THERE ARE ONLY 4 WAYS TO MAKE MONEY – HOW DO YOU DO IT?

   

If you've read any of Robert Kiyosaki’s books, attended one of his seminars, or watched one of his video clips online, then you've most likely seen the diagram below before. He calls this diagram the Cash Flow Quadrants. This diagram illustrates the 4 ways to make money. 

E stands for Employee. You work for someone else.

S stands for Self-Employed. You work for yourself.

B stands for Business Owner. You have other people working for you.

I stands for Investor. You have money/assets/investments working for you.

Essentially, these quadrants represent the 4 different ways that a person can create income. See diagram below:

The diagram above reveals some information worth repeating…

1. 95% of the population has only 5% of the wealth.

2. 5% of the population has 95% of the wealth.

3. 95% of the population trades their TIME for money.

4. 5% of the population uses LEVERAGE to make money.

There isn't anything right or wrong about each of these quadrants. In reality, society requires people in all 4 quadrants in order to function properly. If everyone were a business owner, who would be an employee?

But the point is this:

In order to WIN at the game of creating wealth, you need to play the game from the right quadrant.WHAT CASH FLOW QUADRANT ARE YOU IN?

If your income is produced in the E and S cash flow quadrant, the odds of creating substantial wealth are against you.

Why?

Because you only have so much time you can trade for money. Immediately there is a ceiling on your earning potential. You have no leverage. If you want to make more money, you have to trade more time. If you stop working, you stop getting paid.

Next time you have the pleasure of speaking with someone who has built substantial wealth ask them how they did it. There response will likely not begin with the words: “I work for…”

Instead, their response will likely begin with words such as “I own…” or “I built…” or “I invested in…”

Do you see the difference?

They are LEVERAGING something that produces income for them. They are operating from the B and I cash flow quadrants.

So the question is…

What cash flow quadrant are you producing your income from?

Will that quadrant allow you to build substantial wealth AND have the time to enjoy it?

If not, what are you doing to change quadrants?

Nothing changes until you make a change.