This guide to financial freedom will reveal why some people work less, earn more, pay less in taxes, and feel more financially secure than others. It is simply a matter knowing which quadrant to work from and when. If you#039;ve ever wondered why some people make it financially while others struggle all their lives, this is the book for you. It is a book written for people who are ready to move beyond job security and begin to find their own world of financial freedom.

A large part of Kiyosaki#039;s teachings focus on generating passive income by means of investment opportunities, such as real estate and small businesses, with the ultimate goal of being able to support oneself by such investments alone. In tandem with this, Kiyosaki defines "assets" as things that generate cash inflow, such as rental properties or businesses—and "liabilities" as things that generate cash outflow, such as house payments, cars, and so on. Such definitions are somewhat based on the concept of negative gearing. He also argues that financial leverage to be critically important in becoming rich.

Cashflow Quadrant is a personal finance and investing book written with Sharon Lechter, C.P.A. as the sequel to Rich Dad, Poor Dad. In it, Kiyosaki discusses what he calls the cashflow quadrant: a grid consisting of the letters "E", "S", "B", and "I". The cashflow quadrant itself is just an illustrative tool to show the difference between Employees, Self Employed/Small Business owners, Business owners (not directly involved in the day-to-day operation of the company), and Investors. Kiyosaki discusses the differences between concepts and ideas characteristic of each quadrant, particularly as they relate to passive income and tax advantages. Again, as a self-help author, he invites readers to consider their own ideas about money.

Kiyosaki speaks often of what he calls "The Cashflow Quadrant," a conceptual tool that aims to describe how all the money in the world is earned. Depicted in a diagram, this concept entails four groupings, split with two lines (one vertical and one horizontal). In each of the four groups there is a letter representing a way in which an individual may earn income. The letters are as follows.

* E: Employee — Working for someone else
* S: Self-employed or Small business owner — Where a person owns his own job and is his own boss.
* B: Business owner — Where a person owns a "system" of making money, rather than a job to make money.
* I: Investor — Spending money in order to receive a larger payout in return.

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