It should not be assumed that you can instantly jump from B to I. Looping between the B and I quadrants is the best way to make money, although there is a significant difference between the two.Most people focus on income instead of investments.The rich know that the best way to avoid taxes is to generate income out of the B and I quadrants.The reason many people struggle financially is that the more money that they make, the more taxes and interest on the debt they pay.Financial Intelligence is not so much how much money you make, but how much you keep, how hard that money works for you, and how many generations you keep it for.On the left-hand side of the CFQ, you have security, on the right-hand lies freedom.Bearing risk is a necessary component of becoming wealthy, therefore it is something to understand and manage as opposed to flee from.Ĭhapter 3 – Why People Choose Security Over Freedom.Warren Buffet says that portfolio concentration is better than diversification.Wealth – The number of days you can survive without physically working, and still maintain your standard of living.The goal of all entrepreneurs should be to grow your assets to the point where the cash flow from all of your assets would be greater than your living expenses.The wealthy receive 70% of their income from investments and less than 30% from their wages.And if at all possible they are using other peoples money. These people are most adept at making money work for them.Being a successful B requires ownership or control of systems and the ability to lead people.Individuals in this group know that if they left one of their businesses, that in a year they could come back and find it more profitable and better running than when they left.They recognize their own inability to perform all tasks well, so they hone their ability of finding and cultivating talented people to work for them.They hire competent talent and then delegate as much as possible.Their income is directly tied to how much they are working, meaning they effectively own a job.This group often has a hard time finding good work because they have such a high standard.Independence is very important to this group of people. This group would include doctors, lawyers, and all others who are self-employed.They have a “Nobody does it better than me” mentality.They do not like to have their income be dependant upon other people.They seek out benefits with their jobs.They shy away from risk and subsequently, they see no need to become educated in the tools of finance.They desire security, and they seek out a lifestyle that will provide them with this.The differences between E’s, S’s, B’s, and I’s: There are significant tax advantages to working in the B and I quadrants.Ĭhapter 2 – Different Quadrants… Different People
We all change and evolve at different rates of speed so you are encouraged to go at your own speed.” Part 1 – The Cashflow Quadrant CASHFLOW clubs are there to support the long-term mental, emotional, spiritual, physical, and financial changes a person needs to go through. KiyosakiĬlick Here to Get the PDF Summary of This Book & Many MoreĬASHFLOW clubs are not for those who want to get rich quick. Rich Dad’s Cashflow Quadrant: Guide to Financial Freedom Author: Robert T.
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