Robert T Kiyosaki identifies four groups into which people fall according to how they earn their income. The four groups are represented respectively by the letters, E, S, B and I where E stands for Employee, S represents people that are Self-Employed, B is for Business Owners and I stands for Investors. The diagram on the right summarizes aspects of the Cash Flow Quadrant.
In his book, Rich Dad’s – Guide to Financial Freedom, Robert T Kiyosaki describes the Cash Flow Quadrant as a way of categorizing people based on where their money comes from. I would recommend the book to anyone who wishes to change their financial destiny.
The significance of the Cash Flow Quadrant is that it has a bearing on the theme of our blog, Lifestyle Design and the quest for true financial freedom, because, although it is possible for people in each group to earn a lot of money, it is only the people in the B and I groups that are able to enjoy true time, financial and location freedom. This is because people in these two groups are in the main not tied down by their jobs. They enjoy “passive income” which means that their money works to earn income for them even when they are not present, as compared with the employee or self-employed groups who generally have to be present in order to get paid. The vast majority of people are in the E and S categories and if you are one of those people and you want true financial freedom, then your objective is to move yourself into the Business Owner and Investor groups on the right side of the Cash Flow Quadrant.
Now that you have an understanding of the Cashflow Quadrant, you can determine which one you occupy currently. Do you like the answer you find? If not, begin exploring options to enter into your areas of interest. You may even opt to occupy multiple quadrants at the same time. Determine what is best for you and follow your dreams with a renewed sense of commitment. See you over the top!!! gives you the opportunity to begin to gradually move away from the E and S side of the quadrant to the B and I side, with the absolute best compensation plan on the market!!!
|Robert Kiyosaki is an investor, businessman and best-selling author. His book, Rich Dad Poor Dad, reveals what the rich teach their kids about money that the poor and middle class do not.|
Retiring at the age of 47, Robert continued with his love of investing. It was during his "retirement", he wrote Rich Dad Poor Dad, the #1 New York Times bestseller. Robert followed with Rich Dad's CASHFLOW Quadrant and Rich Dad's Guide to Investing - all 3 books have been on the top 10 best-seller lists simultaneously on The Wall Street Journal, USA Today and The New York Times. In January 2001 Robert Kiyosaki launched Rich Kid Smart Kid.