Rich Dad’s Cashflow Quadrant – Guide To Financial Freedom

By Robert T. Kiyosaki

The follow-up to his highly successful first title ‘Rich Dad Poor Dad‘, Cashflow Quadrant introduces the idea of four main quadrants that each individual can operate in, as defined by how the person generates the majority of their income. This book follows on from the lessons taught in the first book, and while it will likely be beneficial to have read that first, it is by no means a prerequisite to understanding or benefiting from this sequel. This is in large part down to the fact that the book is in the main very simple, and herein lies both one of the books appeals, and one of its shortcomings. On the upside, it is an easy read. It is very accessible and just about anyone should be able to understand and follow the ideas presented, the average reader should be able to polish it off in a week or two. However, this simplicity becomes an annoyance when many times the same point is made over and over again, perhaps just in a slightly different way or context. Whilst I accept that repetition can be a good teacher, when the ideas are simplistic to begin with it soon begins to become irksome and verbose.

This book is less about the things you can do to get rich, but more about what you must become to achieve financial freedom. Anyone looking for a ‘get rich quick scheme’ need read no further, perhaps go find yourself a nice pyramid scheme instead. Anyone with common sense understands that to have financial success will take some degree of hard work and effort, and that is the basis of the points made in this book. To quote the book itself, it is “not so much a how-to book on what to do to become financially free…. This book is about strengthening your thoughts so that you can take the action that will enable you to become financially free.”

There are many ideas in the book I enjoyed and found interesting, but this is not to say I agreed with everything in it. Often Kiyosaki has the habit of being slightly over-dramatic to make his point seem more convincing. For example, at one point he suggests that relying on a paycheck and a safe job is the riskiest thing a person could do financially. While I understand the point he is trying to make, I’m sure for many people this is  a perfectly healthy way of living and there are far riskier things a person could be doing. I don’t see this as a major detraction from the merits of the book though, as any book of this type is based on opinion and beliefs. My view is that the entire point of reading these personal finance type of books is to open your mind to new ideas, and engage your brain in thinking about the process making money. It is up to each individual to decide what they think is relevant to them and might work, and equally what they don’t agree with. This doesn’t necessarily make the ideas wrong, but the process of engaging your brain is the important aspect.

On a few occasions I have heard people criticise Kiyosaki for aggressive up-selling, while there certainly were points where he took the opportunity to plug his other products, it never seemed overly intrusive. Although be warned, do expect a fair few nods towards his “Cashflow Board Game“. If you’re interested, don’t be a sucker and splash out the £70 odd pounds it costs, you can play for free online here (although you do have to create an account).

The Bottom Line:

Rich Dad’s cashflow quadrant isn’t going to make you rich overnight. However, it does offer constructive and meaningful advice on how you can become someone who uses money wisely, and get to a point of financial freedom. It will focus on what you need to become and how to do that. No it isn’t a magical solution, and yes it can be patronisingly repetitive at times, but it does serve to promote independent thinking and is an enjoyable, engaging read. I would recommend it to anyone who is looking for a starting point to getting on a better financial track, and have money work for them rather than the other way round.

You can purchase the book on Amazon using these links(the second is for the Kindle version):


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Comments

  1. Chris says:

    Thanks for pointing out the online game. I gave it a go and found it interesting. Ended up making millions! If only it was real life.

    • No problem. It’s worth a go isn’t it. I ended up owning a yacht and a zoo in the couple of times I played. If only! For now I’ll just have to settle for a car and a dog…

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