field and at all

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do not necessarily define life path person.

So how do you still find your path in life?

My answer is: “If only I knew!” If I could wave a magic wand and use magic to show you your path, I would.

But since I don't have magic wand and I cannot tell you what you need to do, I can only tell you what I did myself. I just trusted my intuition, my heart and my inner voice. For example, in 1973, after returning from the war, when my poor dad began to persuade me to study further, get a master's degree and work in government structure, my brain went numb, my heart sank, and my inner voice said: “No way!”

When he advised me to go back to work for Standard Oil or get a job in civil aviation, my brain, heart and inner voice again said no. I knew that work at sea and in the sky was over forever, despite the fact that these professions were considered prestigious and well paid.

In 1973, I was 26 years old, and all paths were open to me. I did much of what my father advised me to do, graduated from high school, earned a college degree, and became a dual-career merchant marine officer and helicopter pilot. But the problem was that these professions were just childhood dreams.

At 26, I was already old enough to understand that education is a process. For example, when I wanted to become a sailor, I went to a school where they trained merchant navy officers. And when I wanted to become a pilot, I went to the Navy flight school, where in two years guys who couldn’t fly were turned into pilots. Therefore, before starting a new learning process, I had to know what I was going to become.

Traditional educational institutions have served me well. I acquired two professions that I dreamed of as a child. But, as an adult, he found himself in an extremely difficult situation, because there were no signs anywhere that said “The Right Path.” I knew what I didn't want to do, but I didn't know what I wanted to do.

Everything would be simple if I just wanted to get some new profession. If I wanted to become a doctor, I could go to medical school. If I wanted to be a lawyer, I would go to law school. But I knew that life could give me much more than the opportunity to go to another school in order to obtain a document giving the right to engage in another type of professional activity.

I didn’t realize it before, but at 26 years old it was time to start looking for my path in life, and not just another profession.

Miscellaneous education

IN last year During my career as a Marine Corps pilot, when we were based in Hawaii, near my hometown, I already knew that I wanted to follow in the footsteps of my friend Mike's rich dad. Shortly before leaving the Marine Corps, I began taking classes for aspiring real estate salespeople and business people on the weekends to gain the knowledge needed to become an entrepreneur in the B and I quadrants.

Also, on the advice of a friend, I signed up for a personal development course in hopes of finding out what I was really like. Personal development courses did not fit into the framework of traditional education, because I did not take them for the sake of a diploma or a license. Unlike the real estate courses, I had no idea what exactly I would be taught. All I knew was that it was time to take courses that would help me understand myself.

During the first lesson, the instructor drew the following diagram in her notebook:

Then she said, "To reach highest level development, a person needs physical, mental, emotional and spiritual education.”

Listening to her explanation, I realized that main goal Traditional educational institutions focused on the mental, or intellectual, development of students. This is why many who did well in school struggle in school. real life, especially in the world of money.

After a few more lectures on the same day off, I understood why I didn’t like school. It became clear to me that I loved learning, but hated the education system.

Traditional teaching was a great environment for high achievers, but not for me. She depressed my spirit by trying to motivate me through fear: fear of making mistakes, failing, and not getting the job. This system tried to program me to choose a career as an employee in the E or S quadrants. I realized that the traditional education system is not the place for a person who wants to become an entrepreneur and join the representatives of the B and I quadrants.

Author's note. Perhaps this is why many outstanding entrepreneurs did not finish school or dropped out of university. Among them are General Electric founder Thomas Edison, Ford Motor founder Henry Ford, Apple founder Steve Jobs, Microsoft founder Bill Gates, Disneyland founder Walt Disney and Facebook founder Mark Zuckerberg.

After the instructor described in detail the features of these four types of personal development, I realized that I had spent most of my life in very harsh conditions educational environment. After four years in an all-male naval school and five years in the Marine Corps, I was very strong emotionally and physically, but my development was one-sided. The aggressive masculine principle predominated in him. I lacked feminine energy and softness. And this is not surprising, because they made me into a Marine officer, able to maintain emotional calm under any pressure, capable of killing and ready to die for his country.

If you've seen the movie Top Gun with Tom Cruise leading role, then you had the opportunity to get some idea about it men's world and the courage of military pilots. I liked this world. I felt good in it. This was the world of modern knights and warriors. There was no room for whiners.

The course program ended with a workshop during which I delved into the depths of my emotions and touched lightly with my spirit. I cried like a child because I had something to cry about. I have done and seen things that no one should ever do. Bursting with tears, I hugged a man, something I had never allowed myself to do before, not even with my own father.

