Robert Kiyosaki’s rich dad devised the Cashflow Quadrant (“Rich Dad’s CashFlow Quadrant – Rich Dad’s Guide To Financial Freedom” by Robert Kiyosaki) to describe the different methods by which income or money is generated.
According to this quadrant, here are the different ways different people generate their income:
-Employee (E or upper left quadrant): earns money by working for someone else
-Self-employed (S or lower left quadrant): earns money by working for themselves (i.e., dentists, lawyers, engineers, consultants, actors, Phd’s).
-Business Owner (B or upper right quadrant): earns money from businesses and they don’t have to be employed in this business they own
-Investor (I or lower right quadrant): earns money from their various investments or they have money working for them
To be financially free, one has to move over from the left side (E and/or S) towards the right side (to the B and I). People on the right side of the quadrant have freedom of time to do what they want to do without worrying about money. People on the left side cannot stop working because if they do, they stop generating money. The difference is that simple. Which quadrant are you on?
No comments:
Post a Comment