Thursday, May 7, 2009

Book review: Cashflow Quadrant: Rich Dad's Guide to Financial Freedom by Robert Kiyosaki

Cashflow Quadrant: Rich Dad’s Guide to Financial Freedom – Robert Kiyosaki

This book is the sequel to the Rich Dad Poor Dad book. It expands on the concepts and principles explained in the first book. The focus in this book is on the different ways people earn money and more importantly, the psychological mindset of the type of people in each area. The author splits up all ways to earn money into four ‘quadrants’. The quadrants are: Employee, Self-employed (or small business), Big business, and Investor. The author then looks at each quadrant and explains why the people in certain quadrants have an advantage over others. Differences in people within the quadrants are explained. The book concludes with steps to become financially successful.

What I gained from reading this book:
I gained so much from the first Rich Dad book and this book was great to expand my understanding on the concepts that the author discusses. Reading about all the different types of people and the different quadrants was a great way to take a look at myself and my personal situation. By the end of the book I had a clearer understanding of where I currently am (financially and psychologically) and where I want to be in the future. Just like the first book, there were great tips and advice that were never discussed in my University years studying finance and investments that I feel are so important for everybody.

Expands on the valuable concepts in the first Rich Dad book and introduces new concepts. Great explanations on the different types of people and ways to earn money. This book can be a great tool to assessing your situation.
The concepts are very simple to understand which means anybody can read it. You don’t have to have studied accounting or finance before to understand the points the author makes.

If you did not like the first Rich Dad book, you probably won’t like this one either. If you haven’t read the first book, you probably won’t understand what this book is discussing. The author uses repetition as a teaching tool and some people may not like learning this way.

Recommended for: Everybody
Everybody who has read the first Rich Dad book should read this book to expand the understanding of the concepts explained. I recommend this book for everybody because having a basic understanding of cash flow can improve your personal finance situation.

Genre: Self help and personal finance.

Overall rating: 7 out of 10 stars

Australians can buy the book by clicking the picture below:

Rich Dad's Cashflow Quadrant: Rich Dad's Guide to Financial Freedom

Where to from here:
If you are interested in reading other books by Robert Kiyosaki, I have reviewed other ones here:
Rich Dad Poor Dad
Retire Young Retire Rich
Why we want you to be rich by Robert Kiyosaki and Donald Trump

On the other hand, you may want to consider reading books looking at ways millionaires become rich:
The millionaire next door by Thomas Stanley and William Danko
Ten roads to riches by Ken Fisher

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