That Sunday evening I was very sorry that the personal development courses were over. The atmosphere of tenderness, love and frankness reigned at the seminar. On Monday morning I was once again surrounded by young, selfish pilots trained to fly, kill and die for their country.

After this workshop, I realized it was time to change. I knew that developing kindness, gentleness and compassion would be incredibly difficult for me. To do this, it was necessary to cross out everything that I had been taught for many years at the naval school and flight school.

I never went back to traditional system education. I had no desire to study for grades, degrees, promotions, or licenses.

If I signed up

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took courses or attended seminars, I did it only to become better. I was never interested in grades, diplomas, or certificates anymore. vocational training.

But my father was a teacher, and for teachers there is nothing more important than grades in school, studying in college and postgraduate education. Academic degrees and diplomas from prestigious universities are the same badges of honor for them as the medals and medal bars on the chests of Marine Corps pilots. For people who haven't graduated high school, these intellectuals look down on them as if they were a lower caste. Masters look down on bachelors and revere PhDs. At 26 years old, I already knew that I would never return to this world.

Editor's note. In 2009, the prestigious University of Saint Ignatius de Loyola in Lima awarded Robert an honorary Doctor of Philosophy degree in Entrepreneurship. This rare award is mainly given to political figures, e.g. former president Spain.

How I found my way

I know some of you are now asking, “Why does he spend so much time talking about non-traditional education courses?”

The thing is that that first seminar on personal development reignited my love for learning - just not the kind that is forced on us in schools. After completing the seminar, I had an uncontrollable craving for this form of training, which forced me to attend seminars at the most different topics, to satisfy my desire to learn more about the connections between my body, mind, emotions and spirit.

The more I studied, the more curious I became about the traditional education system. I started asking questions like:

Why do so many kids hate school?

Why do so few children love school?

Why so many highly educated people not succeeding in the real world?

Do schools prepare people for life in the real world?

Why do I hate school but love studying?

Why do most school teachers live in poverty?

Why do schools teach us very little about money?

These questions led me to become committed to learning outside the confines of the education system. The more I studied, the more I understood why I didn't like school and why institutions failed to benefit their students, even high-achieving students.

When curiosity touched my spirit, I became an entrepreneur and educator. If it weren't for it, I would never have become the author of books and creator of games that develop financial intelligence. Spiritual education led me to my life's path.

It seems that our paths in life should be found not in the head, but in the heart.

This does not mean that a person cannot find his way through traditional education. I'm sure many people do just that. I just want to say that it is unlikely that I myself would have been able to find my way in a traditional school.

Why is the path so important?

We all know people who make a lot of money, but we hate their jobs. But at the same time, we know people who don’t make much money, and we also hate their jobs. In addition, we know those who simply work for money.

One of my classmates nautical school The merchant marine also realized that he did not want to spend his whole life at sea. Instead of sailing the oceans for the rest of his life, he went to law school after graduating and spent another three years becoming a lawyer and going into private practice in the S quadrant.

He died in his early sixties, a very successful but unhappy lawyer. Just like me, by the age of 26 this man had mastered two professions. Despite his hatred of the legal profession, he continued to practice it because he had a wife, children, a mortgage and bills to pay.

A year before his death, we saw each other at a high school reunion in New York.

“All I do is clean up the dirt that rich people like you leave behind.” They pay me a pittance. “I hate those I work for,” said my former classmate.

– Why don’t you do something else? – I asked.

– I can’t afford to quit my job. My eldest daughter is going to college.

This man died of a heart attack before she could finish her studies.

Thanks to his professional training, he earned a lot of money, but he was in the grip of violent emotions. His spirit died and his body soon followed.

I understand that this is an exceptional case. Most people don't hate their jobs as much as my friend did. Nevertheless, this example accurately characterizes the problem that arises when a person falls into the trap of a profession and cannot find his way.

In my opinion, this is a direct consequence of the shortcomings of the traditional education system. Millions of people leave educational institutions to work for the rest of their lives in jobs that they do not like. They know that something is missing in their life. Additionally, millions of people are falling into financial traps. They earn too little to survive and want to earn more, but don't know how.

Without a clear understanding of the other quadrants, many people return to school to pursue a new career or a higher salary in the E or S quadrants, rather than learning about life in the B and I quadrants.

The reason I became a teacher

The main reason that made me become a teacher in the B quadrant was the desire to give people the opportunity to receive financial education. I wanted to make this education available to everyone who wants to learn, no matter how much money they have or what their GPA is. That's why my company Rich Dad's first product was the Cash Flow game. She can teach people in countries where I can never reach. The main advantage of this game is that it forces some people to teach others. Such training does not require either highly paid teachers or classrooms. The Cash Flow game has been translated into sixteen languages and is available to millions of people around the world.

