If you purchase this book without a cover, or purchase a jpg or tif copy of this book, it is likely

stolen property or a counterfeit. In that case, neither the authors, the publisher, nor any of their
employees or agents has received any payment for the copy. Furthermore, counterfeiting is a
known avenue of fnancial support for organized crime and terrorist groups. We urge you to please
not purchase any such copy and to report any instance of someone selling such copies to Plata
Publishing LLC.
Tis publication is designed to provide competent and reliable information regarding the subject
matter covered. However, it is sold with the understanding that the author and publisher are not
engaged in rendering legal, fnancial, or other professional advice. Laws and practices often vary
from state to state and country to country and if legal or other expert assistance is required, the
services of a professional should be sought. Te author and publisher specifcally disclaim any
liability that is incurred from the use or application of the contents of this book.
Copyright 2014 by Robert T. Kiyosaki. All rights reserved. Except as permitted under the U.S.
Copyright Act of 1976, no part of this publication may be reproduced, distributed, or transmitted in
any form or by any means or stored in a database or retrieval system, without the prior written
permission of the publisher.
Published by Plata Publishing, LLC
CASHFLOW, Rich Dad, B-I Triangle, knowledge: the new money and CASHFLOW Quadrant are
registered trademarks of CASHFLOW Technologies, Inc.

are registered trademarks of
CASHFLOW Technologies, Inc.
Plata Publishing, LLC
4330 N. Civic Center Plaza
Suite 100
Scottsdale, AZ 85251
(480) 998-6971
Visit our websites: PlataPublishing.com and RichDad.com
Printed in the United States of America
082014
First Download Edition: November 2013
Second Download Edition: August 2014
Best-selling Books
by Robert T. Kiyosaki
Rich Dad Poor Dad
What the Rich Teach Teir Kids About Money
Tat the Poor and Middle Class Do Not
Rich Dads CASHFLOW Quadrant
Guide to Financial Freedom
Rich Dads Guide to Investing
What the Rich Invest in Tat the Poor and Middle Class Do Not
Rich Dads Rich Kid Smart Kid
Give Your Child a Financial Head Start
Rich Dads Retire Young Retire Rich
How to Get Rich and Stay Rich
Rich Dads Prophecy
Why the Biggest Stock Market Crash in History Is Still Coming...
And How You Can Prepare Yourself and Proft from It!
Rich Dads Success Stories
Real-Life Success Stories from Real-Life People
Who Followed the Rich Dad Lessons
Rich Dads Guide to Becoming Rich
Without Cutting Up Your Credit Cards
Turn Bad Debt into Good Debt
Rich Dads Who Took My Money?
Why Slow Investors Lose and Fast Money Wins!
Rich Dad Poor Dad for Teens
Te Secrets About Money Tat You Dont Learn In School!
Escape the Rat Race
Learn How Money Works and Become a Rich Kid
Rich Dads Before You Quit Your Job
Ten Real-Life Lessons Every Entrepreneur Should Know
About Building a Multimillion-Dollar Business
Rich Dads Increase Your Financial IQ
Get Smarter with Your Money
Robert Kiyosakis Conspiracy of the Rich
Te 8 New Rules of Money
Unfair Advantage
Te Power of Financial Education
Why A Students Work for C Students
Rich Dads Guide to Financial Education for Parents
D
Introduction ....................................................................................................................................1
Chapter One
RICH DADS EMERGENCY CASH-FLOW PROGRAM .............................................................2
Chapter Two
GET STARTED ...............................................................................................................................8
Chapter Tree
SECURED VS. UNSECURED DEBT ..........................................................................................11
Chapter Four
YOUR JOBS NOT DONE ...........................................................................................................12
Chapter Five
FINAL THOUGHT ......................................................................................................................14
contents
1
Introduction
MANAGING YOUR MONEY:
PERSONAL FINANCE SIMPLIFIED
What do you do when you fnd yourself in a hole? Stop digging.
Anonymous
Before you can start your journey to fnancial freedom, you frst have to pinpoint exactly how much
bad debt you really have. For many people, fguring out how deeply in debt they are is like going to the
dentist. You know its good for you, but its rarely pleasant. Some people give up before they start. Tey
know theyre in a big hole but dont want to deal with it.
If youre serious about building positive cash fow in your life, you have to start with the fundamentals
of fnancial literacy. Heres a quick quiz to get you going. Put a 1 next to any of the following questions
to which you would answer, Yes:
___ Do you routinely pay your bills late?
___ Have you ever hidden a bill from your spouse?
___ Have you neglected repairing the car because of insufcient funds?
___ Have you bought something recently that you didnt need and couldnt aford?
___ Do you regularly spend more than your paycheck?
___ Have you ever been turned down for credit?
___ Do you buy lottery tickets in the hope of getting out from under your debt?
___ Have you put of saving money for a rainy day?
___ Does your total debt (mortgage excluded) exceed your rainy-day reserve?
Add up the numbers in the boxes.______
If your score is 0, thats great! Youre already in control of your cash fow.
