youngandthrifty Book Review and Giveaway: Rich Dad’s Cash Flow Quadrant by Robert Kiyosaki

Now that the Canada Post strike is over, I can finally give away a book on my blog!

In case you haven’t heard of Robert Kiyosaki, he is the author of Rich Dad Poor Dad (one of the #1 New York Times Best sellers).  From that successful book, he has created a board game, many other books, and even both free and fee-based seminars on how to generate passive income cash flow.  He’s pretty much the cash flow guru and many people love and respect his entrepreneurship.

In this book following the wildly popular Rich Dad Poor Dad, I was expecting that he would basically rehash Rich Dad Poor Dad and throw in some redundant information (I guess I don’t have much faith in follow up books/ sequels!).  However, I was pleasantly surprised and find this book better than the first one.   I found that the first book didn’t give enough practical advice/ information.  The first book was good though because it gave a solid background for his follow up books, I suppose.  In this book, there are plenty of examples on how to get yourself into the desired “quadrants”.

In Cash Flow Quadrant, he explains in detail the different quadrants (E, B, S, and I).  In case you haven’t read the first book, the quadrants are as follows:

E- Employee

S- Self Employed

B- Business Owner

I- Investor

He then goes on and explains the personality characteristics of each quadrant, and explains that you can be in multiple quadrants simultaneously (e.g. be an employee and also own a business on the side, or be an employee and be an investor in stocks and mutual funds).  I found the description of the personality traits of different quadrants particularly interesting.  For example, those who are self-employed professionals, like lawyers, doctors, accountants, and dentists.  They are characterized by being fiercely independent and like to the take control of the situation by doing it on their own (e.g. they have the mentality of: “If you want something done right, do it yourself”).  They are often considered perfectionists.

He also explains that for those who own their own business, it can be businesses in the “S” quadrant or it could be a business in the “B” quadrant.  Those in the “B” quadrant requires that the person have an ability to lead people and take control of systems, and have people working for you and following your vision.  Those in the “S” quadrant who own businesses could be the above mentioned self-employed professionals.

He describes the characteristics of the wealthy and that most of them are investors, business owners.  Just like Millionaire Next Door, he explains that our main expenses are our taxes- those who are in the “E” quadrant will continue paying taxes whereas those in the other quadrants (especially “I” in terms of dividends etc.) will find a way to minimize taxes and be able to continue to generate cash flow.

In the next few chapters, he explains the three kinds of business systems, the seven levels of investors, and even talks about how advisers can even take advantage of your financial illiteracy, how to become a “B” and an “I” (aka wealthy people) and finally how to make disappointment your strength.  I especially enjoyed the last few chapters, as he focused on telling the reader that everyone needs mentors, that we need to practice humility and be ready to take risks and fail (for example, starting business and worrying that it won’t do well).  If we fail we can learn from our mistakes and grow from them, as long as we have an open mind.

All in all, I enjoyed this book- it helped open my mind to different personalities and how we are drawn to different quadrants, and gave practical ways on how to change yourself so you can be in a more desired quadrant in terms of wealth accumulation.

Readers, have you read this book?  What do you think of his series/ message?

youngandthrifty Book Giveaway:

I’m giving away my copy of Cash Flow Quadrant (no dog eared pages this time, how about that!).  It is a good inspirational book to read, and I would recommend it.  He is an undeniably good story teller and is very engaging and empowering with his message in his books.  I’m sure that’s why he’s on the New  York Times Bestseller list!

There are two ways to enter:

  1. Subscribe by RSS for one entry and comment below OR
  2. Subscribe by Email for two entries and comment below
  3. If you already subscribe, thanks for reading (I heart you)!  Just let me know below and I’ll give you one entry
  4. For an additional entry (you have to do 1,2, or 3 as well), spread the word of the giveaway by tweeting this:

Cash Flow Quadrant by Robert Kiyosaki book giveaway (ends July 8) @youngandthrifty http://bit.ly/kbTnPI

Winners will be drawn via random.org and announced on July 15, 2011.  Contests closes July 8, 2011 (Friday) at 11:59PM PST.

Good luck everyone!  Thanks for reading Y&T!

About

Young is a writer and former owner of Young and Thrifty and the main "twitter' behind Young and Thrifty's twitter account. She lives in Vancouver, BC and enjoys long walks on the beach, spending time with her anxious dog, and finding good deals. If you like what you read, consider signing up for email updates.

35 Responses to youngandthrifty Book Review and Giveaway: Rich Dad’s Cash Flow Quadrant by Robert Kiyosaki

  1. I subscribe to your RSS and just tweeted! Sounds like a great book. I like Kiyosaki in general. Have you seen some of his interview on Youtube. There are some funny clips.

    • @retirebyforty- No, I haven’t seen his videos. Funny, I don’t consider him a guy with much of a sense of humor! I’ll go check them out, thanks!

    • @Financial Uproar- Just checked out John T Reed’s page- I’ve been skeptical of Robert Kiyosaki too (what with his insanely priced seminars and such) but I take his book with a grain of salt and pick out information that I find valuable. I’ll give you two entries for this book, just because I like you. (just kidding, I won’t enter you since you’ll probably vomit if you see it in your mailbox!).

  2. I read the book after checking it out from the library. I have also read John T Reed’s assessment. Regardless of personal feelings toward an author, I do like to take the basic ideas of a text and pick out the gems, applying them to my life in such a way as to improve my personal situation. By the way, I am already a subscriber via RSS.

    • @cashflowmantra- Definitely. I caution those who subscribe to his teachings in a “cult-like” manner as John T Reed cautions, but it’s good inspirational reading, anyhow… even if it possibly is all made up! Thanks, +1 entry for you! :)

  3. The funny thing about Rich Dad is that he’s made most of his money through selling books about how to make money. Winning…

  4. Hi ! I subscribe via email and I would tweet about u but I don’t really use twitter and have no followers :P

  5. I don’t want to enter in the contest but I just wanted to say that I think that it is a pretty good book for people that have absolutely no idea about money/business. In my opinion if you already have a good medium amount of understanding about the way businesses operate then this book may be a good refresher but it won’t be amazing.

    • @Juan- Yeah, that’s very true. It again “skims” the water, but it’s a good read anyway for inspiration.

  6. I have subscribed via email.. would love to read this book as after working for someone all my life I am considering working on my own in the financial industry… would like to find out if my personality is suited..

    • @Be’en- Good luck with the book contest :) I think you can answer that question yourself, though the book would be very helpful.

    • @Financial Samurai- He is now a mega-marketing-maniacial-man! He’s probably made so much money off his books, seminars, etc. etc. Good luck Sam!

  7. There is no doubt that Kiyosaki’s original book (which I just did a review of on my site coincidentally) has some factual flaws in it, but i’ts the thought process and way of looking at money/capital that holds the real value anyway, and not the specifics. I would never read the book as a, “How to invest in real estate,” resource.

    • @My University Money- LOL cool! I did a review on Kiyosaki’s original book way back too. He’s not specific at all with any of his books, I find. They are more good for the “inspirational” aspects.

  8. I already receive your emails, so count me in please! :)

    Robert Kiyosaki is an excellent story teller so it wouldn’t doubt that this is a good book with some creative ideas. However, I do see him as a snake oil salesman type – the kind that could sell ice to an inuit! lol There is no way I would ever pay for one of his seminars…

    • @SophieW- hahaha!!! You say it so well, him being able to sell ice to the Inuit! So true so true! Take it with a grain of salt, I suppose :) Good luck and thanks so much for reading my blog

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