Today, the Rich Dad company offers financial education courses and the services of experienced coaches and mentors for individual training. Our programs are especially useful for those who wish to gain the knowledge necessary to move from the E and S quadrants to the B and I quadrants.

Of course, it cannot be guaranteed that all these people will be able to move to the B and I quadrants, but, in any case, they will know how to move there if they have such a desire.

Change is not easy

For me personally, changing quadrants was far from an easy task. This process required intense mental effort, but I had to expend even more effort emotionally and spiritual change. I grew up in a family of highly educated employees in the E quadrant, and I was ingrained in my mind with the inherent value of education, job security, benefits, and a government pension. Values in many ways

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My parents made it difficult for me to move into the B and I quadrants. I needed to push aside all their prejudices, concerns, and criticisms about my desire to become an entrepreneur and investor. Among the values I had to give up were the following:

"You must have a regular job."

"You're risking too much."

“What if it doesn’t work out for you?”

“Become a doctor. They make a lot of money."

"All rich people are greedy."

“Why is money so important to you?”

"Money won't make you happy."

“You just have to live below your means.”

“Play for sure. Don't chase your dreams."

Diet and exercise

I mentioned emotional and spiritual development because without it, life changes will not be sustainable. For example, if you simply tell an overweight person: “Eat less and move more,” this is unlikely to help him. He may understand that diet and exercise will benefit him, but most overweight people do not eat a lot because they are hungry. They eat to fill the void in their emotions and their soul. When starting a weight loss program based on diet and exercise, people only work on their mind and body. But without emotional and spiritual development, a person can go on a diet for six months and lose as many kilograms as he wants, and subsequently gain even more excess weight.

The same thing happens when changing quadrants. A simple statement: “I'm going to become a B quadrant entrepreneur” is as useless as a chain smoker's promise: “Tomorrow I'm going to quit smoking.” Smoking is a physical addiction born of emotional and spiritual difficulties. Without emotional and spiritual support, a smoker will never get rid of this bad habit. The situation is exactly the same with alcoholics, sexaholics and chronic shopaholics. Most addictions result from unsuccessful attempts people to find happiness in their souls.

That's why my company offers not only courses to develop your mind and body, but also experienced coaches and mentors who specialize in supporting emotional and spiritual change.

Few people can walk this path on their own, and I could never have done it without a mentor like rich dad and the support of my wife, Kim. It's hard to count how many times I wanted to give up and retreat. If it weren't for Kim and my friend Mike's father, I definitely would have given up on this idea.

Why Achievers Fail

Looking at the diagram again, we can see why students who get excellent grades in school fail in the world of money.

A person may have a higher mental education, but if he has not received an emotional education, then the feeling of fear will prevent his body from doing what it is supposed to do. This is why many of those who excelled in school fall victim to what is known as “analysis paralysis,” where they study the problem in front of them in great detail but cannot make a decision.

This “analysis paralysis” is a result of the traditional education system's way of punishing students for making mistakes. The fact is that children become excellent students simply because they make fewer mistakes. Main problem with this emotional disorder is that in the real world, the people who are proactive make the most mistakes and learn from them the lessons they need to become winners in the game of life.

Let's look at President Clinton and Bush Jr. Clinton could not admit that he had sex with an intern, and Bush could not remember any mistakes he made during his presidency. To err is human, but lying about mistakes is considered perjury and is subject to criminal penalties.

When critics accused Thomas Edison of making 1,014 mistakes before he created the light bulb, this great inventor said: “I didn’t make a mistake 1014 times, but I found something that didn’t work 1014 times.”

In other words, too many people fail to succeed simply because they are unable to endure enough failure. By allowing fear to stop them from moving towards their goal, they cling to stable work, in part because they lack emotional education.

One of the great things about military schools and the Marine Corps is that these organizations spend a lot of time on spiritual, emotional, mental and physical development young men and women. With all the rigidity of such a training system, it must be recognized that it provides the comprehensive development of the individual necessary to perform the hardest work.

I created the Cash Flow game to make the learning process comprehensive. The game is a more effective teaching tool than books and lectures because it simultaneously engages the player's body, mind, emotions and spirit.

The purpose of this game is to provide players with the opportunity to make as many more errors risking toy money and then learning from your mistakes. I consider this way of mastering money handling skills to be the most humane.

