(From Goodreads) The Cashflow Quadrant is the follow-up guide to finding the financial fast track that best works for you. It reveals the strategies necessary for moving beyond just job security to greater financial security by generating wealth from four selective financial quadrants. This work will reveal why some people work less, earn more, pay less in taxes, and feel more financially secure than others. It's simply a matter of knowing which quadrant to work in.
A great follow-up to Rich Dad, Poor Dad. The book is most useful for its catch phrases for rethinking money in more useful terms. Somewhat repetitive, but that's the style of these books. Not essential, but I definitely got some ideas from it that I like.
Many people hate school, but love learning.
A students get stuck in analysis paralysis because they are poorly emotionally developed to deal with failure. This is largely a product of the education system which discourages risk taking as students develop an unhealthy fear of failure.
Many people latch on to job security because they lack emotional development. They let fear trap them.
Building a pipeline versus hauling buckets. Systems and patience vs brute force
True investors make more money in down markets than up markets
If you work hard on the left side of the quadrant (e,s) you’ll work hard forever. If you work hard on the right side, you’ll have a good shot at FI.
Always be mindful as to what column/quadrant the person giving you advice is coming from
Working for a corporation is like getting paid by your mentor
Traditional schools are for those who want to be successful in E and S
The name of the game is debt. Who is indebted to who? The more people you are in debt to, the poorer off you are. The more people in debt to you, the better
Profit is made when you buy, not when you sell
A deal needs to make sense in times good and times bad
Know the difference between facts and opinions. Due diligence is the process of discerning the facts from the opinions in a deal
Assets are only assets if they are cash flow positive, otherwise they are liabilities
Money is a drug, working for money is an addiction that is tough to break, and best not to start
The key to investing is emotional neutrality toward winning and losing
Play it safe isn’t a logical thought, it’s an emotional thought
If you take on debt personally make sure it’s small, if you take in large debt, make sure somebody else pays for it
The name of the game is who is indebted to who
For every liability that you have, you are someone else’s asset￼