This is the everyday scenario that many of us encounter. But in spite your hard work, you have one question in mind…
Why Are You Not Getting Richer?
Let me tell you,
You Are Working in the Wrong Cashflow Quadrant.
The way you are earning your money is not capable of giving you passive income. Seems confusing right? You work your ass off everyday but you don’t get richer? Don’t be confused because the next illustration will explain what I am talking about.
e – employee quadrant
s – self employed quadrant
b – business quadrant
I – investor quadrant
This Figure is called the Cashflow Quadrant which I learned in Robert Kiyosaki’s famous book, “Rich Dad’s Cashflow Quadrant – Guide To Financial Freedom”. If you have read my About Me page, I gave a glimpse in there on how I bumped into Kiyosaki’s books and how it changed my way of thinking about money and work.
This Quadrant, once thoroughly elaborated will make you think about your current job. And it will also make you think if you still want to stay on that the same work routine everyday of your life.
In Less than 7 minutes, you will definitely understand the meaning of these letters and what it represents.
The 3 Illustrations below will give the summary of the differences in core principles of people in different quadrants.
1. HOW YOU DEAL WITH MONEY
Here’s what people usually say when it comes to money and work.
With the varying words from the varying quadrants, you can say that they have different core values.
They want to feel secure and see it in writing.
Oftentimes, S doesn’t like to have his or her income dependent on other people.
B – BUSINESS QUADRANT
B likes to delegate work.
I – INVESTOR QUADRANT
The I quadrant is the playground of the rich
2. HOW YOU EARN MONEY
Here are the signs that you are working for E, B, S or I Quadrant.
E – EMPLOYEE QUADRANT
You earn monthly income. You also have a boss that takes control of you. Most people are in these quadrant.
S – SELF-EMPLOYED QUADRANT
You are the boss and employee as well. Your income depends on your working time. This means that if you don’t work, then you will have no money. Example of people in this quadrant are the professionals like doctor, engineer, lawyer.
B – BUSINESS QUADRANT
You are the boss but you like to delegate work. You manifest other peoples skills to work for you. This means that even if you don’t go to your work every single time, you can still earn some money. This is where everyone of us should be working.
I – INVESTOR QUADRANT
In this quadrant, instead of you working for money, money works for you.
3. HOW FREEDOM IS ASSOCIATED WITH YOUR MONEY
Every work that you do has its own results. This illustration will show you what results you will get from each quadrant.
As an Employee, you remain running like a hamster in a hamster wheel.
As Self – Employed, Your time is not enough to sustain funds.
As Business Owner, You can Spare some time drinking coffee at Starbucks.
As Investor, Money is Not a Problem
THE MAJOR DIFFERENCE
The Major Difference for the Quadrants are the kind of income they earn. E & S have Active Income while B & I have Passive Income. (Active Income – No Work, No Money; Passive Income – No Work, Still has Money)
Now that you already know what each quadrant represent, It is Clear that B ad I Quadrant makes a huge difference in terms of earning money.
With all of this being presented, I suggest a path the you should take to attain financial freedom.
THE PATH I RECOMMEND
If your an Employee at the present time, Shift to the Business – Owner Quadrant
If you are Self – Employed, Shift also to Business – Owner Quadrant
If your already in Business Quadrant, Shift to Investor Quadrant
Given with the Benefits and Privilege of B and I Quadrant, It is clear on what you should really do.
Start Earning Passive Income – Think Like Billionaire!
Now that you already know what path you should take, the next question is
How Will You Get There?
My next post will tell you the Steps on How to Create Passive Income from Scratch.
Check out the #1 Recommended Work At Home job for beginners!
If you have questions and concerns, just comment it below and I’ll be happy to answer your questions.
Let me hear your experiences on the comments below!
Best Regards,
Hey John, thanks for the great explanation on the different cash flow quadrants. Though I have never seen or heard of these before, they make perfect sense, and your explanation of them made it crystal clear as to why those of us who have been making money online are building up our passive income stream.
