Summary of Robert Kiyosaki's Cash Flow Quadrant Training

The Path To Financial Freedom -
A Summary of Cash Flow Quadrant

by Robert Kiyosaki
E-mail: [email protected]
Website: www.scythian.biz
The World Is Awash With Money
 Every day $1.4 trillion criss-cross the globe

looking for a home
 That is $1,400,000,000,000 !!!
 There is a ton of money waiting for excellent
opportunities
 If a country, a corporation or an individual knows
how to take care of money, money will continue
to flow to it
The Debt Trap
 The Bank: “Your house is an asset”
 But, an asset on whose balance sheet? Theirs of course!
 An ASSET puts money in your pocket
 A LIABILITY takes money out of your pocket
 The name of the game of capitalism is: “Who is indebted to
whom?”
 The more people you are indebted to, the poorer you are.
The more people you have indebted to you, the wealthier
you are.
 The average American gets a credit card immediately after
school and will be in debt until death
 We are all indebted to someone else. The problem occurs
when the debt gets out of balance.
Be the Bank, not the Banker
 “Be careful of money’s addictive power. Once you get

used to receiving it, that addiction keeps you attached to
the way you got it”
 Most people struggle financially because they spend their
lives using opinions rather than facts when making
financial decisions
 Expenses always rise to meet income.
 It is not about how much money you make, but how
much you keep and how long that money works for
you
Discipline Gets You Out Of the Debt
Trap
 Of your income, remember, the first 10% is yours to keep
 That is, keep it aside and don’t touch it
 With the remainder pay your normal expenses
 You will quickly be forced to cut some expenses, but will get
used to it
 With the extra money do the following:
 Decide to run all your expenses on one credit card
 Never spend more on the card than what you can pay in that month
 Pay the minimum payment every month plus pay your 10% into that
single credit card each month
 Keep paying until the card is paid off
 Then start the process with the next card and then the next debt
 Most people can be debt-free within 5-7 years if they stay
disciplined
You Can Be Rich and Poor in All
Quadrants
Safe, Surround
Secure yourself with
E B
Job, specialists,
Good work as a
Benefits group
Employee Business
Owner
Be your
own
S i Make
your
money
boss, do Self investor work for
your
own Employed you
thing
Time To Choose
E B
SECURITY
FREEDO
Employee Business
Owner
M
S i
Self investor
Employed
Where Do You Get Your Income?
 People are busier than ever
 The only difference between the rich and the
poor is what they do in their spare time
 When at work, work hard. What you do after
work with the paycheck for your hard work and
your spare time will determine your future
Income Statement Balance Sheet

Income Assets Liabilities
Expenses
Turn Liabilities Into Opportunities
 “If you take on debt personally makes sure it’s small. If you
take on large debt, make sure someone else is paying for it.”
Your Balance Sheet

Assets Liabilities Equity
An ASSET puts
money in your R100,000 R70,000 R30,000
pocket IOU Mortgage
Buyer’s Balance Sheet

Assets Liabilities
A LIABILITY
takes money R100,000
out of your IOU
pocket
The Secret To the Wealth Of
Corporations
 The Typical person:

EARN - TAXES - SPEND
100 - 33 - 40 =
27
 The advantage of being the bank and not the banker

EARN - SPEND - TAXES
100 - 40 - 20 =
40
Rat Race Fast Track
Income Statement Income Statement
Income Income
Job
Expenses Expenses
Taxes Spend
Interest Interest
Spend Taxes
Balance Sheet Balance Sheet
Assets Liabilities Assets Liabilities
Money Buys You
 Having lots of time to raise your kids

 Having money to donate to charities and support
projects
 Bringing jobs and financial stability to the
community
 Having time and money to take care of your
health
 Being able to travel the world with your family
What It Takes To Be Rich
 A study of the rich world wide has shown that
they:
 Maintain a long term vision and plan
 Believe in delayed gratification
 Use the power of compounding in their favour
 Einstein said: “Man’s greatest discovery was the
power of compound interest”
 We must all run our bit of work like our own
business
 As a group we will make the company more
valuable and will grow our asset in the business

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The Path To Financial Freedom -

A Summary of Cash Flow Quadrant

 Every day $1.4 trillion criss-cross the globe

 “Be careful of money’s addictive power. Once you get

Income Statement Balance Sheet

Your Balance Sheet

Buyer’s Balance Sheet

 The Typical person:

 The advantage of being the bank and not the banker

 Having lots of time to raise your kids

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