If you scored in the 15 range, you may want to think about reducing your bad debt.
If you scored in the 69 range, watch out! You may be headed toward fnancial disaster.
2
Chapter One
RICH DAD'S EMERGENCY
CASH-FLOW PROGRAM
If you really want to gain control of your cash fow, youre going to need three key ingredients:
1. A fnancial statement to know where you are fnancially. (Use the fnancial statement from
the CASHFLOW game, included in the Appendix, to fll out your own fnancial statement.)
2. Personal discipline.
3. A game plan thats going to take you where you want to go.

Is it difcult to change your habits? You bet it is. It depends on you and how eager you are to
take control of your fnancial life.
Remember, you dont have to do any of these steps. However, if you dont, youll just remain
where you are, in the current Rat Race of spending your paycheck on bills that never stop coming.
Dont count on winning the lottery. Its always amazing to me to see how many people think that
winning the lottery is a plan of getting ahead fnancially. Do people really have so little confdence in
their own abilities that they hope for a lottery jackpot?
Lets get real. While you dont have to cut up your credit cards, you do have to exercise discipline
and follow a debt-reduction plan. Te frst two steps in doing this are:
1. Pay yourself frst.
Whenever you get a paycheck, the frst bill you pay is to yourself. Its not the car payment,
the mortgage, or your water bill. Pay yourself a decent bit of money and then immediately
put that money into a separate investment savings account. Dont touch it until youre ready
to invest it in some way.
Note: Trough my years of teaching, Ive come to learn that this concept is one of the
hardest to understand. To grasp this concept one must be in full command of their
emotions, especially fear.
Here is an excerpt about paying yourself frst that I wrote in Rich Dad Poor Dad:
3
Chapter One | Rich Dads Emergency Cash-Flow Program
2. Overcoming bad habits.
Our lives are a refection of our habits more than our education. After seeing the movie Conan
the Barbarian, starring Arnold Schwarzenegger, a friend said, Id love to have a body like
Schwarzenegger. Most of the guys nodded in agreement.
I even heard he was really puny and skinny at one time, another friend added.
Yeah, I heard that too, another one said. I heard he has a habit of working out almost every
day in the gym.
Yeah, Ill bet he has to.
Nah, said the group cynic. Ill bet he was born that way. Besides, lets stop talking about
Arnold and get some beers.
Tis is an example of habits controlling behavior. I remember asking my rich dad about the habits
of the rich. Instead of answering me outright, he wanted me to learn through example, as usual.
When does your dad pay his bills? rich dad asked.
Te frst of the month, I said.
Does he have anything left over? he asked.
Very little, I said.
Tats the main reason he struggles, said rich dad. He has bad habits. Your dad pays everyone
else frst. He pays himself last, but only if he has anything left over.
Which he usually doesnt, I said. But he has to pay his bills, doesnt he? Youre saying he
shouldnt pay his bills?
Of course not, said rich dad. I frmly believe in paying my bills on time. I just pay myself frst.
Before I pay even the government.
But what happens if you dont have enough money? I asked. What do you do then?
Te same, said rich dad. I still pay myself frst. Even if Im short of money. My asset column is
far more important to me than the government.
But, I said. Dont they come after you?
Yes, if you dont pay, said rich dad. Look, I did not say not to pay. I just said I pay myself frst,
even if Im short of money.
But, I replied. How do you do that?
Its not how. Te question is Why? rich dad said.
4
Managing Your Money
Okay, why?
Motivation, said rich dad. Who do you think will complain louder if I dont pay themme,
or my creditors?
Your creditors will defnitely scream louder than you, I said, responding to the obvious. You
wouldnt say anything if you didnt pay yourself.
So you see, after paying myself, the pressure to pay my taxes and the other creditors is so great
that it forces me to seek other forms of income. Te pressure to pay becomes my motivation. Ive
worked extra jobs, started other companies, traded in the stock market, anything just to make
sure those guys dont start yelling at me. Tat pressure made me work harder, forced me to think,
and all in all, made me smarter and more active when it comes to money. If I had paid myself
last, I would have felt no pressure, but Id be broke.
So it is the fear of the government or other people you owe money to that motivates you?
