Guide to Financial Freedom || Book Review of Rich Dad’s Cash Flow Quadrant

I learned the meaning of financial freedom during college. Since then, my goal in life was to achieve financial freedom. 

So, the next question is: how to achieve financial freedom? The reader in me searched for books to read and I found Robert Kiyosaki’s Cash Flow Quadrant. 

This article is a review of this book.

In the upcoming paragraphs, I’ll tell you what the book is about, the eye-opening, shocking topics and realizations, and end with why you should read it and my takeaways from it. 

Cash Flow Quadrant categorizes people based on their income.  E is for employees, S is for self-employed, B stands for Business Owner and I stands for Investor.

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It’s a How-to category book that gives you a guide on how to move from E and S to B and I.  Robert argues that you can achieve financial freedom in any quadrant, but it’s best to move to the right side because it will not only help you achieve that faster, but an E or S needs to be an excellent I to achieve freedom.

The book has three parts:

  • Explored the difference between the quadrants and why people chose them and get stuck.
  • It focused on personal change and
  • How to find success on the right side of the quadrant.

The author shared his stories and experiences. They were relatable and short. Besides, book references and analogies were used to keep his points.

I liked the explanation – detailed, clear, informative, and delivered facts. The examples and flow charts added clarity. You don’t need a financial background to understand this one.

I liked the arguments. They were shocking with a solid backing. For example, today is the era of modern-day defined contribution pension plans not defined benefit plans. The days of the company and government being financially responsible for your retirement are over.

I experienced a lot of eye-opening moments. Take, for example, chapter 6. I learned in Rich Dad Poor Dad that not being financially educated is going to cost you, but this book makes it apparent when he spoke about a game that’s being played.

Besides, one concept that I loved was facts VS opinions. He said not to blindly accept opinions as facts. You need to do your due diligence to separate them.

I liked the quotes and the one-line summarization at the beginning of each chapter. However, I didn’t like the structuring. It’s a bit confusing cause I could not figure out the main and subhead.


  • Finance freedom = Passive income > expenses 
  • Diversification is not an investment strategy for winning.
  • Portfolio concentration is.
  • Learning to invest is important. Because learning to invest is learning how to make money work for you and once you learn that you got your ticket to freedom.
  • It’s not what you have to do that needs to change. It’s who you must become to do what needs to be done. You can’t be a rich man with the thoughts and ideas of a poor man.

I realized that implementing this book is going to be a long hard journey and the author makes you aware of this at the start itself. He said, “Freedom may be free, but it has a price. This book is for those who are willing to pay that price”.

That said if you are ready to move beyond job security and want to build your pathway to financial freedom, then this book is for you. This is precisely why I chose it.

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