This quadrant also has the most advantage when it comes to taxes. He also has the advantages to put all his needs to the company’s payables such as Cars, Food, Insurances, Properties, Communications, and other benefits. One good thing about being a Business owner is that he earns from the time and effort of his employees. This is chapter 4 of a multi-part series. They always control all the businesses they have and they can change the direction of the company whenever they want. Author : Robert Kiyosaki This book by Robert Kiyosaki talks about generating cashflow via 4 quadrants : Employed, Self-Employed, Business or Investing. They always have people on the front line to take care of all the work for their idea. These people are visionaries but does not want to be venturing alone. They often create Ideas, and then hire people to systematically implement the ideas they have and hire more people execute it. They hire people to do all the work for them. They are the new Royalty of this generation. Hey, if your Dad gives you a million bucks you can skip right to the I Quadrant but, barring that, most of us will do much better being in the B and it really is attainable if you follow our advice.This quadrant is where the Big Business Owners are. The E and S people may make some money and be able to survive and even put some away but they should strive to be in the B quadrant and, in fact, can do that with some effort and diligence.
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The fact is, MLM and other types of business systems that allow you to make a passive income will give you the free time that you need to truly live your life. This is the truly best “Cashflow Quadrant” but also the hardest to break into, which is why I like B the best. These are the people that use their money to make more money. With B the person who owns a business makes money off of the work of others, the E people, and is able to develop passive income that is not tied to their daily efforts. This, in Kiyosaki’s definition, is someone who owns a business that doesn’t need them to actually physically be there every day to run it. Now we get to the right-hand side, where you can earn significant income!ī, the most important and attainable for the most people, stands for Business Owner. What is the Cashflow Quadrant and Why You need to Be in the B Quadrant In fact, many small business owners work more hours for less pay then an employee. Many times they end up not owning a business but having a business that owns them. The biggest problem here is that, similar to E, S people find that in order to earn more they must work more. S stands for Self Employed and these are people that own their own small business. If they want money they must work and if they want more money they must work more. The reason is that, unless an employee works, they don’t make an income. This, frankly, is the worst way to make money and become wealthy. The way an employee makes money is by performing their job and collecting a wage or a salary. These differences are the key to understanding everything about money. So what is the Cashflow Quadrant? Basically it’s a teaching guide that shows anyone interested in learning about money the best way to make it, and it has 4 quadrants that explain the 4 different types of earners and the differences between them. It was an international sensation and opened the eyes of millions of people to the true facts about working and what it means to truly make money work for you. The idea revolutionized the way people thought about work, careers and making money. Robert Kiyosaki invented the Cashflow Quadrant many years ago and introduced it to the world in his book Rich Dad, Poor Dad.
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