My suggestion is that you dedicate 1-2 hours a day to learn a skill essential to functioning in the Business Owner or Investor quadrant so that you can eventually make the shift over for your money even if you never intend to quit your job. The idea is to use your time more productively. Homework: There is a concept of time management called time-boxing. You can find yours too as well as long as you remember the systems by which you are making money. I intend to work simply because I enjoy my work.īut I have, and will continue to invest 50% of my monthly income into the stock markets. In my personal view, I don’t ever intend to leave the Employee quadrant. While you’re doing that, learn to invest or build a business and make the move from there once you are financially secure. In other words, work for something beyond the simple salary.
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Robert Kiyosaki also mentions that you should keep your day job, and primarily use your job as a means to educate yourself on the business you want to start or to acquire the skills you want to have. You can stay within the quadrant you are now, as long as your money works in the Business Owner or Investor quadrant as well. What you should be focusing on is how your money is made. It socialises us and surrounds our lives with structure and friends, allowing us to form relationships that could last decades. Gainful employment gives us purpose and drive. I wish to stress that working within the self-employed and employee quadrant is nothing to be shameful about. That’s the reason for trying to make the jump from the Employee or Self-Employed quadrant to the Business Owner or Investor quadrant. They exchange knowledge, skills, and Other People’s Time ( they pay their employees for their time) and Other People’s Money ( they use seed funding or investors’ money)for even more money.Īnd as long as their skills, knowledge and ability to use other people’s time and money is there, their earnings are unlimited. Naturally, since there is limited time and labour that can be produced in a day, their earnings are limited.īusiness owners and Investors don’t exchange time or labor for money. People in the employees and self-employed quadrant typically exchange labour or time for money -which is why people are paid in hours and months or based on projects or project milestones.
![rich dad poor dad cashflow quadrant rich dad poor dad cashflow quadrant](https://wisdomfrombooks.files.wordpress.com/2009/11/cover_cashflow_quadrant1.jpg)
![rich dad poor dad cashflow quadrant rich dad poor dad cashflow quadrant](https://i.ytimg.com/vi/bC1ScfCny38/maxresdefault.jpg)
This is to make sure that we eventually uncap our earnings potential. They key is to make the jump from the Employees or Self-Employed side of the quadrant, to the Business Owner or Investor side of the quadrant. The cashflow quadrant reveals which system we currently use to make money and illustrates both its benefits and drawbacks.
![rich dad poor dad cashflow quadrant rich dad poor dad cashflow quadrant](https://www.parasuniversal.com/wp-content/uploads/2007/12/robert-kiyosaki-cashflow-quadrant-746x576.jpg)
The 2 books pretty much go hand in hand and they teach much of the same things. This was not from his book Rich Dad but rather his book titled Cash Flow Quadrant. #1 – Your System Of Making Money Will Determine Your Wealth 4 different quadrants. I’ve condensed into four very specific points the fundamental concepts behind why I feel the book is so life-changing. The book, while controversial and at points, slightly too cliche in its labelling of people (such as rich, middle class, poor) nevertheless served to open my mind to money and its fundamental role in my life. While I agree that the book has little to no practical advice, I am of the belief that the book’s value lies in a far different field -> that of waking the average, financially illiterate person up. Critics on the other hand often argued that the book was made up of boilerplate “self-help” advise that benefited few people.