The Cashflow Quadrant
Posted by Gediminas Grinevicius on Thursday, September 13, 2018 Under: Personal Development
Hey Guys,
Today I wanted to share some financial education I came across more than 8 years ago by reading books of Robert Kiyoasaki about Rich Dad and Poor Dad.
This concept is of the cashflow quadrant. There are for parts to the quadrant:
E - stands for Employee and represents people who are in job that pays hourly or monthly wage
S - stands for Self Employed and represents people who employ themselves
B - stands for Business and represents people who have businesses that employ people
I - stands for Investor and represents people who invest money to make more money.
You see 95% of people in the world are in the E and S quadrants and only 5% of people are in the B and I, however about 95% of wealth is controlled by the 5% of people in the B and I quadrants and only 5% of wealth is controlled by the rest of 95% population.
People in the E and S quadrants only earn 'Linear" income because they are exchanging their time for money, and the only way to earn more money for them is to spend more hours at work because they have no leverage.
People in the B and I quadrants, on the other hand, are using leverage and therefore their income is not dependent on their own time. B quadrant people are leveraging other people time by employing people to work for them and I quadrant people are putting their money to work and are earning money from share, stocks, real estate, commodities and so on.
Most people in the E and S quadrant would like to be in the B and I quadrants but unfortunately they don't have the capital required to invest to have a B business or I investments.
However, there is one more way to get into B quadrant without investing a huge amount of money into a traditional business or a franchise, and that way is NETWORK MARKETING. Network Marketing is a business in a box but with very low entry cost (usually less than £100) but with an opportunity to earn equal to or even greater income than that in the traditional business due to very low overheads.
Gediminas
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Today I wanted to share some financial education I came across more than 8 years ago by reading books of Robert Kiyoasaki about Rich Dad and Poor Dad.
This concept is of the cashflow quadrant. There are for parts to the quadrant:
E - stands for Employee and represents people who are in job that pays hourly or monthly wage
S - stands for Self Employed and represents people who employ themselves
B - stands for Business and represents people who have businesses that employ people
I - stands for Investor and represents people who invest money to make more money.
You see 95% of people in the world are in the E and S quadrants and only 5% of people are in the B and I, however about 95% of wealth is controlled by the 5% of people in the B and I quadrants and only 5% of wealth is controlled by the rest of 95% population.
People in the E and S quadrants only earn 'Linear" income because they are exchanging their time for money, and the only way to earn more money for them is to spend more hours at work because they have no leverage.
People in the B and I quadrants, on the other hand, are using leverage and therefore their income is not dependent on their own time. B quadrant people are leveraging other people time by employing people to work for them and I quadrant people are putting their money to work and are earning money from share, stocks, real estate, commodities and so on.
Most people in the E and S quadrant would like to be in the B and I quadrants but unfortunately they don't have the capital required to invest to have a B business or I investments.
However, there is one more way to get into B quadrant without investing a huge amount of money into a traditional business or a franchise, and that way is NETWORK MARKETING. Network Marketing is a business in a box but with very low entry cost (usually less than £100) but with an opportunity to earn equal to or even greater income than that in the traditional business due to very low overheads.
That’s my training and tip for you. Hope you got value some value in this blog post, if you did, feel free to share it with other people. If you would like more amazing trainings check out “Network Marketing Success Training” group http://titaniumsuccess.co.uk/successtraining.php. There are 10 amazing lessons in this training course that will help you get the breakthrough in your business!
Yours in successGediminas
In : Personal Development
Tags: "cashflow quadrant" financialfreedomtv homebasedbusinesscoach