Tats right, said rich dad. You see, government bill collectors are big bullies. So are bill collectors
in general. Most people give into these bullies. Tey pay them and never pay themselves. You know
the story of the 98-pound weakling who gets sand kicked in his face?
I nodded. I see that ad for weightlifting and bodybuilding lessons in the comic books all the time.
Well, most people let the bullies kick sand in their faces. I decided to use the fear of the bully to
make me stronger. Others get weaker. Forcing myself to think about how to make extra money
is like going to the gym and working out with weights. Te more I work my mental money
muscles out, the stronger I get. Now Im not afraid of those bullies.
I liked what rich dad was saying. So if I pay myself frst, I get fnancially stronger, mentally and fscally.
Rich dad nodded.
And if I pay myself last, or not at all, I get weaker. So people like bosses, managers, tax
collectors, bill collectors, and landlords push me around all my lifejust because I dont have
good money habits.
Rich dad nodded. Just like the 98-pound weakling.
3. Cut Back on What I Call Doodads.
Doodads are those extra things in life that we all crave but really dont need. It might be a fancy
car or going out to dinner at expensive restaurants or really sharp clothes. Whatever your
doodads are, stop that habit of purchasing them impulsively. Admittedly, this is where your self-
discipline and willpower come into play. But if you really want to get out of bad debt, you need
to adopt the old-fashioned virtue of delayed gratifcation.
5
Chapter One | Rich Dads Emergency Cash-Flow Program
I am not changing rich dads advice. While he believed in expanding your means to be able to
aford any lifestyle you want, there are times when you have to stop and take other measures
to get started on the right track. Remember that old saying: What do you do when you fnd
yourself in a hole? Stop digging.
Tere are people barely making it from paycheck to paycheck. To combat this, were going to dig
into the Take Control of Your Cash Flow formula and tips that are designed to help you stop
digging and start a plan for a better fnancial future. Before we start, youll need to be familiar
with the CASHFLOW Quadrant.
Heres a quick explanation of the CASHFLOW Quadrant:
E for employee
S for small business or self-employed
B for big business (500 employees)
I for investor
Te E (Employee)
When I hear the words secure or benefts, I get a sense of who the speaker might be at the
core. Te word secure is a word often used in response to the emotion of fear.
If a person feels fear, then the need for security is often a commonly used phrase for someone
who comes predominantly from the E quadrant. When it comes to money and jobs, there are
many people who simply hate the feeling of fear that comes with economic uncertainty: hence,
6
Managing Your Money
the desire for security. Te word beneft means people would also like some kind of additional
reward that is spelled out, a defned and assured extra compensation, such as health insurance or
a retirement plan.
Te key is that they want to feel secure and see it in writing. Uncertainty doesnt make them
happy; certainty does. Teir internal workings say, Ill give you this if you promise to give me
that in return.
Tey want their fear reduced by the presence of some degree of certainty, so they seek security
and strong agreements when it comes to employment. Teyre accurate when they say, Im not
that interested in money. For them, the idea of security is often more important than money.
Te S (Self-employed)
Tese are people who want to be their own boss or like to do their own thing. I call this
group the do-it-yourselfers.
Often, when it comes to the subject of money, a hard-core S doesnt like to have his or her income
dependent on other people. In other words, if Ss work hard, they expect to get paid for their work.
Ss dont like having the amount of money they earn dictated by someone else or by a group of
people who might not work as hard as they do. If they work hard, they expect to be paid well.
Conversely, they also understand that if they dont work hard, then they dont deserve to be paid
much. When it comes to money, they have fercely independent souls.
Te B (Business owner)
Tis group of people could almost be the opposite of the S. Tose who are true Bs like to surround
themselves with smart people from all four categories: E, S, B, and I. Unlike the S, who doesnt like
to delegate work (because no one can do it better), the B likes to delegate. Te true motto of a B is,
Why do it yourself when you can hire someone to do it for you, and they can do it better?
Te Diference Between an S Type of Business and a B Type of Business
Tose who are true Bs can leave their business for a year or more and return to fnd their
business more proftable and running better than when they left it. In a true S type of business,
if the S left for a year or more, chances are there would be no business left to return to.
7
Chapter One | Rich Dads Emergency Cash-Flow Program
So what causes the diference? Saying it simply, an S owns a job; a B owns a system and then
hires competent people to operate the system. Or put another way, in many cases, the S is the
system. Tat is why they cant leave.
B business owners can go on vacation forever because they own a system, not a job. If the B is on
vacation, the money still comes in.
Te I (Investor)
Investors make money with money. Tey dont have to work because their money is working for them.
Te I quadrant is the playground of the rich. Regardless of which quadrant people make their money in,
if they hope someday to be rich, they ultimately must come to the I quadrant. Its in the I quadrant that
money becomes converted to wealth.
