RICH DAD's Cash flow defined...

I will try and highlight another most popular and a very powerful concept given by Robert Kiyosaki known as CASHFLOW quadrant.

According to Robert Kiyosaki, CASHFLOW Quadrant is a powerful way to understand how income works for different individuals.

What is cash flow quadrant?
Kiyosaki’s cash flow quadrant is a grid consisting of the letters E, S, B, and I. The cash flow quadrant itself is just an illustrative tool to show the difference between Employees, Self Employed/Small Business owners, Business owners (not directly involved in the day-to-day operation of the company), and Investors. Kiyosaki discusses the differences between concepts and ideas characteristic of each quadrant, particularly as they relate to passive income and tax advantage.


Kiyosaki tells us that we can be successful regardless of which quadrant we are in, but he recommends that we try to move from being an employee to being an investor and a business owner so that we can have more free time to do what we love.

“If you want to go somewhere, it is best to find someone who has already been there.”
ROBERT KIYOSAKI

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