Brief summary Robert Kiyosaki cash flow quadrant. What is the cash flow quadrant

Nowadays, there are many different theories that describe the nature of financial flows, as well as how some people influence the distribution of world capital to their advantage. And among the whole number of theories, one stands out most clearly, which is distinguished by its extreme simplicity and clarity. This theory is called the "Cash Flow Quadrant" by Robert Kiyosaki, an American entrepreneur, teacher, investor, writer, and author of over 25 books that have sold over 26 million copies worldwide.

The cash flow quadrant very clearly reflects what function each individual person performs in the redistribution of capital, and is also a kind of guide to action in order to create the most favorable financial conditions for oneself, being among those who form this flow itself.

The quadrant is a diagram consisting of four sectors, each of which is a reflection of the position of people in the financial world and has its own distinctive features and characteristics. Let's consider each of the sectors in more detail.

Sectors of the cash flow quadrant

Wage labor sector

The first sector is the upper square on the left. It contains all employees, i.e. those people who trade their time for money by working for an employer. The wage labor sector has its pros and cons. The advantages are a stable salary guaranteed monthly, and the fact that in some cases the amount of this salary can be quite high, thanks to which the employee can slightly increase the level and quality of his life. The disadvantages are, firstly, the lack of a sufficient amount of free time. And, secondly, the fact that as soon as the employee stops working, the inflow of funds immediately dries up. Roughly speaking, a person works to eat and eats to work. Robert Kiyosaki calls this the "rat race" (think of a rat running around on a wheel all the time).

Small business sector

The second sector is the lower square on the left. This is a place for private entrepreneurs, professionals in any field and freelancers. A distinctive feature of these people is the quality of their work, the ability to be the organizers of their own workflow, as well as the ability to independently sell their services. The financial flow is distributed for such people with greater benefits, because. they can work a little less and get a lot more for their work. But the "rat race" remains here.

Big business sector

The third sector is the upper square on the right. Here are people who can already be called big businessmen, because. in addition to starting their own business, they can create jobs for people from other sectors. People belonging to this category receive significantly more money than people from the first two sectors, and they can also devote even less time to their activities, although they cannot completely leave the business unattended, i.e. they still have to participate in the "rat race", albeit to a much lesser extent. But cash flows are distributed to these people more efficiently.

Investment sector

The fourth sector is the lower square on the right. This is a well-deserved place for investors. The distribution of financial flows for them is the most important point, because. they do not just spend their time, effort and money, but invest them in order to maximize profits. But they do this with the only difference that, having initially spent a certain amount of their resources, they can later receive passive income from this, finally breaking out of the “rat race”. The investment sector includes financiers, bankers, traders, stockholders, etc.

Security and freedom

In addition to the division into four sectors, the cash flow quadrant also implies a division into two halves: the left half is more characterized by security, the right - by freedom. These two indicators are their basis. In other words, employees and small entrepreneurs are insured with a salary and a small but regular income, which means they are relatively safe. Large businessmen and investors, in turn, are not so insured, because. can only count on an effective return on the resources invested and the actions taken. However, these risks are more than offset by freedom of action and a significantly higher income.

Summarizing, we can say that the more a person strives for security, the more he limits himself in time and income, the more he is attached to his work or activity, the less freedom he has. Conversely, the more a person gravitates toward freedom and risk, the closer he is to financial independence.

Principles of human behavior in different sectors

It is the way of thinking and actions that determines which sector a person belongs to. And if desired, by changing these characteristics, he can move from the first or second sector to the third or even to the fourth. So what is the difference in the behavior of people who are in different sectors of the Robert Kiyosaki quadrant, and why do some people constantly participate in the "rat race", while others get out of it?

hired worker

In most cases, an employee simply performs his job duties, receiving a small stable salary for this and possibly achieving some kind of career growth. But often, employees do not have enough money or have enough back to back, which is why they often take loans and get into debt in order to at least somehow satisfy their needs. And one more feature: the more money a person earns in this sector, the more he begins to spend.

The only way to get out of the "rat race" for a hired worker is to become a high-class professional in his field, start organizing his own activities and learn how to sell his services himself, thus moving into the second sector.

Private entrepreneur, freelancer

Anyone in the small business sector has some advantages over being an employee. But these advantages will, so to speak, be in his arsenal only if he continues to work tirelessly, i.e. "run and run" And these advantages are not so great: even having more free time, the ability to independently plan work and more earnings do not make it possible to make any savings that could allow him to stop working.

