Rich Dad's CASHFLOW Quadrant is a guide to financial freedom. It's the second book in the Rich Dad Series and reveals how some people work less, earn more, pay less in taxes, and learn to become financially free.
When I was broke and deep in debt, I asked myself what I’d want to do with my life if I knew for certain that I’d always be broke. That was an interesting question because it helped me get past the momentary distractions of money and bills that always seemed to be at the urgent forefront of my reality. I realised that what I really wanted to do with my time was to create and share. I noticed this was something I could always do in some fashion regardless of how much money I had. This shift in mindset allowed me to increase my happiness and fulfilment, not to mention turning around my financial life, in less than a year.
This mindset also helped motivate me to create passive income streams because the more I did that, the more I got material distractions out of the way, and the more time I had for creative projects.
My life flows nicely when I remember to use my time for creative endeavours like writing, speaking, and creating projects. It doesn’t flow so well when I allow myself to feel like I’m swimming in time with nothing meaningful to do.
It may seem premature to think about this now, but I think it’s pretty important. If deep down you know that the end game of creating passive income is going to be a bust for you — that you’ll just end up living like a big loser day after day — then will you really be motivated to get there? That would probably require a lot of pushing and force to get yourself to take action.
If, on the other hand, you can envision a pleasant and fulfilling end game scenario, I think it will be much easier to create passive income streams in a more peaceful and flowing way.
There will still be work to do, but at least you won’t be internally fighting yourself along the way.
If anything stops you from earning passive income, what will it be? It’s undoubtedly going to be something inside you. The external action steps are certainly doable. You may screw things up in the beginning — I sure did! — but if you persist and learn from your mistakes, it’s largely a done deal that you’ll succeed. As I mentioned in a previously, people were earning passive income thousands of years ago. Surely you can learn this as well. So the only thing that’s really capable of stopping you here is YOU.
Which Quadrant Do YOU fall into
Our goal is to find multiple income streams, and the more passive the better.