Freedom Is A Choice- The Cashflow Quadrant

The Cashflow Quadrant- Rich Dad’s Guide to Financial Freedom by Robert Kiyosaki

The other day I came across this quote “Losing weight is hard. Being overweight is hard. Choose your hard”. This got me thinking about my main goal in life which is to achieve financial freedom. By financial freedom I mean having passive income from businesses and investments that pay for my living expenses so that I don’t “have to” go to work unless I want to. I want to be able to work when I want to and on what I want to. Then I thought achieving financial freedom is hard. Working all your life in unfulfilling jobs because you have to is hard. Choose your hard. Freedom is a choice.

What Is The Cashflow Quadrant?

In the book The Cashflow Quadrant- Rich Dad’s Guide To Financial Freedom Robert Kiyosaki explains the 4 types of people that make up the business world. They are Efreedom is a choice employee, S– self employed, B– business owner and I– investor. The Cashflow Quadrant represents the different ways in which income is generated. Although you can achieve financial freedom from all four quadrants, the skills of a B or an I will help you achieve financial freedom faster. The book will help you to see where you are today and work out how you’re going to get to where you want to be in the future.

“You can never have true freedom without financial freedom” Robert Kiyosaki

Why Financial Freedom Is Hard

If you want to change from the left side of the quadrant (E or S) to the right side of the quadrant (B or I) to achieve financial freedom faster, it may not be easy. The reason is because changing quadrants requires you to change who you are, how you think and how you see the world. It may be a life changing experience and some people are able to change easier than others. Some people don’t want to change who they are. But it’s who you are that’s brought you to where you are so if you want be in a different place you have to be a different person. Not only will you change, but so will your friends.

The Price Of Financial Freedom

Regardless of which quadrant you want to achieve financial freedom from you need to be prepared to pay the price. The price you pay is not in dollars or a high level of formal education. The price of freedom is measured in dreams, a burning desire to achieve your dreams and the persistence to overcome obstacles and temporary defeat along the way. Are you prepared to pay the price? If you don’t pay the price for freedom you’ll pay a different price. If you don’t pay the price for success you’ll pay the price for failure.

The Search For Freedom

Lots of us are searching for freedom and happiness. The problem is we’ve been conditioned to seek job security from when we were young. In school and at home we learned to be employees or self employed. As adults we start a family, buy a car, house, get credit cards and then are trapped by debt and taxes. The advice we were given of “go to school, get good grades and then a high paying job” trapped us in the rat race. There are many ways to achieve financial freedom. The path Kiyosaki recommends is from E or S to B. From there you can move to the I quadrant.

The Way Forward

Find you passion and develop a burning desire to achieve it. The road to freedom has a lot of obstacles. You will have temporary defeats. If you’re not passionate about your dream you’ll give up. It will be too hard. There will be a part of you that will still want security. The new you wanting freedom will go to war with the old you. Only you can decide which part of you wins. In Cashflow Quadrant Kiyosaki explains how he and his wife went from being homeless to financially free by building a business around their passion, teaching financial education.

“You cannot teach a person anything; you can only help him to find it within himself” Galileo

Freedom Is A Choice. It’s Not About Doing, It’s About Being

Be-Do-Have. A lot of people when they want to have something, focus on what they want and what they need to do to have it. Instead, focus on who you have to be, to do the things that need to be done, to have the things you want to have. Some peoplefreedom is a choice think that buying stocks or real estate or gold will make them rich. But this does not guarantee financial success. If you have the ideas and beliefs of a poor person you will still end up poor.

Change Your Thinking

The good news is that changing your thinking is free. The bad news is that changing your thinking may be hard. But it’s possible. And that is what this book is about. It’s not a “how to” book, it’s about improving the way you think (being). Then you can take the right actions (do) to achieve financial freedom (have). Freedom is a choice but it starts with the way you think.

7 Steps To Financial Freedom

Mind Your Own Business

Are you working hard to make everyone else rich? If you follow the standard advice of go to school, get a good job, buy the home of your dreams and use debt for consumer goods then you may become

  1. An employee making your boss rich
  2. A debtor making banks and lenders rich
  3. A taxpayer making the government rich
  4. A consumer making businesses rich

Instead of finding financial freedom you’re helping other people find theirs.

Take Control Of Your Cash Flow

If you believe that making more money will solve your money problems you may be mistaken. If your problem is cash flow management more money will just make your problem bigger. The reason most people have money problems is because the didn’t learn to manage their cash flow, they were never taught how to manage it. People who can’t control their cash flow work for those who can.

Know The Difference Between Risk And Risky

According to Kiyosaki investing isn’t risky, being uneducated is risky. Due to lack of financial intelligence many educated people put themselves in positions of high financial risk. They cling to job security and damage their health with high levels of stress.

Decide What Kind Of Investor You Want To Be

Have you ever thought about why some investors make more money with less risk than others? According to Kiyosaki if you want to build your wealth quickly you need to take on financial problems. The three types of investors are investors who seek problems, investors who seek answers and investors who know nothing. Inside every problem there is an opportunity and that’s what real investors are after.

