Kiyosaki’s claims that true security and freedom are only found on the right side of the Cashflow
Quadrant are outlined in the contrasts between the path that “poor dad” and “rich dad” took
throughout their life. For example, “poor dad” chose the traditional path of pursuing higher education,
acquire a career within an established organization, and ended up working very hard and long hours. He
felt obligated to make so many sacrifices to maintain his position and had to justify the lost time with his
family and all the trips away from home. With each promotion and pay increase, he followed his
advisor’s suggestions of also increasing the size of his home rather than seeing the home as a liability
rather than an asset. This put him in more debt and created an even deeper dependency on his job,
which in turn, took away his financial freedom in the long run. When a drastic turn of events caused him
to lose his job, he lost his only means of maintaining the lifestyle he had created for himself and he lost
the little bit of false sense of security and freedom he may have believed he had at one point during his
life. On the other hand, “rich dad” overcame the fear that any reasonable person has when it comes to
taking risks and put his time and energy into establishing businesses that could be self-sufficient and
became the type of business owner that built and owns a system. This allowed him to be able to have
the luxury to step away for any given amount of time without a negative impact to the business because
the money is still coming in. Then, he proceeded to invest his money and let his money work for him.
This allowed him to have the freedom to spend more time with his wife and kids to the extent that he
became a mentor for Kiyosaki and shared his hard-earned knowledge and wisdom. The passive income
that he gained from investments was more than enough to maintain the lifestyle that he had dreamed
of, plus a surplus. After analyzing both examples, I do agree with Kiyosaki’s point of view. I understand
that there is an immense shift with the end of the Industry Age and the start of the Information Age.
This means our mentality that was established previously regarding how to acquire financial freedom is
outdated and needs to be reconsidered.
I am currently working in the “E” quadrant. I am an employee with a secure job position within a
very established company. I receive the same pay every paycheck and I have benefits that I can use
when the need arises. I feel secure in the sense that I have consistent income every month and I can
count on it before I even have it. I would like to see myself in the “B” quadrant at some point to be able