![the 4 cashflow quadrants the 4 cashflow quadrants](https://i2.wp.com/oddballwealth.com/wp-content/uploads/2016/06/The-Cashflow-Quadrant-Model.png)
B – Business OwnerĪnother reason why I wanted to start passively investing in real estate was to be able to take off for an extended period of time. Similar to the employee, the self employed is one of the highest categories taxed. If though, you theoretically own your own business, in reality the business owns you. This category is one step better than an employee but those of us that reside here know that we’re still trading time for money. I chose to be self-employed out of training because I wanted to be my own boss. Something else to consider, employees, along with self employed individuals, pay the MOST in taxes. Sometimes people want to stay in this category as it typically has a higher long-term job security. Again, continuing to trade even more time for money. If people in this quadrant want more money and don’t want to move to the right side of the quadrant, they must work MORE hours.
![the 4 cashflow quadrants the 4 cashflow quadrants](https://www.everybodylovesyourmoney.com/wp-content/uploads/2017/03/Cashflow-Quadrant-Infographic.png)
You’re literally making money while you sleep. With passive income, you’re able to leverage people and money to increase your wealth, even while you’re busy doing other things. Unfortunately, most doctors and other high-income professionals NEVER shift to this side which can lead to burn out. This is where we start generating passive income. Kiyosaki states that we need to focus on moving over to the right or the “ rich side” of the quadrant. Each week I’ll send you advice on how to reach financial independence with passive income from real estate. In order for them to make money, they must perform…or they don’t get paid.Įach day they start from zero which reminds me of Bill Murray’s movie, Groundhog Day.Įveryday he started from zero and repeated the same thing over and over again never getting anywhere new in life.ĭon’t Miss Any Updates. Most physicians and dentists are in these categories as you can see from the pictures above that they mainly trade their time for money. They’re either employees or are self-employed.
![the 4 cashflow quadrants the 4 cashflow quadrants](https://aksaragama.com/wp-content/uploads/2021/01/cashflow-quadrant.jpg)
Kiyosaki claims that most people are on the left side or the “ poor side” of the quadrant. Which Side Of The Cashflow Quadrant Are You On? Active Income This will become important later on when we take a look at the four categories. The E and S are paired together on the left side, and B and I are on the right. Next, the Robert Kiyosaki Cashflow Quadrant is split vertically into two halves. Let’s dig into exactly what each side of the cashflow quadrant is all about.įirst, the letters represent a type of worker (I’ll explain what each entails in more detail shortly): Here’s another diagram that I also found to help you visualize the point that Kiyosaki was trying to get across in the book regarding the cashflow quadrant. What Is The Robert Kiyosaki Cashflow Quadrant? The book spoke loud and clear: If I (or anyone else) wants to become wealthy, you had to be on the right – Business Owner and Investor. Not only did I need to move, but I needed to do so as fast as possible. The Cashflow Quadrant made me realize that I needed to move from the left side of the quadrant to the right as the left side was set up for the middle class. It’s a hard pill to swallow to something that we should be doing and the book did just that for me. In the Robert Kiyosaki Cashflow Quadrant, he teaches the four ways people make money: It perfectly explains how our tax system has been setup and how various professionals view the world.
![the 4 cashflow quadrants the 4 cashflow quadrants](https://lesloisdusucces.com/wp-content/uploads/2016/02/Scan_les4quadrants_Robert_Kiyosaki.jpg)
No matter what you’re opinion is of him, I have to admit, the Robert Kiyosaki Cashflow Quadrant makes sense. His four quadrants easily explains the various career paths along with our current tax system structure. If you’ve heard of Robert Kiyosaki, then you’re probably aware that his name is synonymous with real estate investing. Reread that last line until it really sinks in. The only way to really become wealthy is by having your money work for you rather than you work for my money. retire earlier than you thought possible.I’ve always been a visual learner and his core symbol, the cash flow quadrant, was easy to interpret to use as a path for financial freedom. His follow up book, Rich Dad’s The Cashflow Quadrant , contains even more usable ideas that than his original book. One such book, Robert Kiyosaki’s Rich Dad, Poor Dad, changed my way of thinking about personal finance and getting rich. Reading non-fiction books is how I continue to learn and grow in areas I’m passionate about such as building wealth. I now pay attention to how authors paint pictures of stories in order to increase the reader’s engagement. Reading fiction books not only keep me entertained, but also help with developing more creativity while writing. One of the ways that I develop a list of books to read (both fiction and non-fiction) is by asking successful people.