The first chapter of CASHFLOW QUADRANT begins with a quote. But what does it really mean? Let’s explore it more deeply to understand it clearly.
In 1985, Robert Kiyosaki and his wife Kim were in a very difficult situation. They were homeless, unemployed, and almost out of money. Their credit cards were maxed out, and they were even living in an old Toyota car. After some time, a friend helped them by offering a place to stay in her basement, where they lived for about nine months.
Even though their situation was very bad, they tried to keep it private. On the outside, they still looked normal, so when people found out, they often asked them, “Why don’t you just get a job?” But Kiyosaki explains that it wasn’t easy to answer that question because their goal was not just a job or security - it was financial freedom.
They did small odd jobs here and there just to survive, but they were not focused on building a traditional career. In fact, even though stable jobs would have been easier, they chose to continue struggling toward a bigger goal. He admits there were moments when a steady paycheck sounded comforting, but they kept going.
That year was extremely hard. Money problems created stress, fear, and arguments between him and Kim. But he also says those struggles made their relationship stronger because they stayed committed to the same vision. They knew where they wanted to go, even if they didn’t know exactly how they would get there.
Kiyosaki points out that both of them were educated and could have easily found good jobs. However, they were not interested in job security - they wanted true financial freedom.
By 1989, they had become millionaires. But even then, he says they still weren’t truly financially free. That only happened in 1994, when they reached a point where they no longer needed to work for money at all.
He uses this story to challenge a common belief that you need money to make money. But his experience shows something different. They started with no money and even debt, yet still managed to build wealth over time.
He also questions the idea that formal education is the main key to financial success. Even though he has a college degree, he says it did not play a major role in his financial journey. Subjects like math, physics, and literature were not directly useful in helping him build wealth.
To support his point, he gives examples of successful people like Thomas Edison, Henry Ford, Bill Gates, and Steve Jobs, who became very successful without following traditional education paths. His main idea is that understanding business and money is more important than formal education for building wealth.
So, what does it really take to become financially free, according to Kiyosaki?
He says it starts with having a clear goal, strong determination, willingness to learn quickly, and using your natural skills in the right way. Most importantly, it means understanding how you earn money and knowing where you fit in what he calls the CASHFLOW Quadrant.
The CASHFLOW Quadrant shows four ways people earn money:
• E (Employee): Works for a salary
• S (Self-employed): Works for themselves
• B (Business owner): Owns systems and businesses that earn money
• I (Investor): Makes money through investments
His main message is simple: most people stay on the “E” or “S” side, but real financial freedom happens when you move to the “B” and “I” side - where money works for you instead of you working for money.
So have you ever thought about which quadrant your income belongs to? Let’s find out next - stay tuned!