As someone who has made money online since 2001, it is always a slow go when starting out but eventually things get better as you continue to keep driving towards that passive income goal. It has been said that, “Entrepreneurship is living a few years of your life like most people won’t, so you can spend the rest of your life like most people can’t.”
No one who has ever made it big making money online has done it without years of hard work and struggle. If anyone thinks they can make a lot of money online within a year without hard work, they will fail. Hard work ALWAYS pays off eventually. You just have to never quit before you achieve success.
Hi Robert!
You’re very welcome! My goal in here is to help people understand about money and how it can work for you. The key to think like billionaire is to start to make passive income. And making a business really takes time. It doesn’t happen in just one night.
By the way, Do you have any trainings/classes that you attended in order for you to know how to start making business online?
Hi,
This is really a great help. That is something that will help me to “Think Like A Billionaire.”
I do appreciate your helpful information.
Eileen
Wow! Fantastic article! Think like Billionaire is what i’m going to start doing. I really found the cashflow quadrant very interesting. I never really thought about things the way you explained them, but it makes a lot of sense now. If I think like billionaire, I will hopefully start see positive results. Passive income sounds so much better than active income. I bookmarked this page and shared on social media, people need to read your article! How long have you been using the quadrant? Do you think like billionaire? Jeffrey
Thanks Jeffrey! To Think Like Billionaire is just the key to so much doors out there. Cashflow quadrant really explains everything thoroughly especially if you are a visual person. The diagrams showed in a simple way on what quadrants you should belong with.
About your question, I have using the quadrant for 3 years now, You can read my About Me page to know about it coz its kinda long story hehe And It is very useful because I see money now differently.
I recommend that we should always think like billionaire. I mean, what you think what makes you as a being. And thinking like billionaire means you are not afraid to try new things. Passive income is what of it. If want to, I have several ways on how you can start earning passive income or you can just check out my #1 recommended become billionaire program.
If you need any help just comment below and I’ll be happy to assist you.
Best Regards,
John
Hey John,
Very interesting article on think like billionaire.
For a lot of people that have never seen the rich dad quadrant it will seem simple enough – the hard part is in the transition though. For a lot of people living pay check to pay check it’s not realistic to just quit their job and start a business.
I may be jumping the gun here, but what are some of the ways that people have done this???
Thanks!
Hi Jonny!
Yes, Those people who live on minimum wage find it hard to find a business because first they lack the budget to start with.
So what I recommend is to stay with your day time job and do your assignment after work. This assignment is researching about the prospect business that you want to invest in. I believe I have tackled about the SRI Method which can be used by almost everyone in order to get out of living on pay check to pay check basis.
If you want to learn more on what I’m talking about, Check out this several ways on how you can start doing what billionaires do. Think Like Billionaire!
Hi John, thanks for this great post, you know I read ‘Rich Dad,Poor Dad’ so many years ago but I think I would benefit more now from it, I had forgotten that I had read it until you mentioned this, funny!! I really like the idea of Wealthy Affiliate being free to start etc, but where do I find the time to fit this in as a single mum working 3 jobs and two children? Also what kind of training do you get for free? Sounds pretty awesome!!
Hi Justine!
It’s my pleasure to share what I have learned especially about passive income.
about your question, It just a matter of time management right? And ofcourse know your priorities. Do you want to have more time for your children? If yes, then start building your financial freedom right now. And you are right, Wealthy Affiliate offers everything that you are finding for for a startup business especially for busy moms like you. Check out my review about Wealthy Affiliate and Learn more on how to start making passive income.
Thanks again for your reply to my comment above! I have been busy since I first read your excellent article on thinking like a billionaire…I definitely want to take action to move from garnering cash from a business setting as I am in now to creating more of passive income basis for my income.
