Draw up personal income and balance sheet statements to show all your income, expenses, assets, and liabilities.
To start on your path to financial freedom, write down where you want to be financially one year from now and five years from now. The Investor is neutral on wins and losses and only sell a stock when it has peaked or as soon as it starts to slide. They also hold on when it slides down to $5 with hope that price will come back up. People who fear loss buy a stock at $20, then sell it as it rises lest they lose what they gained. Kiyosaki lived modestly for years and worked hard not to pay bills but to acquire assets. You don't become rich when you work hard to make money that you then spend, you become tired. A financially successful Business owner will have the skills, time, and money to support the ups and downs of the Investor. The ideal path to financial independence is to move from quadrant E or S into quadrant B, and from there into quadrant I. Gold is not necessarily the ultimate asset: "Even gold is only an asset if you buy it for less than you sell it for.". Property is only an asset if it generates income through positive cash flow. Even if you pay off your mortgage, your house is still a liability: it has to be maintained, and you have to pay taxes on it. Your mortgage is a liability and a debt that you have to service, not an asset. The secret to wealth is the same as the secret to win the game Monopoly: buy four green houses and then trade up for a large red hotel. With a secure system that produces money for you, you don't need to worry about unemployment. The right side of the quadrant is the safe side. To quote Buffett: "Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway." Don't hand over your investment decisions to an "expert.". The better strategy is to focus on a few investments, not on diversification. But as Warren Buffett advises, diversification is a way not to lose money, rather than a way to make money. E- and S-quadrant stock market investors focus on diversification. The opportunity for real wealth lies in the I-quadrant. 
The Investor, or the I-quadrant, uses money to make money.The Business owner, or the B-quadrant, has a system where other people do the work- like Henry Ford, who surrounded himself with smart people who knew all the answers so that he could concentrate on new ideas.The key to success in this S-quadrant is to know when to get out and move onto something new. Nationally, nine out of ten such businesses fail in the first five years, mostly due to a lack of experience and capital. Self-employed is the riskiest quadrant.They essentially own their job and is likely a hardcore perfectionist who values independence and expertise.
The Self-employed person, or the S-quadrant, does not want their income to be dependent on other people.This person works within someone else's system to earn money. Employee, or the E-quadrant, values security above all else and seeks the safety of a long-term contractual agreement.Each of these four categories, or quadrants, has its strengths, weaknesses, and characteristics. Everyone can be categorized according to how they get their money: Employee, Self-employed, Business owner, or Investor.Read this book summary to discover a new approach to wealth and risk management and apply your learnings in real life so you can start with small steps that can eventually lead to substantial assets. Do you work increasingly long hours with nothing to show for it, or struggle to have enough left to save after all the bills? Robert Kiyosaki, author of the viral book Rich Dad's Cashflow Quadrant: Rich Dad's Guide to Financial Freedom, explains how anyone can move to the other side of the Cashflow Quadrant and flourish with financial independence as a business owner or investor.
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