The path itself is a goal

Today, there are thousands of clubs for fans of the Cash Flow game all over the world. Among the multitude important functions What they do is that they serve as shelters from storms, resting points on the long road of life. By joining one of the clubs for the Cash Flow business game, you will meet people like you who are actually changing themselves and their destiny, and not just ranting about the need for change.

Unlike traditional educational institutions, there is no need to show evidence of past academic achievements. All you need is a sincere desire to learn and make changes. During the game, you will make many mistakes in different financial situations, so that you can later learn from them without risking anything except toy money.

Clubs for fans of the Cash Flow game are not of interest to those who are looking for ways to get rich quick. They are created for those who support the idea of gradual and long-term mental, emotional, spiritual, physical and financial changes that a person must go through. We all evolve with at different speeds, so it's best for you to choose your own pace.

Once you've played the game a few times, it will be easier to determine what your next move should be and which of the four asset classes (business, real estate, securities or commodities) is right for you personally.

In conclusion

Finding your way is not always easy. Even today I can't say for sure if I found mine own way. As you know, we all get off course from time to time, and getting back on track is not easy.

If you feel like you are

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in the wrong quadrant or still haven't found your path in life, then I advise you to turn to your heart. Perhaps you feel the need for change, so the following thoughts have begun to come to you more and more often:

"I work with dead people».

“I like my job, but I would like to learn how to make more money.”

"I can't wait for the weekend."

“I want to do my own business.”

“Isn’t it time for me to leave this job?”

My sister became a Buddhist nun. Her calling is to support the Dalai Lama, and this path does not bring her money. As a nun she earns very little, but this does not mean that she has to be a poor nun. She has her own properties, which she rents out, and investments in gold and silver. Strength of spirit and financial education allow her to follow the path of life without taking a vow of poverty.

Today, in many ways, I am glad that I was labeled dumb at school. This caused me emotional pain, but it was this pain that allowed me to find my own path in life - to become a teacher. However, just like with my sister, the fact that I became a teacher does not mean that I have to be a poor teacher.

Once again I repeat the words of Thich Nhat Hanh: “The path is the goal in itself.”

Introduction

Which quadrant are you in?

The CASH FLOW QUADRANT is a tool that allows you to categorize people into groups based on where their money comes from.

If you are striving for financial freedom and life has brought you to a fork in the financial path, then the book “The Cash Flow Quadrant” is written for you. If you want to change your financial destiny and take control of your own actions towards achieving this goal, this book will help you choose the right direction.

Each of us has a place in at least one of the sectors of the CASH FLOW Quadrant. Belonging to one group or another is determined by where the money comes from. Some of us are employed and receive a salary, while others provide themselves with work. Employees, small entrepreneurs, and self-employed individuals are located on the left side of the CASH FLOW Quadrant. The right side is occupied by those who receive money from their businesses or investments.

The CASH FLOW QUADRANT is a simple and reliable tool that allows you to categorize people into groups according to where their money comes from. Each sector on this diagram is unique, and the people who enter it are united common features. Detailed descriptions of the quadrants will help you identify where you are today and map out the route to where you want to be in the future as you choose your own path to financial freedom. It can be achieved in all four sectors, but your skills as a businessman or investor will allow you to achieve your financial goals much faster. For successful employees to ensure their financial security in retirement, they need to become successful investors.

What do you want to be when you grow up?

In many ways, the Cash Flow Quadrant can be considered the second part of Rich Dad Poor Dad. For those of you who haven't read it, it's about various lessons my two fathers who taught me how to handle money and how to make choices right decisions in life. One of them was my natural father, and the other was the father of my best friend. One received a college degree, and the other did not even graduate from high school. One was poor and the other was rich.

Poor Dad's Advice

My highly educated but poor dad always said, “Go to school, get good grades, and then get yourself a good, stable job.”

Poor dad advised me to become either a high-paid P, which is an employee, or a high-paid C, which is a self-employed professional - a doctor, lawyer or accountant. My poor dad cared most about a steady paycheck, benefits, and job security. That's why he himself was a highly paid government employee, the head of the Hawaii State Department of Education.

Rich Dad's Advice

My rich but uneducated dad gave very different advice. He said: “Study, get an education, build your own business and become a successful investor.” He recommended that I take the B quadrant path in life:

This book is about the mental and emotional educational process I went through following the advice of my friend's father.

Who is this book written for?

This book is written for people who are ready to change their quadrants, especially for those who currently belong to the E and C quadrants, but are thinking about moving to the B or I. It is for those who are ready to neglect job security and begin to ensure their financial security . This hard life way, but your reward will be financial freedom, which will make all your efforts worthwhile.

