Robert Kiyosaki is an investor, businessman, self help author and motivational speaker. He is the author of the ‘Rich Dad, Poor Dad’ series, ‘The Cashflow Quadrant’ and his latest work, ‘The Business Of The 21st Century’. He introduces the four “Cashflow Quadrants” concept in his book.
The CASHFLOW Quadrant is about the four different types of people who make up the world of business. It isdividing into 4 quadrants with 2 sides, namely:
E – Employee
In this quadrant, you are an employee. You are trading your time for money. You spend 8 hours a day to work for money. If you are not able to work due to sickness, accident or retirement, your income stops.
S – Self employed
In this quadrant, you are the self-employed. You are solo and operate by yourself. If you don’t work, you don’t get the money.
B – Business owner
In this quadrant, you own a system and people work for you. You no longer need to invest your own time physically “working”. You have a system that runs on its own that helps to generate income.
I – Investor
In this quadrant you have money work for you. You can invest in different ventures like businesses, stock, mutual funds, real estate and you simple watch over your investments and let the money make money.
Each of us resides in at least one of the four Quadrants of the CASHFLOW Quadrant.
For the people in the left side (the quadrant E and S), they work for security or work for money, whereas for the people in the right side, they work to build assets, while assets formed they don’t have to work longer because their assets work for them. This is a path to obtain financial freedom.
Question: Where is your position? If you had to decide right now, how YOU would make money, which side of the quadrant would you choose?
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