The Cash Flow Quadrant

Your profession is what you do to make money. Your business is what makes money for you!

Rich Dad, Poor Dad What makes some people climb the corporate ladder while others bristle at the thought?

Why do some people work hard their entire lives with little to show for it, while others make their money work for them and amass fortunes? According to Robert Kiyosaki in his book The CASHFLOW Quadrant®, it all depends on what part of the quadrant you fall into.

Only five percent of people fit into the right side of the quadrant, while everyone else falls into the left side.

But it doesn't have to be that way. By becoming educated about money, and more importantly, changing your thinking about what it takes to be wealthy, you can work toward the quadrant you want to be in, and through this business, you can help others to do the same.

Learn about each quadrant below by clicking on them

95%
Employed/ Self-Employed

Trading Time For Money Starting Over Every Day At Zero

5%
Business
Owner/Investor

Income Not Dependent On Your Presence

Play (56K) VIDEO:The CASHFLOW Quadrant®: To hear Robert Kiyosaki explain The CASHFLOW Quadrant® analogy.

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Reprinted with permission from: The CASHFLOW Quadrant®
© 1998, 1999 by Robert T. Kiyosaki and Sharon L. Lechter.
CASHFLOW® is a registered trademark of CASHFLOW® Technologies, Inc. All rights reserved.

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E = Employed
An "E" person generates his/her income from a job. Buzzwords for the "E" person include "security" and "benefits." They like the predictability of a steady income and benefits package, and any threat to that security is extremely unsettling. For "E"s, security is more important than money.

B = Business Owner
In many ways, "B" people are opposite of "S" people. They prefer to surround themselves with people who possess the skills they need to get things done. They aren't afraid of investing "sweat equity" into building a strong business that creates a steady stream of "passive" income: income that's based on the efforts of others and generated whether the Business Owner is present or not. Business Owners are willing to take risks if it yields a greater return.

S =Self-Employed
An "S" person is a "do-it-yourselfer." They don't want their income dependent on others. They are self-admitted perfectionists who invest a lot of time to generate income. They are limited by the fact that no one else can do their work for them, so if they fall sick or take a vacation, their business—and their income—stop while they are gone. For them, freedom and independence are more important than money.

I =Investor
Most "I" people began as "B" people, building a strong business with passive income. "I" people don't need to work because they allow their money to work for them by building assets. The "I" quadrant is where money is transformed into wealth. Common phrases you hear from "I" people include "return on investment" and "assets." They generate most of their wealth from their assets, not their actual income.