#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.


If you had all the money in the world, how would you feel?
There are all kinds of answers, and there are many books out there that try to teach us how to think about money.
Steve Siebold has written one called, “How Rich People Think.” It teaches, much the way Napoleon Hill teaches in “Think and Grow Rich,” or Robert Kiyosaki in “Rich Dad, Poor Dad,” that we have to look at how we think before we can get rich.
Sure, you can inherit a bunch of money from your late great aunt, or you can win a big lottery jackpot. But, chances are, if you have what Siebold calls “middle class thoughts” about money, you probably won’t have your fortune for very long.
Most of us have been taught that hard work, a good education and keeping your nose to the grindstone for, say, 40 years will help you retire comfortably.
But if you think like a rich person, you are not thinking about having enough money to retire, as Siebold writes. You are thinking about having enough money to make an impact on the world.
In other words, to be rich, you have to think of solutions to problems, and invent them.
Most of us were taught that if we had a job, or something else that was paying us, we had to worry about holding onto it. Rich people will try things, fail numerous times, and try something else. They don’t fear failure or loss. In fact, they don’t fear much of anything. Even if they lose their fortunes, they know they will find a way to make them back.
That may be why it’s difficult to really punish white-collar criminals. They used their genius for evil, and most of us would like nothing more than to see them lose everything. Even if they lost everything, they would find a way to make it back – hopefully in an ethical, law-abiding way this time.
Yes, we all would like to have a lot of money. Some of us believe it is not possible for us to get a lot of money. It’s possible for anyone to get a lot of money, just by thinking the right thoughts. You don’t think about who would give it to you. You think about how you can come up with the idea that people will pay you for.
Then, you think about how you can use and grow that money. As Siebold writes, middle-class people think about how to spend money. Rich people think about how to invest money.
Most of us have been taught to get a good education – get through high school, go to college, get a degree in something that will get you a good job. Rich people, Siebold says, don’t think of education in terms of degrees. They think of education as learning anything that will make them money. Some of the richest people in the world have relatively little formal education. They’ve just thought about ways to make money, learned what they needed to pull it off and gotten rich.
Do you think like a rich person? Do you think like a middle-class person? Do you think of making money via a job, or making money via an idea? Once you get money, do you think more of ways to spend it, or more of ways to invest it?
As you ponder these questions, visit www.bign.com/pbilodeau. You will see how some ordinary, middle-class folks got wealthy, and how you could do the same. The only difference between them and you is how they think. It’s difficult to become rich, until you first learn to think like a rich person.
Give it a shot. Think what you would do to make a lot of money, and to not just preserve it, but use it to help others. Don’t be jealous or envious of the rich. If you feel that way, remember the best way you can help the poor is not to be one of them.


Are you an E person, an S person, a B person or an I person?
Robert Kiyosaki, with Sharon Lechter, explain the different types of people in their book, “Rich Dad: The Business School For People Who Like Helping People.”
E stands for employee. People in this category usually have a job, and are distressed if they don’t have one. They work for someone else, building someone else’s dream. They are OK with that. They work for money. They have to keep working or the money stops. They look forward to weekends (or days off), vacations and, ultimately, retirement. They’ve resigned themselves to a long, hard road – newly pocked with insecurity since 2008 – until they can retire.
S stands for small business owner. These are rugged individuals, wanting to be their own bosses. Most want their businesses to grow. Some don’t want them to get TOO big, where they can’t run them alone. These individuals believe they are the best and the brightest within their company. Everyone works for them. They may admirably spend their lives building their businesses, shun vacations and hope they will have something valuable enough to sell when they are ready to retire.
The B person owns a BIG business. He has many people working for him. He’s the boss, but some of his employees may be smarter than he. He’s OK with that. In fact, he strives for it. You see, he’s still, and always will be, the boss. (Note: Most CEOs are in the E category. They make a lot of money, but still work for someone else). Those in the B category will own their big businesses until they die. They will probably work in those businesses until they die. It’s financial security, certainly, but where’s the freedom?
The freedom rests in the I category. These folks build wealth, not income. They never have to worry about where their money will come from. They can do what they want. They can go anywhere, anytime for any reason – or no reason at all. They have as much, or more, wealth, as the B person, but they have the TIME the B person does not. These folks have residual income, defined as getting paid over and over again for doing something once. That’s normally associated with people in the movie, TV or recording business getting residuals from reruns. But those in network marketing build initial teams, and help them grow – usually by working with those they’ve brought in to build their teams – and their dreams. The best day of the week for them is the day the weekly check comes in, regardless of what they did the week before.
The Rich Dad book goes into great detail about these types of people, but we’ll sum it up here. The E person craves security. He may envy the rich, or criticize the rich, but never see himself as rich. You can put a fortune in front of him, and he may never see it, or may fear it. Some may make good money at their jobs, but they are still working for someone else.
The S person sees HIMSELF as the catalyst for his life/business. People may help him get rich, but that task is so consuming to him and he doesn’t have time to help others. The important thing for him is that he is beholden to no one. He may tell others what to do, but no one – save, perhaps, a spouse or parent – can tell him what to do. Often, this person’s ego can take over his life.
The B person’s success is undisputed. He is among the fortunate in life. But his fortune comes at a price. He has little time for anything, other than business – or making money. He hopes he doesn’t die before he can relax.
The I person is the dreamer. He dreams not just of financial freedom, but also time freedom. He works for time, not money, though money gives him time. He builds his big dreams by helping others do the same. Chances are, he’s in network marketing, if he’s not in show business. Although, network marketing IS show business. You SHOW others how to do what you are doing.
If you see yourself as an I person, visit www.bign.com/pbilodeau. It may be the financial freedom vehicle you’ve been looking for. If you are among the other types, and REALLY WANT to be an I person, it would be worth your time to check out the site as well.
We are who we are, but can become who we want. But you have to WANT to become who you want. You can be an E, S or B, and work toward becoming an I – if you want. Many work full-time on their jobs or businesses, and work on their fortune and freedom as a sideline – until the fortune kicks in. Then, they grab the freedom. They say, goodbye E, S or B. Hello, I.