Seek Mentors

A mentor is someone who tells you what’s important and what isn’t. You can have role models and reverse role models but choose your mentors carefully. If you are going to follow someone make sure they’ve been where you want to go. Professionals have coaches, amateurs don’t.

Make Disappointment Your Strength

Learn to turn disappointment into an asset. When you try to do something new and things don’t work out what kind of person do you become? Do you say things like “I’ll never do that again” or “I knew I would fail”? If you learn to expect disappointment in a positive way you can turn that disappointment into an asset. This does not mean to accept defeat but it’s unrealistic to expect everything to work out perfectly all the time. If you’re mentally and emotionally prepared for disappointment then you’ll deal with it better.

The Power Of Faith

When you look in the mirror it doesn’t just reflect back an image, it also reflects back your thoughts. Thoughts are reflections, as are your opinions of yourself. All words are mirrors and they reflect what you think about yourself, even if you’re talking about someone else. For example if you say “I can’t start my own business” you might be saying “I don’t want to do or learn anything new”. Money won’t stay with you if you don’t have faith and trust yourself. Remember you are free to choose what you believe about yourself and free to choose you thoughts. Freedom is a choice.


These seven steps are the steps Robert and Kim Kiyosaki used to go from being homeless to financially free in less than ten years. Everyone can find financial freedom regardless of which quadrant they operate from. You can find your own unique path but it’s your choice as to how you do it. It doesn’t matter what level you’re starting from because it’s a life long process and you’ll continually learn. Getting started is probably the hardest part but once you make a commitment it will get easier. Freedom is a choice you need to make everyday when you wake up.

Thank you for reading and feel free to leave any comments below







  1. I am in the process of changing quadrant it took me to become absolutely fed up with the system!

    Wake up go to work one I dislike come home eat sleep and repeat and at the end of it have no money to enjoy any free time I do aquire.

    On top of this, I see my work colleagues more than my wife and children.

    I think for many they have to come to this point in life before the fear of changing quadrant is less scary and more exciting

    • Thanks for your comment Steven. I agree with everything you said there, I’m in the same position as you. All the best with your journey changing quadrants. Cheers

  2. I love the great inspirational style of writing in the beginning of the article before moving on and explaining the 7 steps to financial freedom.
    If you’re a regular person, regular employee, working 9-5 jobs – then you’re right, you are indeed just a taxpayer, just a sheep helping other people achieve their financial freedom without helping yourself.

    But then again, working for yourself trying to achieve financial freedom can be pretty stressful – so what do you think? Is it better to live a more peaceful life like a regular person without too much worries? Or would you rather work as a business owner having all the stress and trouble in the world with a great risk of failing only to achieve financial freedom?


    • Thanks for a very thought provoking comment Antonio. I think it depends on what you value. If you’re happy spending more time at work than you do with your family then it’s your choice, and one is not better than the other. It’s just a choice. I personally have never been too attached to things or a career. I’m interested in learning and experiencing new things so I’m happy to go for freedom even if I don’t achieve it. It can be stressful but it can also be fun, if you realise that money is just a game. Cheers

  3. Hi, Diego!
    Great article! Yes, it is really up to us to change our own minds. It is quite hard when you are stuck on that left side. I am in process of changing mine also.
    Thank you for sharing this!

    • Thanks for the comment Kathy. I agree with you that changing sides of the quadrant is not easy, but it’s definitely possible. Also you don’t have to earn your income from just one quadrant, Robert Kiyosaki says he earns from all four quadrants. So you could have a full time or part time job (E), a part time business (S) and invest in real estate or stocks (I). If one of the sources of income ends you’ll still be ok because you have other sources. Feel free to drop by anytime, all the best

  4. Well written post. I’m currently in both the E and S part of the quadrant. What do you think is a good strategy to move to the B part of the quadrant . An old boss of mine use to say “You know you are a business owner when you are working on your business not in your business” Do you think this rings true?

    • Hi Raul, thanks for your comment. When you start building a business from scratch you’ll be an S but how long you stay that depends on you. I’ve not reached this stage yet but the idea is to build a business to the point where it’s profitable enough to be able to pay someone to replace you so that the business runs without you. How you do that is up to you. For example you could have a property that generates positive cash flow and use those profits to pay a property manager rather than managing the property yourself.That means you have income from the property even when you’re on holidays. Other people will manage rental properties themselves but they don’t have an income if they don’t collect the rent themselves. It’s a choice. Thanks for dropping by, cheers

  5. Hi Diego .
    This is an excellent post and I will be re-reading it after this comment .
    Thanks for posting this !
    I must read more of these to EDUCATE myself , before it’s too late !


    • Thanks for the comment and feedback Paul, I really appreciate it. I think educating yourself is a lifelong process but it’s never too late to start. I’ve always been interested in learning but I didn’t become interested in financial education until my late 20’s. If you look you’ll find examples of business people that didn’t get started until late in life but they still succeeded. If you have the desire and an open mind anything is possible. I love this quote from Muhammad Ali “Impossible is just a big word thrown around by small men who find it easier to live in the world they’ve been given than to explore the power they have to change it. Impossible is not a fact. It’s an opinion. Impossible is not a declaration. It’s a dare. Impossible is potential. Impossible is temporary. Impossible is nothing.” All the best Paul

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