This is the second book in the Rich Dad series. Robert introduces the four quadrants and shares with the reader how each person in each quadrant operates. He goes on to explain the changes required for a person to move from the E or S side of the quadrant to the B and I side. He cited the benefits that come from being on the B and I side, which will lead to financial freedom compared to being in the E or S side. The last seven chapters illustrate how you and I can get on the financial fast track through steady and consistent actions recommended by Robert.
After reading this book, I am well informed about the kind of changes I need to make and what it takes to get to the B and I sides of the quadrant. It is a total change in mindset and behavior as I myself operate out of the E quadrant. The activities performed by a person on the B and I side will not make any sense to the person on the E or S side. Some of the many new ways of thinking Emphasized in the book that I have to adopt are:
- Work for free – There will not be any positive cash flow during the initial period of a startup.
- Delayed gratification: Many people want to solve their money problems instantly. But it is only through patience and diligently increasing our financial intelligence that we will be rewarded later by taking small steps each day.
- Investing is not risky – Without the proper knowledge and skill, many people will find investing risky as they have previously lost money in the stock market or mutual funds through some unreliable source. For them, investing is like gambling.
- Find Mentors: They are there to guide you through your journey. They are people you can turn to when you are in trouble.
- Making mistakes: Expect things to go wrong and learn from the mistakes made. Losing is part of winning.
- Time is your most valuable asset: the rich spend money to save time, while the poor and middle class spend time to save money.
This book is a must read for people who are thinking of embarking on the process of becoming financially free. I’d also like to recommend that he read Rich Dad Poor Dad first if he hasn’t already. Rich Dad Poor Dad provides the financial foundation and fundamental concepts needed for the Rich Dad Cash Flow Quadrant. Get it now!
