Kiyosaki's Cashflow Quadrant - Which Quadrant are you?

[nhg]

Have a foot in all 4.

3/6 from E + S (I'm a contractor but on full time atm)
1/6 from B (and growing quickly)
2/6 from I (and growing after a huge boost this year) this does not include capital growth which blitzes everything combined.

I use to make all of it from (E), but have halved my E income and substituted the remainder with other classes. I'm working a LOT less.

 

[kathryn d]

Never read the first book...but I bought this book at the thrift shop on the week-end.
Worst $1.00 I spent, and the most boring book I have read in a while.


he doesn't seem too bright to me.....

 

[perthguy]

Never read the first book...but I bought this book at the thrift shop on the week-end.
Worst $1.00 I spent, and the most boring book I have read in a while.

he doesn't seem too bright to me.....

Perhaps not but he is great at marketing! With 15 or so books and combined sales of over 26 million copies, I would say he is doing pretty well for himself. Ok, so assuming what he said in the book about hiring experts to do everything, he probably hired a writer to write the books and a marketer to market the books. Now that would be a smart business model

I have probably looked at a couple of his books now. They are so forgettable that I would not be able to tell you which ones. I didn't get much out of them myself.

Personally, I have gained the most from talking to people who have actually done what I would like to do. They have told me what worked and what didn't work. I take all of that on board when making decisions.

 

[Intrinsic_Value]

Why cant we move between them.

There are seasons for everything.
From my own point of view I see my personal season for building more businesses as better than investing in other peoples shares (given I don't really feel comfortable with
(a) secular changes coming up in the economies,
(b) neither does the rest of the market which is why the 'obviously good' companies are expensive. Little opportunity for me to scratch out the bargins.

 

[spludgey]

Never read the first book...but I bought this book at the thrift shop on the week-end.
Worst $1.00 I spent, and the most boring book I have read in a while.


he doesn't seem too bright to me.....

I think it's a very good book if you haven't given any sort of investing a second thought before.
But it's not an appropriate book if you're an established investor.

I disagree with much of what he says, but it was thought provoking to me.

 

[Tigger]

E = employee
S = small business
both need you there to keep earning income, you need to be active to earn.

B = business owner
I = investor
you don't have to be there all the time, passive income earners.

Hence the difference between small business and big business.

***

I found RK to be inspiring in terms of changing my mindset, but not applicable in the Aust tax system etc. eg for me -ve gearing made investments affordable, without NG I could not have afforded to get started. And if I sell I have to pay CGT and re-invest with leftovers, we can't just rollover as they can in the States. I think his books are useful as long as you don't get too hung up on formulae/copycatting but use them to give a different perspective. (I come from a working class background where owning your own home before retirement was the holy grail.)

 

[kathryn d]

E = employee
S = small business
both need you there to keep earning income, you need to be active to earn.

B = business owner
I = investor
you don't have to be there all the time, passive income earners.

Hence the difference between small business and big business.

***

I found RK to be inspiring in terms of changing my mindset, but not applicable in the Aust tax system etc. eg for me -ve gearing made investments affordable, without NG I could not have afforded to get started. And if I sell I have to pay CGT and re-invest with leftovers, we can't just rollover as they can in the States. I think his books are useful as long as you don't get too hung up on formulae/copycatting but use them to give a different perspective. (I come from a working class background where owning your own home before retirement was the holy grail.)

Without NG you may have found it much easier to start.