8
Chapter Two
GET STARTED
Okay, now that you have an understanding of the CASHFLOW Quadrant and gotten an idea of
where you want to be, its time to discipline yourself and take control of your cash fow.

Take Control of Your Cash Flow
1. Fill out your fnancial statement. Complete it as much as possible. Be honest! Carefully
review your fnancial statement that you just completed.
2. Determine which quadrant of the CASHFLOW Quadrant you receive your income
from today.
3. Determine which quadrant you want to receive the bulk of your income from in fve years.
4. Begin your cash-fow management plan:
Pay yourself frst. Put aside a set percentage from each paycheck or each payment you
receive from other sources of income. Deposit that money into an investment savings
account. Once your money goes into the account, DO NOT take it out until you are
ready to invest it. Congratulate yourself! You have just started managing your cash fow.
Focus on reducing your personal debt.
Te following are some simple and easy-to-apply tips for reducing and eliminating your
personal debt:
Tip #1: If you have credit cards with outstanding balances, keep only one or two credit
cards in your wallet. Keep the other cards out of sight, preferably in a safe or a safety-deposit
box. Any new charges you add to the one or two cards you now have must be paid of every
month. Do not incur any further long-term bad debt.
Tip #2: Come up with $150 to $200 extra per month. Now that you are becoming more and more
fnancially literate, this should be relatively easy to do. If you cannot generate an additional $150 to
$200 per month, then your chances for achieving fnancial freedom may only be a pipe dream.
9
Chapter Two | Get Started
Tip #3: Apply the additional $150 to $200 to your monthly payment of ONLY ONE of your
credit cards. You will now pay the minimum PLUS the $150 to $200 on that one credit card.
Pay only the minimum amount due on all other credit cards. Often people try to pay a little
extra each month on all their cards, but those cards surprisingly never get paid of.
Tip #4: Once the frst card is paid of, apply the total amount you were paying each month
on that card to your next credit card. You are now paying the minimum amount due on the
second card PLUS the total monthly payment you were paying on your frst credit card.
Continue this process with all your credit cards and other consumer credit such as store charges.
With each debt you pay of, add the full amount you were paying on that paid-of debt to the
minimum payment of your next debt. As you pay of each debt, the monthly amount you are
paying on the next debt will increase.
Tip #5: Once all your credit cards and other bad debt are paid of, continue the procedure
with your car and house payments. If you follow this procedure, you will be amazed at the
shortened amount of time it takes for you to be completely debt-free. Most people can be debt-
free within fve to seven years.
Tip #6: Now that you are completely debt-free, take the monthly amount you were paying on
your last debt and put that money toward investments. Build your asset column.
Tats how simple it is.
Other Tips to Help You Get Control
Start paying all your bills on time to avoid any late fees.
Find a credit card with a lower interest rate and no annual or transfer fees. You may want to
consider consolidating your other credit-card debts to that one card. Tis will allow you to
pay less in interest and fees.
Stop using automated teller machines (ATMs) that charge a fee. Tats like paying to use
your own money!


Get a Grip on Your Spending Habits
Get in the habit of paying with cash or a debit card. Keep a credit card for emergencies only!
Learn to stop buying on impulse. Use your willpower to say no!
Shop at wholesale clubs and discount department stores.
Respect your budget! If youve reached the $200 food limit, skip the potato chips and ice
cream. (Its better for you anyway!)
Buy generic medicine or fnd a discount pharmacy.
Start looking for a part-time business or other way to earn a little more income.
Turn your thermostat down. Turn of a few lights to save on your electric bill.
Learn how to make your home as energy efcient as possible.
Check on your insurance policies. See if you can fnd some comparable policies for the same
cost. Raise your deductible to lower your monthly bills.
In short, start getting in the habit of watching how you spend. Give yourself a week and just
check on how much you can save by not buying the expensive shampoo or not going out to dinner.
Lets say you save $30 or $40 a week. Over a month, that comes to more than $100. Over a year,
youre saving $1,200 or moreand thats a nice chunk of change to put towards paying of your
credit cards.
Your goal should be to get out of bad debt as quickly as possible so you can start looking to
a better future and thinking like the rich. Ten you can start buying or building assets that will
generate the passive income to pay for your phone bills, electric bills, insurance policies, and more.
Tat is the Rich Dad philosophy of expanding your means to live the lifestyle you choose.
11
Chapter Three
SECURED VS. UNSECURED DEBT
Tere are two types of debt. Secured debt is debt that has collateral backing it up. Typical examples
would include a home mortgage or a car loan. Unsecured debt is debt without any collateral backing it
up. Tat usually includes credit-card bills, personal loans, and medical bills.
