Robert Kiyosaki’s Cashflow Quadrant
What thought comes to your mind when you see the picture above?
And exactly where do you fit in?
Do you fit in either one of them or all of them?
Or you may want to conquer all of them while you are in only one !!
A lot of possibilities right ??
Let’s just walk through each one of them.
It is a Cashflow Quadrant from a famous book ‘Rich Dad’s Cashflow Quadrant: Rich Dad’s Guide to Financial Freedom written by Robert Kiyosaki. It Explains how anyone moves to the other side of the quadrant. Each of the quadrants has its strengths and weaknesses. As you can see each cashflow quadrant represents a different way to generate earnings , or maybe it can be your current source of earning .
Employee :
An Employee has a secure job through which he makes his regular earnings . The employee gives his time, energy, and skill for the growth of an organization in exchange for monetary benefits. That’s how a source of earning gets generated. But when an employee stops working, their income generation stops too. The long-term lack of control over his earning is a basic problem of the E quadrant.
Self Employed :
Many people get tired of their monotonous desk jobs and start to work for themselves. The self-employed still work but by owning their job. They aren’t dependent on their earning from other people. for instance a doctor or Education institute owner. Many self-employed people earn large amount of incomes, but the same as the employee when they stop working their income stops flowing in too. The difference being they have more control over their incomes along with responsibility compared to an employee.
Business owner :
The Business owners, people in this quadrant have a system of their own and they lead other people. Once the system is set at a pace there is no need to constantly overlook, business can smoothly run on Autopilot. Some of the wealthiest people in the world own a business such as Bills Gates, Jeff Bezos, Gautam Adani, Mukesh Ambani, etc. The Business owners in the initial days go through a rough patch to set up the system but once that is done it is a smooth ride.
.
Investor :
An investor is a person who puts his money into different kinds of assets to generate a passive source of Income. People from the other three quadrants accumulate and generate wealth, they let their money grow and work for them. They Use the money to make more money.
There are multiple paths to financial independence, but most of them ultimately lead to the right side of quadrant B & I .