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!
Thanks for the great info on secrets to passive income. I recognize much of what you discuss from Robert Kiyosaki’s board game. He has a wonderful way of communicating what is important.
I also want to thank you for #1 Work at Home Job for Beginners. It sure worked for me!
I love this concept. It is a great demonstration of how to derive the right mindset when it comes to being successful. It makes me want to check out Robert K’s book more in depth. I can now see how this theory can change anyone’s mindset. You are so on point when suggesting “Passive Income” as the way to go. I definitely agree because the cash flow repeats and builds on a steady basis. Thanks for sharing such wonderful value. It’s given me lots to think about. What a beautiful road map to follow to real success. Again, having the right mindset to head in that direction will be the first step…Great post!
No problem. I really wanted to share the teachings that Robert Kiyosaki has shared in all his books. It is such an eye opener. I was able to learn the real advantages of money and how I can use it to work for me. By the way, is it the first time that you heard about passive income?
Actually, I just learned about it two years ago when It was introduced to me by my boss. I think it was the best part of my life because I was able to realize the true way of earning income. That’s why I have also made this website, in order to help people with their financial thoughts problems.
Interesting and clear. My line of thought is generally work-from-home vs work at a job so that you can have enough time to properly look after your family.
But this puts a whole new spin on having the time to properly look after your family. I think I need to research this further. Do you have any suggested articles that would help?
Nicely explained Robert Kiyosaki’s Cashflow Quadrant! It’s very helpful and easy-to-understand. I also like other teachings of Robert Kiyosaki. It’s all about the mindset and beliefs that you have. I think I have managed little by little to change my mindset from employee’s mindset to other sides of the quadrant. 🙂
Hi there! Kiyosaki’s book is really an eye opener. It is also in him that I learned to think like billionaire. Changing your mindset is the key to escape the rat race you are currently on. Of course to think like a billionaire is just the first step. You should also take action and learn how to build your passive income. Good luck and more success to you! 🙂
I absolutely love your article. I especially love the part about the cashflow quadrant because It has the word cashflow in it, lol and thats what we are all after! This is definitely something that I have never heard of. The book that you were referencing, is definitely something that I have to check out.
Do you have any prior experience with making money online?
Thanks! I really want to convey a thought to everyone that learning should not be afraid of. Instead be brave and face it. The beginning is just the start of the hardship. All you have to do is think like billionaire! Actually I don’t have any prior experience making money online. It’s just recent that I enrolled for free in an Internet Marketing University and in a short period of time I learned already so #1 internet marketing university and decide whether its for you. But I tell you, don’t miss the chance of joining for free. You’ve got nothing to lose anyway.
Having passive income is definitely a good thing for people who wanted to achieve financial freedom in the long run. I did read Robert Kiyosaki’s books Rich Dad Poor Dad and Cash flow Quadrant. It was such an eye-opening moment for me to realize that having a profession is not the solution to wealthness. This guy literally change how we think like a billionaire. Going forward, every opporunity is apparent to me thanks to Robert’s books. I remember he also mentioned the word F.O.C.U.S.
Course of Action
I love this abbreviation. By the way, what are the things you have learnt from the Author of Rich Dad Poor Dad beside what you have mentioned here?
Hi Edy! I totally agree with everything you said. Kiyosaki really made a big help in opening the eyes of people especially about money. One more thing that I learned from him is about how you can start gaining the money you need for your future passive income investments.
He made a point that aside from doing you day time job, you should always give time for your assignments. This assignment he is referring to is researching about the passive income business you want to invest or start with. This activity really helps because you are preparing yourself to slowly get out of the pay check to pay check income you have right now. I have a written an article about this topic, and I coined a method that will help before they start have a business. Check it out in here: Learn the SRI Method!
Have you read other book of him aside from Rich dad and Cashflow Quadrant? He really think like billionaire in his books right?