When I was 12 years old, rich dad told me something simple story, who showed me the path to financial independence. With its help, he explained the difference between the left side of the CASH FLOW Quadrant, that is, the E and C quadrants, and the right side, that is, the B and I quadrants. This is the story.

A long time ago there was one small village on earth. It would be very nice to live there, if not for one problem. There was no water in the village - except what the rains brought. In order to put an end to this problem once and for all, the elders decided to hire people who would agree to deliver water to the village every day. Two people volunteered to do the job, and the elders divided the contract between them, believing that competition would keep low prices and guarantee uninterrupted water supply.

The first of these workers, whose name was Ed, immediately bought two galvanized steel buckets and began running up and down the path to the lake, which was a mile from the village. He immediately began making money as he worked from dawn to dusk hauling water from the lake in buckets. Ed poured it into a huge concrete tank that the villagers had built. Every morning he had to get up before everyone else to make sure there was enough water in the tank for everyone. It was hard work, but Ed was happy to make money and to have one of two exclusive contracts to run the business.

The second contractor, named Bill, disappeared for some time. He had not been seen for several months, and Ed was very pleased with the absence of a competitor.

Instead of buying two buckets, Bill wrote up a business plan, formed a corporation, found four investors, hired a president to handle the day-to-day work, and six months later returned to the village with a group of construction workers. Within a year, his team built a powerful

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a stainless steel pipeline that connected the village to the lake.

At the water main's grand opening ceremony, Bill declared that his water was cleaner than Ed's. Bill knew that residents had complaints about the lack of cleanliness of the water. In addition, he emphasized that he could supply water to the village 24 hours a day, 7 days a week, while Ed only supplied water on weekdays because he did not want to work on weekends.

To top it all off, Bill announced that the price of his high-quality, continuously supplied water would be 75 percent lower than Ed's. The residents rejoiced and immediately ran to the tap, which was located at the end of the water pipe that Bill had built.

To stay in business in a competitive environment, Ed immediately cut his rate by 75 percent, bought two more tubs, added lids to them, and began bringing in four tubs per trip. To improve service, he enlisted his two sons to help fetch water at night and on weekends. When the boys left for college, Ed told them, “Come back quickly, because one day this business will be yours.”

But for some reason, after graduating from college, his sons did not return to the village. Ed eventually hired workers and naturally had problems with the union. The union demanded higher wages for its members, expanded benefits and a limit on the amount of water carried to one bucket at a time.

Meanwhile, Bill realized that if this village needed water, then other villages probably needed it too. He reworked his business plan and made a high-speed, volume delivery system affordable and clean water for sale to villages around the world. Bill received only a penny per bucket of water, but supplied billions of buckets every day. Whether he worked or not, billions of people consumed billions of buckets of water and money flowed into his bank account. Bill developed the pipeline to provide water to people and make money at the same time.

Bill lived in wealth and happiness, and Ed worked hard until the end of his days and did not get out of financial problems. End of story.

This story about Bill and Ed has guided me for many years, helping me accept life's important decisions. I often asked myself: “What am I doing: building a pipeline or carrying buckets? Do I work as hard as I can or do I enjoy my work?”

And the answers to these questions made me free to financially.

That's what this book is about. It's about what it takes to get into the B and I quadrants. It's written for those who are tired of carrying heavy buckets and are ready to build pipelines through which money will flow into their pockets.

This book consists of three parts

Part I focuses on the key internal differences between the four quadrants. It shows why certain categories of people gravitate towards certain sectors and often get stuck in them without realizing it. The first part of the book will help you determine which quadrant you are in today and where you want to be in five years.

Part II is dedicated to personal changes. It talks more about what you should become than what you should do.

Part III explains how to succeed in right side CASH FLOW QUADRANT. In it I will share many of my rich dad's secrets about acquiring the skills needed to become a successful businessmen and investors. This will help you choose your own path to financial freedom.

Throughout the book, I emphasize the need to continually develop financial intelligence. If you want to operate on the right side of the quadrant, the B and I quadrants, you will need more intelligence than if you choose the left side, that is, the E or S quadrants. To succeed in the B or I quadrants, you must learn to control the direction of your cash flow.

This book is written for those who are ready to make changes in their lives, rethink the meaning of job security, and begin building their own pipelines to achieve financial freedom.

We entered information age, which provides us more possibilities to achieve financial success than ever before. Those who have the skills of the B and I quadrants will primarily identify and exploit these opportunities. In order to become successful in the information age, a person will need information from all four quadrants. Unfortunately, our education system is still in the industrial age and only prepares students for the left side of the CASHFLOW Quadrant.

