This post is a list of quotes from the book - Rich Dad's CASHFLOW Quadrant by Robert T. Kiyosaki. Rich Dad's CASHFLOW Quadrant reveals how some people work less, earn more, pay less in taxes, and learn to become financially free.

Rich Dad's CASHFLOW Quadrant Quotes

The reason so many people fail to achieve success is because they fail to fail enough times.

Anyone who says that money isn’t important obviously has not been without it for long.

Even though we’re all human beings, when it comes to money and the emotions attached to money, we all respond differently. And it’s how we respond to those emotions that often determines which quadrant we choose to generate our income from.

Changing quadrants isn’t like changing jobs or changing professions. Changing quadrants is often a change at the core of who you are—how you think and how you look at the world.

Changing quadrants is most often a life-changing experience. It’s a change as profound as the age-old story of the caterpillar becoming a butterfly. Not only will you change, but so will your friends. While you’ll still be friends with your old friends, it’s just harder for caterpillars to do the same things butterflies do.

The difference between a gambler and an investor is simple. For a gambler, investing is a game of chance. For an investor, investing is a game of skill.

A person who is prepared will prosper no matter which direction the economy goes, whenever it goes.

Financial intelligence determined, not so much how much money you make, but how much money you keep, how hard that money works for you, and how many generations you can keep it.

Not all income is equal. Some income is much less taxed than others.

In times of great economic change, there are always great transfers of wealth. Even if you don’t have much money, it’s important to invest in your education because, when the changes come, you’ll be better prepared to handle them. Don’t be caught unaware and afraid.

A big secret is that true investors make more money in bad markets. They make their money because the non-investors are panicking and selling when they should be buying.

The reality is that real investors do not park their money. They move their money. [...]. A true investor’s money is always moving, acquiring new assets, and then moving on to acquire even more assets. Only amateurs park their money.

It is never the investment or asset class that is important. Success or failure, wealth or poverty, depends solely on how smart the investor is. A smart investor will make millions in the stock market. An amateur will lose millions.

If you know how to take care of money, money will flock to you and be thrown at you. People will beg you to take it.

Investing is much like flying. If you’ve been to flight school and spent a number of years gaining experience, then flying is fun and exciting. But if you’ve never been to flight school, I’d leave the flying to someone else.

Making money is common sense. It’s not rocket science. But unfortunately, when it comes to money, common sense is uncommon.

Security is a myth. Learn something new, and take on this brave new world. Don’t hide from it.

One great asset of the rich is that they think differently than everyone else. If you do what everyone else does, you’ll wind up having what everyone else has. And for most people, what they have is years of hard work, unfair taxes, and a lifetime of debt.

We need to look at money, work, and investing as adults. And what being an adult means is knowing what you have to do and doing it, even though you may not feel like doing it.

One of the keys to a successful and happy life is to be flexible enough to respond appropriately to whatever change comes your way.

On the surface, it seems as if there are laws for the rich and laws for everyone else. But in reality, the laws are the same. The only difference is that the rich use the laws to their advantage, while the poor and middle classes do not. That is the fundamental difference.

Never do business or investing for tax reasons. A tax break is an extra bonus for doing things the way the government wants. It should be a bonus, not the reason.

Long-term financial success is not measured by how big your stride is, but by the number of steps, the number of years, and the direction in which you’re moving. That is the formula for success or failure in any endeavor. When it comes to money, I’ve seen too many people, myself included, attempt to do too much with too little, and then crash and burn.

Financial statements are much like X-rays. Both let you see what your unassisted eye cannot see.

In my opinion, business and investing are not risky, but being under-educated is. Similarly, being misinformed is risky, and relying on a safe, secure job is the highest risk anyone can take. Buying an asset is not risky. Buying liabilities you have been told are assets is risky. Minding your own business is not risky. Minding everyone else’s business and paying them first is risky.

Your boss’s job is to give you a job. It’s your job to make yourself rich.