#4 cashflow quadrant free#

It must be learned by taking action, making mistakes and then correcting them. Remember that anything important cannot really be learned in the classroom. And, in every village, town, city and nation, there is a need for people operating in all quarters to ensure the financial stability of the community. Indeed, all four quadrants have their own pros and cons. It is not that people in a specific quadrant are better than the others. Rarely would you see anyone from the left-hand side getting on this list. The Forbes 500 list of the wealthiest people in the world is dominated by large business owners and few investors. They earn rental income, interest, dividend and royalty incomes And, at times, capital gains on their investments. They build multiple streams of income through physical, financial and intellectual assets. The last category of the quadrant is investors, who get money on their money. In fact, a businessman is not wealthy on the profits of the business, they are wealthy because of the valuation of the businesses they own. Along with business profits, they also play valuation games. As time is limited 24 hours a day, they are limited in their earnings.Ī businessman exchanges products/services for money. They exchange money for their intellect and time. The left-hand side majorly have/earn an active income through their hard work. You have to first earn from other quadrants and then deploy your savings to build assets, which generate passive income through investments. You cannot jump into the investor quadrant without being successful in one of the three other quadrants. A typical investor will say something like, “I am looking for an opportunity where my money can work most profitably.” As Mr Ford once said, ‘Thinking is the hardest job.

#4 cashflow quadrant free#

A typical big business owner will say something like, “I am looking for people that are smarter than me to run my business.” Through delegation of work, they are free to think and explore bigger opportunities. To increase their income, they have to devote more time to their work or start charging more for their time invested.īig business owners gain financial success through creating, owning and controlling a profitable business system. I want to be in charge.” These people price themselves for a specific task or on a time basis.

For example – Doctors, Engineers, Lawyers, Singers, Musicians, Architects, trainers can’t delegate their work to someone else.Ī typical small business owner will say something like, “I am looking for a job where I can be compensated well for my skills and time. Also, their specialized skills-set may force them to do the work themselves. The Self-employed strive for independence and control. The Small Business Owner or Self-Employed A typical employee will say something like, “I am looking for a secure job with good pay and excellent benefits.” Kiyosaki states that the entire working population of the world fits into one or more of the four quadrants, depending on their source of income.Įmployees want to play safe with one constant stream of cash flow – salary. If this has piqued your interest, read on. The author breaks down the concept of cash flow and shares his enormous wisdom on money. The ‘Cashflow Quadrant’ is a simple yet powerful book written by American businessman and author Robert Kiyosaki. However, it is clear that to achieve this form of freedom in life, cash flow plays a huge part in it all.

Financial freedom is the way to freedom in life.įinancial Freedom has been a prominent highlight since the COVID-19 pandemic. In reality, humanity is craving for freedom.