In order for financial flows to begin to bring significant benefits, and the position to become more profitable, a self-employed person or freelancer must start organizing work for others and start selling their skills and abilities. This is the only way to move to the third sector.

Businessman

Businessmen work exclusively for the development of their business, but they no longer organize, offer and sell their skills and services, but those who work for them. Those. Here, an already defined business model comes into force, in which the direct participation of the businessman himself is minimized. This is where the freedom of a person increases, because. he no longer needs to go to work every day or manage his IP, where without him everything will go “to the bottom”. But the risk of a businessman also increases significantly, because. he needs to hire hired workers or freelancers, conclude agreements and contracts, rent space for his business (if this business is not on the Internet), purchase equipment, go through a bunch of various instances, and all this is associated with certain difficulties and there are no guarantees that everything will work out as needed.

The income level of businessmen is already substantially higher than that of employees and entrepreneurs; they already have more freedom, but still cannot completely retire, because. you need to keep track of the business and solve various issues related to it, which means that you need to continue the “race” from time to time. If, of course, the business "goes uphill", then by the time of retirement, the businessman will already be able to transfer all his affairs and become completely free and financially independent. If he has a desire retire young and rich(by the way, this is the title of one of R. Kiyosaki's books), then he will certainly need to look for a way to move into the investment sector.

Investor

An investor is not only one who, as already mentioned, invests his resources in profitable enterprises, but also does not put practically any effort into earning money, except for intellectual ones, and even more so does not sell his time to someone for money. The main job of investors is investments. No need to waste time, effort and nerves on finding partners, conducting transactions and other similar issues. You just need to determine the type of business or project that will bring a good income, and invest in it. This allows investors to have 24 free hours a day, which he can devote to what he really wants. This is the way out of the rat race.

The investor's wealth is secured by interest on his investments in good projects. There are even those investors who prefer not to get involved in business at all - their main activity takes place in the securities, real estate, currency and binary options markets. And it is precisely for investors that the global financial flow works with the greatest benefit.

Map your activities to Robert Kiyosaki's Cash Flow Quadrant and you'll see the exact state of your affairs (if you're in the rat race) and what you should be striving for to improve your position (get out of it). This will be your first step towards financial independence!

You can learn more about the ideas of Robert Kiyosaki in his many books. And the financial strategy games “Cashflow 101” and “Cashflow 202” developed by him will help you test and improve your financial literacy.

Robert Kiyosaki, Sharon Lechter

Cash flow quadrant

Rich Dad's Guide to Financial Freedom

“Man is born free, but is bound in chains. He thinks he is a master over other people, but remains a slave to an even greater extent than they do."

Jean Jacques Rousseau

My rich dad used to say, “You will never have real freedom without financial independence. Freedom can be real when a great price has been paid for it.” This book is dedicated to those people who are willing to pay the price.

To our friends:

Thanks to the phenomenal success of Rich Dad Poor Dad, we have made thousands of friends around the world. Their words of admiration and encouragement inspired us to write the book CASHFLOW, which is a continuation of the previous book.

To all our friends, old and new, for the enthusiasm and support of our wildest dreams, we express our deep gratitude.

FOREWORD

What sector are you in? Does this sector suit you best?

Are you financially free? "Cash flow" written for you if your life is at a fork in the financial path.

If you want to take control of what you do today to change your financial destiny, then this book will help you chart your next steps. Here's what the quadrant looks like.

The letters in each sector represent:

E - employee

S - self-employed

B - business owner

I - investor

Each of us is in at least one of the four sectors of cash flow above. Our place is determined by the source of receipt of cash. Many of us rely on checks to pay our salaries, so we are employees, while others are self-employed. Employees and self-employed are on the left side of the money quadrant. On the right side of the quadrant are people who get cash from their own business or investments.

"Cashflow Quadrant" depicts the different types of people that make up the world of business, he explains who these people are and what their distinguishing features are. This will help you determine which sector you are in and chart your next steps towards achieving financial freedom in the future. Since financial freedom can be found in any of the four quadrants, the skills and proficiency of Type B and Type I people will help you reach your financial goals as quickly as possible. Successful "E" people must also become successful in the "I" quadrant.

WHAT DO YOU WANT TO BE WHEN YOU GROW UP?

