Do you always think this way when you go to work? You just arrived in work but you can’t wait to go home already. I bet you do! Let me tell you, you are definitely in the Employee Quadrant!
What is Employee Quadrant?
Employee Quadrant is the first part of the Cashflow Quadrant. Cashflow Quadrant on the other hand shows the different kinds of people and how they earn money. By the way I got this concept from the famous Robert Kiyosaki, who is best known as an author of ‘Rich Dad Poor Dad’.
So how do you know if you are under in this section?
1. You want a Secure Job
Even if it may be a janitorial job, fast food crew member, or even the President of a company, if you have a contractual agreement with the company you are working for, then you are an employee.
Basically, you want to have a job that gives good pay and provide excellent benefits. You want a job that gives you more hours to work , for you to earn more money.
You also hate the feeling of fear when it concerns about money. That’s why you make sure that you have a good agreement with your employer about the benefits that you can get. It doesn’t matter if it is a retirement plan or health insurance, as long as you receive additional rewards for your work, then you are fine with it.
2. You Earn on a Weekly Income
Every two weeks, you receive a paycheck that shows how much you have earned during that period. Taxes are deducted to your income, and you can’t do anything about it because it is the law. It is more frustrating if you have no dependents under you because it means more taxes are subtracted in your earnings.
Another thing is that it is hard to ask for a raise from your boss. Most of the time you need to stay for 6 months to more than one year in the company before they entertain your request for a raise.
You may be granted a $3 or 5$ increase but that means that you have to work even more for this raise. Basically, more money equates to more work.
And it doesn’t mean that if you have higher income, you have more money to bring home. Because higher income means higher taxes deducted from you.
3. You have Limited Freedom
What distinguishes you from other people is that you have a Boss. A boss that dictates everything that you need to do at work. You need to follow everything that they say because they are the authority.
You can’t do much at your work place, except work, work and work. Your boss is the one who controls every movement you make, and if it happens that you did something he/she didn’t like, then you are already subject for termination.
Once you work 9-5 a day, you have definitely less time for other things in your life including family, friends and hobbies. Most especially you have no enough time for yourself. When you arrive at home after work, you are already exhausted and just want to go directly to bed.
You already have no time to spend talking yo your family or go out with your friends. The only time that you can do anything is by weekends. But for some, Saturday and Sunday are also a working day.
How to be a Successful Employee?
Now that you already know that you are in the Employee Quadrant. Your next question is how to be a successful employee? The answer is in this diagram.
Shift from the Employee to Business Quadrant!
People often think that when you build your own business, you have to make your own product and do everything for yourself. What they don’t really know is that a real business is a group effort. You need somebody to help you make it real.
A real business can stand alone even if you are not there working. It means that once you have established its foundation, then it can already give you continuous source of income.
However, for most people, shifting from employee to business quadrant is not easy. It is because they are already used to the comfort of going to work from 9-5 and having someone dictate everything that you need to do. This is okay if it is really your passion to work for someone else. But as what we all know, your freedom is limited.
So how do you shift from E to B Quadrant?
The answer is simply follow the SRI Method.
S – Save
Take some part of your weekly income and save it in the bank. Decide how many percent of your check will you put into the bank. I highly recommend 10% – 15% to be saved, but it all depends on your current situation. The point is you should have something to save. And Don’t ever touch it!
Extra tip: Put this money directly to the bank, because temptations are everywhere. The chance the will spend it on something else is very high.
R – Research
After your day time job, spend 1 to 2 hours researching about a business that you want to venture. It may be an online business, real estate, or even stock market. But I recommend that you start with the simplest form of passive income business. The one that you can do at home and in your free time.
I – Invest
Remember in the Saving part, I told you to never touch your money in the bank. It is because, you have to use it for investing into the business that you have researched on.
At first, you may be thinking why will you spend money in building a business if you can just spend it in something else like buying what you want. Let me tell you, make building business your top priority and eventually this will earn you passive income to buy you everything you want.
Let me end this with one question.
Why Stay as an Employee if you can Own your own Company?