Te very frst debt to try to get rid of is the unsecured kind. In the Rich Dad system, unsecured
debt is most defnitely what we call bad debt, and the sooner you can eliminate it, the more in control
of your fnances you will be. Tat means paying down your credit cards as quickly as you can, along
with any other outstanding debts you may have.
Lets look at credit cards for a moment. Tere is no question that they are a wonderful
convenience. Tere really is no reason to cut them up, as long as you fully understand how they can
lead to real fnancial concerns. For example, many credit cards charge you an annual fee just to have the
card. On top of that yearly fee, they often charge an exorbitant annual percentage rate (APR) on any
money you owe them.
Take a look at your credit cards. Some charge as high as 20 or 25 percent. Youll spend a fortune
trying to pay of credit-card debt if you only pay the monthly minimum fee and it will take forever. Get
in the habit now of paying of new purchases on your credit card each month. Gain control of your
spending and your bad debt and you will increase your emotional intelligence. With greater emotional
intelligence, youll be a better investor.
Te best news is that those individuals who have the willpower to follow these simple measures will
fnd themselves fnancially solid and free of major bad debt within a few years. It may sound impossible
to you in your current fnancial situation, but trust methese measures will work for you.
12
Chapter Four
YOUR JOB'S NOT DONE
Changing bad habits and getting out of debt is how you learn to manage your money. Its a
great place to start on your journey to fnancial freedom. Its the step you take before you begin
your true education.
Your next step is to become fnancially educated. Once you get fnancially educated and
understand how debt works, then your next job will be to get into massive debt.
What?!? you say.
I just got out of debt!
Yes, but you just got out of BAD debt. In order to gain wealth, you need to get into GOOD
debt. Its a mind bender for most but stay with me here.
When I was a young man, my rich dad taught me one of lifes most valuable fnancial lessons
the diference between good debt and bad debt. Like most things, debt in-and-of-itself is not bad.
Its how you use debt.
My rich dad explained it this way: Many things can be both good and bad depending on how
you use them. For instance, drugs can be good if theyre prescribed by a doctor and taken according
to direction. Tey can be bad if you overdose on them.
Guns can be good if you understand gun safety and use them for sport or to protect your family.
Tey can be bad if a bad person uses them to commit crimes.
And debt can be good if you are fnancially intelligent and use debt to create positive cash fow.
It can be bad if youre fnancially unintelligent and use it to acquire liabilities. All things can be good
or bad depending on how you use them.
When people say one thing is always bad, they do so either out of fear and ignorance or to take
advantage of someone elses fear and ignorance. When so-called fnancial experts tell you that debt
is bad, theyre appealing to peoples fear and ignoranceand possibly exposing their own.
Many of these experts know the diference between good debt and bad debt. Tey withhold
that information from their clients because its easierand far more proftable for themto preach
the traditional wisdom of go to school, get a good job, save money, buy a house, and invest in a
diversifed portfolio of stocks, bonds, and mutual funds.
Tere is a perceived risk with using debt, and so, rather than educate, many choose to placate
and collect a buck in return. Te problem is that the old fnancial wisdom, the old rules of money, is
riskier than ever. Savers are losers and the middle-class is disappearing.
13
Chapter Five | Your Jobs Not Done
You have a choice: Live in ignorance and fear and sufer the pain that will come from that
decision as the debt crisis wipes out the middle-class or gain fnancial knowledge and courage and
learn to play by the new rules of money the rules where asset-buying debt is good and taxes guide
you to wealth.
Boost Your Monthly Income with the Help of a
Rich Dad Coach
EXCLUSIVE OFFER*: Act now and get 6 months FREE coaching with any new
program and our service warranty: If you complete the participant
requirements as outlined in your program materials and have not
completed a personal investment action plan to achieve your financial
goalsthen, upon your requestwe will extend your program time.
We will continue to work with you at no additional charge until you complete
your personal investment action plan.
Call today at 1-800-240-0434, and ask for ext. 7256 to take advantage of this exclusive offer
or visit www.richdadcoaching.com/ebook to get started. *Based on availability.
14
Chapter Five
FINAL THOUGHT
Managing your money is only the beginning. Are you brave enough to continue your journey to
fnancial freedom?
Managing your money might be difcult and sometimes confusing, especially at frst. Tere is a
lot to learn, regardless of how much you already know. It is a lifelong process. But the good news is
that the hardest part of the process is at the start. Once you make the commitment and get going,
life really does get easier and easier. Managing your money is not hard to do. You just have to do it.