![]() There’s another big downside to becoming an employee. If your goal is to retire early in order to enjoy life, this might be a difficult thing to achieve as an employee since you will have to work longer and harder in order to earn a lot of money. But do you really want to start enjoying life when you’re almost at the end of it? Think about that. Some might say they’re working to eventually be financially free when they reach retirement. This is not what financial freedom is all about. This means you have no control over your time and ultimately, your life. That is, to earn more, you need to work more and spend more time doing work. You receive a steady paycheck, subsidized or free healthcare or health insurance, a retirement plan paid for by your company, bonuses, among others.Īlthough becoming an employee is not bad per se, Employees solely rely on effort and time to make a lot of money. There are, of course, perks and benefits of being an employee. This is not necessarily your fault since, for centuries now, our society and educational system have trained us to become “workers”. ![]() they shy away from risk and subsequently see no need to become educated in finance.ĭo you currently consider yourself an Employee? Majority of people around the world are, without a doubt, employees.they seek out work that will provide them with a stable source of regular income and.Typical characteristics of “Employees” are: They usually go to the office everyday, work at least 40 hours in a week, and depend on monthly salary as their primary source of income. The E (“Employee”) quadrant is a classification for people who make money by “working for other people”. What does the E (Employee) quadrant in Robert Kiyosaki’s Cashflow Quadrant represent? Here’s a more detailed explanation of each quadrant. A person who follows these two quadrants can passively make money, that is, even if they don’t spend a lot of time working on the quadrants - sometimes, even if they do not work at all - they can still make a lot of money. In contrast, the right-hand side quadrants, “B (Business Owner)” and “I (Investor)”, are called the Passive quadrants, wherein income is not directly proportional to the time and effort spent. Therefore, to earn money, people in these quadrants must actively work, which is why these two quadrants require a lot of time and effort before one can become rich. The left-hand side quadrants, “E (Employee)” and “S (Self-Employed)”, are the Active quadrants because people have to spend time and effort in order to earn. Where are you currently in the Cashflow Quadrant? These are the quadrants adopted and followed by the rich - which is why they become richer and richer - and something the poor does not understand or does not follow - which is why they continue to be poor. The “Rich Dad’s Cashflow Quadrant” simply talks about four ways to make money. “B” (Business Owner) Quadrant Explained.Let’s learn more about the “Cashflow Quadrant” - the core concept espoused by Robert Kiyosaki in his Rich Dad, Poor Dad series of books. Trust me, they’re a good starting point for your journey towards achieving financial freedom. No need to go through hundreds of pages just to understand how you can eventually retire young and rich!īy the way, if you want your own copy of Robert Kiyosaki’s books, you can get them from Amazon below at discounted prices. Interested to learn more? Read our short and easy-to-understand summary of the Cashflow Quadrant book below. That, simply speaking, is how you can become rich! Guided by the Cashflow Quadrant, my goal ever since has been to move from the left-side quadrants (E and S) to the right-side quadrants (B and I) in order to accumulate passive income and eventually become financially free. ![]() The Cashflow Quadrant book talks about four quadrants representing four (4) primary ways to make money. Ever since I learned the concept from Kiyosaki’s original Rich Dad, Poor Dad book, I have always planned on retiring early and to live on passive income for the rest of my life. The Cashflow Quadrant book has been my personal guide for several years now when it comes to goal setting and personal finance management. The free download offer, unfortunately, was available for just a week but I was thrilled to have finally gotten my own ebook copy at no charge back then.
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