If you are looking for new answers to move forward in the information age, then this book is just for you. It does not contain all the answers, but you will find a lot in it. useful tips, concerning the development of personal qualities and the mastery of technical skills, which helped me move from the R and C side to the B and I side.

Part one

Cash Flow Quadrant

Chapter One

Why don't you go to work?

It is difficult to explain to someone who is taught to value work why you do not want to look for one.

In 1985, my wife Kim and I were homeless. We had no work, and almost nothing was left of our previous savings. Our credit cards were maxed out and we lived in an old brown Toyota with jump seats that served as our bed. One week of such life was enough for us to begin to understand the cruel reality of who we had become, what we had done, and where this path threatened to lead us.

We lived without a home for another two weeks. A friend of ours heard about the desperate financial situation we were in and offered us a room in the basement of her house. We lived there for nine months.

We tried not to tell anyone about our situation. Outwardly, Kim and I looked quite normal. When friends and relatives learned about our situation, they immediately asked the question: “Why don’t you go to work?”

At first we tried to explain why, but we were usually not very good at it. It is difficult to explain to someone who is taught to value work why you do not want to look for one.

From time to time, we would come across random opportunities to make a few dollars, but we would take it just to buy groceries and put gas in the car. This random money was just the fuel that allowed us to maintain the strength to move towards our goal. I must admit that in moments of deep personal doubt, the thought of a reliable, permanent job with a regular salary began to seem attractive to me.

But since we did not strive for guaranteed employment, we continued to make do somehow, being on the edge of a financial abyss.

Nineteen eighty-five was the worst and also one of the longest in our lives. Those who say that money is not important clearly haven't had to sit without it for long. Kim and I began to quarrel often

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and swear.

Fear, uncertainty, and hunger blow out emotional fuses and often lead to conflict with those who love us most. Nevertheless, love kept us together, and adversity only strengthened our bonds. We knew where we were going, we just didn't know if we would ever get there.

We knew that we could find a reliable, stable and well-paid job. We both had college degrees, good work ethic, and a strong work ethic. But we did not seek guaranteed employment. We wanted to find financial freedom.

By 1989 we became millionaires. But although we have succeeded financially in some people's eyes, we still have not achieved true financial independence. This continued until 1994. From then on, we never felt the need to go back to work again. Protected from any economic disaster, we both became financially free. Kim was 37 and I was 47 years old.

You don't need money to make money

I started this chapter by talking about how we were homeless and penniless in 1985. I did this because I often hear people say, “You need money to make money.”

I don't agree with this. It didn't take money to go from homeless as we were in 1985 to rich in 1989 to financial freedom by 1994. When we started, we had nothing but debts.

Also, you don't need to have a good formal education to make money. I have a college degree, but I can honestly say that achieving financial freedom has nothing to do with what I was taught there. I found almost no use for the knowledge gained over the years of study differential calculus, spherical trigonometry, chemistry, physics, French and English literature.

Many successful celebrities dropped out without graduating, such as Thomas Edison, founder of General Electric; Henry Ford, founder of Ford Motor; Bill Gates, founder of Microsoft; Ted Turner, founder of CNN; Michael Dell, founder of Dell Computers; Steve Jobs, founder of Apple; Ralph Lauren, founder of Polo. Higher education is important for obtaining a profession, but not for making colossal fortunes. These people created their own successful business ventures, just like Kim and I had the same goals.

So what does it take?

I am often asked, “If you don’t need money to make money, and schools don’t teach you how to become financially free, then what does it take?”

My answer is that it takes a dream, a lot of determination, a willingness to learn quickly, the ability to properly use your God-given assets, and knowledge of which sector of the CASH FLOW Quadrant is best suited for you as an income generator.

What is the CASH FLOW QUADRANT?

This is what the CASH FLOW Quadrant looks like. The letters on the diagram indicate:

Which quadrant do you get your income from?

THE CASH FLOW Quadrant demonstrates the different methods of generating income. For example, an employee receives money from the workplace provided to him and works for another person or company. Representatives of quadrant C earn money by working for themselves. The business owner has his own business, which brings him money, and the investor makes money on investments, that is, with the help of money he gets even more money.

Different methods of generating income require different mindsets, different technical skills, and different educational paths. Different people are attracted to different quadrants.

Even though all money is the same, the ways in which it is earned are very different. If you look at the names of the quadrants, you may be wondering, “Which quadrant am I getting the most income from?”

All quadrants are different from each other. Earning income from different quadrants requires different skills and different personal qualities, even if the same person acts in all these quadrants. Moving from one quadrant to another can be compared to playing golf in the morning and going to see the ballet in the evening.

