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Cashflow quadrants6/30/2023 ![]() ![]() You can keep your boardrooms, private jets and oilfields, thank you. For me, I just want to be financially free to live a simple life. At its simplest, the Cashflow Quadrant is a way to categorize people based on where their money comes from: E, S, B, or I. It might suit ambitious, ruthless, executive types whose only ambition in life is to earn a lot of money for money's sake without a care as to who or what it hurts, or the environmental consequences. Most of the assumptions about income, tax, benefits, political situation. Kiyosaki’s cashflow quadrant is meant to teach you the fundamentals of how money works and how the rich leverage different quadrants to grow wealth. If you haven’t checked out this book, it’s a worthwhile read. ![]() One benefit of this approach is that you’ll have an increased cash flow once you’ve built businesses. The majority of the Cashflow Quadrant book is about the unique skills and mindsets required to succeed on this path. Kiyosaki says that the best time to get serious about investing is after you’ve developed your business acumen by building successful companies. As I’ve written before, the wages of the poor and the middle class have either held steady or shrunk over the last couple decades. The dividing line between many who struggle financially and those who are prospering is the line between the two sides of the CASHFLOW Quadrant. This can be represented in a visual of four different quadrants (above). The two ebsi quadrants on the right side (B and I) are the primary paths to financial freedom. The cost of choosing security over freedom. I'm going to stop now, it's wasting my time - I've work to do! Part of the problem I have with the book is that it's primarily geared towards Americans. The premise of the Cashflow Quadrant is that there are four main ways of earning income. The author thinks that to be self-employed is worthless and somewhat pathetic, unless you have a business employing at least 500 people. ![]() It might or might not be possible to reach such 'heights'. I have never aspired to that level of wheeler-dealing, and I would rather die than be that kind of person. But after listening to this book I realise I honestly, truly do not want to be 'rich', in the sense the author means. Yes, I would like to be more financially secure. The world described in this book - a world the author believes everyone should aspire to - is not a world I wish to live in. ![]()
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