This is a review of Robert Kiyosaki’s second book in the Rich Dad series entitled Cashflow Quadrant : Rich Dad’s guide to financial freedom.

The main focus of the book is a small diagram that Robert’s Rich Dad came up with as seen below.  He goes through the process of describing what each part of the diagram means for the person who is in that quadrant (see below).

E (Employee). This is where most people reside.  Those who are employed typically place a high value in job security.

S (Self-employed / small business). Self employed people who work for themselves typically work very long hours and believe they can do something better than the next person.

Robert Kiyosaki  states that it is very hard to become wealthy if your sole means of generating income is derived from the E or S quadrants.

B (Business Owner). The objective is to put systems in place so that you own businesses that other people run and manage.  You leverage their time in order to accomplish more for more people.  When businesses become bigger, are cashflowing well and managed by a good team, the owner simply sits back while the business generates money for him / her.  The key is setting up a good system.

I (Investor). This quadrant is for utilizing some of the more advanced investment tools.  Those who operate in this quadrant have learned how to use money to generate more money, or even how to make money with investments with no money down!

Throughout this Rich Dad series book, Kiyosaki explains why it is important to operate in more than one quadrant if you are seeking financial independence.  His case is strong, and backed by real life examples.

I certainly enjoyed reading the book, and now I am trying to figure out what I can do with my own musical instrument business (S quadrant, although I am also employed and primary income is derived from E quadrant).  I am asking myself the following question.

“How can I move from the S quadrant to the B quadrant through the buying & selling of musical instruments?”

The idea of moving to the B quadrant would be that I could serve more people who are looking to get rid of their instruments, while leveraging other people’s time. Right now I do all the work.  It is me who looks through the classifieds for deals.  It is me that contacts the seller, negotiates a price, then finally drives to the seller’s home to purchase the instrument.

How can I use other people to do this?  Who do I know that can negotiate as well (or better) than I can?  Is there someone I can train?

As yet the answers are unknown!  If you have some ideas for me, please comment below.