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4 cashflow quadrant3/31/2024 Overall Performance: Narration Rating: Story Rating:.Armed with the knowledge of the Cashflow Quadrant you will be able to see beyond the veil of safe, secure employment, and begin to seek the knowledge you require to earn true safety in this turbulent economy of our world. It will help nudge you along your journey of getting rich, but it will not carry you the entire way. "This book helps to recondition your mind into seeing the world from different financial perspectives. This book will change the way you think about jobs, careers, and owning your own business and inspire you to learn the rules of money that the rich use to build and grow their wealth. Robert’s rich dad taught him that this lack of financial education is why so many people work so hard all their lives for money… instead of learning how to make money work for them. Robert believes that the reason most people struggle financially is because they've been spent years in school but were never been taught about money. It’s for those who want to make significant changes in their lives and take control of their financial future. It’s the second book in the Rich Dad Series and reveals how some people work less, earn more, pay less in taxes, and learn to become financially free.ĬASHFLOW Quadrant was written for those who are ready to move beyond job security and enter the world of financial freedom. Fine tune your next acquisition to diversify yourself in Quadrant I.Rich Dad’s CASHFLOW Quadrant is a guide to financial freedom. If you are in Quadrant 1, good for you.If you are in Quadrant 2, just know that you are investing in appreciation (shame on you that is not Simple Passive Cashflow that’s called gambling).Where do your investments fall in the Four Quadrants?.If you want to know where the data came from there is none but it is simply my UN-biased opinion (UN-affiliated). I see all these markets as pretty much the same, its just what you are looking for on the appreciation and cashflow sliders. Regarding the above graph: this is my humble opinion of how a few of the popular investor markets relate to each other. For example get some Memphis/Birmingham to offset some Atlanta/Texas. Stay in Quadrant I and diversity within Quadrant I. It’s tough to find real examples but think of places that have positive cashflow and in declining neighborhoods/one economy driver towns. Quadrant IV (below Quad I – South West Quadrant) has negative appreciation and positive cashflow. Example would be Detroit because for all we know they will never figure out the water contaminations problems and you will not cashflow because you are going to have to carry a gun to collect your rent. Quadrant III (below Quadrant II – South East Quadrant) are markets with negative appreciation and negative cashflow. Some examples would be Seattle, California, New York, Hawaii, Portland, or San Francisco (typically <0.5% Rent to Value ratio). Quadrant II (to the left of Quadrant I – North West Quadrant) are markets that have great appreciation however, produce negative cashflow because the rents don’t make up for the high home price/mortgage. These are the markets that investors like as cashflow investments because the income typically covers the mortgage and then some. To put it simply these markets in Quadrant 1, have median home Rent to Value ratios above 1% (a 100k property rents for more than 1000 per month – 1000/100,000=1%). Remember the 4 Quadrants, they are labeled Quadrant 1 in the North East quadrant and Quadrant 2 in the North West…etc. I’m going to take you back to high school math class for a moment.
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