With the continuation of the “Rich Dad, Poor Dad” series, I am hereby starting a series from the book “Cashflow Quadrant” which help us identify our core competencies and which area is suitable for us. And help us to achieve our financial freedom.
The author explains that when he was homeless, unemployed with his wife and living in the car. Both of them did not get any job but they tried to do some work so that they get money at least for food and fuel their car. It’s always been important for such situations to have job security, steady paycheck. They were graduated and have a good skill set, but they have decided to achieve financial freedom so that they don’t have to work for the rest of their life. The author has achieved the initial part of freedom in the 4 years and remaining in the further five years.
We feel that we need money to make more money but we can see that author got financially free from being homeless once upon a time (Rags to Riches). Then we might have a question in our mind that what is needed to become financially free? The answer is – we require to have a dream, determination, willingness, skill to learn quickly, ability to use our skillsets.
Where we fall under the quadrant, that will identify the way cash flow comes to us.
We have seen in series of rich dad poor dad that – What our schools and poor dad teach us is to get good employment or self-employed. They don’t teach us to do investment. While rich dad advises us to go to school, graduate, build a business and become an investor. This book is for those who are E or S and want to achieve B and I. This is not an easy journey to shift from steady paycheck to volatile paycheck of B and I.
Different quadrant requires a different skillset, different psychological requirements. Employees and self-employed are low with risk-taking behaviour whereas B & I are known for their risk-taking behaviour. B & I require to have a vision (not a Vision from WandaVision ?) that enhance their future success.
For example – a doctor can be work at a private hospital as an employee or start a private practice as self-employed or open a clinic & hire other doctors as an employee to become a business owner or make an investment in other businesses.
We can become a millionaire or go broken in any of the quadrants, no quadrant gives grantee of financial freedom. Many of us show off due to social fear that money is not at all important for them. But we are working a whole life for the money and then showing off that it’s not important then it’s a wrong thing to do.
Rich dad believed that life is more important than money, but money is important for supporting life. For doing many things in life, we require money. We cannot buy happiness through money but what we need to make us happy is bought through money so that money is important. The major thing upon this all is we have to learn that money work for us, rather we work for money.
For knowing which quadrant suitable for us, we need to work in all four quadrants. These help us to know our temperament, likes, dislikes, strengths, and weaknesses. So that we can choose our suitable quadrant.
If we try to understand that financial freedom is a freedom of time. Getting time available with family, for health, for well-being. Not anyone quadrant is better than others but it’s upon us which one suitable to us. But if we choose to opt for B or I then we need to put a huge effort because the skills required in B and I do not teach us during our school days.
Read for more detail: Rich Dad’s Cashflow Quadrant: Guide to Financial Freedom
I am grateful to Mr.Meihol Jhaveri (Founder of Gatisofttech) for development of Lucky Idiot website.