Robert Kiyosaki created the Cash flow quadrant to identify and explain the four ways people can choose to generate cash flow. Each of the four quadrants represents a category of income generation: Employee, Self-Employed, B-Business Owner, and Investor.
Let review Robert Kiyosaki’s quadrant, where he present the 4 ways of making money.
We conclude from this graph that there are 4 ways of making money and we have 2 sides of distribution of wealth in USA. The right side that include 90% of the population is making only 10%, while the right side which is 10% is making the most wealth that is 90% .
We conclude here that time is trade for money, and it’s limited by how many hours you want to trade for money.
Kiyosaki in his book has great knowledge about the financial problems.
- E: represent employee where you have job and paid per hour.
- S: Self-employed where you own a job and you get paid per task.
- B: Business owner, you own a system and people work for you. This category works per relationship.
- I: Investor when money works for you.
Each of the quadrant has pros and cons that must be considered when choosing which quadrant to work within. Every human is in one, or more, of these quadrants, and it’s important to understand how to move from one’s current quadrant into the Business and Investor Quadrants in order to escape the Financial Matrix.