Book Tamers| book reviews

Kiyosaki writes worse than I could possibly write and he is far from considering himself a real writer. But his books, not a few actually, are valuable because they manage to change mentalities.

I know at least 4 people radically changed by Kiyosaki’s books

I also know a lot of multinational companies built upon the principles of the cashflow quadrant that Kiyosaki has promoted through all possible media. On the other hand, I know people who have taken the books I am talking about for a Bible and have narrowed their vision so much that they instantly deny any idea or concept that doesn’t exist in the American’s theory. I could say they live a form of fanatism.

Kiyosaki’s books are dangerous

As dangerous as a knife which you can use both to cut the bread and to kill somedoby. When I read Cashflow Quadrant, a few years ago, I had some revelations. I would exaggerate if I said they changed my life. Actually, books don’t change people, they merely show them that there are alternatives, but people are the ones who take the call. Even running away from responsibility is a choice of its own, but I am not writing about this today.

Cashflow Quadrant can be summed up to the simple scheme right where:
E = Employee
S = Self-employed (freelancer, dentist, lawyer or independent consultant)
I = Investor
B = Business owner

According to Kiyosaki everybody should want to be in the B quadrant because, from his point of view, one can manage to get faster from there to the investors’ quadrant. I found out (and it took me some time) that, first of all, not all people are made for the B quadrant and, second of all, not all the people wish to be there. But no matter if you want to be an employee, a self-employed or the owner of your own business, it is good to know what each of them means and which is the real relation between time and money.

We trade time for money

And this is the exact topic Cashflow Quadrant talks about. It is about the fact that the employee works 9 hours a day and he is paid with a certain amount of money, but if someday he decides that he doesn’t want to do that anymore, he permanently loses his income because he gets fired. The self-employed also trades time for money but if he finds himself one morning in the mood of not getting out of bed, he can do that without losing his income. The only disadvantage is that he will earn less that day (or during that period of time).

One becomes an investor the moment when, as an employee or a self-employee, has saved a serious amount of money which he tries to multiply. Likewise happens with the business owner, but you can read about it in Cashflow Quadrant. That is if you have the guts.

Written by Andrei