This book could be called Part II of my Rich Dad Poor Dad book. For those who are not familiar with my previous book, I will explain what it says. It talks about the lessons my two fathers taught me about money and life choices. One of them was my real father, the other was the father of my friend. One was highly educated and the other did not go to higher education. One was poor and the other was rich. I was once asked, "What do you want to be when you grow up?"

My highly educated father always advised: "Go to school, get good knowledge and then find a high-paying job." He advised a life path that looked like this:

SCHOOL
Poor Dad's advice

Poor dad recommended that I choose between a highly paid "E", i.e. employees and highly paid "S", i.e. a self-employed professional, such as a certified doctor, lawyer, or accountant. My poor dad was primarily interested in the guarantee of a paycheck and a secure job with a steady salary. Therefore, he was a highly paid government culprit - head of the Department of Education of the State of Hawaii.

Rich Dad's Advice

My wealthy but uneducated father gave me very different advice. He said, "Go to school, graduate, build your business and become a successful investor." He advised choosing a life path that looked like this.

Why do some people constantly work and live in poverty, while others take a minimum of time to work and have the status of rich people? To answer this question, it is necessary to assess one's own capabilities and prospects in order to determine the further direction of one's own development and conduct of activities. To do this, it is recommended to use a simple analysis tool created by a famous millionaire and author of books about finance.

financial flow

The cash flow quadrant reflects the reality, possibilities and prospects of human activity. It is also a guide to action focused on creating an enabling environment for development to move across sectors. With the help of a tool, you can transform into a person who independently forms a cash flow.

What is Robert Kiyosaki's Cashflow Quadrant

Robert Kiyosaki presented his concept of financial flows in his book. It reflects four ways in which people earn. Each of them has its own concepts, thinking, interests and values.

Quadrant sectors

To understand the basic principles of money, you need to compare your worldview, desires and results of work with each quadrant of the system. According to its author, all people are divided into four types, two of which have an active income, for which a person works for money. The remaining two ways of earning are identified as passive, in which no effort is needed to receive money.

Active income can be earned through self-employment or through one of the self-employment schemes that involve putting effort and time into earning. To receive passive income, you need to have your own business or invest in a profitable project. The profit obtained in this way is not proportional to the time and effort expended. According to the concept of the author, there are four ways to earn money:

employment;
entrepreneurship;
business;
investments.

hired labor

The sector of hired labor is located in the upper left part of the quadrant. It includes people who work for the employer and receive a regular salary. Its size depends on the time spent by a person at work and on the tasks performed by him. In fact, employees are trading their time for money. They have a stable wage, the size of which can be so great that the worker allows himself to improve the quality of life.

The disadvantage of wage labor is the lack of free time. If a person does not work, then the inflow of funds immediately stops. For Kiyosaki, this sector is associated with the rat race, since a person works to eat and eats to work.

Small business

Values of each sector

Small business is located at the bottom, on the left side of the quadrant. This category includes entrepreneurs, self-employed persons and freelancers. Small business participants independently organize the workflow, strive to do quality work, since this factor determines whether the customer will cooperate with them in the future. Their competence also includes independent promotion and sale of the results of labor.

The financial flow for entrepreneurs is distributed more favorably than for employees. However, the scheme of "running in circles" is also present in small businesses.

big business

Big business in the quadrant is interpreted in the upper sector on the right side. It includes representatives of large businesses who provide jobs not only for themselves, but also create jobs for people from the sectors located on the left side of the quadrant.

Investment

The investment sector is located in the lower right corner. Investors spend their time, energy and money to maximize profits. Their difference from representatives of other sectors lies in the possibility of obtaining passive income after applying certain efforts that require the expenditure of energy, time and financial resources. The category of investors includes persons who, in order to receive income without time and energy costs, invest their funds in profitable projects.

Left and right side of the quadrant

The quadrant is subdivided not only into four sectors, interpreting ways of earning, but also into two parts, identifying the state of a person who receives income in a certain way.

Kiyosaki's concept provides for the division of the ideological construction into left and right parts. People of one of them feel secure, and the other - freedom. Employees and small entrepreneurs receive a small but regular and guaranteed income, therefore, they are considered to be in a financial safety zone with no risks and opportunities for growth. Large businessmen and investors rely only on the return on the resources invested in the business, the actions taken, as well as on the control of the activities of employees and performers. Their work is fraught with risks, so it is impossible to judge financial security from this perspective. However, all this is compensated by high incomes and minimal time costs, which determine the formation of a sense of freedom.

