Cashflow Quadrant Book Review

I finally finished reading Cashflow Quadrant: Rich Dad's Guide to Financial Freedom by Robert Kiyosaki and I thoroughly enjoyed it. Just like Rich Dad Poor Dad: What the Rich Teach Their Kids About Money-That the Poor and the Middle Class Do Not!, it teaches you about the mindset of the average person when it comes to money. Most of us are taught to get an education and then a good secure job so we can retire in 30 years. As we know, there are no such things as a secure job. What Cashflow Quadrant teaches is to get from the left side of the quadrant (employee and self-employed) to the right side (business owner and investor.)

The cash flow and tax advantages are available on the right side of the quadrant. I thought the author did a good job in explaining the differences between both sides. He also went into detail about the various types of investors that exist, from the gambler to one that understands risk.

He also stresses the importance of becoming a business owner before jumping into investing. Developing a study cash flow as well as learning how to manage a business will help you to become a good investor.

Although the author wasn't in network marketing himself when he wrote the book, he states that it makes a great option for those who want to become business owners. I was happy about that since I have become involved with network markting as a Beachbody coach myself. I do feel it is a great way for most people to get started owning their own business without spending thousands of dollars to do so.

What I got from the book is that a business is one that can run even when you are not there. You would need to set it up so that it runs and generates income regardless of where you are. Being self-employed usually means you are still doing most of the work. For example, as a freelancer, you are usually performing multiple jobs from project managing to doing the actual work. You can outsource certain tasks but most self-employed individuals find it difficult to let go as the quality of work is a reflection of themselves so they continue to do it all.

After reading Cashflow Quadrant: Rich Dad's Guide to Financial Freedom, it has definitely got me thinking in a new way as far as self-employment and business are concerned. I suggest reading this book if you plan on working for yourself.

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