Rich Dad’s Cashflow Quadrant is a guide to financial freedom.  It also makes the case for network marketing.  It is the second book from the Rich Dad Series written by Robert T. Kiyosaki.  The author shares how he started from being homeless to being financially free in a few short years. The book sells on Amazon for only $12.23.  It is also available on Kindle for only $9.68. If you are tired of being just an employee who trades hours for dollars, then this book is for you.

What is Rich Dad’s Cashflow Quadrant?

The Cashflow Quadrant is a diagram (shown above) that shows various career paths. The quadrant is divided into four areas; each represents a letter that corresponds to different vocations as explained below.

On the left side are E (employees) and S (self-employed) people.  While on the right side are B (big business owners) and I (investors like Warren Buffet). The left represents the active income earners while the right is passive income. The goal is to move from being a mere employee to being an entrepreneur so you can earn more money while working less.

The Cashflow Quadrant is easier to understand than most financial structure because it clearly presents the steps taken to get to the left side. It teaches you how to map your finances, control spending habits, and minimize debts and liabilities so you can effectively manage your money.

It doesn’t specify the amount of time needed to learn these techniques but sooner you’ll get used to it. I believe using the Cashflow Quadrant is the simplest way to plot your own unique technique to become richer in less time.

Rich Dad’s Cashflow Quadrant is also a way to go if you need a guide on how to boost your passive income while earning as an employee.

Is Rich Dad’s Cashflow Quadrant effective in making you rich?

Rich Dad’s Cashflow Quadrant clearly breaks down the difference between the left side and the right side. Yet how effective it is depends on how you use it for your own good. Still there is no hard-and-fast rule on how you can control your situation.

One thing is for sure – this book gets your mind on track! It explains how to transition from working for money to having your money work for you. The steps are very easy to follow plus the bunch of quotes, personal experience, and life lessons will give you the courage to try.

If you ever need financial inspiration, this book could definitely open up your mind. Yes, you can get sacked unexpectedly but there’s nothing to lose if you give it a try.

What are the cons of Rich Dad’s Cashflow Quadrant?

Do not expect that Rich Dad’s Cashflow Quadrant will give you a “how-to” guide on acquiring wealth. Maybe you’re expecting that you can get some life hacks from this book but it doesn’t give that kind of information.

Rich Dad’s Cashflow Quadrant is more than just a mere tutorial. It is a mind setter! First, it helps change the way you think about jobs, careers, and owning a business. Then it presents the rules that you can follow to manage your money.

The goal is to help you earn more, save more, and become your own boss. So, the biggest con probably is not using it wisely.

How does Rich Dad’s Cashflow Quadrant impact your life?

Rich Dad’s Cashflow Quadrant could definitely impact your life in a positive way. I love how it starts with the truth that sooner or later, your job won’t be enough to support your growing family. So you better start making bigger goals until you build a business of your own.

The idea of this book is to open your mind to a variety of opportunities on how to get more money and not depending on your current job. In the end, you will learn how to work less, earn more, pay less in taxes, and become financially free.

I think the reason for making the Cashflow Quadrant is to make it applicable to everyone. Unlike the simple life hacks you see on the internet, this structure is something you can sustainably use for the future.

Ten years from now Rich Dad’s Cashflow Quadrant will still make sense because you can tweak it according to your particular situation. It’s actually an ultimate guide on how to transform from being an employee to being a boss of your own company.

The book itself is a good investment, especially if you need to convert from the mindset of an employee to an entrepreneur.  This is exactly what you will need to do to succeed in network marketing.

How the Book Helps the Average Network Marketer and Makes the Case for Network Marketing…

First, understanding that a job will leave you at the end of the day, Just Over Broke (J.O.B.).  I don’t know anyone who wants to spend the rest of their lives trading their time for money.  The whole objective in live is to be able to have your money work for you so you can get your time back and live a life of freedom.

Network marketing can helps people to move from Quadrant 1 to Quadrant 2 (Employee to Self-Employed). It gives individuals their first taste of self-employment and the Cashflow Quadrant book gives folks the right mindset.  Once you have the right mindset for networking marketing and begin to grow, you can easily move from Quadrant 2 to 3 (Business Owner).  After you acquire the discipline that it takes to be a successful business owner, you can easily move to investor.

I would encourage every network marketer to read Rich Dad’s Cashflow Quadrant and find out how to development the mindset of an entrepreneur.  This is the only way to succeed.

Also pick up these other resources to help you grow. Click here.