Dependence of behavior on being in the sector

Characteristics of people from each sector of the quadrant

The way of thinking forms certain actions of a person, which affects his attitude to one of the sectors of the quadrant. By changing it, you can transform into another sector.

The hired worker is engaged in the performance of the tasks assigned to him by the management. For his activities, he receives a stable salary and a likely career opportunity. A distinctive feature of the people of this sector is the insufficient amount of income and the complete absence of free time.

Banks' main lending customers are people from the employee sector. They get into debt to solve problems that have arisen to meet their needs. It is worth noting that this category of people does not have savings. The more they earn, the higher their demands, and the more they spend.

To break out of the sector, it is necessary to move to the second sector, which will become possible after the start of independent activities.

Business entities have advantages over employees, but they are relevant only in the case of ongoing activities. Business representatives can plan their time, scope of work and wages, but the termination of activities will cause lack of money. Without work, there will be no income.

Despite the large amount of earnings, representatives of this segment cannot accumulate savings that would allow them not to operate. Having organized someone else's work to achieve his goals, the entrepreneur automatically moves to the neighboring sector.

The activity of businessmen is focused exclusively on the sale of the results of the labor of employees. The responsibility of a representative of a large business is only the organization and control of their work. His participation in the work is minimized, since he does not need to perform certain tasks every day for which payment is made.

American investor and businessman - self-development author, motivational speaker, and financial columnist. He founded the Rich Dad Company, which offers business and personal finance education. Kiyosaki created the Cashflow game and other online educational games. The author of 26 books, the most famous of which "" became a bestseller. Kiyosaki's books are very popular, printed in many countries in millions of copies and occupy the top lines of ratings.

Robert Kiyosaki was born into a Japanese family, three generations of which lived in. After graduating from the Merchant Marine Academy and participating in the Vietnam War, he entered a two-year program. Very soon, two years of studying the theory seemed too long to him, Robert successfully completed a three-day course in real estate investors and got down to business. He launched his first company three years later and began selling leather accessories.

The decision to write books came at age 47. Kiyosaki co-authored Rich Dad Poor Dad, The Cash Flow Quadrant, and The Rich Dad Guide to Investing with Sharon L. Lecter.

What is CASHFLOW SQUARE about?

This book is a sequel to Rich Dad Poor Dad, although it can be read on its own. The idea of the book is to introduce the reader to the principles of dealing with money, known to the rich. Thanks to this knowledge, wealthy people are independent and can lead a free lifestyle.

According to Kiyosaki's theory, people are divided into several categories: workers, specialists and those who made money work for themselves. You will learn stories of financial success and understand the difference between a person who is dependent on other people and someone who controls their freedom. If you no longer want to be employed and are about to become financially independent, this book is for you.

What is the Cash Flow Quadrant?

In theory, the place of each person in the redistribution of financial flows is clearly indicated. Some people are a tool for the formation of these flows, others form the flow.

Graphically, the theory is expressed in the form of a square, consisting of four segments, each reflecting the current position of a person in the world of money. 90% of people in the world own 10% of all money, respectively, the remaining 90% of money is in the hands of 10% of people.

In the first segment of the Kiyosaki Quadrant - employees/workers. These are people who work for hire, that is, they sell their time and work for money. Employees receive a salary and can be sure that they will receive it every month. Those who manage to move up the corporate ladder receive more benefits. As soon as an employee loses his job due to any reason, cash receipts stop.

In the second segment, freelance artists - small entrepreneurs, representatives of creative professions, strong professionals in any field. These people not only know the profession, but also know how to organize their employment, that is, to sell the results of their labor. The “free artist” does not have an employer, so he can work less and get more.

In the third segment businessmen capable of independently organizing the process and hiring contractors. Businessmen usually earn more than employees and freelance artists and can spend less time earning.

In the fourth segment investors. These people invest time and money in such a way that they can profit from it. This category includes financiers who give loans at interest, bankers, traders.

Vertically, the quadrant is divided into two halves. On the left, where employees and freelance artists, people value security. Representatives of the right half strive for freedom. The "leftists" are guaranteed to receive a relatively small salary. The "right" risk losing everything and must rely solely on the fact that the invested funds will work effectively. The more income, the more freedom and chances to participate in the efficient distribution of global financial flows.

