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Rich Dad Radio Show: In-Your-Face Advice on Investing, Personal Finance, & Starting a Business
The CASHFLOW Quadrant Strategy to Get Rich
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Before we had AT&T business wireless coverage, our delivery GPS wasn't the most reliable. Once our driver had to do a 14 point turn to get back on route. A 14 point turn. An influencer even livestreamed the whole thing. Not good for business. Now with AT&T business wireless routes are updating on the fly and deliveries are on time. And the influencer did get us 53 new followers though.
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AT&T business Wireless connecting changes everything.
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Rich dad drew me the cash flow quadrant when I was a kid and most people completely misunderstand what it means. Most people think I'm telling them to pick a quadrant. I'm not. Today I'm going to show you what it actually teaches. The strategy the rich use to be in multiple quadrants at the same time and why staying in just one is costing you more than you think.
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This is the Rich Dad Radio show,
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the good news and bad news about money. Here's Robert Kiyosaki. Welcome to the Rich Dad Radio show, the good and bad about money. This is Robert Kiyosaki and today is just you and me and we're talking about what the rich are teaching their kids about money. The most people look at the cash flow quadrant and think they have to pick a side. Left or right, employee or entrepreneur, security or freedom. They treat it like a tournament. You pick your team, you advance or you go home. So they spend their lives waiting. Waiting until they save enough to quit. Waiting until the kids are older. Waiting until conditions are right to finally cross over and start building real wealth. That waiting is exactly what keeps them broke. And here's what makes it worse. The smartest people I know never crossed over to the right side of the quadrant. They built the right side while staying planted on the left. People get angry when I say that. They say, robert, that doesn't make any sense. But think about it. Most people treat the quadrant like a wall. Two sides. Pick one and the moment you decide you can't afford to cross, you stop moving. That's the trap and it was built for you. I'm going to show you a different map today. Not left or right, not either or, but both at the same time. And I'm going to show you the price you're paying right now just by staying in one quadrant. Most people don't realize that price is being collected in every single day. Not by your boss, not by your landlord, by the government. Before you ever touch your paycheck, we'll get into exactly how much that's costing you and exactly what the rich do Instead. But first, let me show you what the quadrant actually is. Because almost nobody understands it correctly. Here's what most people get wrong. They think the quadrant is about what you do. Your profession, your title, your industry. It's not. The quadrant describes one thing only. Where your cash comes from. That's it. That's the whole lesson. E is employee. You work for someone else. Your income depends on you showing up. S is self employed. You work for yourself. You own a job. It just has your name on the door. Stop working. Then the income stops. B is business owner. A system works for you. Other people's time generates your income. You don't have to be there for the money to come in. I is investor. Money works for you. Your assets generate income whether you're at a desk or on a beach. Now, here's where it gets interesting. Rich dad used a doctor as his example. That same doctor could be an E on staff at a hospital, an S with her own private practice, A B if she owns a clinic and hires other doctors to run it, and an I if she's putting money into real estate or someone else's business. Same person, same profession. Four quadrants and the important words. Rich dad was very clear about this. The important words are generate income from. It's not what you do, it's how the money flows in. A garbage man who owns 200 trucks and the land where garbage is dumped is not in the same quadrant as a garbage man clocking in for a paycheck. Same industry, completely different financial reality. That distinction changes everything. Because once you understand the quadrant is about income, method, not identity, you realize nothing is stopping you from being in more than one at a time. Nothing. And when we come back, I'm going to show you exactly what is costing you to stay in just one every single day.
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The stock market has been downright violent recently. Stock prices swing up and down every day, volatility is near all time highs, and opening your brokerage account is enough to give you a panic attack. But through it all, one asset has been quietly crushing the gold. Not only was gold the best performing asset for all of 2025, but according to world famous economist Jim Rickards, a man with close connections to the White House and one of the most renowned gold experts on the planet, gold is about to go parabolic. In fact, he predicts gold will hit at least $10,000 per ounce over the next several years. And today, he's revealing one tiny $2 gold company he believes will skyrocket as the gold price marches higher. All thanks to what he's calling Donald Trump's $2 gold mine. For all the details on this little known two dollar gold company, go to off.air.26.com that's off.air.26.com the link will be in the show description paid for by Paradigm Press.
