Book Review: The Cashflow Quadrant by Robert Kiyosaki

In this book, 4 sources of income were explained. These are Employees, Self-employed, Business Owners, Investors.

Employees Quadrant choose security and comfort with a guaranteed monthly salary, so they choose to use the time exchanged for work

Self Employed  Quadrant represents business people who have businesses but they do it themselves (doctors, designers, insurance agents). Even though he has a business, this “S” job still needs to trade more time than an “E” job to earn an income

These two Quadrants have something in common where to get an income you still need to exchange your time and the higher the time you are given, the higher your income. What about the “B” and “I” Quadrant?

Business Owner Quadrant is for companies with more than 500 employees, where the business owner already has a good system and does not need to work all the time for his company and manages to earn income without the need to work

Investor Quadrant shows that someone already has freedom in his life. Starting from financial freedom to time freedom. This Quadrant “I” has assets that work and generate money to support its needs.

Unlike the Quadrant “E” and “S” which still require exchanging their time to earn income, quadrant “B” and “I” with big business and investment returns no longer need to work and exchange their time to earn income. The income comes from the business and assets owned.

Of course, the way to get into the “B” and “I” Quadrant is not easy.

 If we are currently “E” employees and start investing early and continue to increase our productive assets, in the future we can be upgraded to quadrant “I” because of our investment results.

Meanwhile, if at this time we are Self Employed who are building a business alone, in the future we can be upgraded to a quadrant “B” by building a large business that is well systemed so that we don’t have to work anymore.

So, which quadrant is your choice?

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