How to Apply the Cashflow Quadrant Concept
All of us in one way or another desire financial security and many of us dream of attaining financial freedom. Robert Kiyosaki’s Rich Dad, Poor Dad’s Cash-flow Quadrant book and board game teach the principals of income, assets and cash flow. Understanding the different methods by which income or money is generated and how it is utilized is essentially what Cash-flow Quadrant is about. Steps Learn about the concept of the 4 individuals. The basic premise of the Rich Dad, Poor Dad series of books is that the business world is made up of largely 4 types of individuals: Employee (E) – has a job. Self-Employed (S) – owns a job. Business Owner (B) – owns a business system. Investor (I) – makes money work for them. Identify where you are now. Identifying where you are in this Cash-flow Quadrant can be done by looking at where most of your income comes from. What affects which quadrant we decide to generate our income from is due to internal differences in our core va