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We're back. I told you, the quadrant is a map, not a wall. Four locations, and nothing says you can only stand in one. Now I want to talk about why most people never figure that out. Because the E quadrant has a weapon, and that weapon is comfort. The E quadrant is built around one value, one core promise. Security, steady paycheck, benefits. The money arrives on the 1st and the 15th, and people say, what's wrong with that? Nothing. The paycheck is real, but the price is real, too. Most people don't realize they became a 50:50 partner with the government the day they took that job. In 1943, Congress passed a current tax payment act. Think about that. 1943. That law gave the government the power to collect your taxes before you ever see your paycheck. The government gets paid first. Always. What you take home is whatever is left. So the sequence for every employee in America goes like Earn, pay, taxes, spend. What's left, Work harder, earn more, pay more in taxes. The ceiling keeps dropping. And here's a part that really stings. The harder you work inside the E quadrant, the deeper in you go. I've seen it a hundred times. Someone working two jobs thinks they're getting ahead. More hours, more income, more taxes, less time to think, less time to learn, less time to build anything. Rich dad used to say the trap most people fall into is earning a paycheck in the E quadrant, then buying a house, having kids. And soon they're making more money, paying more taxes and getting deeper into debt. And they wonder why they can't get ahead. Here's why. The tax laws were not written for you. They were written for someone else. That someone is the B quadrant business owner and the I quadrant investor. I'll get to that in a moment, because that's the part that changes everything. But first, I want to tell you about a strategy. It's the strategy I used. It's the strategy Rich dad recommended. And it's the one strategy most people never hear about because it doesn't make for a dramatic story. It goes like this. Don't quit your job to chase the dream. Build the dream until it replaces the job. That means keeping your E income exactly where it is and using that steady paycheck as a Foundation to quietly build something on the right side of the quadrant at the same time. Not a hobby, not a side hustle you forget about in three months. A real business, even if it's small, even if it earns almost nothing at first. Because here's what most people miss. The goal at the beginning is not profit. The goal is education. When I was at Xerox, I was scared. I had bills, I had responsibilities. But I kept that job. And in my spare time I was building what would become a worldwide multi million dollar business. Both were happening at the same time. From 1977 to 1978, I worked hard at Xerox and became one of the top sales representatives in the branch. And in my spare time, I was building. That overlap wasn't a compromise. That was the strategy. Rich dad said it don't waste your time with a part time job. A part time job keeps you in the E quadrant. A part time business moves you toward the B quadrant. And I know a man who proves exactly what that looks like in real Life. He works two days a week fighting fires and earns over $150,000 a year. I'll tell you how he did it and what it means for you right after this. Thank you for listening to the Rich Dad Radio show. As you know, I've had my friend Jim Rickards on my show a bunch of times. Now Jim has a new message to share. According to Jim, a former advisor to the CIA and the Pentagon with close ties to the Trump administration, President Trump is about to make a move that will shock the markets and open the doors to the world's single biggest gold deposit right here on U.S. soil. Inside this deposit is the equivalent of more than 161 million ounces of gold, which at today's prices would be worth nearly $1 trillion. And as gold continues to hit new highs this year, this deposit could make some people very, very rich. That's why Jim, a world renowned gold Expert with over 40 years as industry insider, just made a huge prediction about this Trump move and what he calls the Donald Trump's secret $2 gold mine. And for all the details on this little known $2 gold company, simply go to offair26.com to watch his presentation. That's offair26.com I'll also put the link in the show description. This message has been paid for by Paradigm Press where back I told you the tax laws were written for someone else. That someone is the B quadrant business owner and the I quadrant investor. Here's why the sequence for Every employee in America. I said this before. The break goes like earn, pay, taxes, spend what's left. The government takes its cut first. Before you make a single decision with that money. Before you invest it, before you save it, before you spend it. The business owner's sequence is completely different. Earn, spend, pay taxes on what's left. That's not a loophole, that's not cheating. That's how the tax code was written, by design. The government needs businesses, it needs jobs. So it rewards the people who create them. Think about it. An employee buys a car with after tax dollars. By the time they've earned enough to pay for that car, roughly half that money is already gone. A business owner, if that car is used for business and structured properly, pays for it with pre tax dollars. The insurance, the gas, many of the repairs, same car, completely different cost. And it's not just the car. Meals, travel, a home office, education directly related to the business. Every one of those expenses, an employee pays with after tax dollars. A business owner pays with pre tax dollars legally, with proper documentation and the right professional advice. Rich dad used to say the best loophole in the world is owning your own business. Not because you avoid paying taxes, because you earn, spend what's legitimate for the business and then pay taxes on what's left. The government gets less legally. That is what financial IQ actually looks like in practice. And here's where most people stop. Not because of the tax code, because of something else entirely. Something nobody talks about. I'll get to that. But first, the firefighter. I know two firefighters, both work for the city government. Steady pay, good benefits. Show up, do the job, go home. One of them spends his off days buying old houses. Fixes them up, collects rent. At one point he owned 45 houses, paying him more than $10,000 a month in net income after all expenses. His firefighter salary, about $3,500 a month. Combined he was pulling