#CashFlowQuadrant #RobertKiyosaki #employee #BusinessOwner #investor
The Cash Flow Quadrant.
The concept was created by Robert Kiyosaki, author of the “Rich Dad, Poor Dad” series, among other works.
Basically, Kiyosaki divides all of us, financially, of course, into one of four squares, forming a quadrant. In the two squares on the left side are the people who work hard for their money. In the two squares on the right side are the people who have systems or money that work hard for them.
Let’s look at the left side. The top quadrant is labeled E, for employee. Here are the people who have jobs in which they work hard to make someone else rich. These folks basically trade their time and effort for dollars. The amount of money they get depends on what someone else is willing to give them.
The second quadrant on the left side is labeled S, for solo practitioner, or self-employed, depending on how you look at it. These folks, too, trade their time and effort for dollars, but the amount they get paid can depend on how much time they want to put in, and how much in demand their service is. Though they pay themselves, largely, few of these folks get rich. Hopefully, they are able to set aside some money for insurance, retirement etc.
Moving to the right side of the quadrant, the top square is labeled B, for business owner. Kiyosaki said his “rich dad” called this quadrant B for big business or Bill Gates. Kiyosaki defines a big business as having 500 employees or more.
“Unlike the S, they don’t want to run the company by themselves. They want smart people to run the company for them,” Kiyosaki writes.
The B folks also could have large networks that can help them put gobs of money in their pockets. They may not own a large, bricks-and-mortar business, but they have big organizations that they’ve cultivated, and not only get rich themselves, but do so by helping others get rich in the process.
The fourth square in the quadrant is I, for investor. These are the folks who’ve accumulated lots of money, and are watching it grow exponentially through investing. Think of the “Sharks” on the TV show, “Shark Tank,” as a good example of people who are I’s.
Obviously, the object of the economy, as we in the U.S. know it, is to move more people from the left side of the quadrant to the right side.
Easier said than done, you might ask? Obviously, one can’t move freely from the left to the right. Certain things have to happen – or, better yet, YOU have to make certain things happen.
First and foremost, a person must WANT to move from the left to the right. That desire must be powerful enough to make him do whatever it takes to move – and take however long it takes to move.
Wealth accumulation requires discipline and sacrifice. You might have to give up some of life’s pleasures to get where you want to be. Take your lumps now, and take your pleasure later, as it were. It also, often, requires patience. Sure, there are some folks who inherit a lot of money and become instant investors. Big lottery winners can become instant investors, but often don’t have the discipline to do so. Therefore, many just spend their winnings until they run out of money.
You can also spend years toiling on the left side of the quadrant, putting away a little at a time and never touching it. That requires a good deal of patience.
So, how do you get from the left to the right side of the quadrant in your current situation? You may not need 500 employees, but if you have a big enough desire to move, there are many vehicles that can potentially get you there. To learn about one of the best, message me.
Meanwhile, if you are among those who criticize those who have more money than you, and you continue to toil on the left side of the quadrant, you may need an attitude adjustment, f you want to go to the other side. You may also need a big-enough desire to join, rather than beat, those you now criticize.
A move to the right side of the quadrant could be possible if you BELIEVE you can get there.


Marina Shifrin quit her job for a Taiwanese animator and created a video of her dancing in celebration.
Naturally, the video caught on and was not only an online hit, news organizations showed it repeatedly on television.
Some of us fantasize about quitting our job and celebrating. Perhaps we have a job that we’ve hated, but suddenly find ourselves able to unload it from our lives. Some may come into a little money, so therefore they don’t need to work anymore.
Dancing your way out the door may look like fun to some, but some may need to take pause.
As an employer, would you like to see anyone so happy to quit a job? In Marina’s case, she was fed up with the long hours she was putting in. She made that video at 4:30 a.m. when she finally finished work. In fact, her employer made a follow-up video wishing Marina luck.
If you are an employer and are not bothered by such a stunt, perhaps you need to evaluate your workplace, and how your employees really feel. If you don’t care how they feel, then hopefully all your workers will dance out the door.
Departing a job is often sad. As an employee, you’ve given your heart and soul to something, and for whatever reason you have to leave reluctantly. Or, you get laid off unexpectedly, and don’t know what your next step is. All you know is that you need the paycheck to pay bills.
Leaving a job can be sad, too, because of the people you’ve befriended, but may never see again. Some pleasant workplaces are difficult to leave. Perhaps you are retiring, because you’ve reached a certain age. Yet, though money may not be a problem, you may not know what you’ll do with your time.
We have a barrage of emotions about jobs. There are those who want to spend as little time at work as possible, and more time with the rest of their lives. There are also workaholics, who never leave work, even when they are home. Regardless of your situation, you have a lot of yourself invested in your job.
Even a “dream” job may not be your dream. There may be other things you want to be doing, even if you love your work. If you win the lottery, but say you won’t quit your job, chances are, you will after a while. Let’s hope you have the good sense to manage your good fortune so it can last into perpetuity for your family.
Winning the lottery is not the only way to create a fortune outside of work. For one of the best, visit www.bign.com/pbilodeau. No matter whether you do a happy dance, or leave with great sadness, your job will probably not last forever. Everyone needs a Plan B for when the day comes that work and paychecks end.
We’ve all been told that having a job that you can work at for all of your adult life is the key to success. Those days are not so gradually coming to an end. Jobs come and go, sometimes without you knowing. Just when you think you are valuable enough to your employer that he’ll never want you to go, suddenly, you’re gone. All that hard work you put in suddenly means nothing.
But most people work hard for their own purposes, and their employers benefit. You don’t have to dance out the door from your job, but hopefully you can leave your job with a smile on your face.