In this article I will explain what is cashflow quadrant and why you must pay attention to it?
This idea of cashflow quadrant was initially brought by Robert Kiyosaki who is a well known Author, Speaker and Financial Expert/Advisor.
When I first heard about word “Cashflow Quadrant”, it made me skeptical as I used to pay less attention to the Financial words.
But later on I again heard about Cashflow Quadrant from the mouth one of my friend saying something like Hey! Have you read the book Cashflow Quardrant? I said No but I have heard about Cashflow Quadrant a lot. My friend recommended me to read this book but I paid no attention to it.
Then again one day I went to my big brother’s house at Bhiwani, Haryana and found that book there. Oh! Again! I asked to my brother how did you find this book? My brother said to me, its a great book to read. I would highly recommend to read it at-least for once.
I took that book and came to my home at Chandigarh cause I was doing my job at Chandigarh and started reading this book.
Really this book opened my eyes. And yes while I was reading this book I got emotional and wept and thought why didn’t I read this book earlier when I was studying at school.
So here is a little glimpse of that book. Hope so you will like it.
Actually this book specially teaches us about Cashflow Quadrant which divides into four parts. See below what are the four parts:-
E = Employee
S = Self-employed
B = Business
I = Investor
Let I explain about E, S, B and I in short separately. Somewhere in life, we come in one of the category i.e. Employee, Self-Employed, Business and Investor. You can find below in which category you stand.
Most of us start out as E, and some never leave this stage. An employee who does job and always faces time and money problem for whole life. He has to think while spending money and time.
There is a opinion about job that your job never let you die hungry and at the same time your job never let you grow in life.
A self-employed is a professional in specific filed. He can be a Doctor, Lawyer, Engineer, Trainer, Teacher, Charted Accountant etc. A self-employed has money just above the Employee but face time problem in life.
A person who runs his own business has more money just above the employee and self-employed. He hires the time of others for his business to grow.
But yes somewhere he enjoys his life in respect of money but face time problem in his personal life.
A investor who have both money and time above the employee, self employed and businessman and enjoy his life fully because he let the money works for him.
He invests the money to make money. For example Warren Buffet, Charlie Monger, Paul Zen Pilzer, Elen Musk etc. are the investors.
So at-least according to this book you have to come in the category of business then shift to Investor.
These above said are my findings that I took from this book. But if you really want to know more about Cashflow Quadrant then I would highly recommend read the book Cashflow Quadrant by Robert Kiyosaki at least for once. Right!
One thing I used to be in E = Employee quadrant but now I shifted to B = Business and I am enjoying to be in that B category.
Really it’s not easy to shift your category as it does require a lot of Courage and strong Willpower.
So which quadrant do you think u come in and what’s your opinion about E, S, B and I quadrant? Let me know in the comment below.
Yes! If you find any value then please do share it with your friends.