This diagram which is trademarked is what is known as the Cashflow Quadrant.
The letters in each quadrant represent:
E for employee
S for self-employed
B for business owner
I for investor
“The Cashflow Quadrant explains why some people work less, earn more, pay less in taxes and feel more financially secure than others. It is simply a matter of knowing which quadrant to work from and when.” Robert Kiyosaki.
It is worth reflecting on where you earn your money and it may be in more than one quadrant. The typical traits that go with each of the quadrants are;
- An employee has a job and often needs safety and security. It is what school prepares us for – study hard and get a good job.
- A self employed person wants to do their own thing and be their own boss. They often erroneously see themselves as business owners.
- B are true business owners who unlike the S surrounds themselves with smart people.
- I are the Investors who make money with money. They often do not work as their money works for them.
A couple examples of belonging to more than one quadrant include people that do have a job and at the same time are building a business; or those that are moving to the I quadrant over time while working in one of the other quadrants. You may be working in a combination of quadrants.
Over the next week I discuss each of the quadrants in more detail. I would love you to leave me a comment on which quadrant you are in and let us know if it is more than one.