You can earn income from all four quadrants

Most of us have the potential to earn income from all four quadrants. Which quadrant we choose to earn our main income depends little on what we were taught at school. IN to a greater extent it has to do with who we are inside – what our values, strengths, weaknesses and interests are. It is these internal differences that either attract or repel us from each of the four quadrants.

Yet, no matter what type of work we do, we can work in all four quadrants. For example, a physician might choose to earn an E-quadrant income and join the staff of a large hospital or insurance company, work for the government in the public health apparatus, or become a military doctor.

The same physician may decide to make money in the S quadrant by going into private practice, opening his own office, hiring employees, and gaining a regular clientele.

Or this doctor can choose sector B and become the owner of a clinic or laboratory and have a staff of other doctors. Such a physician will likely hire a business director to manage the organization. In this case, he will be the owner of the business, but he himself will not need to work in it. Additionally, that physician may decide to own a business that has nothing to do with medicine while practicing medicine elsewhere. In this case, he will receive income as a representative of two quadrants: P and B.

In the I quadrant, this physician may earn income by investing in other people's businesses or in instruments such as stocks, bonds, and real estate.

The key to all of these options is where the income is generated. It depends not so much on what we do, but on how we create income.

Different methods of generating income

The biggest influence on the decision in which quadrant to create income is key differences our inner values, strengths, weaknesses and interests. Some people want to be hired workers, while others hate such work. Some people like to own companies, but they don't want to manage them. Others enjoy not only owning companies, but also managing them. Some people are interested in investing, while others cannot afford the risk of losing money. Most of us have a little bit of each of these types of people. To achieve success in all four quadrants, you often have to reconsider some core internal values.

In all four quadrants you can be either rich or poor

It is important to note that in all four quadrants you can be not only rich, but also poor. There are people who make millions, and there are those who fail in each of the four quadrants. Stay in that

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or another quadrant does not necessarily guarantee financial success.

Not all quadrants are the same

Knowing the characteristics of each quadrant will give you a better idea of which one(s) are best for you.

For example, one of the many reasons I prefer to work primarily in the B and I quadrants is the tax advantages. Most people working on the left side of the CASHFLOW Quadrant have opportunities to legally obtain tax benefits quite a bit. But on its right side such opportunities are provided in abundance. By creating income in the B and I quadrants, I can get money faster, keep them working for me longer, and avoid paying a significant portion to the government in the form of taxes.

Different ways to make money

When people ask why Kim and I were homeless, I explain that it was because of my rich dad's knowledge of money. Money is very important to me, yet I didn't want to spend my life working for it. That's why I didn't want to get a job. Since Kim and I had decided to become model citizens, we wanted to make our money work for us instead of spending our lives physically working for money.

This is why the CASH FLOW QUADRANT is so important. He differentiates the ways of creating money. There is always an opportunity to be a model citizen and create money instead of doing manual labor for it.

Different fathers - different views for money

My highly educated dad firmly believed that the love of money was evil and that excessive income was a clear sign of greed. When the newspapers published an article about how much he had done in the field of education, his father was confused because he believed that he was paid too much compared to what ordinary people received. school teachers who worked with him. He was a good, honest, hardworking man who always resolutely maintained that money was not the most important thing in his life.

My highly educated but poor dad always said:

"I'm not interested in money."

"I will never be rich."

"I can't afford it."

“Investing is too risky.”

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Footnotes

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Robert Kiyosaki, Sharon Lechter

Cash Flow Quadrant

Rich Dad's Guide to Financial Freedom

“Man is born free, but turns out to be chained. He thinks that he is a master over other people, but he remains a slave even more than they are.”

Jean Jacques Rousseau

My rich dad used to say, “You will never have real freedom without financial independence. Freedom can only be real when it's paid for. high price" This book is dedicated to those people who are willing to pay the price.

To our friends:

Thanks to the phenomenal success of Rich Dad Poor Dad, we have made thousands of friends around the world. The words of admiration and support they expressed inspired us to write the book “Cash Flow,” which is a continuation of the previous book.

To all our friends, old and new, for their enthusiasm and support of our wildest dreams, we express our deepest gratitude.

PREFACE

What sector are you in?

Are you financially free? "Cash flow" written for you if your life is at a fork in the financial path.

If you want to take control of what you do today to change your financial destiny, then this book will help you chart your next steps. This is what a quadrant looks like.

