What Schools Will Never Teach You About Money By Robert T. Kiyosaki

Changing Quadrants
Before changing quadrants, a person needs to be intimately in 
touch with their core values, because core values define the person in 
each of the different quadrants. In other words, you do not change 
quadrants just for tax reasons.
If you want to change quadrants, take time to define your core 
values before changing. For example:
•
How important is a steady paycheck to you? 
•
Are you a good leader? 
•
How do you handle stress? 
•
Do you have the skills required for the B and I quadrants? 
•
In which quadrants do you have the greatest chances of success? 
•
How important is your retirement? 

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Chapter Two
Unfair Advantage
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If you want to earn more and pay less in taxes, you need to change the 
type of income you work for.
Explanation 
There are three types of taxes for the following three types of income:
1. Ordinary income: highest-taxed income
2. Portfolio income: second highest-taxed income
3. Passive income: lowest-taxed income, possibly zero.
Ordinary Income
• People who have a job or are self-employed work for ordinary income.
• People who save money have their savings work for ordinary income.
• People who get out of debt pay off their debt with ordinary income.
• People who buy a house pay for that house with ordinary income.
• People who have traditional retirement plans, such as the 401(k)
in America, have their retirement money work for ordinary income.
Get my point? People who follow Pavlov’s dog’s financial
training—getting a job, saving money, buying a house, getting out of 
debt, and investing in traditional retirement plans—pay the highest 
taxes, even if it is their money that is working for them.