The Cashflow Quadrant

Updated: Mar 9

“For me, changing quadrants was not easy. It was hard work mentally, but more so emotionally and spiritually. Growing up in a family of highly educated employees in the E quadrant, I carried their values of education, job security, benefits, and a government pension. In many ways, my family values made my transition difficult. I had to shut out their warnings, concerns, and criticisms about becoming an entrepreneur and investor. Some of the values I had to discount were:

• “But you have to have a job.”

• “You’re taking too many risks.”

• “What if you fail?”

• “Just go back to school and get your masters degree.”

• “Become a doctor. They make a lot of money.”

• “The rich are greedy.”

• “Why is money so important to you?”

• “Money won’t make you happy.”

• “Just live below your means.”

• “Play it safe. Don’t go for your dreams.”

I mention emotional and spiritual development because that is what it takes to make a permanent change in life. For example, it rarely works to tell an overweight person, “Just eat less and exercise more.” Diet and exercise may make sense mentally, but most people who are overweight do not eat because they are hungry. They eat to feed an emptiness in their emotions and their soul. When a person goes on a diet-and-exercise program, they are only working on their mind and their body. Without emotional development and spiritual strength, the overweight person may go on a diet for six months

and lose a ton of weight, only to put even more weight back on later.

The same is true for changing quadrants. Saying to yourself,

“I’m going to become an entrepreneur in the B quadrant,” is as futile as a chain smoker saying, “Tomorrow I’m going to quit smoking.” Smoking is a physical addiction caused by emotional and spiritual challenges. Without emotional and spiritual support, the smoker will always be a smoker. The same is true for an alcoholic, a sex addict, or a chronic shopper. Most addictions are attempts to find happiness in people’s souls.

This is why my company offers courses for the mind and body, but also coaches and mentors to support the emotional and spiritual transitions.

A few people are able to make the journey alone, but I was not one of them. If not for a coach like my rich dad and the support of my wife Kim, I would not have made it. There were so many times I wanted to quit and give up. If not for Kim and my rich dad, I would have quit.”-Page 24 “Rich Dad’s Guide to Financial Freedom- Cashflow Quadrant “by Robert Kiyosaki

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