Certainly thinking like a billionaire will only help if I get bust and take action. I have definitely done this…Today I started a new business that is related to my marketing effort. It likely will require some work to get it started, but once that is done, I can expect recurring income (passive) on a regular basis, and this should grow and grow over time,
Do you have any plans on expanding some of your posts into looking at the options for creating passive income online over and above affilate marketing? I am a member of Wealthy Affiliate, and that is heading in the right direction, but truthfully I see this as a longer term solution for creating much passive income.
Thanks again for your excellent article here, you indeed have me thinking like a billionaire! Cheers!
Dave
Hi Dave!
You are welcome! I love to engage with my readers. In this way thoughts are shared from one another.
Anyway, about the expansion of post, Right now I also joined Wealthy Affiliate and it is very good so far. Training are great. People are great. Even the Owner are great. I can’t even think of any online products out there that is as much as supportive and informative as Wealthy Affiliate.
Thanks again for appreciating the article!
Always remember the key to have success is to think like billionaire!
Best Regards,
John
I am glad I still kept my book,
You have made great points for your traffic to understand how to start to think like a billionaire. I liked How to live on minimum wage. I find now a days you seem to have more debt than your wage. thank goodness online marketing is free.
Hi Belinda!
I’m also happy that you kept the book. If you have time continue reading it and get helpful insights from it. Indeed nowadays people have more debt that wage. most especially if the live on minimum wage. But yeah, there are plenty of ways inorder you to escape from the debts that you have. And aside from this you should always tell to yourself to always think like billionaire.
by the way, what online marketing that is free are you using right now?
John,
Good work explaining how to think like a billionaire. Indeed Robert Kiyosaki was on to something there. He is a strong proponent of the OPM method as well. I like how you break things down and explain how it all works.
Great Job
Charlie
Oh by the way John, I was wondering how to transition from the E quadrant to the B quadrant? I see how that would be beneficial, but getting the money to do that is difficult.
Charlie
Nice question Charlie! As I have stated above use the SRI Method. meaning Save, Research then Invest. about your question about where to get the money, i suggest you do the 60-30-10 rule in dealing with your expenses. or better yet if you have plenty of expenses to deal with, you can revise it into 75-15-10. this means that 75% of your check goes to expenses, 15%-savings, 10%-donate to the poor.
It may seem that 15% for savings is too little right? but in the long run it would get big and eventually you can use it to invest in the business that you have researched on. Transition from E to B quadrant is not easy but not impossible. All you have to do is always think like Billionaire.
Hi Charlie!
Thanks for appreciating! Indeed robert Kiyosaki explained everything well and was able to bring the true concept of how to think like billionaire. If you want to start to make passive income, I suggest you have your head start and read this review about the best online business program.
Another great blog, thanks John.
Interesting theory, I had never really looked at it this way. Will definitely look to purchase that book to try to get a more understand of this concept!!
Hi Hayley! Thanks! If you think like billionaire, you will definitely learn the opportunities of having a passive income. By the way, you don’t have to buy the book. I can have you a free ebook if you want. It’s in the last part of the post above. Feel free to have a free copy. Good day Ahead of you!
Thanks Haley!
For the question Is Mark Link affilorama a scam, definitely it’s not but its too expensive if you are tight on budget. Wealthy Affiliate on the other hand is far way more affordable and offers better support system.
I usually want my post to be brief and concise, in that way the reader will directly learn the gist of the review. By the way, If you want to learn more about Wealthy Affiliate, Check out my review about it.
Wow, this really gave me some insight on how to think like billionaires! I never really knew how they approached the everyday life that everyone else goes through, it’s as if they use other people as tools. Thanks for the information! Any suggestions on how to get out of the everyday routine?
Thanks Kyle! Indeed, the key is to think like billionaires. What made them different is that they work smarter, not harder. About your question, Just follow through the SRI Method that I presented above which is to Save-Research-Invest. The important thing to look into is the investing part since there are plenty of scams out there will just waste your money for nothing.
You know what, I know some Legitimate Ways to Make Extra Money. And the #1 way that I recommend is through internet. Your just few clicks away to start building your financial freedom. Goodluck!