Rich Dad’s Cash Flow Quadrant: There was an important diagram my rich dad showed me when I was a little boy. It was a diagram known as the Cash Flow Quadrant. And the Quadrant is made of four different people who make of the business world.
So my rich dad said, “In the business world there are Es and E stands for employees. And the employees, you can always tell who they are by their core values. An employee with the president, the generator of the company, will always say the same words. The words are, “I’m looking for a safe, secure job with benefits.” That’s what makes them employees because their core value is security.”
The other one of the four is the S for the small business owner or the self-employed and again their core values will cause them to use the same words which are, “If you want it done right, do it by yourself.” S means they are also solo. Generally one person act, they operate by themselves
This text, the follow-up to Rich Dad, Poor Dad reveals why some people work less, earn more, pay less in taxes, and feel more financially secure than others. The author argues that it is simply a matter of knowing which quadrant to work from and when. Have you ever wondered: What is the difference between an employee and a business owner?; Why do some investors make money with little risk while most other investors just break even?; Why do most employees go from job to job while others quit their jobs and go on to build business empires?; Why, in the Industrial Age, did most parents want their children to become medical doctors, accountants, or attorneys. and why, in the Information Age, are these professions under financial attack?
Originally published: 1998
Author: Robert Kiyosaki
Preceded by: Rich Dad Poor Dad
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