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Robert Kiyosaki's Cashflow Quadrant divides people into four types based on their approach to income. The quadrants are Employee (E), Self-Employed (S), Business Owner (B), and Investor (I).
E quadrant individuals are employees who trade time for money. Their strength is job security, but their weakness is limited income potential.
S quadrant individuals are self-employed and own their jobs. Their strength is control over their work, but their weakness is that they are tied to their business.
B quadrant individuals own a system and have people work for them. Their strength is leverage of resources, but their weakness is the risk and complexity of business ownership.
I quadrant individuals invest money in businesses, real estate, stocks, etc. Their strength is potential for high income and tax benefits, but their weakness is the risk involved in investments.
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We all fall within at least one of these quadrants, and each quadrant's members share common characteristics and have different strengths and weaknesses. You can find financial freedom in any of the four quadrants, and you can be rich or poor in any of them, but the particular skills needed in quadrant B or I will help you reach financial freedom more quickly.
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Discover a new approach to wealth management and start with small steps that can eventually lead to substantial assets. Robert Kiyosaki, author of the...
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