Robert Kiyosaki’s Cashflow Quadrant
It is essential for all people to know Robert Kiyosaki’s Cashflow Quadrant. It gives you a better understanding of which quadrant that suite you the best. Each quadrant owns their pros and cons. I get to know it back to 2008 when I first read Rich Dad Poor Dad Cashflow Quadrant.
Employee : You work for other people and receive wages from them. You don’t have your time freedom as your time is fixed. The higher you climb in corporate ladder, the more stress you have.
Pros : You have stable income every months
Cons: You will never have enough money to spend
Self Employed : You work for yourself since you have certain mastery skill that people don’t have. You have your time freedom as you can decide when to work and not to.
Pros: You have your time freedom
Cons: You don’t have stable income every months as it depends on your work load
Business Owner : You own a business. You are the owner and people work for you. You have your time and money freedom. You create a system that work for you.
Pros: You have time and money freedom as well. You make lump sum of money.
Cons: You need to work and manage too. High risk.
Investor: You invest your money in other people business. Your money is working for you instead of yourself.
Pros: Your money work for you.
Cons: If others people business fell, you fell too. Therefore, you need a good foresight.
Each of quadrants have its pros and cons that suite certain types of people. Some might love to have stable income every months while others will prefer getting salary based on their effort (self employed). If you want to make a fortune in life, make sure you jump into Business quadrant and Investor quadrant.
Own a system is not easy. A successful system requires your consistency even there are failures in front of you.
Being an investor is relatively much easier. But it also needs your continuous learning to equip yourself to minimize your risk exposure.
No matter what, to achieve financial freedom, we should work hard so that we can turn ourselves from the left quadrant to the right.
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Mrcoolku Reply:
July 8th, 2010 at 9:19 pm
Ya, the turning point is important. We need to turn from left to right in order to achieve financial freedom earlier.
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I read robert kiyosaki very thoroughly, i hope you don’t mind i correct you on a few points above:
Employee – The down side of employee is, the income stop when you stop working. After all, it’s not about how much you earn, it’s how much you spend.
Self employed – When you become very good and successful as self employed, usually you are all tied up, think of freelancer. If you are free as freelancer, probably you are out of contract. This is the hardest quadrant.
Business Owner: Risk is only a point of view. RK emphasized on financial literacy. The more we get educated, the lesser the risk, same goes with doing business.
Investor: The essence of investor quadrant, according to RK is becoming selling shareholder instead of buying ppl’s share. Because you cannot control how ppl’s share go, but you know how ur business perform.
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Mrcoolku Reply:
July 8th, 2010 at 9:24 pm
It is great you share your point here. We have our own thinking from different perspective.
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Currently i’m in S quadrant,and eager to turn in I quadrant.The secret to manifest anything you want is livethe part of imaginelife NOW.Now i’m partially creating investment strategy now will turn to my imaginelife
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