in around $150,000 a year and growing. With five years still left before full retirement. The other spends his off day studying companies, taking long term positions, building a portfolio. His investments grew to over $3 million. Neither of them quit their jobs. Neither of them bet everything on a dream. They built the right side of the quadrant while the left side paid the bills. The that is the I quadrant in action and the formula behind it. Rich dad taught me this when I was nine years old is the formula from Monopoly. Four greenhouses, one red hotel, one green house on a property earns you cash flow. Two houses more cash flow, three houses more. Still and when you have enough, you trade four green houses for one red hotel and the cash flow multiplies. The formula works because it compounds each small investment, builds on the last time, does the heavy lifting. That's the shift that changes everything. As long as you are the only engine in the machine, the employee clocking in, the professional taking every client call, your income is capped. Capped by your hours, capped by your energy, capped by your body. The moment you place one green house, one asset generating income while you sleep, you've started to break that ceiling. You don't need a fortune to start. You need education, experience, and then eventually, excess cash. Build the first two while the paycheck is still coming in. That's the formula. Let me make this concrete. You have a full time job. Maybe you're a manager, a teacher, a nurse, a salesperson. You show up, you do good work, you get paid. That's the E quadrant doing exactly what it's designed to do. Now, in your off hours, you start something small on the right side. Not to get rich next month, not to quit next year. To get the education, to get inside a different legal and financial framework. To start building something that runs in parallel with everything you're already doing. That part time business earns a little at first, maybe nothing. But it also starts generating legitimate business deductions. Expenses that were already coming out of your pocket, that can now come out of the business before taxes. Meanwhile, a portion of what that business eventually earns, even a small portion, goes into the I quadrant. A modest real estate investment, a stake in something, dividend producing assets, whatever fits your education and risk tolerance at the time. Not speculation, not gambling. Deliberate, educated positions that put cash flow into your asset column month after month. The E income funds your life. The B income builds your skills, your tax advantages, your surplus. The I income grows quietly, compounding, working while you sleep. None of these streams require you to abandon the others. They support each other. Rich dad used to say the only difference between a rich person and a poor person is what they do in their spare time. Your friends are watching television on a Tuesday night. You are studying a lease, reading a tax strategy, analyzing an investment. That is where the gap opens quietly, invisibly, over years. Everything I've described today is mechanical. It can be learned, practiced, executed. The quadrant is a map. The tax laws are a system. The part time business is a vehicle. These are all knowable things. But here's what most financial books skip over and what rich dad insisted I understand. The bigger obstacle isn't knowledge, it's identity. Rich dad was direct about this. Changing quadrants isn't like changing jobs. It's a change at the core of who you are, how you think, how you look at the world. And when you've operated in the E quadrant long enough, its values sink in. Security becomes the lens through which every decision gets evaluated. Risk starts to feel irresponsible. The questions from the people around you, what if it fails? Is that really wise? Shouldn't you just focus on your career? Start sounding like logic? They're not logic. They're just the language of the E quadrant. And it sounds like wisdom because it's all you've ever heard. This is why the bridge strategy is so valuable. You are not betting your livelihood on an unproven idea. You are building something real while the paycheck removes the desperation from the process. Desperation is the enemy of good financial decisions. The steadiness of a regular income while you build on the right side is not weakness. It's intelligence. The goal isn't to become a different person overnight, is to give yourself the time, the education, the low pressure environment where a second financial identity can quietly take root until the day you look up and realize the right side has been carrying more weight than you noticed. Let me leave you with a simple image. A person standing on one leg can balance, but they're always working. Constant effort just to stay upright. One small push, a job loss, an unexpected bill, an economic shift, and they're scrambling. A person standing on two legs doesn't think about balance. They're stable. They can move. They can absorb a hit and keep going. That's the difference between one quadrant and several. The quadrant is not a sentence. It. It does not define you forever. It describes right now where your income is coming from. And that description can change. Start where you are. Keep the income that's working, add the education. Begin the part time business. Open the first I quadrant position. Let the compounding begin. Work hard on the left side, Build harder on the right. Do both every at the same time. That's not a compromise. That's the strategy. Thank you for your time. Thank you for caring about your future. Thank you for understanding that you are the only one who cares about taking care of you. Take care, Sam. Foreign.
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This podcast is a presentation of Rich Dad Media Network. And Doug. There's nowhere I wouldn't go to help someone customize and save on car insurance with Liberty Mutual, even if it means sitting flat front row at a comedy show.
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Hey, everyone. Check out this guy and his bird. What is this, your first date?
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Oh, no. We help people customize and save on car insurance with Liberty Mutual Together. We're married. Me to a human, him to a bird.
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Yeah, the bird looks out of your league.
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Anyways, get a quote@libertymutual.com or with your local agent.
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Liberty, Liberty, Liberty, Liberty.