Rich Dad's Cashflow Quadrant

Robert T. Kiyosaki

Rich Dad's Cashflow Quadrant



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The cashflow quadrant is a model designed by Robert Kiyosaki to show the four ways in which people acquire their income. Each quadrant requires a different set of personal characteristics and skills: there is no right or wrong way to live, each of us can choose whichever job we like, but to become truly wealthy, we have to make it to the fourth quadrant, the investor quadrant. Rich Dad’s Cashflow Quadrant illustrates why some people are able to work less, earn more, and feel more financially secure than others, and how to upgrade from the employee to the investor quadrant, in order to achieve financial freedom.

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Analysis and key concepts


The cashflow quadrant is a model that shows the source of a person’s income, whether they are an employee, self-employed, a large business owner, or an investor


Employees work for other people and receive a salary in return for their hours of work, they are usually risk-averse, and seek financial security through a long-term contract


Self-employed people are their own boss, they are highly specialised, able to control the system they have created for themselves, and earn according to how much work they are able to do


Large business owners achieve financial success by creating a profitable and effective system, which works independently of their presence


Investors use their money to create more money, by taking calculated risks; they do not have to work as their money works for them, so they are able to achieve financial freedom


There are five steps to transform ourselves from people with no financial intelligence, to financially free investors


In order to move on to the next quadrant and become financially free, we have to start thinking and acting differently


In order to become financially free, we have to overcome the irrational feelings that money causes, maintain a long-term perspective, and use compound interest to our advantage




Take-home message

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Many useful tips to:

  • Take control of our financial future.
  • Discover how to work less, and earn more.
  • Become entrepreneurs and investors.

Robert Toru Kiyosaki is an American investor, a businessman, a motivational speaker and author who works in aid of financial literacy. He is an entrepreneur born and raised in Hawaii; and currently lives with his wife (a real estate investor) in Phoenix, Arizona. After he graduated in New York, Kiyosaki became a Marine and was a helicopter pilot in the Vietnam war. After the war, he worked for the Xerox Corporation for five years. In 1977 he created his first company. In 1985, he founded an international financial training company, which he then sold in 1994, the year in which he published his best selling book, Rich Dad, Poor Dad, and he created the educational game Cashflow.

Publishing house:

Plata Publishing






‎ 978-1612680057