How representatives of quadrant segments behave

Employees

By doing ordinary work, employees move up the career ladder and receive a modest salary. Money is always in short supply, needs grow faster than income. employees take out loans and sink into debt. It is possible to break out of the circle under the condition of high professionalism and the search for favorable working conditions. An employee can go to the next level and become a freelance artist.

freelance artists

These people, in order to ensure financial success, have to work hard, because if they stop, they will stop. You can stop this dependence by going to the segment of businessmen.

businessmen

Having organized his business, a businessman does not sell his own efforts. The business model should generate income with minimal involvement. A businessman may not go to work every day to keep the business afloat. Employees and freelance artists work at the created jobs, the businessman concludes contracts, purchases equipment, etc. An established business functions with the indirect participation of a businessman who needs to solve the problems of enlargement and development of the business. Businessmen are financially independent, but they have to spend time on organizational issues.

Investors

Investors do not invest time and effort to make a profit. The only investments are intellectual, which are needed to determine profitable investment options. Investors do without partners, counterparties, supplies of raw materials and searches for a market. They give money to businessmen, whose tasks include the efficiency of the funds. The financial independence of investors is usually such that they can lead a free lifestyle.

If you are interested in the prospect of growing into an investor, raising enough money for effective investments and learning how to invest money profitably, read Robert Kiyosaki's book "Cashflow Quadrant".

Cash flow quadrant Robert Kiyosaki

(No ratings yet)

Title: CASHFLOW Quadrant

About the CASHFLOW Quadrant by Robert Kiyosaki

Robert Kiyosaki wrote the book CASHFLOW Quadrant in 1996. The work clearly shows why some people earn more and others less. The book is recommended for reading to everyone: businessmen, managers, ordinary employees and the unemployed.

Robert Kiyosaki is a legendary American businessman, investor, educator and speaker. Known as a financial columnist on Yahoo Finance and founder of the Rich Dad Company. Having achieved success in the financial sector, the businessman devoted himself to teaching. He has become a business coach, author of a personal blog and many books on motivation and money. Behind the author are 26 works that are sold in 109 countries around the world.

The CASHFLOW Quadrant is written for those who dream of financial and professional change. In the information age, the world is ruled by intelligence, not force. And only those who stop thinking in the spirit of the industrial age succeed.

The concept of "cash flow quadrant" means the division of the world into 4 sectors: workers, large and small businesses, investors. The book describes the risks and opportunities of different sectors. The author describes in detail each component of this financial cycle.

The workers are the sector of the majority. These are office workers, secretaries, locksmiths - all people who sell their time to the employer. This type of employment provides stability and guarantees, but deprives the freedom of choice. Those who work for themselves are a sector of people who no longer work “for their uncle”. These are private entrepreneurs, lawyers or dentists. They have more freedom, but also more responsibility. In this category, you get paid for your work. The less you work, the less you earn.

Most people don't know how to handle money. Therefore, the author of the book "Cashflow Quadrant" set a goal: the spread of monetary literacy. The writer is sure that a person can gain independence only when he becomes financially free.

Why do some people pay less taxes and feel more financially secure? Maybe they know something that others don't? Robert Kiyosaki is sure that it is important to work in the right sector and at the right time. In the book you will find valuable tips and practical advice on how to make money work for you. Moreover, the author will show you real ways to earn income.

On our site about books, you can download the site for free without registration or read online the book "Cashflow Quadrant" by Robert Kiyosaki in epub, fb2, txt, rtf, pdf formats for iPad, iPhone, Android and Kindle. The book will give you a lot of pleasant moments and a real pleasure to read. You can buy the full version from our partner. Also, here you will find the latest news from the literary world, learn the biography of your favorite authors. For novice writers, there is a separate section with useful tips and tricks, interesting articles, thanks to which you can try your hand at writing.

Quotes from the book CASHFLOW Quadrant by Robert Kiyosaki

It shows the path to true financial freedom because in the B quadrant people work for you, and in the I quadrant your money works for you. You can decide for yourself if you want to work or not. Knowledge in these two quadrants provides complete physical freedom from work.

The game is played by different rules in each quadrant, so my recommendation is to prioritize education over self-admiration.

If you succeed in the B quadrant first, you will be more likely to get great results in the I quadrant. If you develop good business sense first, you can become a very good investor and it will be easier for you to find good people in the B quadrant.

Knowing that I was going to start my own company, Mike's father told me, "You might lose two or three companies before you build one that is successful and lasts a long time."