Debbi Fields loved to bake chocolate chip cookies. Little did this California housewife know that her hobby would become a big business – Mrs. Fields.
Ken Hannah started a steak house restaurant in Massachusetts. But it was his homemade salad dressing that would become his empire – Ken’s salad dressing.
We often dream that our hobbies, our passion or something we create would earn us great wealth. It happens rarely, so most of us have to be content with just loving our avocations. If we turn them into an income stream, that’s a bonus.
But there is hope for all of us – even those who don’t yet have avocations about which they are passionate. It’s the greatest anti-poverty program in the world for two reasons: it makes average people wealthy AND people get wealthy by helping others get wealthy. It’s known as network marketing.
Robert Kiyosaki, with Sharon L. Lechter, in the series of “Rich Dad, Poor Dad,” books, has written a book titled “Rich Dad: The Business School For People Who Like Helping People.” In it, he shows that it’s not the invention itself that makes one rich. It’s the network by which that invention is distributed that makes people rich.
Debbi Fields and Ken Hannah invented something special, but didn’t become rich until that invention was widely distributed. In network marketing, the product(s) have already been invented or created. The average person gets rich by building a network to distribute that product. Here’s the beauty of it: you don’t have to build these networks through anything other than talking to others about it, and showing it to them.
Kiyosaki did not build his fortune through network marketing. But through his research, as his book states, he’s become a fan. Why? You see, many people get rich AT THE EXPENSE of others. They use others’ labor and others’ talent to enrich themselves. Those who made them rich get very few of the spoils.
Through most legitimate network marketing companies, one cannot get rich unless he helps others do the same. Anyone can do it, yet, network marketing is not for everyone, Kiyosaki says. Donald Trump and Warren Buffett also have invested in network marketing companies.
To do anything well, you have to believe in what you are doing. Belief turns to passion. Passion oozes out of you as you talk about your product, and recruit others to work with you. Those who are looking to change their lives will see that passion in you, and want to follow you. The passion becomes contagious, and the people who see your passion and join you, become passionate themselves and attract others. That cycle builds networks that can make everyone in it rich.
Why is it not for everyone? There are lots of folks who NEED something to come into their lives that will change it for the better. But not everyone LOOKS FOR IT! Many are content enough with what they have, even though they envy others who have more. Many others are clearly not content, but even if you put a fortune in front of them, they will never see it. Still others see it as too good to be true, and are so skeptical they won’t get near it – no matter how well they know you, and no matter how passionate you are. To borrow a phrase from the U.S. Marines, you are looking for the few, who will ultimately become the proud (and rich). Along the way, you’ll find the many who will not.
There are many good network marketing companies out there. To check out one of the best, visit www.bign.com/pbilodeau. How will you know that the one you are shown is among the best, and won’t burn you? You can do your own research, of course, but here is your first clue: is the person showing it to you SHOWING, rather than SELLING? How will you know that? He’ll take NO for an answer, and walk away.
He may update you periodically on how he’s doing, if you show some interest, but he won’t keep bothering you. Remember, he’s interviewing you for his business. He’s not looking for any special talent. He’s looking for desire and interest. Sure, he may sell you a product that you will use anyway, and may not want to sell yourself. But he’s really looking for business partners.
The next time someone you know – or perhaps someone you don’t yet know – offers to show you something that they say could change your life, check it out. Say no if it’s not for you. Say yes if you believe it is. But unless your life is so good that you don’t need a change, take a look. Then, decide.