Rich Dad's Cashflow Quadrant

About the book


Due to the popularity of Rich Dad, Poor Dad, this book was made to expound on the four income-earning quadrants. The paperback edition approximately has 359 pages.

Contents

The book expounds on the four income-earning quadrants. These are: Employee, Self-Employed, Businessman, and Investor. Kiyosaki discussses the numerous advantages of being a businessman and/or investor and cites the disadvantages of staying as an employee or self-employed. You can earn in all four quadrants but the potential for income (and might I say, loss) is also different.

Review

Most of the advice given on this book makes sense. But for me, the most controversial question to be asked is. Is a house an asset or liability? For Kiyosaki, it is a liability because a homeowner has to pay utility bills and real estate taxes. The house (that you live in) does not generate income. The only exception is if you're renting out that house or condo unit  to someone else and the rental income you receive exceeds all your real estate expenses.

It does make sense that a house is a liability. However, just because a house is classified as a liabilty does not mean that you should never buy one. After all, shelter a basic human need, and so is food. The important thing to remember is that the place you live in is something that you can afford within your means and maintain properly. Furthermore, there are assets in life that cannot be measured in financial terms.

Difficulty Level = 1/5



This book engages you in a conversational style and as such, is an easy read for those with little financial knowledge.

Personal Rating = 3/5

I would recommend this book for the young working professionals who belong to either the employee or self-employed quadrant. 


Related Links:



Cashflow Quadrant: Rich Dad's Guide to Financial Freedom