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cashflow quadrant


When people are looking at their income, they may be wondering what is Cashflow Quadrant. In order for them to understand this, they will need to take into account what they do for a living and how much money they make.

What Is The Cashflow Quadrant?

The Cashflow Quadrant is concerned with how money is generated. It takes into account a number of issues like education, training, income level, technical skills, types of people, and more. It is the main concept of Robert Kiyosaki who also has a book out in the same name. Some people earn money in a variety of ways so that they will fill up all of the quadrants while other people will only have a spot in one or two of the quadrants.

The Four Quadrants

There are four quadrants that make up the Cashflow Quadrant information. They are as follows:

1. E – Employee

An employee does a job for a company. They are led by other people and they follow a career path that is set up by the company. They make money according to how the company sets up the pay scale and they can get raises from time to time. Employees may or may not receive benefits that will assist them in many ways.

2. S – Self-Employed

For many people, being self-employed is something that they have always wanted to be. They are their own boss and they set up their own hours. Since they are the person that is in charge, they do not have anyone else telling them what to do. They can make a large amount of money and they need to make sure that their taxes are done correctly. For many self-employed people, they have a special skill that they can use to own their own job.

3. B – Business Owner

The people that are business owners own a company or business and they also lead other people that they hire. They have a lot of responsibility and they can make a tremendous amount of money. The wealthiest people in the world are business owners of some sort and they work tremendously hard. They have good business minds and are great at hiring others that can do the work for them. They are constantly looking at better ways to do things.

4. I – Investor

When investors take a look at other companies, they are taking a risk on them. They usually make the best decisions and they help these companies to do well. Since many of them also take part in the hiring of employees, they are also leading people too.

Cashflow Quadrant is a concept that is very important. People find that it can be very helpful to them in many ways. Seeing how incomes, people, and skills come into play can help people to choose careers that they will be very good at. It is something that is used frequently in the business world and many people benefit highly from it on a regular basis.