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Rich Dad’s Cashflow Quadrant explains why hard work won’t make you rich as well as the four types of people when it comes to money, including which one you must become if you want to build real, long-term wealth.
Rich Dad’s Cashflow Quadrant explains why hard work won’t make you rich as well as the four types of people when it comes to money, including which one you must become if you want to build real, long-term wealth.
Working hard is what most people do—and it’s not necessarily a bad thing. It means you’re putting in long hours at your job, staying late to get that project done, or doing whatever it takes to meet deadlines and get the job done.
Working smart is different. It’s about using your time wisely, which means delegating tasks when possible and using tools to help you get more done in less time with fewer errors.
It’s also about investing your money in appreciating assets so that you can reap the financial benefits and have more time for yourself. It’s about moving into other quadrants, like B or I.
People in the E and S quadrants are always working hard, but they’re not always working smart. They’re doing the same things every day, and they’re not thinking about getting better at what they do or improving their processes.
But those in the B and I quadrants understand that there’s no such thing as “the way we’ve always done it.” They think about ways of improving their work every day. They understand that if you want to succeed, you must keep up with new ideas and technologies.
You can’t invest if you don’t have money. And to get more money, you need to invest it. The more money you have, the more you can invest—and the better your chances of making good investments.
So, how do you do it? If you work for someone else, all of your hard-earned cash gets taken away from you in taxes. However, when you own a business, not only do you keep more of your paychecks (fewer taxes), but you also get to keep all the profits from your company’s success!
By starting or buying a business that allows you to invest as well as earn income, you’ll be able to build wealth much faster than if you just worked for someone else.
Working for yourself or a boss is fine until you can stand on your own two feet (financially speaking), but in the long term, you might want to shift from that.
Although you think that a job is safe, it’s only as safe as your contract. Once you’re fired, money stops entering your pocket. When you own your own business, you can invest in things that will grow your business and make it more valuable.
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Get the complete summary in the appThere is a fundamental difference between people in the E and S quadrants, and those in the I or B quadrants.
The sooner you move into the B and I quadrants, the sooner you’ll become rich.
There are 5 types of investors you should know about.
"Rich Dad's Cashflow Quadrant" is a strong fit if you want practical ideas around business, career, economics—especially themes like there is a fundamental difference between people in the e and s quadrants, and those in the i or b quadrants; the sooner you move into the b and i quadrants, the sooner you’ll become rich. The MinuteRead summary distills these concepts into a focused read, whether you're deciding whether to buy the book or applying its lessons at work.
Robert Kiyosaki, author of Rich Dad Poor Dad - the international runaway bestseller that has held a top spot on the New York Times bestsellers list for over six years - is an investor, entrepreneur and educator whose perspectives on money and investing fly in the face of conventional wisdom. He has, virtually single-handedly, challenged and changed the way tens of millions, around the world, think about money.In communicating his point of view on why 'old' advice - get a good job, save money, ge…
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