THE 4 CASHFLOW QUADRANTS FOR FREE
THE 4 CASHFLOW QUADRANTS PROFESSIONAL

B – Business Ownerīusiness owners don’t just own their job they own a system. Just like an employee, when self-employed people stop working, they stop earning an income. They both pay high taxes and trade their time for money. While an employee works under a management structure, the self-employed person owns their job because they work for themselves.Īlthough being self-employed seems like a huge improvement over being an employee, the two quadrants actually have many similarities. S – Self-EmployedĪ self-employed person is their own boss. And along with self employed individuals, employees pay the most in taxes. If employees don’t work, they don’t get paid. Employees with a high degree of job security have problems to face. In return, employees provide their skills to their employer and trade their time for money.Įmployees prioritize long-term job security, which is decided by their employer. The E quadrant is where most workers reside - an employee who works for a business or organization that provides them with a paycheck and benefits. Let’s take a closer look at each quadrant. It makes you think about how you earn your money and what your work life is like.īy extension, it makes you think about how satisfied you are with your current quadrant. No matter what your goals are, the cashflow quadrant will help you put them into perspective and think about the big picture.įinally, it’s beneficial to simply use the quadrant as an exercise.

THE 4 CASHFLOW QUADRANTS PROFESSIONAL

That’s because it forces you to take a step back and look at your entire professional life. Second, the quadrant is also great for anyone who wants to evaluate (or reevaluate) their career. Kiyosaki calls this the path to financial freedom, which you gain when you stop working for money and start having money work for you. Benefits of Using the Cashflow Quadrantįirst, the cashflow quadrant will help you understand and change the specific quadrant you’re in.Īs Kiyosaki mentions in his book, the quadrant will specifically benefit employees and self-employed individuals who want to become business owners or investors. This will become important later on when we take a look at the four categories. In other words, E and S are paired together, and so are B and I. Second, the cashflow quadrant is split vertically into two halves.

We’ll talk more about these four categories in more depth later on. There are two important things you need to understand about the cashflow quadrant.įirst, the letters each represent a type of worker: What Is The Cashflow Quadrant?įirst, let’s take a look at the quadrant itself:

THE 4 CASHFLOW QUADRANTS FOR FREE

If you’re ready to learn about the cashflow quadrant and how it can help you make pivotal professional changes, let’s get started.įREE Online Class: Get access to one of our best-selling online classes, Developing a Rich Mindset, for free today. It’s a surprisingly simple concept that has an enormous amount of utility for your career. It’s the second book in that series, Rich Dad’s CASHFLOW Quadrant, that we’ll be using as a reference today, exploring Kiyosaki’s “titular cashflow quadrant”. You’ve probably heard of Robert Kiyosaki before: he is one of the most influential business authors today and is best known for his Rich Dad book series, including his 1997 bestseller Rich Dad Poor Dad. The cashflow quadrant, developed by Robert Kiyosaki, is one particularly useful resource you can use to analyze your professional life. This is why it’s helpful to have the resources to evaluate your development and track the progress of your vocation. The best way to evaluate is by using what's called the cashflow quadrant. When’s the last time you took a moment to zoom out and think about the trajectory of your professional life? It’s easy to allow your career to go on autopilot and even easier to lose sight of your goals.

Employee, Investor.Where Do You Want To Be?.Cashflow Quadrant: Becoming An Investor.Benefits of Using the Cashflow Quadrant.

The 4 cashflow quadrants