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What is the Cash Flow Quadrant Doing in Your Life?


Kevin J Timothy

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Is the Cash Flow Quadrant something you consider in your life?

 

Is it something you apply to your business ventures?

 

Share with us when you were first exposed to it

and how the realization changed you forever.

 

If you are not familiar with the concept, I broke it

down as simply as I possibly could in my post. 

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I read the book when it first was published and even though there was a lot of controversy over it, I thought it was very on target. I went through all four quadrants during my lifetime, starting as an employee in the aircraft factories of Los Angeles, then a self employed computer consultant in Oregon which led to running my own software business, with those three meeting with some success. It's the final quadrant of an investor where I bombed out. I was significantly invested in Intel when it went from the low $60's to half that overnight and I decided to pull the plug on that method of financial risk. Now I am retired and enjoying life, without worrying about getting rich anymore.

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  • 3 weeks later...

I read the book several years back when  it came out .  I found the book extremely helpful in allowing   you to see  where you were if working  or building a business. Also the  different distinctions between each quadrant, allowed you to see where your were as it related to  trading time for money or utilizing a system as pointed out  in the c quadrant or investing in the   I quadrant.

 

The key take away from the  book was did one want to trade all of their time a way working or learn to change quadrants or be in several quadrants. or learn to invest and begin to mind only your business.. As a employee your first line item of expense is

the other guys business then the consumer debt, credit cards, mortgagees, car loans and the list continues. So in effect we are

minding everyone else's business except our own.

 

So the cash flow quadrant is critical to  understanding  where your are and deciding what is the best quadrant to be in  Additionally the  fundamentals should be applied using your financial statement and learning to focus only on your asset column and putting

investments there  to begin generating cash flow which will go up to your income column  and also incorporating your business so  that you can cut expenses and increase your cash flow further.

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  • 8 months later...

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