The letters in each sector indicate:

E – employee

S – self-employed

B – business owner

I – investor

Each of us is in at least one of the four cash flow quadrants above. Our place is determined by the source of cash. Many of us rely on checks to pay our salaries and are therefore employees, while others are self-employed. Employees and self-employed people are on the left side of the money quadrant. On the right side of the quadrant are people who receive cash from their own businesses or investments.

"Cash Flow Quadrant" depicts the different types of people that make up the world of business, it explains who these people are and what their distinguishing characteristics are. This will help you determine which sector you are in and outline your next steps to achieve financial freedom in the future. Since financial freedom can be found in any of the four quadrants, the skills and prowess of Type B and Type I people will help you achieve your financial goals as quickly as possible. Successful "E" people must also become successful in the "I" quadrant.

WHAT DO YOU WANT TO BE WHEN YOU GROW UP?

This book can be called Part II of my book “Rich Dad Poor Dad”. For those who are not familiar with my previous book, I will explain what it says. It talks about the lessons my two fathers taught me about money and life choices. One of them was my real father, the other was my friend's father. One was highly educated and the other had not attended higher education. One was poor and the other was rich. I was once asked, “What do you want to be when you grow up?”

My highly educated father always advised: “Go to school, get good knowledge and then find a well-paid job.” He advised a life path that looked like this:

Poor Dad's Advice

Poor dad recommended that I choose between the highly paid "E", i.e. employees and highly paid "S", i.e. a self-employed professional such as a licensed doctor, lawyer or accountant. My poor dad was primarily interested in the security of a paycheck and a secure job with a steady paycheck. That's why he was a highly paid government official, heading the Hawaii State Department of Education.

Rich Dad's Advice

My rich but have not higher education my father gave me completely different advice. He said: “Go to school, finish it, build your own business and become a successful investor.” He advised choosing a life path that looked like this:

This book is about mental, psychological, emotional and educational process, which happened in me when I followed the advice of my rich father.

WHO IS THIS BOOK FOR?

This book is written for people who are ready to change the sector. This book is especially for those who are still in the “E” and “S” sectors and intend to move to the “B” and “I” sectors. This book is for people who are ready to move on the opposite side of a secure job, who want to win financial freedom. This is not an easy path in life, but the reward you will receive at the end of the path is worth the effort. This is the path to financial independence.

Rich dad told me a simple story when I was just 12 years old, but it led me to great wealth and financial freedom. He thus explained to me the difference between the left side of the "cash flow quadrant", where the "E" and "S" quadrants are, and the right half of the quadrant, which contains the "B" and "I" quadrants. Here's the story:

“Once upon a time, there was an unusual village. It was a wonderful place, if not for a big problem. There was no water in the village, although it rained sometimes. To get rid of this problem once and for all, the elders decided to sign an agreement for the daily supply of water to the village. Two people volunteered to take on this task and the elders signed contracts with each of them. They foresaw that competition between them would reduce the price of the work and ensure the supply of water.

The first of the two to receive the contract, Ed, immediately got to work. I bought two identical buckets and began carrying water, running along the path to the lake, which was located a mile from the village. He immediately began earning money by working from morning to night, filling huge tanks with water, which he carried from the lake in his two buckets. Every morning he had to get up before everyone else to make sure there was an adequate supply of water for the needs of the villagers. It was hard work, but the man felt happy because he made money and owned one of two exclusive contracts for his business.

Robert Kiyosaki, Sharon Lechter

Cash Flow Quadrant

Rich Dad's Guide to Financial Freedom

“Man is born free, but finds himself bound in chains. He thinks that he is a master over other people, but he remains a slave even more than they are.”

Jean Jacques Rousseau

My rich dad used to say, “You will never have real freedom without financial independence. Freedom can only be real when a great price has been paid for it.” This book is dedicated to those people who are willing to pay the price.

To our friends:

To all our friends, old and new, for their enthusiasm and support of our wildest dreams, we express our deepest gratitude.

PREFACE

What sector are you in? Is this sector best suited for you?

Are you financially free? "Cash flow" written for you if your life is at a fork in the financial path.

If you want to take control of what you do today to change your financial destiny, then this book will help you chart your next steps. This is what a quadrant looks like.

The letters in each sector indicate:

E – employee

S – self-employed

B – business owner

I – investor

WHAT DO YOU WANT TO BE WHEN YOU GROW UP?

My highly educated father always advised: “Go to school, get good knowledge and then find a well-paid job.” He advised a life path that looked like this:

SCHOOL
Poor Dad's Advice

Rich Dad's Advice

My wealthy but uneducated father gave me very different advice. He said: “Go to school, finish it, build your own business and become a successful investor.” He advised choosing a life path that looked like this.