robert kiyosaki cashflow quadrant summary

The same types of businesses could be run by S owners and B owners. The systems and people who work for the business can run successfully without the business owner’s constant involvement. Those in the B quadrant own a system and lead people. Over the long run this can lead to burn out and fatigue.

As a result, success usually means working harder and working longer. Self-employed people do have a lot more control than an employee, but that also means they have more responsibility. Many self-employed people earn very large incomes, but like the employee, when they stop working so does their income. The S quadrant includes dentists, insurance agents, restaurant owners, realtors, handymen, and many other trade workers. The self-employed still work, but they own their job. Many employees get tired of their lack of control and choose to work for themselves. An employee’s financial destiny, security, and freedom is dependent upon the whim and the success of their employer. This long-term lack of control over income is the primary problem of the E quadrant. But when an employee stops working (or when the business stops), their income stops, too. The employee gives his or her time, energy, and skills to an employer in exchange for a pay check and benefits.Įmployees can make a little or lot of money. The job itself is owned by a business, which could be a single person or a large corporation. This is where most people earn their income. Let me explain a little more about each of the four quadrants: E – EmployeeĪn employee has a job. The majority of Kiyosaki’s book teaches the unique skills and mindsets required to succeed on this path. There are advantages and disadvantages to each.īut the two quadrants on the right side (B & I) are the primary paths to financial freedom. Some people earn money in only one quadrant, while some people earn money in all four. And it’s a powerful one that has guided much of my own entrepreneurial path to seek financial freedom.Īs you can see, each quadrant represents a different way to generate income. It’s the main idea of Robert Kiyosaki’s book by the same name. The CASHFLOW Quadrant represents the different methods by which income or money is generated … Different methods of income generation require different technical skills, different educational paths, and different types of people.”

Robert kiyosaki cashflow quadrant summary