Becoming Who You Are – from the Cashflow Quadrant™

Part II of The Cashflow Quadrant™ by Robert Kiyosaki is titled “Bringing Out the Best in You”. I have seen Robert teach for almost two decades and I believe it is what he does best; bring out the best of people. I have witnessed many people’s lives transformed by the teachings of Robert.

He talks about going from job security to financial security and who you need to become to make the transition. He says that the real issue is the changes you go through. Rich Dad had taught him the hardest part about moving from the left to the right side of the quadrant is the attachment you have to the way you earn money.

Robert says most of us have the potential to be successful in all of the quadrants, it depends on how determined we are. Rich Dad had said “Passion builds businesses. Not fear.”

Many people stay on the left hand side of the quadrant because of the fear of losing immediate income but in the end they are in a riskier position than if they had made the transition. There are several reasons why it is more risky to be on the left side. The one Robert highlights is financial literacy and education. To stay on the left side people do not need to be good with financial numbers however to be on the right side they must become educated.

Since The Cashflow Quadrant™ was written we have experienced the Global Financial Crisis (GFC) and many people in the E quadrant around the globe have lost their jobs. The job that was their security, highlighting that maybe “job security” is a thing of the past.

Being an “S” means if you get sick and cannot work you do not get paid – now that is risky! People who stay in this quadrant for a long time usually burn out.

Once someone has successfully transitioned to the B or I quadrant (or both) they have ultimate freedom and true security.

In my opinion there is another way to make the transition from left to right. That is to build a home based business alongside your existing job or profession. You may love your job and continue on this way forever giving you income from two quadrants. Or, if you do not like your job, you can stay in it until your income from the home based business is significant enough for you to quit. This way you can gradually develop yourself and your mindset into that of a business owner.

Please leave me your comments below.

2 thoughts on “Becoming Who You Are – from the Cashflow Quadrant™

  1. Adam Robinson

    I liked your idea wherein one goes for being inside both quadrants. I think that’s the smartest move. A lot of people, if given the choice, would rather have their own businesses and be their own boss. However, I think it’s not having the required passion for putting up a business is the issue. Being in both quadrants, starting a home based business for example, would allow one to “test the waters” while keeping the day job.

    1. Sue Post author

      Adam thanks for your comment. I think it is a good way for people to start as you say “testing the waters”. The only downfall I have seen is that some people do not treat their part time home based business like a real business. But maybe they would not have been successful if they were doing it full time either.