“You can never have true freedom without financial freedom.”
The book Rich Dad’s Cashflow Quadrant is about financial freedom. It shares true knowledge of being financially free. In today’s world everything costs money, even emotions are charged with money, for example – if you want to meet an old friend of yours at his/her place or you want to invite that friend of yours at your place, in both the cases you need money, so you can imagine in today’s world money is a lifeline. This book tells about the steps or the approaches required to be financially independent. To become rich one needs to think like the rich, one becomes exactly what he / she thinks. The book focuses on four different quadrants of the financial world of which we all are a part of one or more quadrants.
The four quadrants –
The four quadrants as you can see represents the financial environment a person is in.
The E quadrant –
The “E quadrant” stands for Employee i.e, those people who work for some organisations for money belong to this quadrant. People in this quadrant have a little or no knowledge about financial freedom or how to get out of the rat race. People in this quadrant depend upon their organization they are working for or on the government for their financial security.
The S quadrant –
The “S quadrant” stands for self employed. People in this quadrant work in the specific field with a specific knowledge. People’s like doctor, chartered accountants etc belongs to this quadrant. The main problem of this quadrant is the people working in this quadrant have to be experts in their work to survive the competitions. The income of the people in this quadrant depends on their working potential.
The B quadrant –
The “B quadrant” stands for business. People in this quadrant owns a system in which people work for them. In this quadrant people don’t work for on their own rather they create a system in which people work for them. The income in this quadrant depends on the efficiency of the system and management and the productivity of the people working in the system for the owner.
The I quadrant –
The I stands for “Investor” . People in this quadrant are masters of wealth creation. They know how to use their money to work for them. The people in this quadrant make money from money. People in this quadrant don’t work for money, their money works for them. People belonging to other three quadrants must have adequate knowledge of this quadrant and irrespective of which quadrant they belong they must belong to this quadrant also to attain financial freedom.
The book focuses on many other topics along with the four Cashflow quadrant-
- One must know from which quadrant he/she belongs and the efforts needed to reach the goals he/she had set.
- One must have clear mindset of where he stands financially and where he/she wants to make a stand i.e, one must have proper idea from which quadrant he/she can generate cash flow to become an investor.
- One must mind his own business to be financially free, i.e, work for yourself don’t make your boss rich by working for them rather make a plan and create a system of your own.
- Believe in yourself, you can achieve everything you want but you must have faith in yourself, you must have a winner mindset to win.
- To become rich one needs to have mentality and thinking exactly like the rich people.
Quote from the book-
“You can never have true freedom without financial freedom. ”
“Freedom may be free, but it has a price.”
My views –
Start from today to have a better tomorrow, be the best version of yourself, work hard and you will definitely reach your goals. No matter what comes in your path just go on. Don’t be afraid to fail rather make your failure bridge between your today and your successful tomorrow.