Cashflow Quadrant Book Review, by Robert T Kiyosaki

The book is legendary but is often used as the argument for Member get Member business programs such as Multi Level Marketing. In this book, Robert Kiyosaki clearly states that the Multi Level Marketing business can be made or entered into the business column. Because if the system works, someone who is already at the top can enjoy passive income without having to work again. But is it really like that? In the end, the Multi Level Marketing industry is still controversial.

Robert T. Kiyosaki's Cashflow Quadrant is a unique book and I think its content is quite bold. Because it discusses issues of money, work, and sources of income which is a sensitive matter for most people. This book itself can be said to be a continuation of Robert Kiyosaki's previous book, namely Rich Dad Poor Dad.



The Cashflow Quadrant series seems to be less readable than Rich Dad Poor Dad, but in my opinion this book provides a more detailed explanation and provides a clearer concept.

This book is very emotional for me, because from this book my insights about money have opened up a lot. Maybe this is also one of the books that caused me to be stranded in the forex trading world. From this book, I can realize that there are big differences in making money from various jobs, where Robert Kiyosaki wrote that in general, there are 4 ways people make money, namely:
  1. Employee (E), a person who works as an employee or works for someone else and gets a salary
  2. Self Employee (S), people work independently with their expertise and get paid for their professional services
  3. Business Owner (B), people work by building businesses and systems that can generate passive income
  4. Investor (I), a person who hires money to make more money.



What is the purpose of Robert Kiyosaki in introducing the cashflow quadrant?

Robert Kiyosaki's goal in introducing cashflow quadrant is to help someone achieve financial freedom. By achieving financial freedom, a person will have personal freedom and free time as well as have a business that can generate a lot of money.

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1. E for Employees
Quadrant E is the quadrant of a group of people who work as an employee. People in this quadrant have a steady income in the form of a monthly salary provided by a company or business that does not belong to that person. People who are in this quadrant can have a security position to the president director of a company.

Usually, people in this quadrant pay more attention to the certainty and assurance aspects of finding a job. It is not uncommon for them to have the following perspective: I am looking for a safe and secure job with various benefits.
2. S for Self-Employed
The S quadrant is the quadrant of a group of people who have small businesses and the company's operations are run by themselves. So people in this quadrant earn as much as the effort or hard work they put in.

The more time and effort they put in, the greater the income they receive. Vice versa, the less time and effort done, the smaller the income received.

Most of the people in this quadrant are small entrepreneurs such as restaurant owners, family businesses, consulting firms or those who sell services such as yard and house cleaners.

In addition, workers or employees who earn on a commission basis also fall into this quadrant. For example, real estate agents or doctors and lawyers. They often say the following: my rate is a certain amount of money per hour or my salary is a certain amount of money for the job.

Usually, people who are in this quadrant are resilient and like to do things on their own. It is not uncommon for them to have the following perspective: never work for others, but must work for yourself. Or another perspective is: if you want the right work, do it yourself.
3. B is for the Business Owner
Quadrant B is a quadrant of a group of people who earn income without having to be directly involved in the operations of the company they own. The point of not having to be directly involved is the difference between people in the B quadrant and those in the S quadrant.

So, people in the B quadrant are usually large entrepreneurs who have the luxury of being able to leave their company for a certain period of time because it has been professionally run by people from the E quadrant. In fact, it is not impossible that when they return, their company will run more smoothly and profit.

Meanwhile, people in the S quadrant often cannot leave their jobs or businesses. In many cases, if the group from the S quadrant stops working, their income will automatically stop.
4. I for Investors
Quadrant I is the quadrant of a group of people who earn income from investing in a company. Similar to quadrant B, people in quadrant I do not need to be directly involved in the operations of a company they invest in.
Financial Freedom

Robert Kiyosaki recommends people who want to achieve financial freedom to enter the B or I quadrant. He explained that many people have achieved financial freedom because they have a business, not working for a business or in a business owned by someone else.

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Those in the B and I quadrants have a lot of free time because they employ people from the E and S quadrants to run and manage their businesses. He said: if you want to be free, you better take care of your own business. The thing that needs to be underlined is that the business that is meant by Robert Kiyosaki is a business in the B quadrant and not an S quadrant business.

He warns that the more someone seeks job security or becomes a licensed professional such as a doctor, lawyer, accountant or stockbroker the more they "lose their liberty."

For those of you who want to make major changes by moving from the left side (E and S quadrants) to the right side (B and I quadrants), the thing to note is that quadrant displacement is a long process that takes a long time. He reminded that this quadrant shift also needs guidance.

From this explanation, my eyes and insight opened and helped me to decide on the path of life that I chose. Actually, if what I feel, Robert Kiyosaki is not cornering one of the quadrants, but he rather shows what the advantages and disadvantages of each quadrant are and frees his readers to conclude themselves.

Cash Flow Quadrant means cash flow. The cash flows that are actively generated are in the left column and those that are passively generated are generated in the right column.

In this book Kiyosaki suggests that we realize that when we retire the flow of money will disappear. Or for example, when we lose our job, the flow of money will disappear. That's why we always have to routinely build our financial empire in the Passive area so that when we retire or don't work anymore, money will still flow.

The advantages of Kiyosaki's Cashflow Quadrant book
  1. Teach us to always be diligent in saving and allocating money in productive assets such as property, stocks, and so on.
  2. Teach us to realize that when we retire or lose our job we have no more cash flow, so from an early age we must continue to prepare for difficult times.
  3. Teach us to think critically that there is no such thing as the safest job. An employee could be fired, a professional could lose clients, an entrepreneur could go bankrupt, and an investor could lose his investment.
  4. The descriptions in his book use stories and parables so that they are easy to understand
  5. The contents of the book really break the emotions of some people
  6. Book exposures can help people make decisions about their life choices


Overall good, but there are things that are nonsense like flaws which I will discuss.

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The Disadvantages of Kiyosaki's Cashflow Quadrant book
  1. It is often misled by Multi Level Marketing people that the Businessman and Investor caste is above the employee and professional caste. Though that's not the point.
  2. Often makes people forget themselves and try to pursue financial freedom in ways that don't make sense.
  3. Many people even feel offended after reading this book
  4. There are no concrete and technical examples, the contents of this book are only concepts


But even this deficiency is not a problem for me, because if you feel insulted, usually emotionally, the person cannot accept the thought of quadrant cash flow, usually feels cornered because he feels his weaknesses are exposed by Kiyosaki. Meanwhile, for concrete example problems it seems that the author's main goal is to share his thoughts and let the reader choose and adapt the concept to their respective living conditions.

Note: If this book is not read properly, it will become misguided. That's why it is necessary to be wise in reading and understanding the various concepts in this book. Remember this book causes a lot of people to go crazy.