The book I read is “Cashflow Quadrant: Rich Dad’s Guide to Financial Freedom” written by Robert Kiyosaki. In this book, Kiyosaki divided people into four cashflow quadrants by their incomes.

Every one of us, no matter what occupation we have, is likely to choose a job from four quadrants. For example, as a person who makes living by coding, s/he does a full-time job such as a software developer and gets the salary as an employee (E). S/he can also choose to become self-employed and gets income from his or her customers (S). If s/he has a company and hire a few people to work for him or her, then s/he can get the benefits from being a business owner (B). When s/he invests money in the stock market or real state, s/he can earn income as an investor (I).

At first glance, these are just four sources of income, but you may not have noticed that each quadrant actually represents a way of looking at the world and embodies different values of people. Kiyosaki believes that the two quadrants on the left have completely different meanings from the two on the right. In order to achieve financial freedom (having money and free time) as soon as possible, you must be on the right side of the cashflow quadrant, do like what (B) and (I) do.

“What are your values? What is your dream life like? Which quadrant you belong to?” I asked myself while I was reading this book. “Family, friendship, and achievement are my main values. In my dream life, I don’t need to be rich, but having sufficient income and time doing what I want to do. I’m on the left side of cashflow quadrant. I was in (E), and willing to be (S).” So, if I keep staying on this side, when I can get financial freedom?

Generally, we do rely on our hard study and work in the road of life. We have always been taught to study hard in school, get in a good university, and find a good job after graduation. It seems that only finding a good job is the best and only way for us to achieve financial freedom. It is precisely because of this kind of thought that has been instilled in our minds and hearts since we were young. We sometimes turn a blind eye to reality but believe those worldly words. This is really a bit of a stubbornness. I have been following it also till I read this book then I realized that there are really very few ways to achieve financial freedom by being an ordinary employee. Self-employed people might have great potential to move to right side as they already have experience to be business owner and able to gain amount of income but have to scarifies time for the money. It may be more beneficial to get involved in the both left and right quadrants. Anyway, what we should do is to let money work for us, not to work for money, like Kiyosaki suggested.

Changing the mindset is probably the most difficult step for people who wants to transfer from left quadrat to right side. Left side (E) and (S) are kind of comfort zone which are closer our education and background, and also with low risk. Right side (B) and (I) are sounds not for ordinary people. They are for those geniuses and capable people. But actually, we are all same. If you have a dream, clear your goal, make a learning plan, and take action. You can be (B) or (I).  Life is such a short journey, why not make it more exciting.

Meanwhile, it’s also important to overcome the fear of changing and risk taking. Risk is not something have to avoid but to control and master. Therefore, it’s very important to keep learning. Kiyosaki recommends to learning financial skills first. While you are able to read numbers, you can read the meaning behind the data, you can distinguish what are assets, what are liabilities, what is risk, and how to lower the risk. By there, you are not afraid of risk anymore.

I used to think financing is all about boring numbers, and I probably will never work with it. But in fact, numbers can tell a lot, and they are everywhere. For instance, to invest an apartment. If I am told by a house dealer that the apartment is in a good location and price will rise in few years, it will be easy to rent out and it’s a good investment, blablabla. Simply, I will trust him/her because I think s/he is professional. If I don’t buy it, it will be sold to others very fast. Although, the truth is I don’t know anything about it. I don’t know how much I can rent it out. Will rent cover the loan, maintenance, tax, and inflation? If there is renovation, or construction work coming, will it influence the price of apartment? How the economy affects the real state price? What’s the interests of the loan? Will I get profit or loss after all? If no matter how the situation changes, I can always get profit from it, it will be a good investment (my assets or bank’s assets?). Or, it is liabilities. All these facts are based on numbers. If I bought this apartment blindly, I might lose a lot. Investing without knowing whether this is assets, or a liability is more like gambling. Thus, financial skills seem are the base of being a business owner or investor. There is no excuse not to learn financing while having financial freedom dream.

Kiyosaki divided investors into seven levels. Inspired, I set my goal to reach the fourth level. It’s also called conservative investor. To be an investor at this level, it requires to have knowledge of taxation, have investment plan (e.g. control spending habits, minimize the debt, how to increase fortune, monthly investment, return on investment,  how long will take to recover the cost, how long can reach the target, at what age can stop working, etc.). Kiyosaki mentioned, investors of this level usually don’t invest much time on investing but invest in various commodities in the long-term conservatively. Currently, I don’t have much knowledge about investment. By keep learning and making plan, I will start with some small investment in the market. A sentence from book encourages me is, don’t be afraid of fail, because only failure can teach you to grow and improve.

Although I agree most of the opinions from Kiyosaki, I have to admit that not all the people are money driven and willing to have financial freedom one day. There is such amount of people that prefer to do the ordinary job they like and satisfied what they gain from work. Therefore, education is always important even though they don’t always teach students how to do investment or how to be a business owner. There are great people from different quadrant, it is more balance in the society that different people working in their favorite area.

Kiyosaski also told to be your own master and use other people’s time and experience to make money. Simply put, you are your own boss. I’m very happy that I’m studying in the Proakatemia that many people are having same target as me.  I will continue learning and strive to get on the road of financial freedom one day.