Jumia Books CASHFLOW QUADRANT

The mindset and income patterns of the rich are totally different to those of the poor and middle class.

Given the huge difference it makes to our lives, it is astounding that we are given little or no education on money matters at school. The result: millions of financially illiterate people, living from pay check to pay check, at the mercy of others who are financially intelligent.

The lack of actual knowledge is compounded by psychological issues to do with money: We find it difficult to be logical about something that goes to the very core of our survival. In the place of logic is fear, including not wanting to know the true state of our spending and income patterns.

Robert Kiyosaki grew up in Hawaii, where his father was an educator. Disliking the idea of becoming a wage-earning teacher himself, he instead pursued a business career. The irony, not lost on him, is that he later became a passionate teacher through his writings and financial seminars.

His argument in Cashflow Quadrant is that everyone lives out of one of four financial quadrants, which describe both a mindset and a way of making money.